Pound to US Dollar (GBP/USD) Exchange Rate Holding Steady
Although the US University of Michigan Confidence index climbed to an eight-month high in December, the US Dollar failed to post an impressive advance against the Pound.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in a narrow range, moving between a high of 1.5746 and a low of 1.5690.
With a full economic calendar on the cards next week we can expect considerable GBP/USD exchange rate movement.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in a slightly softer position following the release of the UK’s Construction Output report.
The -2.2% slide in output shocked investors as a 0.7% gain had been expected.
Pound to US Dollar Exchange Rate Slips after Construction Slide
According to Reuters; ‘Construction makes up about 6 percent of Britain’s economy and the industry has grown robustly until recently, recovering from some of the hefty loss in output suffered after the financial crisis. Still, the sector’s output is still around 7 percent below its pre-downturn level. Britain needs to increase the pace of housebuilding significantly to meet strong demand that has pushed up prices. But total housebuilding in October fell 0.8 percent from September. The ONS said it was not unusual to see a weak start to a calendar quarter in construction, although the figures were lower than it expected.’
However, as the report is of low volatility, its impact on the Pound’s performance was minimal.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate softened slightly as the European session kicked off on Friday.
GBP/USD Exchange Rate Edged Lower after US Retail Sales
The Pound Sterling to US Dollar (GBP/USD) exchange rate slipped on Thursday following the publication of the US Advance Retail Sales report.
Given how strongly the data outperformed expectations, some investors were surprised that the GBP/USD decline wasn’t more extensive.
Retail sales were shown to have increased by 0.7% on the month, smashing forecasts for a gain of 0.4%.
Retail sales less autos climbed by 0.5% on the month rather than the 0.1% expected.
Industry expert Jim Baird said of the result; ‘The sharp decline in oil and gasoline prices couldn’t have come at a better time, putting a little more discretionary income in the pockets of spenders for the holiday shopping season.’
Pound Sterling to US Dollar Exchange Rate Movement Forecast
In the hours ahead the Pound Sterling to US Dollar (GBP/USD) exchange rate could experience movement following the publication of the UK’s Construction Output report.
Economists have forecast that construction output increased by a seasonally adjusted 0.7% on the month in October following a gain of 1.8% in September.
Construction output is believed to have risen by 1.3% on the year in October, down from an annual advance of 3.5% in September.
The GBP/USD exchange rate may enjoy another flurry of movement before the weekend as a result of the US University of Michigan Confidence index.
The sentiment gauge is believed to have risen from 88.8 to 89.5.
This result would give the US Dollar a boost.
Investors will also be looking ahead to next week and the release of the UK’s employment figures and minutes from the Bank of England’s (BoE) latest policy meeting.
US and UK Consumer Price Indexes will also be worth noting.
US Dollar Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,
,Pound Sterling,0.6360,
US Dollar,,Canadian Dollar,1.1543,
US Dollar,,Euro,0.8034,
US Dollar,,Australian Dollar,1.2064,
US Dollar,,New Zealand Dollar,1.2793,
Canadian Dollar,,US Dollar ,0.8660,
Pound Sterling,,US Dollar,1.5709,
Euro,,US Dollar,1.2419,
Australian Dollar,,US Dollar,0.8282,
New Zealand Dollar,,US Dollar,0.7816,
[/table]
