The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending within a narrow range on Wednesday morning.
This is as a result of traders awaiting the latest Federal Open Market Committee minutes, due to be published later on Wednesday evening. The Pound, thus far, avoided a third consecutive day of significant declination thanks to a fractional improvement in the Shop Price Index.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5127.
Previously…
The Pound Sterling to US Dollar (GBP/USD) exchange rate plummeted by around -0.67% on Monday afternoon.
In the aftermath of British construction data that failed to meet with the market consensus, the Pound Sterling to US Dollar (GBP/USD) exchange rate softened. The US Dollar, meanwhile, is trending higher versus nearly all of its major peers as a result of futures traders speculating that the Federal Reserve will be the first of the major central banks to normalise monetary policy.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5298.
Pound Sterling (GBP) Exchange Rate Declines on UK Construction
Although British construction performed impressively over the course of 2014, a slight declination in the first reading of 2015 caused the Pound to soften against many of its major rivals. The Construction PMI declined beyond the median market forecast of a drop from 59.4 to 59.0, with the actual result falling to 57.6.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said; ‘The sector continues on its levelling path this month, with procurement and supply management professionals reporting continued strong growth but with a weaker trajectory than that seen in recent months.’
The Pound Sterling to US Dollar exchange rate dropped to a low today of 1.5269.
US Dollar (USD) Exchange Rate Advances on FED Bets
Whilst futures traders continue to speculate that the Federal Reserve will normalise monetary policy in the near-future, the US Dollar continues on its bullish run. At a time when the European Central Bank is looking to purchase bonds to ease pressure on a flagging Eurozone economy, a hawkish move by the Fed will highlight economic disparity.
Compounding the US Dollar gains is dampened market sentiment as traders flock to safe-haven assets whilst the Greek political situation escalates .
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Trend Lower
With little by way of noteworthy domestic data to curtail the trend, the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to continue trending lower over the course of Monday.
The Pound Sterling to US Dollar exchange rate advanced to a high today of 1.5319.
