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Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Sterling Surges Ahead as UK Debt Decrease is a Weight off Investors’ Minds

Pound US Dollar

The Pound Sterling to US Dollar (GBP/USD) exchange rate has risen today along with a number of other notable gains for the Pound (GBP), as the UK results of the day showed overall positive news for the UK economy.

GBP/USD Exchange Rate News: Mix of UK Data comes out in Favour of Sterling Support Today

The Pound Sterling (GBP) has risen by 0.2% against the US Dollar (GBP/USD) today, just one of several other considerable rises for the UK currency. Others include 0.5% against the Danish Krone (GBP/DKK) and 0.6% against the Czech Koruna (GBP/CZK) and the Polish Zloty (GBP/PLN). Losses have primarily been made up of -0.8% against the Russian Ruble (GBP/RUB) and the South African Rand (GBP/ZAR).

The biggest of today’s UK results have included news that the Q2 GDP has been revised down from 2.6% to 2.4% and the announcement that the Q2 Current Account deficit narrowed beyond expectations to -£16.8bn. While the GDP finalisation is not superior to the estimated figure, 2.4% still indicates healthy growth for Sterling, and investors have clearly picked up on this in their support for the Pound today.

US Dollar Holds Steady ahead of another Data-Rich Day

The US Dollar to Pound Sterling (USD/GBP) exchange rate has dropped by -0.2% today and a mix of gains and losses have been seen elsewhere for the ‘Greenback’ (USD). With no domestic data results yet out, investors in the US currency have been forced to gauge volatility on yesterday’s rise in Consumer Confidence for September and the division in the Federal Open Market Committee’s (FOMC) members over a US interest rate hike in October or December this year. Both voting and non-voting Fed members have voiced their support for a hike recently, but Charles Evans adopted a particularly dovish stance on Monday, calling for a rate hike to take place mid-2016, at the earliest.

The US Dollar has risen by more than 0.2% against the Euro (USD/EUR), the Japanese Yen (USD/JPY) and the Polish Zloty (USD/PLN) today, but has fallen by -0.4% against the New Zealand Dollar (USD/NZD) and by -1.2% against the South African Rand (USD/ZAR).

GBP/USD Exchange Rate Forecast: US Dollar Data to Rule Once Again into Thursday

In a recurrent trend this week, the US Dollar (USD) has the better part of this week’s data publications – coming up today is the US ADP Employment Change figure for September and a much later speech from Fed members Janet Yellen and James Bullard. Yellen’s tone last week established her as a hawk for an early interest rate hike, but even if Bullard echoes this sentiment, it bears noting that he is not a direct voting member of the FOMC this year.

Current GBP, USD Exchange Rates

The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5182 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6587 today.

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