British Pound to US Dollar (GBP/USD) Exchange Rate Extends Gains
The British Pound to US Dollar (GBP/USD) exchange rate extended gains after the US Advance Retail Sales report disappointed expectations.
Retail sales had been expected to fall by -0.4% on the month in December following a -0.9% drop in November. However, sales were actually down by -0.8% at the close of 2014.
This less-than-impressive result saw economist David Sloan comment; ‘While consumers are getting more money in their pockets from less money on gasoline, they’re not rushing to spend it elsewhere. I don’t think it’s too troubling. It will take a little bit of time for the consumer to respond to the extra income they’re getting.’
US initial jobless claims also increased by more-than-forecast, rising from 279,000 to 304,000 in the week ending February 7th.
The British Pound to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5361.
Earlier…
GBP/USD Exchange Rate Jumps 0.6%
The British Pound to US Dollar (GBP/USD) exchange rate surged by 0.6% following the publication of the Bank of England’s (BoE) inflation report.
Although the report indicated that the central bank sees no need for an interest rate hike this year, and is in fact prepared to cut interest rates if inflation falls too far into negative territory, the Pound climbed as it was hinted that inflation will begin to strengthen at the end of 2015.
BoE Governor Mark Carney was also upbeat regarding the state of the UK economy.
He asserted; ‘The combination of raising wages and falling energy and food prices will help household finances and boost the growth of real take-home pay this year to its fastest rate in a decade. This will support solid growth in consumer spending.’
The British Pound to US Dollar (GBP/USD) exchange rate achieved a high of 1.5342
Earlier…
The British Pound to US Dollar (GBP/USD) exchange rate could breach the 1.53 level today depending on the content of the BoE’s inflation report.
GBP/USD Exchange Rate to Gain on UK Rate Hike Bets?
Influential US and UK data was lacking yesterday, leaving the British Pound to US Dollar (GBP/USD) exchange rate to trend in a narrow range.
However, the Pound advanced modestly against the ‘Greenback’ as the European session got underway on Thursday and investors speculated on the likely tone adopted in the Bank of England’s (BoE) latest quarterly inflation report.
The British Pound to US Dollar (GBP/USD) exchange rate achieved a high of 1.5271
The central bank is widely expected to negatively revise its inflation projections given the recent, and extensive, drop off in oil prices.
However, even if the BoE intimates that inflation will fall below 0.0% in the next couple of months, hints that the slide in CPI will be temporary could see the Pound gain.
The GBP/USD pairing would also be supported if the BoE dwells on the positive impact the dip in inflation could have on the UK’s economic performance.
Encouraging comments from the central bank would leave the door open to borrowing costs being increased before the end of the year – a Pound-positive development which may even push Sterling back above the 1.53 level against the ‘Greenback’ before the close of trade.
The British Pound to US Dollar (GBP/USD) exchange rate fell to a low of 1.5213
Conversely, the BoE may chose to pour cold water on any hopes of interest rates being increased this year by dwelling on growing global economic pressures and the prevalent deflationary climate.
Such action would drive the Pound lower.
British Pound to US Dollar (GBP/USD) Exchange Rate Forecast
Further British Pound to US Dollar (GBP/USD) exchange rate volatility could be occasioned by the US Advance Retail Sales report.
A -0.4% month-on-month decline in sales has been projected.
If sales are shown to have dropped by more than this, it could reduce demand for the US Dollar.
Of course, the US initial jobless and continuing claims figures will also be of interest.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5249
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3451
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8819
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1335
