US Dollar (USD)

USD/EUR - Today's data summary

% change
+0.02%
Price Euros
0.9025
Change
0.0000
As of 17:02 22 Aug 2019

USD/GBP - Today's data summary

% change
-1.09%
Price Pound sterling
0.8160
Change
-0.0090
As of 17:02 22 Aug 2019

USD/JPY - Today's data summary

% change
-0.15%
Price Yen
106.4600
Change
-0.1600
As of 17:02 22 Aug 2019

Latest updates

No-deal Brexit fears weigh on pound

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The pound continued to trade lower against the dollar and the euro amid fears about a no-deal Brexit.

Prime Minister Boris Johnson is set to meet with German Chancellor Angela Merkel in Berlin.

Mrs Merkel said on Tuesday that she was open to "practical solutions" regarding the Irish backstop after Mr Johnson called the plan "anti-democratic" and said it must be scrapped.

Marshall Gittler, chief strategist at ACLS Global, says Mrs Merkel comment "was viewed as a possible signal that the EU could be willing to negotiate on this point, but frankly I doubt it".

"I think she was just being polite."

Sterling is 0.32% down against the dollar at $1.2132. It is 0.28% lower on the euro at €1.0934.

Sterling ticks lower

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The pound is trading 0.29% lower against the dollar at $1.2135.

Sterling is also 0.25% down on the euro at €1.0938.

'Brexit noise' buffets pound

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The pound clawed back a little ground against the dollar and the euro by late morning trade but its trajectory is likely to be unsettled.

"More Brexit noise is likely as Europe ‘responds' to Prime Minister Johnson's demands," said Kit Juckes, macro strategist at Societe Generale.

Sterling is down 0.21% against the dollar at $1.2100, and 0.25% lower on the euro at €1.0920.

Pound drops on PM Irish backstop missive

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Sterling fell against both the dollar and the euro after Prime Minister Boris Johnson told the EU that the Irish backstop is "anti-democratic" and must be scrapped.

In a letter to European Council President Donald Tusk, the PM said the backstop - which aims to avoid a hard border - risked undermining the Northern Irish peace process.

The pound fell 0.31% against the dollar to $1.2090. It dropped 0.33% on the euro to €1.0911.

Mr Johnson is set to meet with German Chancellor Angela Merkel tomorrow and France's President Emmanuel Macron on Thursday before world leaders gather at the G7 summit in Biarritz at the weekend.

Elsa Lignos, analyst at RBS Capital Markets, forecasts that sterling could recover.

"We are tactically long [on] GBP in our trade of the week as we feel there is some short term risk of a bounce if this week's talks are not as bad as feared," she says.

Pound slides on the dollar and the euro

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The pound is down 0.24% against the dollar at $1.2119. Sterling is also trading 0.31% lower against the euro at €1.0917.

It is a key week for Boris Johnson who will meet with German Chancellor Angela Merkel and French President Emmanuel Macron on Wednesday and Thursday respectively in the UK Prime Minister's first overseas meetings since his appointment.

He is expected to tell them that there needs to be a new Brexit deal. The UK is now 10 weeks away from the departure date on 31 October.

It comes ahead of the G7 Summit in Biarritz at the weekend.

Marshall Gittler, a strategist at ACLS Global, says: "I expect the pound to be increasingly volatile as the deadline approaches and more and more desperate measures get considered in public and probably even tried in real life.

"Hopes that something will be found to prevent a no-deal Brexit will send the pound up, as they did on Friday, but then the currency will come back down once it's realised that those hopes are unfounded."

Sterling climbs against the dollar and euro

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The pound is trading 0.67% higher against the dollar at $1.2155. It follows better than expected retail figures earlier this week for July which indicated consumer resilience as Brexit approaches.

Sterling was also up against the euro, up 0.67% at €1.0964.

Marshall Gittler, chief strategist at ACLS Global, says: "This suggests consumer spending is still holding up and still supporting the economy even though overall output contracted in the second quarter.

"It ties in with the relatively high wage growth that we sawearlier in the week."

Pound edges ahead

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The pound ticked higher on the dollar this morning, up 0.14% at $1.2076.

Sterling is 0.10% ahead of the euro at €1.0836.

Pound lifted by inflation figures

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PA Media

The unexpected rise in inflation this morning has boosted the pound.

Sterling is now up 0.2% against the dollar at $1.2084, and edging up 0.08% on the euro at €1.0804.

Pound ticks lower on the dollar

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Sterling dropped by 0.23% against the dollar to $1.2048 this morning.

Meanwhile, it is broadly flat on the euro at €1.0765 but banking group ING reckons that the pound could hit 95p against the euro during the third quarter.

It also said there was a growing likelihood of an election.

"Deal or no-deal a general election looks increasingly likely," said ING economist James Smith. "There's a 40% probability of a general election coupled with an Article 50 extension."

Euro weakened by Italian political uncertainty

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Sterling is rising against the euro, as mentioned earlier, in part because the euro is being unsettled by political uncertainty in Italy.

"The collapse of Italy's ruling coalition opens the way for three possible scenarios: new elections, an extension of the current coalition or a new technocratic government. Timing will be crucial, given the proximity to the budget season," say analysts at Dutch bank ING.

That will weigh on the euro, they add.

Late on Sunday, sterling had fallen to its lowest levels against the euro since the financial crisis and hit a 31-month low against the dollar of $1.2015.

The pound is now up 0.5% at €1.0792.

The BBC's story on the political situation in Italy is here. It explains that the heads of Italy's political groups will decide on Monday when to hold a no-confidence vote, days after nationalist leader Matteo Salvini announced he was pulling the plug on the populist coalition government.