Weekly Forecast for Pound Dollar Exchange Rate (GBP/USD)

Modified: Friday, 20 September 2013 15:07 BST - Written by Frank Davies

STORY LINK Weekly Forecast for Pound Dollar Exchange Rate (GBP/USD)

The Pound US Dollar exchange rate (GBP/USD) is currently trading down by 0.20% at 1.6003 GBP/USD. The US Dollar Pound exchange rate is currently trading at 0.6249 USD/GBP.

The US DOLLAR has languished in the doldrums since Wednesday evening’s surprise announcement from the Federal Reserve FOMC that it will not be trimming its Quantitative Easing programme just yet. The US central bank is now set to pump $85bn per month into the global credit markets by way of its controversial asset purchase scheme until further notice.

The Pound Dollar exchange rate spiralled into the mid-1.6100s following Wednesday night’s announcement but looks set to fall back through the 1.6000 barrier this afternoon as investors regain their nerve. A continuation of this downward move could send GBP/USD down towards the 1.5000 threshold.

Looking ahead to next week’s session, Tuesday’s Consumer Confidence survey and Wednesday’s Durable Goods data are likely to have a pronounced effect on the relative value of the Greenback moving forward.

However, Fed Chairman Ben Bernanke’s failure to commit himself to any set date for a reduction to asset purchase on Wednesday night is likely to weigh heavily on the Greenback moving forward. The short-term outlook for the Buck is NEUTRAL TO NEGATIVE and the current GBP USD exchange rate is 1.6034.

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