The pairing stabilised following US President Donald Trump’s announcement that the controversies surrounding the Chinese telecom giant, Huawei, could be bargained “in some kind of trade deal”. Meanwhile Prime Minister Theresa May is expected to state her resignation date as the Conservative leader later on today. Margot James, the Business Minister, sided with Mrs May, saying: “It’s all very regrettable, but she’s being hounded out of office because Parliament will not make a decision and the parties just have an inability to compromise. “But in the end there’s got to be a compromise.”
Mrs May is predicted to announce her resignation during a meeting with the Chair of the 1922 Committee, Sir Graham Brady, while she is reported to be staying in power for the period of the leadership contest.
Today saw the UK retail sales growth figures for April hold steady at 0.0 per cent against March’s 1.2 per cent increase – however this exceeded the consensus of a -0.3 per cent decrease.
The annual retail sales figures for April, however, rose to a better-than-expected 5.2 per cent.
US dollar traders, meanwhile, will be focusing on today’s economic data, with the most influential release being the US nondefense capital goods orders figures for April.
Any signs of a decrease could see the US dollar begin to fall against Sterling.
These will be followed by the US durable goods orders figures for April, which are expected slip against March’s performance.
However, with the US-China trade rift remaining in focus, any signs of a deepening divide between the two superpowers could hit the US economy.
Gita Gopinath, the Chief Economist at the IMF, commented: “US-China trade tensions have negatively affected consumers as well as many producers in both countries. The tariffs have reduced trade between the US and China.”
The pound US dollar exchange rate will likely remain dictated by news headlines over the coming week as UK political turmoil continues to swirl.