Pound US dollar exchange rate: GBP flat ahead of Theresa May's last-minute Brexit talks

Theresa May is due to hold last-minute talks with the leaders of Germany and France just four days before the UK is scheduled to leave the European Union. In an attempt to persuade Angela Merkel and Emmanuel Macron to back her request to delay Brexit again until 30 June, Mrs May is heading in turn to both Berlin and Paris. Yesterday, the British Retail Consortium (BRC) revealed that UK consumer spending fell in March due to the late timing of the Easter holiday and concerns over Brexit. Annual like-for-like retail sales fell by -1.1 per cent, with data revealing that total retail sales decreased by 0.5 per cent compared to a 2.3 per cent gain just a year earlier. 

Commenting on the data, Chief Executive of the BRC, Helen Dickinson said: “March marked a truly disappointing end to the first quarter of 2019 for retailers.

No further clarity around Brexit came to light and shoppers continue to waiver.

Retailers will be hoping for an end to this sustained uncertainty – it’s clearly not good for business.”

Meanwhile, Labour MP Yvette Cooper’s Brexit delay bill received its Royal Assent on Monday night, meaning Theresa May will now be legally obliged to request an extension rather than leave the EU without a deal.

Data released on Monday showed that US factory orders fell modestly in February. 

With manufacturing accounting for around 12 per cent of the US economy, the lost momentum, dampened sentiment in the US dollar.

This afternoon, the Federal Reserve’s Richard Clarida is due to give a speech which could cause the dollar to continue to edge down against the pound. 

If Clarida’s tone is dovish and he mentions the slowing of the global economy, sentiment in the dollar could be hit. 

Looking ahead to Wednesday, Sterling could slip against the US dollar following the release of February’s monthly UK GDP figure.

If growth is shown to have stagnated in February as forecast, the pound could fall. 

Also likely to cause movement in the pairing will be Wednesday’s emergency EU summit in which all EU states will vote on whether the UK will be granted a Brexit extension.

source: express.co.uk