ExchangeRates.org.uk - At the time of writing the GBP/USD was trading at around $1.2701, down roughly 0.2% from Monday’s opening levels.The US Dollar (USD) strengthened against the majority of its peers at the start of the week as the American currency was boosted by the latest announcement from President-Elect Donald Trump.
Over the weekend, Trump posted that he could impose a 100% tariff restriction on Brics members (which include Brazil, Russia, India, China and South Africa amongst other nations) should they create a new currency or back up any other currency that could replace the US Dollar.
Trump said: ‘We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S.Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S.
Economy.’
This announcement saw USD exchange rates trend higher against the majority of its rivals on Monday.
Although down against the US Dollar, The Pound (GBP) saw little movement against most of its counterparts on Monday, following the release of the UK's final manufacturing PMI data for November.
The index slightly undershot market expectations, registering at 48.0 instead of the predicted 48.6.
However, since the figure was close to the initial estimate, GBP exchange rates remained largely unaffected by the announcement.
GBP/USD Exchange Rate Forecast: US Data to Drive Movement
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate looking to Tuesday will likely be the publication of the US’s latest JOLT job openings data for November.
The index is expected to remain near an almost four year low struck in September, which could see the ‘Greenback’ relinquish the bulk of Monday’s gains should the data print as expected.
Turning to the Pound, the UK will release its latest BRC retail sales monitor for November.
If the data climbs from its previous level of 0.3% to reach 0.7%, then Sterling could find support and strengthen at the beginning of Tuesday's trading session.
This content was originally published on ExchangeRates.org.uk