The Pound US Dollar (GBP/USD) exchange rate is weakening during this morning’s session as the US Dollar makes a sustained rebound.
At the time of writing the GBP/USD pairing are trading at around $1.3908 as a lack of any notable data from the UK weighs on Sterling sentiment.
Pound (GBP) Weakens on Lack of Notable Data from the UK
The Pound is weakening against many of its major rivals this morning as the UK’s economic optimism finally runs out of steam.
Despite a continuing excitement following the UK’s economic recovery and reopening from coronavirus it hasn’t been enough to support Sterling this morning.
However, limiting any major losses in the Pound today is the news that those aged 40 and above can now book in for their coronavirus vaccine, with those in their 30’s expected to be able to book in as little as a fortnight.
Earlier in the week, NHS CEO Sir Simon Stevens commented on expanded rollout saying:
‘With nine-tenths of people aged 45 and over having being jabbed, nearly three-quarters of a million new appointments were made in just two days as our booking service opened to people aged 42 to 44.’
Today also saw Northern Ireland reopen outdoor hospitality and shops as the nation enters their next stage of lockdown easing.
US Dollar (USD) Supported by Latest US GDP Figures
The US Dollar is finding support against the Pound this morning as the latest US GDP figures helped revert the ‘Greenback’s’ losses on Wednesday.
Following the Federal Reserve’s latest policy meeting the US Dollar had plummeted, however US GDP figures released yesterday helped the currency to rebound.
Analysts at ING commented on the latest Fed meeting, saying:
‘They [the Fed] suggest a growing optimism within the FOMC, potentially laying early groundwork for a tapering of their QE program before year-end, despite Powell saying it isn’t yet time to have that conversation.’
More so the latest US jobless claims released yesterday further fell to pre-pandemic levels, adding further support to the ‘Greenback.’
This afternoon, US Dollar traders will be keeping an eye on the latest personal income and personal spending data from the US for March which are expected to soar as many American’s received their stimulus checks during the month.
Pound US Dollar Exchange Rate Outlook: Bank of England Interest Rate Decision in Focus
A slightly busier economic calendar for the Pound brings the latest interest rate decision from the Bank of England (BoE) in the second half of the week.
The BoE are expected to keep interest rates unchanged at 0.1%, however a continuing positive tone from the bank surrounding the UK’s economic outlook could see GBP heading higher.
US Dollar traders will themselves be keeping an eye on the latest ISM manufacturing PMI which is to be released on Monday.
The PMI is expected to have risen to 65 points in April, the third increase in three months which could further support the US Dollar at the start of the week.