The Pound Sterling to US Dollar (GBP/USD) exchange rate has declined today after the US Advance Retail Sales figure for July met with the predicted growth result.
‘Greenback’ (USD) Stands to Widen USD/GBP Gap with Key Confidence Survey Tomorrow
The US Dollar (USD) has gained against the Pound Sterling (USD/GBP) by 0.2% today, and stands to gain further from tomorrow’s US data releases. Although the ‘Greenback’ experienced an uncommon decline earlier this week against the rallying Euro (EUR), this negative performance has since faded away as Greek bailout doubts destroyed optimism in the Euro.
Although the US July Advance Retail sales figure met with the forecast 0.6% growth, the news was not entirely positive for the US economy. The second week of August Initial Jobless Claims and first week of August Continuing Claims figures saw increases of 247K and 2273K respectively; this held in check any major support that the Advance Retail Sales figure gave to the US Dollar.
Tomorrow, the University of Michigan Confidence Survey for August is released, and if the predicted increase from 93.1 to 93.6 proves accurate, the USD/GBP exchange rate may expand upon today’s gains.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has lessened since yesterday, after fresh concerns over the looming Greek bailout sent the Euro (EUR) down in value.
Pound Sterling (GBP) may Dive against ‘Greenback’ (GBP/USD) if US Retail Sales Data Exceeds Expectations
The Pound Sterling (GBP) has lost its advantage against the US Dollar (GBP/USD) today, and is now trending narrowly. This has come from a third party factor: the Euro (EUR). While the week has seen the Euro steadily uptrend (driving demand for the ‘Greenback’ (USD) down), today has seen the Euro soften, which has in turn raised demand for the safe-haven currency. This softening came along with concerns that a deal would not be reached in Brussels tomorrow; the current downtrend is expected to continue for the next 24 hours, at least.
This means that the US Dollar is likely to rise against the Pound (USD/GBP) in the meantime, as the US Advance Retail Sales figure for July is due in today and forecasts have been optimistic, predicting a 0.6% increase.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has risen today, although both currencies have had extremely varied performances elsewhere.
Pound Sterling to US Dollar Exchange Rate News: Pound Gains in GBP/USD Pairing despite Major UK Job Losses
The Pound Sterling (GBP) has advanced by 0.3% against the US Dollar (GBP/USD) today, although the Pound has been decidedly mixed against other currencies. Gains include an increase of over 1% against the Indian Rupee (GBP/INR), the Chinese Yuan (GBP/CNY) and a far greater rise of 2.2% against the Russian Ruble (GBP/RUB). However, losses for the Pound today range from an over -0.9% decline against the Polish Zloty (GBP/PLN) and the Swiss Franc (GBP/CHF) and a worse result of -1.3% against the Norwegian Krone (GBP/NOK).
The Pound’s softening today has been caused primarily by the UK Employment Change figure for the three months to the end of June; the result exceeded the worst-case estimates by showing a -63K loss of jobs, rather than the forecast -55K. Although the Jobless Claims Change data for July showed a -4.9K drop in the number of claims, this positive news did little to reverse the negative effects of the job loss figure.
US Dollar to Pound Sterling (USD/GBP) Exchange Rate Sees Decline as Hope for a Stable Eurozone Damages the ‘Greenback’
The US Dollar to Pound Sterling (USD/GBP) exchange rate has fallen by -0.3% today, and the ‘Greenback’ (USD) has declined elsewhere. This comes as bailout negotiations in Greece are scheduled to conclude either on Thursday or Friday, which will secure the Greek government the vital funding it needs to prop up the economy and make some headway into tackling impending debt repayments. As this news has strengthened optimism for the Euro (EUR), it has consequently devalued the US Dollar, as the prospect of a stable Eurozone has reduced demand for the ‘safe-haven’ currency substantially.
The US Dollar has fallen by over -0.7% again the New Zealand Dollar (USD/NZD), the Japanese Yen (USD/JPY) and the Polish Zloty (USD/PLN), and has seen a worse loss of -1.5% against the Norwegian Krone (USD/NOK). In terms of gains, the only significant rise has been a 0.7% advance against the Indian Rupee (USD/INR).
Pound Sterling to US Dollar Exchange Rate Forecast: US Data may push USD/GBP back up but Eurozone Stability may Override
The only data release predicted to have a large impact on the Pound’s (GBP) performance this week is the UK monthly and yearly Construction Output figure for June; both results have been optimistically forecast to increase. However, the US Advance Retail Sales figure for July (released tomorrow) and the University of Michigan Current Conditions report for August (due on Friday) may upset any gains for the Pound considerably, although the continually improving situation in Greece may be enough to preserve the current GBP/USD exchange rate.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5615 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6404 today.
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