The Pound was holding onto the 1.70 level against the US Dollar on Friday after the latest UK GDP data offered some support whilst the US Dollar was supported by a better-than-forecast consumer sentiment data.
Earlier in the session the Pound experienced mixed trading after data released by the Office for National Statistics showed that the UK economy expanded by 0.8% in the first quarter of the year. The figure largely met economist expectations.
Some however were disappointed that the data did not show more growth.
A separate report also showed that the UK’s current account deficit narrowed more than forecast to £18.5 billion in the three months leading up to April. The deficit in the previous quarter was £23.5 billion.
As the session wore on the GBP to USD Exchange Rate was little moved as investors looked ahead to the weekend and next week’s major data releases.
Later in the session the ‘Greenback’ received some support from data which showed that consumer sentiment improved in June. According to the Thomson Reuters/University of Michigan’s final sentiment index climbed to 82.5 from 81.9 in May. Economists had been expecting a rise to 82.
The survey’s index for current conditions, which measures Americans’ views of their personal finances, increased to 96.6 this month from 94.5 in May. The preliminary reading was 95.4.
The gauge for the next six months was little changed at 73.5 after 73.7 the prior month. The initial reading was 72.2 for June.
“Confidence is fairly upbeat on the part of the consumer, simply because their two major components of wealth, the stock market and the value of homes are doing better,” said the chief economist at a Bank based in New York.
The US Dollar could make gains next week if economic data shows that the world’s largest economy rebounded in the second quarter.
With pending home sales, manufacturing PMI and employment data all due next week investors will be able to get a clear view as to the true strength of the US economy.
Key events next week for GBP to USD
Monday June 30th – US Pending Home Sales Data
Tuesday July 1st – Markit Manufacturing PMI Final
ISM Manufacturing PMI
UK – Markit/CIPS Manufacturing PMI
Wednesday July 2nd – US Factory orders
ADP Employment Change
Thursday July 3rd – US Balance of trade
Jobless Claims
ISM Non-Manufacturing PMI
UK- Markit Services PMI
Friday July 4th – USA Independence Day National Holiday
UPDATED 07:00 GMT 30 June, 2014
GBP to USD Trending Above 1.720
Today might be fairly light in terms of influential US and UK data releases, but the GBP to USD exchange rate came through the weekend trading just higher than 1.720.
Later today the UK will release UK mortgage approvals figures, with the US pending home sales report following soon after.
Other economic reports to be aware of include Germany’s retail sales figures and the Eurozone’s Consumer Price Index.
GBP to USD exchange rate movement may be a little restrained ahead of tomorrow’s US ISM manufacturing report.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Pound Sterling,1.6456 ,
US Dollar,,Euro,1.6456 ,
US Dollar,,Canadian Dollar,1.6456 ,
US Dollar,,Australian Dollar,1.6456 ,
Pound Sterling,,US Dollar,1.6456 ,
Euro,,US Dollar,1.6456 ,
[/table]
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