US Dollar to Pound Sterling Weekly Roundup May 11 -15

May 17, 2015 - Written by Frank Davies

STORY LINK US Dollar to Pound Sterling Weekly Roundup May 11 -15

US Dollar to Pound Sterling Weekly Roundup May 11 -15

The US Dollar began the week firmer against most of its major peers as investors favoured the safe haven currency on renewed worries over the Greece situation and continuing signs that the global economy is slowing. The Pound Sterling remained supported as it received support from the previous weeks general election result. The Bank of England also left interest rates unchanged at 0.5% and maintained its monthly quantitative easing programme at £375 billion.

On Tuesday, the US Dollar softened late in the session as the latest NFIB Business Optimism Index and JOLTs Job Openings data was released. The JOLTs report came in below expectations and raised worries over the strength of the US labour market. In contrast, the NFIB report showed that business optimism improved in April. Sterling meanwhile advanced as industrial and manufacturing production data came in better than expected.

Midweek, the US Dollar was softer against most of its major peers as retail sales data disappointed. Retail sales stagnated in April, adding to concerns over the strength of the US economy. The Pound Sterling softened as the Bank of England cut its economic growth forecasts for the UK economy for the next three years.

On Thursday, the US Dollar fell to a six-month low against the Pound as the poor US retail sales report weighed heavily on the ‘Greenback’, the disappointing data increased concerns that the nation’s economy is struggling. The ‘Greenback’ softened further as the day’s jobless claims and PPI reports came in soft. The Pound Sterling advanced strongly against the US Dollar, the currency was able to make gains following the release of more poor data out of the world’s largest economy.

As the week ended, the US Dollar regained some ground against the Pound and Euro as it recovered some support ahead of the release of domestic industrial and manufacturing production data. Also due for release is New York manufacturing activity and consumer sentiment reports. The Pound Sterling was little moved against the Euro and US Dollar due to a lack of market moving economic data releases from the UK and Eurozone. In the previous session, the Pound reached its best level in 6-months against the US Dollar after Bank of England Governor Mark Carney said that he expects interest rates to be higher at this time next year. The currency also received support from data, which showed that Britain's construction industry rebounded in March. Total construction output rose by 3.9% month-on-month, following a 0.3% fall in February, however this was slightly below analyst estimates for an increase of 4%

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