US Dollar to Pound Sterling Exchange Rate Weekly Roundup

March 1, 2015 - Written by Toni Johnson

STORY LINK US Dollar to Pound Sterling Exchange Rate Weekly Roundup

US Dollar Exchange Rate Outlook vs the British Pound Sterling (March 2015)

At the start of the week, the US Dollar exchange rate firmed against the majority of its most traded peers as investors sought shelter in safer assets due to concerns over the Greece situation.

The USD then softened slightly as domestic data showed that existing home sales and the Dallas Fed Manufacturing Index fell more than expected.

Pound to Dollar Exchange Rate Steady

In Tuesday’s session, the US Dollar was steady against its major peers as concerns over Greece continued to support demand for the safe haven currency. Federal Reserve Chairman Janet Yellen testified to the Senate Banking Committee in Washington. Traders were watching for any indication as to when US interest rates may begin to rise and were disappointed.

The US Dollar then weakened against most of its major peers after Yellen said that it was unlikely that interest rates will be raised over the next couple of FOMC meetings.

Yellen added that if the economy keeps improving as the Fed expects it will modify its forward guidance, but emphasized that a modification of its language should not be read as indicating that a rate hike would automatically happen within a number of meetings.

Pound to Dollar (GBP/USD) Exchange Rate and Yellen Comments

As the week progressed, the US Dollar remained under pressure against most of its major peers as Federal Reserve Chair Janet Yellen reiterated to the Financial Services Committee that wage growth and inflation would have to rise before the central bank begins to hike interest rates.

The ‘Greenback’ remained under pressure as US Jobless claims data came in below expectations but losses were restrained by a better than forecast Durable Goods Orders report.

On Friday, the US Dollar softened against the Pound, Euro and Canadian Dollar as demand for safer assets softened after the German parliament voted in favour of supporting the Greek bailout extension.

The USD had strengthened as inflation data showed rising price pressures in some areas of the US economy, which could lead to the Federal Reserve hiking interest rates.

The Pound meanwhile was weakened by jitters over the May general election. With the outcome of the vote uncertain, the Pound is forecast to continue to come under pressure as the vote draws closer.

Looking ahead to next week the Pound Sterling to US Dollar exchange rate will be affected by the release of a number of Purchasing Manager Index (PMI) data release. The main piece of data due for release comes next Wednesday when the latest US ADP Employment report is published, a strong figure will likely lead to investors raising their bets for an interest rate hike in the summer.

Latest Dollar Currency Rates Today:

The US Dollar to Australian Dollar conversion rate is +0.13 pct higher at 1.28151 USD/AUD.
The US Dollar to Canadian Dollar conversion rate is -0.04 pct lower at 1.25069 USD/CAD.
The US Dollar to Chinese Yuan exchange rate is 1 USD equals 6.26960 CNY.
The US Dollar to Euro conversion rate is +0.12 pct higher at 0.89413 USD/EUR.
The US Dollar to Pound Sterling exchange rate converts +0.08 per cent higher at 1 USD is 0.64825 GBP.

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