USD to GBP Exchange Rate Unmoved ahead of US Domestic Data Results
The US Dollar’s bullish run against the Pound has halted somewhat on Tuesday ahead of the day’s US domestic data to be published.
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Monday saw a mix-bag of US domestic data results, but the ‘Buck’ (USD) continued to surge against most of the majors as interest rate hike speculation continues to gain momentum.
The US Composite PMI showed a declination from the previous figure of 60.6 to 58.8. The Services PMI exceeded the forecast figure of 58.0 to 58.5, but the result is still a decline from the previous figure of 60.8. Despite the average domestic data results the US Dollar continued to surge as a result of increased rate hike speculation and negative European data.
With nothing by way of domestic data publications to provoke Sterling movement, the Pound has continued to trend downwards versus most of its major peers. Sterling has made fractional gains against the ‘Greenback’ (USD) on Tuesday as traders await the upcoming US data.
The US Durable Goods Orders is of importance economically and is also a significant market mover. It is forecast to have increased by 8.0% which is much higher than the previous 1.7% increase registered.
US Consumer Confidence is another of Tuesday’s important domestic data publications pertaining to US economic standing. It is forecast to drop from 90.9 to 89.0. Traders invested in the ‘Buck’ will be hoping that both the Durable Goods Orders and Consumer Confidence prints positive results in order to maintain the ‘Buck’s’ bullish run.
The US Dollar to Pound Sterling exchange rate has hit a low today of 0.6025.
Forecast for the US Dollar to Pound Sterling Exchange Rate
This week’s most important US domestic data will be the Gross Domestic Product publication on Thursday. The forecast growth of 3.9% is slightly lower than the previous growth of 4.0%. Thursday’s Initial Jobless Claims data will also be of interest to those invested in the ‘Greenback’ as a positive result will increase the already mounting pressure for a near-future interest rate hike.
There is very little by way of data publications for the UK this week. The lack of data is likely to see the Pound continue to trend lower against most of its major peers. Any significant movement is therefore most likely to be dictated by foreign currency changes.
Friday’s Consumer Confidence data is the most heavily weighted UK domestic data release in terms of market movement.
The US Dollar to Pound Sterling exchange rate has hit a high today of 0.6035.