GBP/USD exchange rate firms ahead of US data
The pound US dollar (GBP/USD) exchange rate is edging higher this morning as markets await the publication of the latest consumer sentiment survey from the US.
At the time of writing the GBP/USD exchange rate is trading at around $1.3375, up roughly 0.2% from this morning’s opening rate.
US dollar (USD) to be underpinned by consumer sentiment reading?
The US dollar (USD) is struggling to garner investor attention this morning as a data-light start to Tuesday’s trading session sees USD exchange rates struggling to catch bids.
USD investors may also be reluctant to place any overly aggressive bets on the American currency ahead of the publication of the latest consumer sentiment survey later this afternoon.
September’s index is forecast to show a marginal uptick in the latest figures, forecast to rise from 103.3 to 103.8, and could offer USD exchange rates some modest support in the latter half of the day.
However, as this morning sees investors opting for riskier assets over its safe-haven rivals such as the ‘greenback’, will the expected uptick in morale be enough to buoy the US dollar in the second half of today’s European session?
Pound (GBP) to waver amid data-light week?
The pound (GBP) is also trading sideways against the majority of its peers this morning as another data-light morning sees Sterling struggling to find a clear trajectory.
Despite today’s risk-on flows, the pound has not been able to capitalise on its increasingly risk-sensitive status, as comments from Bank of England (BoE) Governor Andrew Bailey are undermining GBP exchange rates.
A week since the BoE delivered its widely anticipated interest rate hold, the central bank’s Governor has cautioned on the future path of interest rates and said that they are ‘gradually heading downwards.
Bailey explained: ‘I do think the path for interest rates will be downwards, gradually. Inflation has come down a long way.
We still have to get it sustainably at the target and we have quite an unbalanced mix of components of inflation at the moment.’
Looking ahead, a continued lack of macroeconomic data this week will likely see Sterling remain trading without a clear trajectory.
However, GBP exchange rates could still come under selling pressure in the coming days should market sentiment shift towards risk-off flows.
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