Weekly Dollar to Pound (USD/GBP) Exchange Rate Roundup

November 23, 2014 - Written by David Woodsmith

STORY LINK Weekly Dollar to Pound (USD/GBP) Exchange Rate Roundup

Currency News UK presents our weekly report on the US Dollar (currency:USD) and the Pound Sterling (currency:GBP).

At the start of the week, the US Dollar exchange rate slipped back from a seven year high against the Japanese Yen after data showed that the Asian nation slipped back into recession, spurring demand for the safe haven Yen.

The USD regained some lost ground after industrial production data came in positively but the figure was below economist forecasts.

Due to a lack of market moving UK data, the USD/GBP exchange rate saw little in the way of movement.

The US Dollar to Australian Dollar conversion rate is 1.15341 USD/AUD.
The US Dollar to Canadian Dollar exchange rate is 1 USD equals 1.12348 CAD.
The US Dollar to Euro exchange rate is 1 USD equals 0.80720 EUR.
The US Dollar to Pound Sterling exchange rate converts at 1 USD is 0.63877 GBP.

Dollar to Pound Exchange Rate Outlook

The US Dollar remained supported from increased demand for safer assets as the market continued to digest the news that Japan (the world’s third largest economy) slid into recession in the third quarter of the year.

The mixed economic data released on Monday however saw the currency ease slightly against the Euro and other major peers.

Attention then focused on US Producer Price Index (PPI) data, which was released later in the session.

Against Sterling, the US Dollar strengthened as the PPI data came in better than forecast. UK PPI data meanwhile mostly matched forecasts.

Pound Falls vs Euro and Hits 14-Month Low vs Dollar

Midweek the Pound fell to its lowest level in over a month against the Euro and remained hovering around a 14-month low against the US Dollar as investors focused on the release of the minutes of Novembers Bank of England’s Monetary Policy meeting.

Against the riskier commodity based assets, Sterling regained ground, as traders grow nervous over Japan and tensions between the West and Russia.

The US Dollar edged higher against most of its peers as investors shrugged off dovish comments made by the Federal Reserve in its minutes release and continued to raise their bets that an interest rate hike will occur next year.

The Dollar rose on sentiments that U.S. borrowing costs are heading higher regardless of policy maker concerns in 2015 as the Federal Reserve is using dovish language to acclimate markets to less accommodative policy.

USD/GBP Exchange Rate Gains on UKIP Win

As the week came to a close the Pound softened against the US Dollar after UKIP won a second seat in Westminster.

Economists were concerned over the victory for the anti-EU party as it throws next May’s general election result into even more doubt.

Also weighing on the Pound was a report, which showed that public sector borrowing in the UK lessened slightly in October but remained higher than Chancellor George Osborne’s target.

A lack of US economic data meant that the US Dollar experienced a fairly quiet trading session on Friday.

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