The pound has risen around half a cent against the dollar today, with the GBP/USD cross climbing back above $1.29 to hit an intraday high of $1.2910.Sterling received a boost after the latest polls suggested that Theresa May is on course to record a landslide victory in the general election on the 8th June.
GBP/USD graph
Will the pound/dollar exchange rate break $1.30?
As things stand it is a real possibility, the GBP/USD cross has risen well over six per cent since the middle of March, and I believe there is scope for the exchange rate to climb even higher in the coming weeks.
A lot will depend on how the initial Brexit negotiations go, but if tomorrows Gross Domestic Product (GDP) reading is positive it will give the pound a solid foundation heading into the official divorce talks.
We also have to remember President Trump. Following Trumps surprise election victory, the dollar gained a huge amount of ground after he promised to increase fiscal spending and cut taxes in order to boost the U.S. economy.
However, investors are now becoming concerned that President Trump is not going to be able to deliver and if he struggles with his revised tax plan, we could see the dollar come under pressure.
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