US Dollar to Pound Sterling (USD/GBP) Weekly Exchange Rates Roundup (March 2015)

March 22, 2015 - Written by Tim Boyer

STORY LINK US Dollar to Pound Sterling (USD/GBP) Weekly Exchange Rates Roundup (March 2015)

US Dollar Exchange Rate Summary vs the British Pound (USD/GBP) With Updated Conversion Rates

At the start of the week, the US Dollar softened against a number of peers as attention focuses on Wednesday’s Federal Reserve policy statement and as market participants embarked on a round of profit taking. Investors were looking to see if the Fed would drop its reference to being ‘patient’ before raising interest rates. Domestic data came in below expectations as the session progressed raising expectations that the Fed would deliver a dovish statement.

On Tuesday, the US Dollar softened against the Euro as sentiment on the ‘Greenback’ came under pressure from the release of softer than forecast economic data.

U.S. in the previous session. Industrial production rose just 0.1% in February, falling short of expectations for a 0.2% gain, while manufacturing output dipped 0.1%.

Housing data released in the session came in below expectations. Housing starts in February were shown to have tumbled by -17% due to harsh winter weather.

Midweek, the US Dollar exchange rate firmed against sthe British Pound and the Euro as economists looked ahead to the Federal Reserve policy statement and interest rate announcement.

The central bank’s policy makers were widely expected to deliver a dovish statement due to a run of US economic data coming in below forecasts.

The Fed did not disappoint as policy makers revised down their growth predications for the economy and suggested that interest rates may not rise until September. The ‘Greenback’ tumbled sharply following the statement.

On Thursday, the US Dollar rallied strongly against its major peers after the Federal Reserve modified its position on interest rates. Policy makers removed the word ‘patience’ from its regular statement, which economists saw as an indication that the central bank is likely to raise interest rates in June. The sharp fall seen overnight was deemed ‘overdone’.

The US Dollar gave up some ground against the Euro on optimism over the Greece situation but held onto gains against the Pound as the UK currency was weakened by comments made by a Bank of England policy maker. As the session progressed, the Pound held steady against the US Dollar as data released by the Office for National Statistics said that public sector net borrowing rose by £6.22 billion in February, less than the expected increase of £7.70 billion. January's figure was revised to a £8.93 billion drop from a previously estimated decline of £9.41 billion.

The main event for the USD/GBP exchange rate next week will be Wednesday’s UK and US inflation data.

Latest Dollar Exchange Rates (23/03/2015)

The US Dollar to Australian Dollar conversion rate is +0.04 pct higher at 1.28541 USD/AUD.
The US Dollar to Canadian Dollar exchange rate is +0.05 pct higher with a conversion rate of 1 USD equals 1.25897 CAD.
The US Dollar to Swiss Franc exchange rate is -0.1 pct lower with a conversion rate of 1 USD equals 0.97682 CHF.
The US Dollar to Euro conversion rate is -0.01 pct lower at 0.92367 USD/EUR.
The US Dollar to Pound Sterling exchange rate is +0.34 pct higher with a conversion rate of 1 USD equals 0.67155 GBP.

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