As a result of the dollar strengthening the GBP/USD cross dipped to a low of $1.2171 this afternoon, the lowest we have seen the currency pair since the 17th January.
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With today's drop, it means pound/dollar has fallen over three per cent in the past two weeks. Which if we look at in monetary terms, means a transfer of £300,000 into USD today, would achieve around $12,000 less than it did on the 24th February.
GBP/USD graph
When will the pound recover?
It is impossible to say at the moment as we are still in uncharted waters. Even without the prospect of another rate hike from the Federal Reserve, the GBP/USD cross would still be suffering.
Brexit continues to weigh heavily on the value of the pound and until the markets receive some sort of clarity it will be difficult to see the pound clawing back the ground it has lost.
We are still waiting for Article 50 to be triggered, but even once Theresa May gives the go-ahead to leave the EU, we are going to enter into a two year negotiation period and that is also going to cause a huge amount of uncertainty for investors.
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