The US Dollar has weakened against the Pound with the UK currency strengthening to its strongest level in three weeks as last week’s US jobs data continues to weigh heavily upon the ‘Greenback’.
The jobs data released last Friday showed that the US economy added 169,000 jobs in August, far less than the 180,000 that was predicted by economists. As well as the disappointing jobs figure, the number of new jobs created in the previous two months was revised downward, casting doubt on whether the Federal Reserve will choose to start tapering its monetary stimulus measures later this month. The Fed meets for its next policy meeting on the 17-18th.
Sterling received further support from a speech made by Chancellor of the Exchequer George Osborne. He told reporters that the British economy is turning a conrer and is in the early stages of a recovery. As a result of the speech Sterling climbed to a three week high against the Dollar.
“I am optimistic about sterling, the habit has been for U.K. data to come out stronger than expectations and so you are more likely to run with a position in the currency. The momentum is with employment” said Steve Barrow, the head of Group-of-10 research at Standard Bank Plc
Against the Euro the US Dollar also fell after the single currency was supported by the release of data showing that investor confidence in the Eurozone region rose to a six month high is September. The Sentix Index rose to 6.5, smashing the previous reading of -4.9 and forecasts for -2.8.
The start of the week is relatively quiet for US news but on Thursday all eyes will be on the latest Jobless claims data and US monthly budget statement. Friday meanwhile sees the publication of the latest retail sales and PPI data.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6369
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7566
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1085
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.3846
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0372
(Correct as of 14:35 pm GMT)