The Pound Sterling (GBP) has hit a low of -0.6% against the US Dollar (GBP/USD) today; this has likely been caused by the US Change in Non-Farm Payrolls result for December rising against forecasts from 252k to 292k.
Potential for Further Fed Interest Rate Hikes in Future Thanks to Supportive Payrolls Outcome
Because of the forecast-beating nature of the day’s US data, it is thought that the Federal Reserve could be in store to raise the US interest rate again in the near future. Economists were previously poised to call it quits for any further interest rate hikes if an unsupportive outcome was recorded today.
Earlier…
The Pound Sterling (GBP) has made a fractional loss against the US Dollar (GBP/USD) so far today, although this current rate has the potential to worsen considerably in the near future.
US Payrolls Rise could Vindicate Dubious Fed Interest Rate Decision Today
This afternoon will see the release of the US Change in Non-Farm Payrolls figure for December, which at the time of writing was expected to print 200k, having hit 211k previously. Additionally, the December Unemployment Rate will also be announced at the same time.
If positive outcomes are recorded in both cases, investors will likely be reassured considerably, given that this will reduce the risk of the Fed going back on its recent historic interest rate hike.
Earlier…
The Pound Sterling (GBP) has slipped by -0.4% against the US Dollar (GBP/USD) today, although this is still an improvement on the earlier lower rate.
Welsh Innovation Centre could Diversify UK Economy, Prompt Business Boom in the Area
The most recent development to come out of Chanchellor George Osborne’s speech in Cardiff toda has been that the UK government will be putting forwards £50m a year to build a ‘ground-breaking new innovation centre’ in Wales. It is hoped that the centre’s construction will create ‘vital new jobs’ in the area, and ‘ensure that Wales continues to be a world leader in science and innovation’.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has crashed dramatically today, along with most of the other notable Sterling (GBP) pairings. The main cause for this has been the gathering storm clouds above the UK’s economic prospects.
GBP/USD Exchange Rate News: Dark Foreshadowing of Osborne Speech Triggers Investor Rout for UK Currency
The Pound Sterling (GBP) has made significant losses against a majority of its competitors today, thanks to the combination of pessimistic news items amplifying the Pound’s risk level tremendously.
One of these has been the news that Chancellor George Osborne will be speaking this afternoon on the ‘dangerous cocktail’ of domestic and global threats faced by the UK economy, although before the speech has even been made, investors have routed in droves from supporting Sterling.
Another development has come from Bank of America Merill Lynch, who have pushed their expectations of a UK interest rate hike from May this year further along to November.
Among the Pound’s greatest losses today have been -0.6% against the US Dollar (GBP/USD) and -1.2% against the Euro (GBP/EUR) and the Swiss Franc (GBP/CHF). This comes as a disappointing low point for the Pound so early into the New Year, compared to the end of 2015.
US Dollar (USD) Softened by Yesterday’s Fed Minutes Release
The US Dollar (USD), while faring better than the Pound (GBP), has still been limited in its mass appeal due to recent release of the Federal Open Market Committee (FOMC) meeting minutes for December. As is now common knowledge, the Fed opted to raise the rate after years of negative or flat movement, but the minutes have revealed that a number of policymakers were doubtful if this was the right course of action.
The US Dollar has advanced by 0.6% against the Pound Sterling (USD/GBP) and 1.3% against the South African Rand (USD/ZAR) today, but has fallen by -0.7% against the Polish Zloty (USD/PLN) and by -0.9% against the Japanese Yen (USD/JPY).
GBP/USD Exchange Rate Forecast: US Claims Data due Today before Fed Speech Tonight
The next data likely to generate movement for the GBP/USD exchange rate will come from the US given that the next UK releases aren’t scheduled until tomorrow.
Among these will be the Continuing Claims figures for the end of December, along with Initial Jobless Claims for the beginning of January. No forecasts have been made for the outcomes of these releases but later on a speech from Charles Evans will be made on the crucial topic of monetary policy, as well as the economy as a whole.
When the sun rises tomorrow, the Pound (GBP) is likely to move when the outcome of European Commission member Jonathan Hill’s meeting with Bank of England (BoE) Deputy Governor Jon Cunliffe is announced, along with the more concrete UK Trade Balance results for November. At the time of writing, expectations were for a beneficial reduction in the trade deficit in the base, visible and non-EU fields.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.3395 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6876 today.
Comments are closed.