US Dollar to British Pound (USD/GBP) Exchange Rate Higher, USD/EUR Steady
The US Dollar exchange rate was in a stronger position against the british Pound (USD to GBP) on Tuesday and was trending in a narrow range against the Euro (USD to EUR).
If you're looking to make an international money transfer, we recommend TorFX.
While last week’s unexpectedly dovish statement from the Federal Open Market Committee continues to have an adverse impact on the appeal of the US Dollar, the safe-haven asset has garnered some support from a string of upbeat US data releases.
Yesterday’s Markit Manufacturing PMI showed an unexpectedly strong surge in manufacturing production while a separate report detailed an impressive acceleration in the sale of existing homes.
Today US reports have shown improvements in new home sales and consumer confidence.
The US Consumer Confidence Index jumped to 85.2 in June, up from 82.2 in May and stronger than the estimated level of 83.5.
Similarly, the New Home Sales report detailed a whopping 18.6% month-on-month increase in May. Economists had only anticipated a monthly gain of 1.6%.
The increase was the strongest for 22 years and is indicative of the US economy’s rebound from winter-weather inspired weakness earlier in the year.
The report is another sign that the US economic recovery is progressing and prompted this response from economist Scott Brown; ‘The housing recovery is still going on. We’ll see a general trend of improvement.’
However, April’s new home sales figure was negatively revised to an increase of 3.7%.
The US Richmond Fed Manufacturing Index also declined from 7 in May to 3 this month rather than holding at 7 as anticipated.
The US Dollar’s strength against the Pound (USD to GBP) was also enabled by today’s less than upbeat comments from Bank of England Governor Mark Carney.
In light of the recent sluggish UK wage growth figures, Carney opted to do a bit of a U-Turn and revise his stance on the timeline for increasing interest rates.
The BoE chief stated the level of spare capacity in the labour market was larger than policy makers had believed it to be.
The US Dollar to Pound (USD to GBP) exchange rate fell to a low of 1.6964 and held below the 1.70 US Dollar level as trading progressed.
Meanwhile, the US Dollar to Euro (USD to EUR) exchange rate was stronger thanks to German’s below-forecast IFO Business Climate reports.
While the news that German’s IFO measures of the business climate, current assessment and expectations all either declined or held at previous levels didn’t exactly send the Euro into a tail spin, the EUR to USD exchange rate did hit a low of 1.3589.
As it stands the US Dollar to Pound (USD to GBP) exchange rate is trading in the region of 0.5884 and the US Dollar to Euro (USD to EUR) exchange rate is trading in the region of 0.7345.