Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Edge Lower on US Labour Data
The Pound Sterling to US Dollar (GBP/USD) exchange rate softened by around -0.15% on Friday morning.
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Although positive consumer confidence caused the Pound to strengthen versus most of its major peers, the Pound Sterling to US Dollar (GBP/USD) exchange rate edged lower. This can be attributed to Thursday’s US labour data which supported speculation that the Federal Reserve will tighten policy in 2015.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5064.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending within a narrow range on Thursday morning.
After British housing data showed prices declined in January, the Pound softened versus many of its major peers. However, reported sales data has the potential to provoke changes once the dust has settled.
The US Dollar, meanwhile, is generally holding steady after a significant appreciation following hints from the Federal Reserve that they will hike the cash rate in 2015. US labour data, due for publication on Thursday afternoon, has the potential to spark ‘Greenback’ (USD) volatility.
The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.5142.
Pound Sterling (GBP) Exchange Rate Edges Lower on House Prices
As described above, disappointing domestic data caused the Pound to soften versus most of its major peers. Nationwide House Prices declined from 7.2% to 6.8% on a yearly basis, although the month-on-month score showed January’s house prices increased from 0.2% to 0.3%.
Robert Gardner, chief economist at Nationwide, said; ‘Although house price growth continues to outpace income growth by a significant margin, affordability does not appear stretched at a national level. The cost of servicing a typical mortgage remains close to the long run average as a share of take home pay, in part thanks to the ultra-low level of mortgage rates.’
Reported Sales declined from 61 to 39 in January, although the result eclipsed estimates of a drop to 32. Given that the data has only just been released, it is too early to tell how traders will react.
The Pound Sterling to US Dollar (GBP/USD) exchange rate has fallen to a low today of 1.5108.
US Dollar (USD) Exchange Rate Holding Steady ahead of Labour Data
In the immediate aftermath of the Federal Open Market Committee meeting, in which policymakers kept the cash rate on hold, the US Dollar surged versus nearly all of its major peers. This is because the accompanying statement hinted that they were prepared to raise rates in 2015.
‘All roads lead to a higher US Dollar,’ said Joseph Capurso, a currency strategist at Commonwealth Bank of Australia in Sydney. ‘The Fed’s the only one that people can see tightening this year.’
However, the US Dollar is currently holding steady as traders await labour market data due for publication on Thursday afternoon.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate
With several forthcoming influential data publications pertaining to North America, the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to fluctuate. With mounting positive sentiment towards the Federal Reserve, however, any US Dollar declination is likely to be minimal.
The Pound Sterling to US Dollar (GBP/USD) exchange rate advanced to a high today of 1.5163.