The pound has lost more ground against the U.S dollar over the course of today, with the currency pair falling to another fresh seven week low of $1.2141. Looking for the best GBP/USD exchange rate? click here.
As you can see from the graph below, Chancellor Philip Hammond's 2017 budget did provide the pound with a small amount of support early this afternoon, however, the gains were quickly wiped out after the U.S. posted a huge employment change figure, which helped strengthen the dollar.
GBP/USD graph
Despite Philip Hammond increasing growth forecasts for the current year and reducing the predicted rates of public debt from his November forecasts, it was not enough to help pound as Brexit and the potential interest rate hike from the Federal Reserve continue to weigh heavily on the GBP/USD cross.
Rate hike on the cards
This afternoon's U.S. employment change report has also helped cement investors' hopes the Federal Reserve will increase interest rates at their meeting next week. If Friday's non-farm payroll jobs figure backs up today's employment reading it should all but guarantee the U.S. central bank will take some action next Wednesday.
If that is the case it leave the door open for the dollar to make further gains against the pound and it is just possible it could force GBP/USD towards $1.20.
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