GBP/USD Edges Higher before US GDP Report
After sliding on the back of hawkish interest-rate related comments from a prominent Federal Reserve official and impressive US services data, the Pound Sterling to US Dollar (GBP/USD) exchange rate recouped losses on Friday.
However, if today’s US fourth quarter growth data shows the positive revision forecast by economists, ‘Cable’ could come under further pressure before the weekend.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading in the region of 1.4841
Earlier…
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Runs out of Steam as US Services Sector Expands
The Pound Sterling to US Dollar (GBP/USD) exchange rate lost all of its earlier gains and fell 0.3% on the day’s opening levels after the US Markit Services PMI revealed a solid rate of expansion in March.
Economists forecast that the services measure would dip from February’s reading of 57.1, but it actually advanced to 58.6, prompting this response from Markit economist Chris Williamson; ‘While the surveys signal that economic growth will have slowed in the first quarter from an already modest 2.2% pace seen in the final quarter of last year, the upturn in the surveys in March provides a clear advance indication that stronger economic growth will return in the second quarter.’
This, in conjunction with a better-than-expected US initial jobless claim number, saw the Pound Sterling to US Dollar (GBP/USD) exchange rate fall to 1.4828 from the day’s high of 1.4994.
Earlier…
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Trends Higher as Sales Climb
While the Pound continued to feel the weight of a number of domestic and global pressures, the British currency was able to hold its earlier gain against the US Dollar as the UK’s retail sales report exceeded expectations.
The sales data showed a surprising 0.7% month-on-month increase – far higher than the 0.4% gain anticipated.
Year-on-year, sales increased 5.7%, down from a revised annual figure of 5.9% the previous month.
However, despite the upbeat nature of the report, the Pound’s rally was minimal. The Pound Sterling to Euro (GBP/EUR) exchange rate failed to derive much benefit from the figures and remained trending in the region of 1.3551.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.4944.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate gained by a further 0.5% on Thursday prior to the release of the latest UK retail sales figures; the Pound Sterling to Euro (GBP/EUR) currency pair, however, was left struggling in the wake of rate-cut comments from a Bank of England (BoE) policymaker.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Gains after Durable Goods Report, Services PMI Ahead
After trading weakly following the release of stronger-than-anticipated US inflation and manufacturing output reports, the Pound Sterling to US Dollar (GBP/USD) exchange rate was able to recoup some of its recent losses on Wednesday.
The Pound gained on its North American peer after Durable Goods Orders were shown to have fallen by -1.4% in February rather than climbing by the 0.2% forecast.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a low of 1.4869
According to industry expert Jeffry Bartash; ‘Businesses started cutting investment at the end of the summer and that contributed in part to slower US growth during the waning months of 2015 after a rip-roaring third quarter. A key proxy for business investment known as core orders, which excludes aircraft and military goods, also fell 1.4% in February to mark the sixth drop in a row. The last time that happened was in 2012. And core orders have been negative in 13 of the past 18 months.’
The GBP/USD currency pair gained by a further 0.5% as the European session kicked off on Thursday.
The Pound was little affected by comments issued by Bank of England (BoE) policymaker Kirstin Forbes regarding the prospect of the central bank cutting interest rates in the short term to counter 0% or negative inflation.
The Pound Sterling to US Dollar (GBP/USD) exchange rate achieved a high of 1.4972
There are a number of US reports to focus on today, including the potentially influential Markit Services/Composite PMI’s.
Economists have predicted that the Services gauge slipped from 57.1 to 57.0 in March. However, this week’s Manufacturing PMI surprised to the upside and if the services report follows this trend we could be looking at an improved composite PMI and a stronger Dollar.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Trending Lower as Eurozone Data Impresses
Meanwhile, the Pound Sterling to Euro (GBP/EUR) exchange rate consolidated this week’s declines on Thursday.
The GBP/EUR pairing remained trending in the region of 1.35 as French fourth quarter growth data matched forecasts and Germany’s GfK Consumer Confidence survey for April showed improvement.
The confidence gauge advanced from 9.7 to 10 rather than achieving the 9.8 expected.
Later today European Central Bank (ECB) President Mario Draghi is due to give a speech. His comments could have an impact on GBP/EUR trading.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: UK Retail Sales, US Jobless Data Ahead
Ahead of the US Services/Composite PMI’s the Pound Sterling to US Dollar (GBP/USD) exchange rate could extend gains if the UK’s retail sales report shows the gain predicted by industry experts.
Sales dropped by -0.7% in January but are believed to have climbed by 0.4% in February.
Given the strong links the Federal Reserve has drawn between the US labour market and the path of interest rates, the US initial jobless and continuing claims stats may also impact the direction taken by the GBP/USD pairing.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3559, the US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.9063, the Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1031, the Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4958.
