Whilst traders await the British growth data, the Pound Sterling to US Dollar (GBP/USD) exchange rate is trending within a narrow range. Fluctuation is likely with both the UK Gross Domestic Product and the US Durable Goods Orders data having the potential to provoke volatility.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5715.
Yesterday…
After economic data pertaining to the UK printed negatively on Tuesday morning, the Pound Sterling to US Dollar (GBP/USD) exchange rate softened by around -0.14%. Meanwhile, the US Dollar is generally advancing against its major peers as a result of cool trader risk sentiment and speculation of better-than-expected US growth.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5678.
Pound Sterling Exchange Rate Slumps on Housing Data
On Tuesday morning the Pound has softened against the majority of its most traded currency rivals as a result of lower-than-anticipated economic data. Loans for House Purchase dipped to its weakest level since May 2013, down from 39,271 to 37,076 despite the median market forecast of 38,500. Mortgage approvals have trended down since June and are now 10,000 fewer per month than in January 2014.
The Pound Sterling to US Dollar exchange rate has fallen to a low today of 1.5647.
US Dollar Exchange Rate Strengthens on Low Risk Sentiment
After the People’s Bank of China resorted to monetary easing, and the European Central Bank threatened the extension of quantitative easing, market risk sentiment has been significantly reduced. The US Dollar, therefore, has strengthened thanks to its safe-haven qualities.
Further US Dollar gains could be attributed to futures traders speculating that the US growth data, due for publication later on Tuesday afternoon, will improve upon forecast figures.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate
With Bank of England Governor Mark Carney speaking in London on Tuesday morning, and with the US Gross Domestic Product data due for publication, the Pound Sterling to US Dollar exchange rate is likely to fluctuate. However, given that trader risk aversion strategies are dictating market movement, the Pound is unlikely to fully recover losses against the US Dollar.
The Pound Sterling to US Dollar exchange rate has reached a high today of 1.5699.
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,
,Swiss Franc,0.9664,
US Dollar,,Euro,0.8039,
US Dollar,,Pound,0.6378,
US Dollar,,New Zealand Dollar,1.2815,
Swiss Franc,,US Dollar,1.0346,
Euro,,US Dollar,1.2438,
Pound Sterling,,US Dollar,1.5677,
New Zealand Dollar,,US Dollar,0.7802,
[/table]
