The Pound Sterling to US Dollar (GBP/USD) exchange rate was forecast to fall on Tuesday as investors increased their bets that the day’s US data releases would show that consumer confidence in the world’s largest economy rose to a six-year high.
The GBP/USD exchange rate was trading in the region of 1.695
The publication of mixed UK data offered little support to the Pound.
According to the Bank of England (BoE) the number of mortgages approved in the UK increased more than economist forecasts last month.
The number of approvals advanced to a four-month high, suggesting that the nation’s housing market was continuing to be strong.
Approvals increased from the 62,007 recorded in May to the 67,196 figure seen last month. Economists had been predicting an increase to 63,000.
The rise in mortgage approvals was the first recorded since January as new stricter borrowing measures were introduced by the Central Bank.
The tougher lending measures were introduced after the BoE said that it was concerned that the property market was overheating.
Bank governor Mark Carney has also stated that the market was the biggest threat to the UK economic recovery.
A separate report then countered any potential gains created by the mortgage data.
Data showed that UK net lending to individuals rose by £2.5 billion in June, below economist expectations for a rise to £2.6 billion. Net lending in May meanwhile was revised upwards to £3 billion from the previous figure of £2.7 billion.
Pound Sterling to US Dollar Exchange Rate Forecast
The US Dollar meanwhile made gains as demand for the currency was increased ahead of the week’s major data releases. Investors are expecting Tuesday’s consumer confidence to come in strongly and are also forecasting that preliminary data on second quarter GDP data will also show a strong figure.
Investors will also be paying attention to Wednesday’s Federal Reserve policy meeting and Friday’s employment data. Earlier in the month Federal Reserve Chairman Janet Yellen said that interest rates could rise if the recovery in the USA’s labour market continued.
If the employment comes in better-than–forecast then we can expect the ‘Greenback’ to make further gains against the Pound and its other major peers as investors are likely to raise their expectations for a rate hike.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6956 ,
Pound Sterling,,Euro,1.2617,
Pound Sterling,,Australian Dollar,1.8042 ,
Pound Sterling,,New Zealand Dollar,1.9925 ,
US Dollar,,Pound Sterling,0.5898 ,
Euro,, Pound Sterling ,0.7925 ,
Australian Dollar,, Pound Sterling ,0.5534 ,
New Zealand Dollar,,Pound Sterling,0.5012 ,
[/table]
Comments are closed.