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US Dollar to Pound Exchange Rate Currency Roundup ? May 25 to 29

June 1, 2015 - Written by Frank Davies

US Dollar to Pound Weekly Currency Roundup – May 25 to 29



The US and UK markets were closed at the start of the week due to a bank holiday in the UK and the Memorial Day holiday in the US. As expected, the USD/GBP exchange rate experienced little in the way of movement.

On Tuesday, the US Dollar advanced against the majority of its peers and managed to hit an 8-year high against the Japanese Yen as investors increased their bets that the Federal Reserve will choose to hike interest rates this year. The currency’s movement came after Federal Reserve Chair Janet Yellen reiterated that the central bank still expects to raise rates later in the year. The Pound Sterling softened against the American currency as investors digested comments made by the Federal Reserve. Economists believe that Fed policy makers are still on track to raise interest rates this year.

Midweek, the US Dollar softened against most of its major peers as investors embarked on a round of profit taking following the release of mixed economic data in the previous session. Data showed that mortgage applications made in the week ending 23 May fell. Despite that, the currency remained supported by expectations that the Federal Reserve will vote to raise interest rates this year. The Pound Sterling saw light trading as economists focused on the Queen’s speech to parliament for direction. The speech outlined the Conservative government’s plans for the coming parliamentary session.

On Thursday, the US Dollar softened against the Pound and Euro but made gains against the Australian and New Zealand Dollars. Against the Japanese Yen, the ‘Greenback’ hit its highest level since December 2002 due to expectations that the Federal Reserve will raise interest rates before the end of the year. As the session progressed, the currency then firmed against the Pound as data showed that pending home sales surged in April. The UK currency meanwhile was under pressure as the latest UK GDP Growth Rate figures missed economist expectations.

As the week ended, the US Dollar remained supported against its most traded peers as economic data released over the past week caused investors to forecast that the Federal Reserve will raise interest rates this year. The Pound Sterling softened against the US Dollar due to the release of stronger-than-forecast pending new home sales in the previous session and increased expectations that the Federal Reserve will hike interest rates this year.


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