admin The pound is currently trading close to $1.290 to the US dollar, within touching distance of yesterday’s two-week high.
However, the pound has been unable to extend gains as US dollar investors turned to the safe-haven currency.
It comes amid reports that the White House is imposing further sanctions on $16bn worth of Chinese goods, bolstering the dollar’s strength at the beginning of today’s session.
The timing of these fresh tariffs is unfortunate, as representatives of the two nations are due to discuss the trade spat this week.
The US dollar endured a difficult session yesterday, following news that US President Donald Trump was implicated in orchestrating hush-money payoffs during his presidency campaign.
These reports stemmed from oath-bound confessions from President Trump’s former lawyer Michael Cohen, who stated that the President had instructed him to pay off two women, presumed to be actress Stormy Daniels and ex-model Karen McDougal.
This extends the shadow already cast over the controversial President, and while it seems unlikely that he will be held immediately accountable, market sentiment was still soured towards US dollar during yesterday’s session.
Although the pound US dollar rate retreated this morning, the pairing remained fairly stable after the Federal Reserve’s latest meeting minutes, which were released late last night.
While these indicated that the Fed was prepared to hike interest rates again in the near future, this was somewhat tempered by their dovish assertion that rates are nearing a neutral level.
The central bank also highlighted trade tension as a potential hindrance, which did little to stoke investor confidence in the US dollar.
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