Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast: Sterling Crumbles as Cameron Attends Brussels Talks
The Pound Sterling to US Dollar (GBP/USD) exchange rate has collapsed today, with Sterling (GBP) posting a large number of losses against other rivals as well.
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GBP/USD Exchange Rate News: Sterling Soft as EU Referendum Discussion Continues, Sales Figures Uninspiring
The Pound Sterling (GBP) has failed to capitalise on some highly supportive UK economic publications today, mainly due to investor uncertainty surrounding David Cameron’s ongoing negotiations in Brussels. Cameron is speaking to the heads of the EU in an attempt to reach some agreement on his plans for a modification of the UK-EU relationship. However, is remains to be seen if some compromise can be met over the contentious issue of freezing the benefits of migrants to the UK for 4 years to prevent ‘benefit tourism’.
The Pound should have been bolstered by better-than-expected November Retail Sales results today, but has instead fallen by -0.5% against the US Dollar, -0.6% against the Norwegian Krone (GBP/NOK) and -1% against the Indian Rupee (GBP/INR). Among the Pound’s few gains have been 0.8% against the Australian Dollar (GBP/AUD) and 1.3% against the South African Rand (GBP/ZAR). This faring against the US Dollar (USD) is an unfortunate repetition for Sterling investors after they were disappointed by another central bank decision a week ago.
USD/GBP Exchange Rate Movement: Mixed US Claims Data comes as ‘Buck’ Advances Overall
The US Dollar (USD) has advanced strongly today, likely on the continuing waves of investor optimism that have come from yesterday’s Federal Reserve interest rate hike. The move was the first of its kind in almost a decade, although the impact of the decision was largely diminished due to economists pricing in the minimal increase from 0.25% to 0.50% far in advance. The ‘Greenback’ nonetheless jumped in the wake of the news and has remained steady against most rivals as a consequence.
The most recent US economic publications have revealed that the nation’s Initial Jobless Claims up to December 12th have fallen from 282k to 271k, but the Continuing Claims up to December 5th have failed to drop in line with forecasts, shifting from 2245k to 2238k instead of 2220k.
The US Dollar has risen by 0.3% against Pound Sterling (USD/GBP) today, with greater gains of 0.4% against the New Zealand Dollar (USD/NZD) and 1.6% against the South African Rand (USD/ZAR) also being recorded.
GBP/USD Exchange Rate Forecast: US PMI Results to Come Tomorrow
The next influence in the GBP/USD exchange rate is likely to come from the US side of the pairing, given that the next UK data isn’t out until Monday.
Tomorrow, the US Markit Composite and Services PMIs are due for release, along with the Baker Hughes Rig Count. At the time of writing, forecasts were for a minor decline in the Services score from 56.1 to 55.9.
The UK’s input will come at the beginning of next week with the positively forecast CBI Reported Sales for December.
Current GBP, USD Exchange Rates
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.4907 and the US Dollar to Pound Sterling (USD/GBP) exchange rate was trending in the region of 0.6711 today.