Pound Sterling to US Dollar (GBP/USD) Exchange Rate Steadies above 1.5550
On Tuesday the Pound Sterling to US Dollar (GBP/USD) exchange rate advanced following the release of a below-forecast consumer confidence reading for the US.
If today’s US initial jobless claims report shows that more people filed for first time unemployment benefits in the week ending December 27 (as economists expect to be the case) the Pound could post additional gains against the US Dollar in the hours ahead.
Earlier…
GBP/USD Exchange Rate Climbs by 0.35%
The Pound Sterling to US Dollar (GBP/USD) exchange rate added to its earlier gains following the publication of the US Consumer Confidence report.
Given that the economic calendar is so sparse at the moment, there was a lot riding on the figure so a disappointing reading pushed the US Dollar lower against the majority of its currency counterparts.
The increase to 92.6 from 88.7 was fairly solid, but fell short of forecasts for a reading of 94.0.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5566 in the wake of the data’s publication.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced modestly during European trading in spite of a report detailing a steep declination in UK house price growth.
GBP/USD Exchange Rate Resistant to Housing Data
On Monday the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in a narrow range amid a dearth of UK economic reports.
The GBP/USD pairing held steady as the US Dallas Fed Manufacturing Activity Index fell wildly short of the estimated reading of 9.0, instead sliding from 10.5 to 4.1.
However, according to industry expert Jon Ogg; ‘other index measurements of current manufacturing activity indicated continued growth during December. Perceptions of broader economic conditions remained positive this month, while labor market indicators reflected unchanged work weeks but continued employment increases. Upward pressures on prices eased, while wage pressure increased slightly, and expectations regarding future business conditions remained optimistic.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a high of 1.5548
During Tuesday’s European session the Pound Sterling to US Dollar (GBP/USD) exchange rate initially gained by 0.2% even as Nationwide’s report detailed the slowing in house price growth expected by economists.
The drop in annual property price growth to 7.2% from 8.5% increases the odds of the Bank of England (BoE) leaving interest rates on hold for some time to come.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
Later today, the US is set to publish its domestic consumer confidence figure.
Economists have forecast that the sentiment index will print at an almost seven-year high of 94.0 in December, following a reading of 88.7 in November.
However, while you might assume that a strong confidence report would inspire a US Dollar upswing, some industry experts have intimated that the ‘Greenback’ might not be bolstered by the data.
In the view of currency strategist Ilya Spivak; ‘US economic news-flow has markedly improved over recent weeks, with realised outcomes outperforming expectations by the largest margin close to four months. That hints analysts are underestimating the vigor of the world’s largest economy and opens the door for an upside surprise. At surface level, an upbeat result might be expected to fuel Federal Reserve interest rate hike speculation, boosting the US Dollar. Seasonal considerations may interfere with this dynamic however. On one hand, the holiday liquidity drain has meant that directional conviction is hard to come by. On the other, worries about the negative impact of Fed tightening on risk appetite may trigger profit-taking on sensitive positions.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate fell to a low of 1.5496
Investors with an interest in the Pound Sterling to US Dollar (GBP/USD) exchange rate will also be looking ahead to tomorrow and the publication of US initial jobless and continuing claims figures.
It is believed that the number of people filing for first time unemployment benefits increased in the week ending December 27.
The Chicago Purchasing Manager report will also be of interest, as will US Pending Home Sales figures.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5526
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.2767
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8221
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.2160
