US Dollar to Pound (USD/GBP) Exchange Rate Weekly Roundup: May 18 to May 22

May 26, 2015 - Written by Toni Johnson

STORY LINK US Dollar to Pound (USD/GBP) Exchange Rate Weekly Roundup: May 18 to May 22

US Dollar to Pound Sterling Weekly Roundup: May 18 to May 22

At the start of the week, the US Dollar firmed against the Pound Sterling and other major peers as it recovered from the previous week’s losses. Demand for safe havens increased on the news that the Islamic State had conquered the Iraqi city of Ramadi. Concerns were also high over the conflicts in Syria and Yemen. The currency then softened later in the session as the NAHB Housing Market Index came in below expectations. The Pound Sterling softened against a number of major peers after data released over the weekend showed that the average asking price for a new house in the UK fell by 0.1% on a monthly basis.

On Tuesday, the US Dollar strengthened against the Pound Sterling as housing starts data smashed expectations. Housing starts leapt 20.2% in April and the number of building permits granted increased 10.1%. The Pound meanwhile was softened by inflation data, which showed that the UK’s inflation rate turned negative on a yearly basis.

Midweek, the ‘Greenback’ was influenced by the release of the Federal Reserve’s May policy meeting minutes which suggested that an interest rate hike is highly unlikely to occur before the end of 2015. In comparison, the Pound Sterling received support from the minutes published by the Bank of England, which showed that policy makers revised up their growth forecasts for the UK economy in 2015.

On Thursday, the US Dollar weakened as jobless claims, existing home sales and manufacturing PMI reports all came in below economist expectations. The weak data increased fears that the world’s largest economy is slowing. The Pound Sterling surged higher against the US Dollar and other major peers as UK retail sales data smashed forecasts and eased concerns over the strength of the British economy.

On Friday, the US Dollar made solid gains against the majority of its most traded peers as it found support from inflation data. The currency climbed after the US core inflation, which strips out energy and food costs, climbed more than expected last month. The nation’s US core inflation rate climbed by 0.3%, beating expectations for a figure of 0.2%. The US overall inflation rate meanwhile increased by 0.1%. The Pound weakened following the release of the US inflation data but prior to that it had been holding ground as the UK’s budget deficit was shown to have narrowed in April.

Looking ahead to next week, both currencies will likely see movement because of GDP figures for the UK and USA being released.

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