Currency News

Daily Exchange Rate Forecasts & Currency News

US Dollar to Pound Sterling Weekly Roundup - April 20 -24

April 26, 2015 - Written by David Woodsmith

US Dollar to Pound Sterling Weekly Roundup – April 20 -24



At the start of the week, the US Dollar remained under pressure against the majority of its most traded peers as weak domestic economic data caused investors to increase their bets that the Federal Reserve will not raise interest rates until the end of the year. The Pound Sterling held onto its gains against the US currency despite there being a lack of domestic market moving data.

On Tuesday, the US Dollar regained ground as demand for the safe haven currency increased as investors grew concerned over geopolitical factors such as the escalating conflict in the Middle East and signs that the Chinese economy is slowing. The conflict in Yemen was the main point of concern. The Pound Sterling gave up some ground as sentiment towards the ‘Greenback’ recovered following last week’s disappointing data releases. With a lack of market moving data out of the UK, the session saw muted trading conditions.

Midweek, the US Dollar made gains against most of its major peers as it received support from a stronger-than-forecast housing report. According to the US National Association of Realtors, existing home sales rose by 6.1%, beating expectations for a rise of 3%. Further gains were restrained however as investors continued to raise their bets that the Federal Reserve will not raise interest rates until later in the year. The Pound Sterling received support from hawkish Bank of England (BoE) policy meeting minutes.

On Thursday, the US Dollar weakened against the majority of its most traded peers after data showed that the number of Americans filing for unemployment benefits rose last week. A separate report also showed that US new home sales tumbled by 11.4% last month, suggesting that the nation’s housing market continues to struggle. With recent data releases suggesting that the US economy is suffering from a slowdown, economists have increased their bets that the Federal Reserve will now not hike interest rates until the end of the year. Previously, they had been forecasting for a rate hike occurring as early as June. Weaker-than-forecast UK retail sales weighed on the Pound.

A lack of market moving data on Friday for the UK currency saw the Pound tread water. Against the US Dollar, the currency remained higher as economists grow increasingly worried over the strength of the world’s largest economy.

Looking ahead to next week the main data releases that will impact upon the USD/GBP exchange rate will be Tuesday’s UK preliminary GDP data and Wednesday’ US GDP growth rate data.

Advertisement

Like this piece? Please share with your friends and colleagues:

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

Comments are currrently disabled