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Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Mixed Performance following UK Borrowing Data Today, US Uncertainty Observed

US Dollar banknotes

The Pound Sterling to US Dollar (GBP/USD) exchange rate has risen slightly today, though the day’s only UK economic releases have not been entirely supportive towards this outcome.

GBP/USD Exchange Rate News: Historically High UK Deficit Causes Investors to Pause for Thought

Pound Sterling (GBP) has seen its fair share of declines and gains so far today, with the narrow positive trending against the US Dollar being a result in the latter category. Joining it have been advances of 0.4% against the Euro (GBP/EUR) and the Czech Koruna (GBP/CZK) along with a 0.6% jump up against the Russian Ruble (GBP/RUB).

The day’s only UK data has been largely negative in nature, with the UK Government Borrowing and Public Finances statistics for October falling but by less than predicted by economists. Historically speaking, the current £8.2bn deficit is the highest for the month of October since 2009.

US Dollar Recovers after Yesterday’s Mass Selloff, Uncertainty among Investors over Future Fed Decision

The US Dollar (USD) has fluctuated across the board today; this has equated to rises of 0.2% against the Euro (USD/EUR) and 0.4% against the Australian Dollar (USD/AUD) but losses of -0.2% against the Pound Sterling (USD/GBP) and -0.6% against the South African Rand (USD/ZAR).

Although not entirely positive, this result is at least an improvement on yesterday’s overall downtrend for the ‘Buck’, which came about after US Dollar holders sold off en masse due to the temporarily rise in strength of the US currency; this profit-taking subsequently devalued the ‘Greenback’ in the eyes of the world.

Investors are currently in a wary state over the future movement of the US Dollar, given that analyses of the Fed’s October Meeting Minutes have turned from perceptions of hawkishness to more neutral or dovish evaluations.

GBP/USD Exchange Rate Forecast: Speech from Fed’s Bullard and US Oil Rig Count Ahead

No further UK economic news is due for today, therefore the last remaining influence on the pairing will be results from the US. These include a speech from Fed Bank of St. Louis President James Bullard on the state of the economy and the numbers from the Baker Hughes Rig Count, which last came in at 767 rigs.

Current GBP, USD Exchange Rates

The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5294 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6539 today.

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