Amid trader risk aversion strategies as a result of disappointing data from China, the Pound Sterling to US Dollar (GBP/USD) exchange rate softened by around -0.19%. This is as a result of the US Dollar gaining from its safe-haven qualities, despite Wednesday’s less-than-ideal labour market data. With a distinct lack of influential domestic data, the Pound is experiencing movement subject to changes in foreign currencies.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5755.
Yesterday…
After mixed results from British economic data erred towards the negative, the Pound Sterling to US Dollar (GBP/USD) exchange rate softened fractionally. Meanwhile, the US Dollar is holding relatively steady against the majority of its most traded rivals as traders await key domestic data.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5731.
Pound Sterling Exchange Rate Fluctuates on Mixed Data
British economic data has produced mixed results on Wednesday, causing the Pound to fluctuate against its major peers. The preliminary figures for third-quarter Gross Domestic Product met with the median market predictions. Year-on-year GDP saw a 3.0% growth and quarterly GDP increased by 0.7%.
Issues regarding British trade have weighed heavily on the Pound. Imports saw a 1.4% growth, eclipsing the median market forecast of a rise from -0.3% to 0.7%. Exports, however, declined by -0.4% despite the market consensus of a declination of only -0.1%. ‘Ministers can point to the weakness of the Eurozone to explain away the poor export performance. This, though, is a feeble excuse given the weakness of exports – despite the boost from a substantial depreciation of Sterling – throughout this parliament,’ stated Guardian Economics Editor, Larry Elliott.
Further Sterling depreciation can be attributed to lower-than-expected Reported Sales which declined beyond the market consensus of a drop from 31 to 28, with the actual result falling to 27.
The Pound Sterling to US Dollar exchange rate has fallen to a low today of 1.5675.
US Dollar (USD) Fractionally Softer ahead of Durable Goods Orders
The US Dollar has generally softened against the majority of its most traded peers as traders await the Durable Goods Orders data, which is forecast to strengthen a little from -1.1% to -0.6%. A better-than-expected result would aid a US Dollar recovery after Tuesday’s confidence data pushed the ‘Greenback’ (USD) lower against its most traded competitors.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Soften
Given that the British data was relatively negative on the whole, and the US data is forecast to improve, the GBP/USD exchange rate has the potential to appreciate.
The Pound Sterling to US Dollar exchange rate has climbed to a high today of 1.5746.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Swiss Franc,0.9613,
US Dollar,,Euro,0.7993,
US Dollar,,Pound,0.6332,
US Dollar,,New Zealand Dollar,1.2687,
Swiss Franc,,US Dollar,1.0402,
Euro,,US Dollar,1.2505,
Pound Sterling,,US Dollar,1.5787,
New Zealand Dollar,,US Dollar,0.7881,
[/table]
