Published On: Mon, Feb 11th, 2019

Pound US Dollar exchange rate: GBP/USD drops as Trump delays China meeting


Mr Bullard further stated that the central bank had no need to raise rates further in order to reach job and inflation targets. 

At the same time, President Donald Trump rattled risk markets when he seemed to delay talks with Chinese President XI Jinping deadline of the “trade truce”, commenting about when the meeting would take place: “Not yet. Maybe. Probably too soon. Probably too soon.”

US Dollar traders are becoming increasingly uneasy, with worries that the US markets could see a downturn if the two nations fail to reach an amenable deal over trade. 

Larry Kudlow, the White House economic adviser, said: “At some point the two presidents will meet, that is what Mr Trump has been saying. But that is off in the distance still at the moment.”

Meanwhile, Theresa May heads to Dublin to meet the Irish Taoiseach, Leo Varadkar where the two are expected to discuss the Irish border stalemate, following on from Mrs May’s visit to Brussels yesterday.

Discussions with the EC President Jean-Claude Juncker were described as “robust but constructive” – even though they failed to make any notable progress.

The President of the European Parliament, Antonio Tajani, commented: “We are open to being more ambitious on our future relations, including looking at the Irish situation again if the UK’s red lines change.”

Meanwhile, many pound traders are remaining cautious as the EU has previously stated its reluctance to renegotiate the Irish backstop issue with regards to the withdrawal agreement. 

Yesterday also saw the German finance commissioner, Günther Hermann Oettinger comment that the chances of the Brexit no-deal had now reached a high of 60 percent – further weakening market sentiment in the pound.

There are no significant UK data releases today, however, with the pound remaining sensitive to any political developments instead. 



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