The Pound Sterling (GBP) has declined by -0.3% against the US Dollar (GBP/USD) today, owing to the latter currency receiving support from its Manufacturing PMI for October.
Fed Interest Rate Decision to Dominate Speculation Next Week
Although the UK Q3 GDP result is out next week, the larger release will be the US Federal Open Market Committee (FOMC) Interest Rate Decision; no change from 0.25% had been predicted at the time of writing, but prior US data and Fed official remarks may change this forecast for the better or the worse.
Earlier…
The Pound Sterling (GBP) has fallen by -0.2% against the US Dollar (GBP/USD) today, something brought about by the Euro (EUR) dipping out of sight due to Mario Draghi’s dovish speech today.
USD Advantage may continue Tomorrow if Eurozone Results meet with Forecasts
The Pound Sterling (GBP) has no data due to affect it tomorrow, therefore the negatively forecast Eurozone PMIs of the morning may widen the current GBP/USD disparity by pushing the Euro (EUR) down further, which will in turn raise up the US Dollar (USD).
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate has advanced considerably today due primarily to the only UK results coming out strongly in favour of Sterling (GBP).
GBP/USD Exchange Rate News: Retail Sales Results Catapult Pound Sterling Higher against US Dollar, Euro
The Pound Sterling (GBP) has risen by 0.3% against the US Dollar (GBP/USD) today, although greater advances have been seen elsewhere for the UK currency. These notable uptrends have been by 0.6% against the Euro (GBP/EUR), the Swiss Franc (GBP/CHF) and the South African Rand (GBP/ZAR). On the other side of the coin, the greatest loss for the Pound has been by -0.4% against the New Zealand Dollar (GBP/NZD).
In addition to today’s better-than-forecast UK Retail Sales figures for September, the Pound has also benefitted from a positive evaluation of the UK’s position in the EU by Bank of England (BoE) Governor Mark Carney. Speaking last night, Carney stated that: ‘the evidence suggests the UK has successfully harnessed the benefits of openness afforded by its EU membership while avoiding some of the drawbacks of reduced flexibility from which some continental European economies suffer.’
US Dollar (USD) makes Acceptable Gains today as Fed’s Key Decision remains Contentious
The US Dollar (USD) has had a less consistent performance than the Pound Sterling (GBP) today, rising by 0.3% against the Swiss Franc (USD/CHF), the Euro (USD/EUR) and the South African Rand (USD/ZAR) but declining by -0.3% against the Pound Sterling (USD/GBP) and -0.6% against the New Zealand Dollar (USD/NZD).
The US Dollar’s most recent economic publications have been mixed – yesterday’s MBA Mortgage Applications to October 16th rose notably from a previous -27.6% to 11.8%, but the following inventories figures saw declines in all fields except for the stocks of crude oil. As has been the case with all US data this week, the effects of these releases has been amplified due to their close proximity to next week’s Fed interest rate decision.
GBP/USD Exchange Rate Forecast: US Results to Dominate Further Pairing Movement before the Weekend
With today seeing the last of the week’s UK data released, future influence on the GBP/USD pairing will only come from the latter side. The pessimistically forecast US Initial and Continuing Jobless Claims figures are due out this afternoon, as are the more positively predicted Existing Home Sales results for September. Looking further ahead, the Markit Manufacturing PMI for October is due out tomorrow afternoon, although a minor decline had been forecast at the time of writing.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5485 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6459 today.
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