Just when you started to think that currency market volatility was over for the week, the Fed pulls another bunny out of the hat.
Overnight the safe-haven currency recovered ground as investors’ speculated that the recent higher-risk asset gains had been excessive.
The US Dollar Exchange Rate was trading in the region of 0.6247 against the Pound as of 16:20 GMT
Today, remarks issued by a Federal Reserve official fanned the flames of tapering concerns once more and the US Dollar extended gains against peers like the Pound and Euro.
James Bullard, President of the Federal Reserve Bank of St Louis, asserted that the decision not to reduce easing had been a hard fought one, and a very close call.
He consequently implied that the Fed could trim stimulus modestly in October.
The US Dollar to Pound (USD/GBP) Exchange Rate hit a high of 0.6254
Earlier in the European session a report showing that the UK’s budget deficit narrowed helped the Pound recover some of the losses sustained in the wake of yesterday’s less-than-impressive retail sales data, but this news triggered a reversal in the GBP/USD pairing.
The announcement prompted this response from global strategist Kit Juckes; ‘Bullard is trying to put taper back on the table. We’re flip-flopping around trying to figure out where we’re going to go.’
Next week US news to look out for includes Markit US PMI, US consumer confidence, the nation’s house price index, US new home sales, US initial jobless claims and the University of Michigan Confidence index.
US Dollar (USD) Current Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6247 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7395 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0620 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.5000 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0285 >
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.6004 <
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3508 <
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9414 <
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9724 <
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8372 >
(Correct as of 16:20 GMT)
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