The stock market slump at the start of this week, and fears of a US recession , prompted questions from readers on the important issue of what it all means for their holiday money ahead of US trips.I am going to the USA in September for a holiday. Will the fear of a US recession mean that I will get more or less dollars for my British pound?JamesIf the USA enters recession does that mean you will get a better exchange rate from GBP?Sharon392We asked business reporter Daniel Binns to take a look.
In the past few days the pound has recovered a little, and is back up to $1.2764 - but still down overall.What will happen to the value of the pound if the US enters recession?A recession in the world's largest economy will have a global impact – even fears about the possibility sent global markets from Tokyo to London into a mini-meltdown on Monday.However, currency markets are influenced by a range of factors, including important domestic aspects such as interest rates.