Best Exchange Rates

US Dollar Weakened by Doubts over Trump’s Tax Reforms

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD


GBP/USD 1 Week Chart

The Pound’s (GBP) recent recovery was supported by the release of the UK’s latest manufacturing production figures yesterday as output held at 0.4% in August, beating expectations it would fall to 0.2% and offsetting an unexpected rise in Britain’s trade deficit.

Also aiding Sterling was NIESR’s latest UK GDP estimate, with the thinktank predicting that British economic growth will rise to 0.4% in the third quarter, a slight acceleration from 0.3% in the previous quarter.

Looking ahead, a fairly quiet week for UK data will likely see markets focus on the fifth round of Brexit talks, with any suggestions that progress remains slow likely to cause the Pound to weaken.


The Pound Euro (GBP EUR) exchange rate began to retreat in early trade this morning as Catalan leader Carles Puigdemont delayed the implementation of his independence declaration, allowing for more time for talks between the Catalan and Spanish governments.

This built on upbeat German data released on Tuesday which showed that exports from the manufacturing powerhouse boomed in August.

US Dollar

Sterling remained steady against the US Dollar (USD) in overnight trade on Tuesday as doubts over Trump’s ability to implement tax reforms weighed on the ‘Greenback’.

Markets fear that infighting within the Republican Party may hamper the President’s attempts to push through his tax changes, with a growing feud between Trump and Tennessee Senator Bob Corker being particularly concerning.

Meanwhile, USD investors will be focused on the release of the minutes from the Federal Reserve’s latest policy meeting today, with markets hoping that the accounts will reveal more about the bank’s policy plans and whether a December rate hikes is as likely as analysts predict.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate pushed higher again on Tuesday as a larger than expected decline in new building permits issued in August suggests that Canada’s housing market may be slowing at a faster pace than expected.

Australian Dollar

Sterling was forced to cede some ground against the Australian Dollar (AUD) overnight on Tuesday as Australia released its latest Consumer Confidence data, with the index jumping from 97.9 to 101.35 in October, the first positive survey in almost a year.

New Zealand Dollar

After briefly dipping in the Asian session last night, the Pound New Zealand Dollar (GBP NZD) exchange rate returned to trading close to its best levels this week as political uncertainty continues to weigh on the ‘Kiwi’.

TorFX Author: TorFX

“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.” – Jon Beddell (CEO). Contact TorFX for an FX Quote – UK & Europe – Australia & NZ.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

BER Newsletter

Subscribe for the latest exchange rates, currency news and special offers directly to your inbox.

Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Level 2, AMP Tower, 50 Bridge Street, Sydney, NSW 2000, Australia

Disclaimer | Copyright | Privacy Statement


Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.