The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending within a narrow range on Wednesday morning.
As traders await British labour market data, including the influential Jobless Claims Change, the Pound is generally holding steady versus its major peers. Sterling investors will be hoping for positive results in order for the Pound to recover losses racked up from less-than-impressive inflation data.
The US Dollar, meanwhile, edged higher versus many of its most traded rivals after Tuesday’s declination was seen as overdone. A recent string of disappointing data results, however, is boosting speculation that the Federal Reserve will delay a rate hike for the foreseeable future.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5349.
Yesterday…
The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.14% on Tuesday morning.
Although the UK’s headline inflation figure softened beyond expectations, the core inflation score allowed Sterling to edge higher versus many of its major peers. After Bank of England (BoE) Governor Mark Carney stated that inflation wouldn’t prevent a rate hike, the steeper-than-expected slide in consumer prices was less impactful.
The US Dollar, meanwhile, is generally trending lower versus its major peers thanks to a lack of data to ignite movement. US Housing data, due for publication later on Tuesday, has the potential to provoke changes.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5387.
Pound Sterling (GBP) Exchange Rate Edges Higher on Core Inflation
As described above, the headline consumer price data printed poorly, having dropped beyond expectations from 0.5% to 0.3%. Some positives can be taken from the fact that British CPI didn’t fall into negative territory. The Core Consumer Price Index, however, improved from 1.3% to 1.4% which somewhat micrified the impact of the standard CPI.
‘The rise in core inflation highlights the fact that the UK is far from suffering generalised deflation,’ stated Howard Archer, chief UK and European economist for IHS Global Insight. ‘With inflation likely to fall further and earnings growth now finally trending upwards, consumers should see appreciable improvement in their purchasing power as 2015 progresses,’ he added.
The Pound Sterling to US Dollar (GBP/USD) exchange rate has fallen to a low of 1.5329 today.
US Dollar (USD) Exchange Rate Ticks Lower ahead of Housing Data
Given the distinct lack of domestic data on Monday, and with mounting speculation that the recent run of disappointing data publications will force the Federal Reserve to delay rate revisions, it is perhaps unsurprising that the US Dollar softened versus many of its most traded currency competitors on Tuesday.
Those invested in the ‘Greenback’ (USD) will be hoping that the NAHB Housing Market Index will meet with expectations of a rise from 57 to 58.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate
The publication of today’s US data is likely to provoke movement for the Pound Sterling to US Dollar (GBP/USD) exchange rate. There is a high likelihood of volatility on Wednesday with several influential data publications for both the UK and the US, including the UK’s employment figures.
The Pound Sterling to US Dollar (GBP/USD) exchange rate reached a high today of 1.5398.
