GBP/USD exchange rate dips despite data-light morning
The pound US dollar (GBP/USD) exchange rate is edging lower this morning despite an absence of both UK and US economic data releases.
At the time of writing the GBP/USD exchange rate is trading at around $1.3073, down roughly 0.3% from this morning’s opening rate.
US dollar (USD) to waver following Fed speeches?
The US dollar (USD) is trading sideways against the majority of its peers this morning as a lack of US economic data releases sees the ‘greenback’ struggling to find a clear trajectory.
Despite a lull in domestic data, the acutely safe-haven currency is managing to hold its ground against its riskier counterparts despite this morning’s cautiously upbeat market mood.
However, the US dollar could experience notable volatility moving into the second half of today’s European session as markets await several speeches from a number of Federal Reserve officials.
Amid rapidly changing Fed interest rate cut bets, Friday’s forecast beating employment data severely undermined a 50 basis-point interest rate cut consensus, buoying the ‘greenback’ as a result.
However, should this afternoon’s speeches contain any dovish signals that another whopping 50 bps rate cut is on the table, USD could tumble once again against the majority of its rivals.
In contrast, should Fed officials hint that the central bank will likely enact two smaller 25 bps cuts, USD sentiment will likely climb.
Pound (GBP) directions amid lack of UK data?
The pound (GBP) is struggling to garner investor attention this morning as an absence of UK economic data has seen the pound fail to find a clear direction.
However, the increasingly risk-sensitive currency is drawing some modest support from this morning’s increase in risk appetite, which has seen the British currency remain afloat thus far.
As UK data will be thin on the ground for the remainder of the day, GBP exchange rates will likely remain directionless for the bulk of today’s European trading session.
Looking ahead to tomorrow, the pound could firm against its peers following the publication of some mid-tier UK data.
The British Retail Consortium’s (BRC) retail sales monitor for September is forecast to report a marginal increase in last month’s figure which could underpin GBP exchange rates should the data match expectations.
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