US Dollar (USD) and Pound Sterling (GBP) Exchange Rates Fall against Commodity Currencies, Marginal Gains Elsewhere for GBP/USD
Despite ongoing concerns surrounding the price of commodities in the world markets, the Pound Sterling (GBP) and the US Dollar (USD) have both fallen by over -0.4% against the Australian Dollar (GBP/AUD, USD/AUD) and by over -0.1% against the South African Rand (GBP/ZAR, USD/ZAR).
This comes with news that Beijing has ‘vowed’ to secure the Chinese Stock Market by continuing ‘to buy stocks to stabilise the market’, according the Zhang Xiaojun, a spokesperson for the China Securities Regulatory Commission (CSRC). This has translated to significant gains for the nations with strong trade links with China, such as Australia and South Africa.
Earlier…
Both the US Dollar (USD) and the Pound Sterling (GBP) exchange rates have fallen against most major currencies today, ahead of key data releases for both the US and the UK.
US Dollar (USD) dips against Euro (USD/EUR) and others, UK GDP Data reflects uncertainty for Pound Sterling (GBP)
The US Dollar to Pound Sterling (USD/GBP) exchange rate has made minor gains today of 0.1%, but has otherwise declined against its major competitors, most significantly falling by over -0.6% against the Swiss Franc (USD/CHF) and more than -0.7% against the Euro (USD/EUR) and the Polish Zloty (USD/PLN).
The Pound Sterling has had a more mixed result, falling against the Euro (GBP/EUR) and the Danish Krone (GBP/DKK) by -0.8%, but gaining against the Turkish Lira (GBP/TRY) and the Russian Ruble (GBP/RUB) by 0.9% and 1.2% respectively.
FOMC Interest Rate Decision Incoming, may Allow US Dollar (USD) Conversion Rate to Bounce Back
Although the US Dollar (USD) exchange rate has been unfavourable today, the June orders for Durable Goods in the US are due later today, and forecasts have proven optimistic, showing an estimated 3.2% increase overall and a 0.5% increase for orders excluding transportation. The Federal Open Market Committee (FOMC) is also due to meet on Wednesday, and their decision to (possibly) adjust the US interest rate as early as September is sure to be a key influencer on the performance of the ‘Greenback’ for the rest of the week.
The Pound Sterling (GBP) exchange rate is also likely to be affected by incoming data; the UK’s quarter-on-quarter (QoQ) and year-on-year (YoY) GDP data is due for release tomorrow, and if the predicted quarterly increase from 0.4% to 0.7% proves accurate, the GBP may show a resurgence against its major competitors. At the same time, however, the yearly forecast is for a -0.3% slower pace of expansion and if this takes precedence, it may instead spell further declines in the GBP exchange rate.
Pound Sterling to US Dollar Exchange Rate Forecast: GBP/USD Stalemate may Continue if Data Disappoints
The GBP/USD and USD/GBP pairings may continue to seesaw between minor losses and gains in the next few days if the results of impending data releases are equally positive or negative for both the US and the UK, but should the US interest decision contain virtual confirmation of a September adjustment, the USD can be expected to rise significantly across the board. If the ‘Greenback’ bounces back, however, this will have a negative impact on the world’s commodity currencies, most of which price their exports using US Dollars.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5526 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6441 today.
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