Pound US Dollar (GBP/USD) Exchange Rate Hobbled by Trump Brics Tariff Threat

December 3, 2024 - Written by John Cameron

STORY LINK Pound US Dollar (GBP/USD) Exchange Rate Hobbled by Trump Brics Tariff Threat

The Pound US Dollar exchange rate edged lower on Monday as the currency pair was weakened by President-Elect Donald Trump's comment that he might impose a 100% tariff on members of the Bric nations.

The US Dollar (USD) appreciated against most of its counterparts at the beginning of the week, buoyed by President-Elect Donald Trump's recent statement.

Over the weekend, Trump announced that he might impose a 100% tariff on Brics members (Brazil, Russia, India, China, and South Africa, among others) if they were to introduce a new currency or support any other currency aimed at replacing the US Dollar.

Trump's statement read:

'We need a commitment from these Countries that they will not create a new BRICS Currency, nor endorse any other Currency to replace the US Dollar, or they will face 100% Tariffs, and risk losing access to the robust U.S. Economy.'

Following this announcement, USD exchange rates climbed against most other currencies on Monday.

While the Pound (GBP) slipped against the US Dollar, it remained largely steady against most other currencies on Monday following the release of the UK's final manufacturing PMI data for November.

The index missed market expectations slightly, coming in at 48.6 instead of the forecasted 48.0.

However, as the figure was close to the initial projection, GBP exchange rates were mostly unmoved by the news.

GBP/USD Exchange Rate Forecast: US Data in the Spotlight

Looking forward, the main driver of movement for the Pound US Dollar exchange rate on Tuesday is anticipated to be the release of the latest US JOLT job openings data for November.

The index is predicted to stay close to the nearly four-year low seen in September, which could cause the US Dollar to give up most of Monday's gains if the data meets expectations.

Shifting focus to the Pound, the UK is set to release its latest BRC retail sales monitor for November.

If the data rises from a previous reading of 0.3% and hits the predicted 0.7% expectation, Sterling could receive a boost at the start of Tuesday's session.

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TAGS: Pound Dollar Forecasts