The US Dollar to Pound Sterling Exchange Rate was in the region of 0.6317 as of 10.00 am
A Commerce Department report revealed yesterday that the US economy contracted for the very first time since the Great Recession, a decline primarily triggered by a drop off in national defence spending.
As a result of this recent news, and economic developments elsewhere, the Euro is going from strength to strength while the US Dollar inches ever closer to a sixth monthly drop against the volatile common currency.
Yesterday’s worse-than-forecast US 4Q gross domestic product figures, although not quite so alarming as they may have first appeared, have nevertheless taken their toll on the nation’s currency.
The ‘Greenback’s declines against its major counterparts were further exasperated after the Federal Reserve announced its decision to continue purchasing mortgage bonds and treasuries. Although investor appetite for safer assets grew after the news broke they turned to the Japanese Yen, which broadly strengthened, rather than the US Dollar.
As one currency strategist stated: ‘The Fed’s stance is still a dollar-negative factor until such time as we can see enough improvement in the data to meaningfully start pricing in an exit strategy. The Dollar is going to remain relatively soft.’
Positive data releases from the Eurozone, including this morning’s better-than-forecast German unemployment figures, pushed the American currency close to a 13-month low against the Euro.
The common currency could continue to be top dog in the pairing if this afternoon’s US jobless claims report meets expectations and reveals an increase in applications for jobless benefits of 21,000.
Additional news from the Eurozone, in the form of German Consumer Price Index figures, could also keep the Dollar trading lower in the hours ahead.
Current US Dollar Exchange Rates
The US Dollar to Euro exchange rate is currently trading at 0.7375
The US Dollar to Pound Sterling exchange rate is currently trading at 0.6317
The US Dollar to Canadian Dollar exchange rate is currently trading at 1.0026
The US Dollar to Australian Dollar exchange rate is currently trading at 0.9603
The US Dollar to New Zealand Dollar exchange rate is currently trading at 1.1946
The US Dollar to Emirati Dirham exchange rate is currently trading at 3.6729
The US Dollar to Swiss Franc is currently trading at 0.9097
The US Dollar to Japanese Yen exchange rate is currently trading at 90.8700
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