The Pound remained on the back foot during the Asian trading session after striking an 11-month trough against the greenback on Monday. FX traders are concerned that a hard Brexit is a distinct possibility unless the UK government can come to some sort of trade agreement with the EU which could lessen the severity of the transition. The Dollar is finding some support despite growing trade tensions as some analysts suggest the US economy is better suited than emerging markets to handle the implementation of trade tariffs and protectionist policies.
As reported at 10:48 am (JST) in Tokyo, the GBP/USD was trading at $1.2938, down 0.02%; yesterday, the pair hit a low of $1.2920 before recovering. The EUR/GBP is up 0.09% and trading at 0.89316 Pence; the pair has ranged from 0.89247 Pence to 0.89330 Pence.
US Economic Outlook Unclear
Other analysts are not as convinced that the US economy could recover from the escalating trade conflict. They cite the possibility of slowed growth in the US as a result of the tariffs, and the waning effect of the President's tax cuts which could result in a weaker greenback. Until then, the Dollar remains stronger, generally.