This Week's US Dollar to Pound Sterling Exchange Rate Roundup & Best USD/GBP Forecast - UK Inflation Data Ahead

June 14, 2015 - Written by Toni Johnson

STORY LINK This Week's US Dollar to Pound Sterling Exchange Rate Roundup & Best USD/GBP Forecast - UK Inflation Data Ahead

USD to GBP Exchange Rate Outlook - FX Fluctuations to be Caused by Industrial/Manufacturing Production Data

Today the US Dollar to Pound Sterling (USD/GBP) exchange rate gained around 0.2% on the day's opening levels ahead of the release of US industrial and manufacturing output figures. UK data was in short supply, but 'Cable' did hold above 1.55 on expectations that this week's UK Consumer Price Index will show an uptick in inflation. However, as the US data actually fell short of forecasts, the Pound could rally against the 'Greenback' before the close of trading.

Earlier...

USD/GBP Exchange Rate Dips This Week, US Economy Impacts Currency

The US Dollar to Pound Sterling exchange rate steadily softened throughout the week to trade in a weekly range of 0.6434 to 0.6572.0. The cause for the US currencies gradual but gentle slide lower was ongoing uncertainty over the strength of the US economy.

US Dollar Begins Week Trading at 0.6562 against Pound Sterling

At the start of the week the US Dollar to Pound Sterling exchange rate was trading at 0.6562 as it continued to receive support from the previous week’s positive US jobs data. The report increased speculation that the Federal Reserve will choose to hike interest rates at its September policy meeting. The Pound meanwhile was softened by a report released by the Confederation of British Industry (CBI) which said that the group had cut its growth forecasts for the UK economy. The business lobby group now expects 2.4% growth this year and 2.5% next year, down from February's forecast of 2.7% and 2.6% respectively.

Threat of a UK Brexit Weighing on UK Growth Sees Pound Sterling (GBP) Exchange Decline

On Tuesday, the US Dollar to Pound Sterling exchange rate was trading in the region of 0.6499. The currency softened as investors locked in profits following last week’s positive jobs data. The Pound Sterling meanwhile softened against the ‘Greenback’ and other peers as Moody’s warned that a British exit (Brexit) from the European Union (EU) would be detrimental to the nation’s economy and could weaken its credit rating.

Currency News: GBP/USD Exchange Rate Gains after NIESR Estimate

Midweek, the US Dollar to Pound Sterling exchange rate was trading at 0.6442 as the ‘Greenback’ softened as investors continued to take profits. The Pound Sterling found support from positive UK industrial production data and the announcement by NIESR that it had upwardly revised its GDP estimate from 0.4% to 0.6%.

On Thursday, the US Dollar to Pound Sterling exchange rate was trading in the region of 0.6478. The US Dollar firmed due to increased demand for safer assets after the World Bank cut its global growth outlook for the year. Sentiment towards the ‘Greenback’ did come under some pressure as the bank urged the Federal Reserve to delay hiking interest rates. Later in the session the currency made further gains following the release of positive retail sales data.

As the week ended, the US Dollar to Pound Sterling exchange rate was trading at 0.6458.

The US Dollar continued to be supported by stronger than forecast retail sales data released in the previous session. Safe haven demand was also supporting as concerns over Greece
spooked investors. The Pound Sterling was also supported after the Office for National Statistics upwardly revised UK GDP for 2014 and the first quarter of 2015.

UK Employment, Inflation and Sales Data to Drive Pound Sterling to US Dollar (GBP/USD) Exchange Rate Movement Next Week

The main data events next week will be Tuesday’s UK inflation data and Wednesday’s UK unemployment figures. On the same day the Federal Reserve will announce it interest rate decision.

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