Last week’s lacklustre manufacturing/industrial output data for the UK left the Pound trading close to a four-week low against the US Dollar and a six-week low against the Euro, but the British currency has managed to claw back some ground today as investors look ahead to this week’s news.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.5988 as of 12:50 GMT.
With US markets closed for a national holiday and the debt ceiling limit fast approaching, the ‘Greenback’ softened against its UK counterpart ahead of the publication of a report expected to show an increase in domestic retail sales.
Thursday’s sales data is expected to show a 0.3 per cent month-on-month increase and a year-on-year gain of 2.2 per cent.
Meanwhile, Wednesday’s employment data is forecast to reveal that the number of people claiming unemployment benefits dropped by 25,000 in September.
1 US Dollar is currently worth 0.6255 pence
Economists have also predicted that the unemployment rate held at 7.7 per cent in the three months through August – the lowest level since 2009.
During the European session industry expert Steve Barrow commented; ‘Unemployment is the most important piece of UK data this week. We could easily see the rate falling to 7.6 per cent. The risk reward is to be long of Sterling into that data.’
As the Bank of England has tied interest rate increases to the unemployment rate, intimating that a rate hike will only be considered once the unemployment rate has dropped to 7 per cent, a surprising result is like to inspire notable Sterling volatility.
However, while the Pound modestly strengthened against the US Dollar today, the British asset softened against the Euro as the common currency derived support from the news that industrial production in the Eurozone advanced by more than expected.
Tomorrow’s UK home price report may show a 3.4 per cent year-on-year increase in house prices.
Meanwhile, any progress in the US debates is likely to inspire notable market movement.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5988 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1787 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6870 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9096 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6255 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8485 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5930 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5234 >
(As of 12:50 GMT)
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