The Week's Pound to US Dollar (GBP/USD) Exchange Rates Roundup 2014

November 16, 2014 - Written by Toni Johnson

STORY LINK The Week's Pound to US Dollar (GBP/USD) Exchange Rates Roundup 2014

The Pound to Dollar exchange rate (GBP/USD) started the week advancing as demand for the US currency weakened due to the publication of softer-than-forecast Nonfarm Payrolls data released in the previous week.

With not much in the way of market moving data releases, the GBP/USD exchange rate saw relatively muted trading.

The US Dollar meanwhile eased against its major peers for a second day as the preceding weeks softer than forecast Nonfarm Payrolls data and a bout of investor profit taking weighed upon the currency.

The Pound to Australian Dollar conversion rate is -0.16 pct lower at 1.78844 GBP/AUD.
The Pound to Euro exchange rate is +0.01 pct higher with a conversion rate of 1 GBP equals 1.25131 EUR.
The Pound to New Zealand Dollar exchange rate today is converting -0.4 per cent lower at 1.97345 GBP/NZD.
The Pound to US Dollar exchange rate today is converting at 1.56710 GBP/USD.

Pound vs Euro and Dollar Exchange Rate Recovers

On Tuesday, the Pound recovered ground against the Euro and other peers after the US Dollar after a report showed that UK retail sales increased in October due to shoppers spending on Halloween costumes and items. According to the British Retail Consortium (BRC) retail sales increased by 1.4%. The mild autumn however meant that clothing retailers were still struggling.

The USD regained ground against the majority of its major peers after investors moved on from the previous weeks softer than expected Nonfarm Payrolls report. Traders said that the data was not soft enough to convince the Federal Reserve to maintain its loose monetary policy. The central bank is still expected to raise interest rates next year.

Midweek Sterling fell sharply against the US Dollar (GBP/USD) to fall to a 14-month low, after the Bank of England cut its inflation and growth forecasts. The US Dollar on the other hand advanced strongly against the Pound due to the Bank of England inflation report.

British Pound Trends Lower vs Dollar and Euro

As the week ended, the Pound continued to trade lower against the majority of its major peers the preceding session’s house price growth data and Friday’s construction output data added to the selloff as both reports came in below expectations and caused investors to further pare their bets for an interest rate hike occurring anytime soon.

The US Dollar firmed against a number of peers as economists grew nervous over the situation in Ukraine and the release of disappointingly weak Eurozone GDP data releases. Attention then turned to US Retail Sales data, which was due later in the session. The report offered further indications on the strength of the US economy.

The GBP/USD exchange rate ended the week trading at a 14-month low. Looking ahead to next week the Pound could claw back some of its heavy losses if the market deems its decline as overdone or Tuesday’s UK inflation data offers support.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Daily Curre Forecasts