Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Strengthen ahead of US Factory Orders
The Pound Sterling to US Dollar (GBP/USD) exchange rate strengthened by around 0.45% on Tuesday afternoon.
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As traders await US economic data, which is forecast to show factory orders declined significantly, the US Dollar edged lower versus the majority of its most traded currency competitors. The declination has been fractional, however, with policy divergence seeing continued support for the ‘Greenback’ (USD).
The Pound Sterling, conversely, strengthened versus nearly all of its major peers after domestic data printed positively. However, the gains have been somewhat stymied as the forthcoming general election causes trader anxiety.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5091.
Pound Sterling (GBP) Exchange Rate Trending Higher on Construction
After construction data bettered forecast figures, the Pound strengthened versus most of its major peers. The UK Construction PMI was forecast top drop from 57.6 to 57.0, but the actual result advanced to 59.1.
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: ‘Falling input prices have helped the sector control spending costs; though the advantage was not as great as for other sectors. Uncertainty about the continued recovery of the wider economy and the possible changes brought on by a looming General Election may keep the sector from performing at the high levels seen this time last year.’
The Pound Sterling to US Dollar (GBP/USD) exchange rate has fallen to a low of 1.4985.
US Dollar (USD) Exchange Rate Edges Lower ahead of US Data
Whilst traders await domestic data due for publication later on Tuesday, the US Dollar softened versus many of its major competitors. Factory Orders are forecast to decline by-2.4% following November’s -0.7% drop.
Although some recent US data has failed to impress, speculation that the Federal Reserve will be the first of the major central banks to tighten policy has kept the US Dollar in a position of strength versus many of its peers.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate
With both US data to be published and Fed officials due to make speeches, the Pound to US Dollar (GBP/USD) exchange rate is likely to be subject to fluctuations.
Wednesday will see several publications significant to the GBP/USD pairing. For those invested in the Pound, the Composite and Services PMIs will be of interest. For those trading with the US Dollar, Mortgage Applications and Employment Change have the potential to provoke volatility. Of most importance, however, will be the ISM Non-Manufacturing Composite which is expected to tick lower from 56.5 to 56.4.
The Pound Sterling to US Dollar (GBP/USD) exchange rate reached a high today of 1.5107.