Pound Sterling to US Dollar (GBP/USD) Exchange Rate Climbs 0.4%
Although the Bank of England’s interest rate decision is expected to be something of a non-event, the Pound Sterling to US Dollar (GBP/USD) exchange rate advanced by 0.4% on Thursday.
While yesterday’s US ISM Non-Manufacturing gauge showed improvement, the ADP Employment report fell short of forecasts – which doesn’t bode well for Friday’s US Non Farm Payrolls report.
If today’s US Initial Jobless, Continuing Claims and Trade balance figures fall short, the Pound could push higher still.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in the region of 1.5236
Earlier…
GBP/USD Exchange Rate Breaches 1.52
The Pound Sterling to US Dollar (GBP/USD) exchange rate gained by more than 0.5% over the course of trading on Wednesday.
Sterling managed to hold on to its earlier advance even as the US ISM Non-Manufacturing Composite gauge climbed by more-than-expected.
The index had been expected to print at 56.4 in January but it actually increased from a positively revised 56.5 to 56.7.
While the result was encouraging, ‘Greenback’ gains were limited as the US ADP Employment Change report fell short, inspiring concerns that Friday’s US Non-Farm Payrolls report may also disappoint.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading in the region of 1.5225
Earlier…
GBP/USD Exchange Rate Advances after Services Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate gained on Tuesday after US factory orders were shown to have fallen by more-than-expected in December, and the pairing extended its advance on Wednesday.
Sterling gained on several of its most-traded currency counterparts after the UK’s Services PMI smashed estimates.
The gauge of the services sector jumped from 55.8 to 57.2 in January, surpassing expectations for a reading of 56.3.
Further GBP/USD movement is likely to follow the release of the ADP Employment Change report and the US ISM Non-Manufacturing Composite index.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trading in the region of 1.5182
Earlier…
GBP/USD Exchange Rate Climbs 0.6%, Factory Orders Slide
As the European session progressed the Pound extended its daily gain against the US Dollar to 0.6%.
Sterling was able to climb further against the ‘Greenback’ as US Factory Orders were shown to have fallen by -3.4% on the month in December following a negatively revised decline of -1.7% in November.
A slide of -2.4% had been anticipated.
After the data was published, the Pound Sterling to US Dollar (GBP/USD) exchange rate advanced to a high of 1.5150.
Earlier…
GBP/USD Exchange Rate Gains 0.2%
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced to 1.5058 during the local session as the UK’s positive construction data had a positive impact on Pound demand.
David Noble of the Chartered Institute of Procurement and Supply said of the increase in PMI; ‘After the disappointing end to last year and the drop in the industry’s fortunes, the construction sector has had a perky start with good activity across all sectors. Though the month’s activity was well below the highs of the peak recovery months, the modest increase in growth may beat away any wider concerns around an unsustained improvement in the sector’s fortunes. This is borne out by half of the procurement and supply management professionals who were optimistic about the year ahead.’
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate could push away from the 1.50 level thanks to a solid UK Construction report.
GBP/USD Exchange Rate Struggles amid Fed Rate Bets
Prior to the publication of the UK’s Markit Construction PMI, the Pound Sterling to US Dollar (GBP/USD) exchange rate was trading in a slightly softer position.
The Pound edged lower against the ‘Greenback’ at the beginning of the week in spite of UK data impressing and the US publishing a mixed bag of economic reports.
The highly influential US ISM Manufacturing Index unexpectedly declined from 55.1 to 53.5 in January.
A reading of 54.5 had been predicted.
Construction Spending also increased by less-than-forecast.
The Pound Sterling to US Dollar (GBP/USD) exchange rate achieved a high of 1.5043
However, the final US Markit Manufacturing PMI was positively revised to 53.9 from 53.7.
Markit economist Chris Williamson said of the result; ‘Manufacturing continued to expand in January, but the sector remains in a lower gear compared to that seen last summer. Factory output growth and job creation remain well below last year’s peaks, adding to the suspicion that the pace of economic expansion in the first quarter could even fall below the 2.6% rate seen in the final quarter of last year.’
After the run of data was released the US Dollar retained the upper hand thanks to bets that the Federal Reserve is moving closer to increasing interest rates.
The Pound Sterling to US Dollar (GBP/USD) exchange rate fell to a low of 1.4985
However, the Pound began to claw back some of its recent losses as the UK’s Construction PMI printed at 59.1 – far higher than the forecast 57.0 and up from 57.6 in January.
If tomorrow’s UK Services PMI makes it a hat-trick of surprisingly strong figures, the Pound may tick higher before the Bank of England’s (BoE) interest rate announcement.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
In the hours ahead, the Pound Sterling to US Dollar (GBP/USD) exchange rate could fluctuate following the publication of the US ISM New York Index and Factory Orders figures.
Factory Orders are expected to fall by -2.4% on the month in December following November’s -0.7% drop.
Federal Reserve officials James Bullard and Narayana Kocherlakota are also scheduled to speak and the tone of their comments could have an impact on the US Dollar’s performance.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5017
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3248
The US Dollar to Euro (USD/EUR) exchange rate is currently trending in the region of 0.8818
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1334
