On Wednesday the Pound to US Dollar (GBP/USD) exchange rate was little moved ahead of the release of UK GDP data and US Jobless Claims and Housing data.
The Pound to US Dollar (GBP/USD) exchange rate softened on Tuesday as demand for the ‘Greenback’ increased ahead of the release of eagerly anticipated US GDP and Consumer Confidence data.
On Monday, the Pound to US Dollar (GBP/USD) exchange rate firmed after flash US Composite and Services PMI data came in softer than forecast.
Earlier in the session the Pound to US Dollar (GBP/USD) exchange rate is forecast to continue trading in the region of a 14-month low throughout Monday but managed to receive some support as economists deemed recent losses as overdone.
Sterling softened earlier in the session as data out of Germany came in better than forecast. The data released by the IFO institute showed that business confidence in the Eurozone’s largest economy unexpectedly increased for the first time since April as recent data showed that Germany avoided sliding into recession in the third quarter of the year.
Against the US Dollar, the Pound also softened to trade back in the region of a 14-month low as economists continued to speculate that the US Federal Reserve is getting closer to tightening its monetary policy and hike interest rates.
The Greenback continues to find support from last week’s Federal Reserve minutes, which show that policy makers are growing increasingly confident that the strength of the national economy means that the USA can withstand external threats to growth.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The GBP/USD exchange rate could continue to trade near a 14-month low but could experience movement later in the session due to Flash PMI data. Also due for release, is the latest Dallas Federal Reserve Manufacturing Index.
Tuesday promises to be a more volatile session for ‘Cable’ due to the release of UK mortgage approvals data and US revised third quarter Gross Domestic Product (GDP) data. Economists are expecting the second estimate of the data to show that the world’s largest economy did not expand as much as initially reported in the first estimate, if so then the Pound is likely to regain ground.
The main UK data release due this week is Wednesday’s UK GDP report.
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,
,Pound Sterling,0.6364 ,
US Dollar,,Euro,0.8020 ,
US Dollar,,Canadian Dollar,1.1276 ,
US Dollar,,Australian Dollar,1.1707 ,
Pound Sterling,,US Dollar,1.5709 ,
Euro,,US Dollar,1.2467 ,
[/table]
