The Pound Sterling (GBP) has risen slightly against the US Dollar (GBP/USD) today after bearish central bank minutes hampered the progress of both currencies.
UK Trade Balances to Provide Potential Widening of GBP/USD Exchange Rate if Predicted Reduction goes Ahead
The next influencer in the pairing will be the UK Trade data for August. As of writing, only small reductions in the UK deficit had been forecast.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has risen today ahead of the release of key central bank minutes, although the most recent pieces of domestic data have given Sterling (GBP) investors mixed results to dwell on.
GBP/USD Exchange Rate News: UK Growth Stagnation and House Price Drop cause for Concern among Investors
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending slightly higher today, but the Pound’s overall performance has been mixed. Losses have included -0.3% against the Euro (GBP/EUR), -0.4% against the Czech Koruna (GBP/CZK) and -0.5% against the Swiss Franc (GBP/CHF). Rises have been comprised of 0.3% against the Australian Dollar (GBP/AUD), 0.4% against the Indian Rupee (GBP/INR) and the Thai Baht (GBP/THB) and 0.5% against the South African Rand (GBP/ZAR).
The Pound’s uncertain performance today has been partly caused by yesterday’s and today’s economic releases; the NIESR GDP Estimate for September posted at an unchanged 0.5%, an outcome that has both positive and negative connotations. For today’s September RICS House Price balance, a drop from 53% to 44% was recorded, when a 2% rise to 55% had been predicted.
US Dollar (USD) Exchange Rate Reflects Market Uncertainty over Vital Fed Decision
The US Dollar (USD) has fallen slightly against the Pound Sterling (USD/GBP) today, just one of a number of small losses for the ‘Buck’. These have included -0.4% against the Euro (USD/EUR) and the Norwegian Krone (USD/NOK) and -0.5% against the Swiss Franc (USD/CHF). Rises have been similarly low key, with gains of 0.2% being seen against the Australian Dollar (USD/AUD) and the Indian Rupee (USD/INR) and a 0.4% advance being recorded against the South African Rand (USD/ZAR).
Although today is particularly data-heavy for the US, previous releases have already put the US currency on an unstable footing ahead of this evening’s Fed Minutes. The last piece of US data yesterday, the US Consumer Credit figure for August, fell from $18.9bn to $16bn, when a rise up to $19.5bn had actually been predicted.
GBP/USD Exchange Rate Forecast: BoE Minutes to Steal the Show ahead of Later Fed Release
Future movement in the GBP/USD exchange rate will likely come from the Bank of England (BoE) Interest Rate Decision at midday, although the accompanying minutes will probably be the more-scrutinised of the two releases. This is because any indications of an early interest rate hike from BoE policymakers next year could bolster the Pound (GBP), although some speculators have already advanced their expectations of an interest rate hike to 2017 instead. Later on, the September 16th-17th Fed Meeting Minutes will be released, although unlike their English counterpart, these may be viewed with some degree of obsolescence, as Fed policymakers have since explicitly voiced their opinions on a US interest rate increase and a number of notable developments have occurred in US economic data.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5331 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6524 today.
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