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US Dollar to Pound Sterling (USD/GBP) Exchange Rate – ‘Greenback’ retreats as retail sales disappoint

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The US Dollar has retreated against the Pound made losses against several of its most traded peers after data for the biggest part of the US economy disappointed investors.

According to the Commerce Department retail sales in the world’s largest economy increased by their smallest margin in four months. Sales increased by 0.2% in August. Economists had been calling for a rise of 0.5%. The data result could add to speculation that the Federal Reserve may opt to refrain from tapering its monetary easing programme at next week’s policy meeting.

Financial experts are divided as to whether a cut will take place. Despite the signs of a slowdown in demand this quarter others are not changing their expectations that the Federal Reserve will announce cutbacks to its huge monthly bond purchasing program at next Tuesday and Wednesday’s policy meeting.

The currency did find some support from a rise in wholesale prices. The 0.3% increase was an improvement but still left the US economy seeing inflation well below the 2% target set by the Federal Reserve.

Against the Euro the ‘Greenback’ was able to maintain its gains after the single currency came under pressure after the European Parliament approved legislation that would allow the European Central Bank to oversee banks in the Eurozone a move that ECB President Mario Draghi said was a real step forward in establishing a banking union.

Current US Dollar (USD) Exchange Rates

The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6322

The US Dollar/Euro Exchange Rate is currently in the region of: 0.7524

The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0811

The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6722

The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0342

(Correct as of 14:30 pm GMT)

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