The pound-US dollar exchange rate is currently on a slow-climb upwards at approximately $1.310, a 0.3 increase from its previous fall due to fears surrounding the EU Brexit deal.
This increase in the value of the Pound follows a drop of over two cents. The decrease happened after discussions over Brexit reached a stand-still at a summit of leaders meeting in Salzburg, on Friday the 21st of September 2018.
The decline in Pound Sterling occurred around the same time UK Prime Minister Theresa May confirmed negotiations between the EU and UK had reached an impasse status, after which she asserted that reaching “no deal is better than a bad deal.” May further released the following statement: “No one wants a good deal more than me, but the EU, should be clear, I will not overturn the results of the referendum, nor will I break up my country.
We need a serious engagement on resolving the two big problems in the negotiations, and we stand ready.”
However, although a deal at this time is looking difficult to obtain, May still argues that it can be completed if the EU shows political leniency and allows itself to negotiate over the UK’s proposals seriously, instead of dismissing them without reason.
The British Pound seems to have bounced back from its previous drop in value after a positive outlook from Dominic Raab, who argues that a good deal is still achievable by all means. The pound is now not only peaking above the US dollar but the majority of its rival currencies as well.
Despite this, the threat of a Brexit without a deal is not good for the British economy, as it is likely to leave many investors hesitant over the upcoming weeks.