After the release of disappointing UK Retail Sales data yesterday, the Pound Sterling (GBP) exchange rate declined against all major currencies.
Pound Sterling (GBP) Exchange Rate has mixed Recovery, USD Continues to Rally
The worst of the Pound’s slump was against the New Zealand Dollar (GBP/NZD), where GBP fell by -1.1%. The situation has since reversed, with Pound Sterling currently showing a 0.5% gain on the NZD.
GBP also performed poorly against the US Dollar (GBP/USD), dropping to 1.5506 after hitting a daily high of 1.5664 earlier on. The US Dollar continues to gain against the Pound today, recording a 0.3% advance against the GBP.
US Dollar Climbs After Data; Uptrend against Pound Sterling Could Continue
The Pound Sterling/US Dollar (GBP/USD) exchange rate gains come after yesterday’s data showed a positive reduction in the number of July Initial Jobless Claims for the US (from 281,000 to 255,000). The USD/GBP currency pair shoed a low of 0.6403 pence prior to the announcement, but the ‘Greenback’ rapidly gained over the GBP, hitting a high of 0.6462 earlier this morning. It also strongly rose against the Australian Dollar (USD/AUD) and the South African Rand (USD/ZAR), by 1% and 1.4% respectively.
The Initial Jobless Claims figures require a broader view, however; as they come during summer when temporary jobs are at one of their highest rates of the year (Christmas being the other time).
Pound Sterling to US Dollar Forecast: Potential for either GBP/USD or USD/GBP Conversion Rate Gains Ahead of Next Week’s Announcements
Although the Pound Sterling to US Dollar (GBP/USD) exchange rate is ending the week in a softer position, upcoming events may shift the balance either way in the ‘Cable’ pairing. Next week holds key announcements for both the UK and US economies.
For Pound Sterling, a positive result for the UK’s Q2 GDP on Tuesday has the potential to push the GBP/USD exchange rate higher. Also, a disappointing US Durable Goods Orders figure for June could lend ‘Cable’ additional support.
However, the US also releases its Q2 GDP data next week (on Thursday), for which forecasts are optimistic. In addition, the Federal Open Market Committee (FOMC) meets on Wednesday, and if their policy statement indicates that a decision on the interest rate will be brought forward to September, the US Dollar may continue rising hawkishly over both the Pound Sterling and its other competitors.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5523 and the US Dollar to Pound Sterling USD/GBP) exchange rate was trending in the region of 0.6464.
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