GBP/USD exchange rate muted amid absence of data
The pound US dollar (GBP/USD) exchange rate is trading in a narrow range this morning amid a scarcity of both UK and US economic data.
At the time of writing the GBP/USD exchange rate is trading at around $1.2886, virtually unchanged from this morning’s opening rate.
US dollar (USD) to climb following GDP?
The US dollar (USD) could gain ground later today following the publication of the latest US GDP data.
2024’s second quarter growth rate is expected to rise from a previous reading of 1.4% up to 2% and could see USD exchange rates strengthen should the data confirm the forecasted growth figures.
As a September interest rate cut from the Federal Reserve is almost fully priced in, with the CME’s FedWatch Tool showing a 98% consensus, should the latest index report that the US economy grew faster than anticipated, could this see the Fed keep monetary policy tighter for longer and therefore bolster USD?
Also scheduled for release later this afternoon are the latest US durable goods orders.
The latest monthly figure is expected to rise from 0.1% to 0.3% in June and could underpin the ‘Greenback’ further should the data match expectations and show an increase in manufacturing output.
Mid-Tier Data to drive the Pound (GBP)?
The pound (GBP) is struggling to garner investor attention this morning as an absence of market moving data has seen GBP trade mostly directionless.
However, we may see Sterling movement driven by some mid-tier data releases, scheduled for release later today.
Both the Confederation of British Industry’s (CBI) business optimism index and industrial trends orders survey are forecast to print at 15 and -19, respectively.
With an expected rise in the outlook of UK businesses alongside the UK’s industrial orders remaining near three-month highs, the Pound could firm against the majority of its peers in the second half of today’s European session should the data print as expected.
Comments are closed.