The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending within a tight range on Wednesday morning.
With a complete absence of domestic data to provoke changes, the Pound is generally edging higher versus most of its major peers. This can be attributed to traders fearing the reaction to Tuesday’s British growth figures was unwarranted. Having missed the forecast figure, the Pound slumped after UK GDP data was published. However, this somewhat overshadowed the fact that growth was still an improvement upon previous figures.
The US Dollar, meanwhile, is generally trending higher versus most of its major rivals as traders prepare for the Federal Open Market Committee meeting. Although most experts don’t anticipate a rate hike at this early stage, hawks will be hoping for a change in language which indicates the potential timing of rate revisions.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5184.
Yesterday…
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending within a tight range on Tuesday.
After British growth failed to meet with the median market forecast, the Pound softened versus many of its major peers. However, the improvement in annual growth, albeit fractional, has slowed the Sterling declination.
The US Dollar, meanwhile, is generally trending lower versus many of its most traded currency rivals as traders await significant data due for publication later on Tuesday.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5081.
Pound Sterling (GBP) Exchange Rate Ticks Lower on UK GDP
After UK growth failed to meet with expectations, the Pound softened versus many of its competitors. However, Sterling managed to recover some of the immediate declination seeing as UK growth still improved on a year-on-year basis.
The Office for National Statistics chief economist Joe Grice said; ‘The dominant services sector remains buoyant while the contraction has taken place in industries like construction, mining and energy supply, which can be erratic.’
Capital Economics senior UK economist Samuel Tombs says; ‘The fourth quarter rounds off what has been an impressive year of growth for the UK economy, with the 2.6 per cent annual rise in GDP looking likely to have been the largest amongst the G7 economies.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate dropped to a low today of 1.5055.
US Dollar (USD) Exchange Rate Softens ahead of US Data
Whilst traders await the results from significant data pertaining to North America, the US Dollar is generally ticking lower versus many of its major peers. Durable Goods Orders is forecast to advance from -0.9% to 0.3% and Consumer Confidence is predicted to gain from 92.6 to 95.
With several influential US data publications due later this week, the chance of US Dollar volatility is significantly heightened. Wednesday’s Federal Open Market Committee (FOMC) meeting will be highly significant, especially if Tuesday’s data pressures the US central bank into normalising monetary policy sooner than projected.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Soften
Provided that the US data meets with expectations, the Pound Sterling to US Dollar (GBP/USD) exchange rate will continue to soften. However, expect volatility over the coming days with both the FOMC rate decision and US Gross Domestic Product figure due for publication.
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced to a high today of 1.5117.
