The Pound has been in an extremely poor position during trading today, with better-than-expected UK news doing little to raise confidence in Sterling.
The latest US Dollar movements have been positive on the whole, thanks to the odds of a Fed interest rate hike increasing.
Pound US Dollar Update: GBP Losses Unchanged after Construction PMI Grows Again
The Pound’s trading today has been poor, primarily on account of a sustained negative reaction to the news that Article 50 will be triggered in March 2017 at the latest.
This news came over the weekend; while today’s September construction PMI returned to growth, it failed to lessen any losses, showing just how damaging this news has been to the UK currency.
In the US Dollar’s case, gains have recently been seen against the Pound (at the best rate in 31 years), as well as against most of the other peers of the ‘Buck’.
Recent support has come from economist predictions about a December Fed interest rate hike taking place; the chances of this outcome have only risen over each passing day, with the latest controversy engulfing the Republican presidential campaign only further increasing the odds of such an outcome occurring.
Pound Sterling Predictions: Gains Unlikely Even if UK Services PMI Rises Tomorrow
The immediate-future does not look especially bright for the Pound’s prospects, given that any mention of the UK’s future separation from the EU seems set to continue causing major volatility for the UK currency.
While the UK’s manufacturing and construction PMIs this week have both bettered expectations, even a rise for Wednesday’s major services PMI is not predicted to have an overly positive effect on the Pound’s value, simply given how negative the response has already been to the Article 50 announcement.
US Dollar Outlook: Rally Possible if Friday’s NFP Stats Match Forecasts
The US Dollar has the potential to greatly expand its latest gains against the Pound on Friday, should the high-impact change in non-farm payrolls figure for September match with forecasts and post a 189k increase.
Also due on Friday will be the September unemployment rate, although as it stands, an uneventful stagnation at 4.9% is the predicted outcome for this data release.
Recent GBP USD Exchange Rates
At the time of writing, the Pound US Dollar (GBP USD) exchange rate was trending in the region of 1.2758 and the US Dollar Pound (USD GBP) exchange rate was trending in the region of 0.7840.
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