Pound to dollar exchange rate: Sterling climbs BACK against USD on Trump inauguration day
POUND sterling has climbed back against the dollar and the euro after a volatile week for the UK currency.
Farage: Brexit was KEY to Donald Trump’s election win
Sterling has crept back to $1.23 ahead of Donald Trump’s inauguration as President of the United States.
The pound has bounced from the week’s low of $1.20, prior to Theresa May’s Brexit speech on Tuesday.
Thanks to the Prime Minister’s address, sterling recorded one of its best daily performances against USD in over 23 years.
The 12-point Brexit plan wasn’t the only factor to bolster the pound.
Pound to dollar exchange rate: Sterling has bounced back on day of Trump inauguration
UK inflation has increased to a two-year high of 1.6 per cent for December.
Today’s inauguration of the US President-elect stands to sway the value of GBP/USD, dependent on Trump’s comments about fiscal spending and tax reforms.
Lloyds Bank analysts forecast a positive movement of the rate throughout 2017.
According to exchangerates.org.uk, the analysts said: “There is scope for a recovery in GBP/USD back up to around 1.30 by year end.
Pound sterling is buying $1.23 up from $1.20
The pound should be supported by what we expect to remain a relatively resilient UK economy
“The pound should be supported by what we expect to remain a relatively resilient UK economy.
“Meanwhile, there is also scope for GBP/USD to benefit from a weaker US dollar, given that a lot of ‘good news’ surrounding a Trump administration, is already priced in.”
The pound has also surged against the euro, owing to concerns over pressure on the Eurozone.
Currently at €1.16, sterling’s value sits comfortably above the week’s low of €1.13.
Sterling soared to one of its best performances against USD in 23 years after May's speech
purchase programme in the event that Eurozone inflation didn’t improve as hoped.
In a statement the ECB said: "If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”
ECB President Mario Draghi said inflation pressure on the Eurozone was still subdued, which led to a sell off of the currency.
Lloyds has today advised clients the rate could climb as high as €1.21.