GBP/USD exchange rate drifts higher as US election looms
The pound US dollar (GBP/USD) exchange rate is firming this morning amid increasing anxiety over the US’s forthcoming election.
At the time of writing the GBP/USD exchange rate is trading at around $1.3096, up roughly 0.3% from this morning’s opening rate.
US dollar (USD) to be rocked by Presidential election?
The US dollar (USD) is weakening against the majority of its peers this morning, down by as much as 0.5% against its risker counterparts, as markets brace for several high impact events that could significantly impact the US dollar this week.
Up first, the US will hold its presidential election tomorrow which will undoubtedly infuse volatility into the ‘greenback.’
As both Kamala Harris and Donald Trump are currently neck and neck in the race for the White House, USD exchange rates are slumping amid growing uncertainty on who will be the US’s next President.
Following on from the election, this week will also host a Federal Reserve interest rate decision on Thursday, which will likely add pressure onto USD exchange rates this week amid further uncertainty surrounding the future of US monetary policy.
Pound (GBP) to dip following UK services PMI?
The pound (GBP) is stable against most currencies this morning despite a slow start to the UK’s data week.
However, despite the absence of economic drivers, GBP rates are being slightly supported following last week’s Autumn Budget announcement, which saw Bank of England (BoE) interest rate cut bets decrease amid hopes that the budget could boost inflation and slow monetary policy easing.
Looking ahead for the pound, the UK will publish its first data release of the week tomorrow morning.
The data will come in the form of the UK’s finalised services PMI data for October and could infuse volatility into GBP exchange rates following the release.
The data is forecast to report that the UK’s all-important services sector declined from a previous reading of 52.4 down to 51.8 last month, and could undermine Sterling as a result.
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