Pound Dollar Exchange Rates Forecast: GBP/USD Rate Sideways Trading Predicted

April 2, 2014 - Written by David Woodsmith

STORY LINK Pound Dollar Exchange Rates Forecast: GBP/USD Rate Sideways Trading Predicted

This afternoon has been a distinctly good news / bad news one for the US economy, with March’s private sector Employment Change figure coming out slightly below expectations, whole February’s numbers pointed to a larger than expected increase in Factory Orders in the States. The fallout has seen the Pound US Dollar exchange rate peel back slightly; the pair touched off 1.6618 GBP/USD earlier on, having been trading at close to 1.6700 earlier. Cable is in need of further forward guidance from the Federal Reserve in order to gain renewed momentum. However, for the moment the GBP/USD exchange rate appears to have reached a level where it is happy to stay for a while.

The Pound Sterling to US Dollar exchange rate is trading down -0.03% at 1.66247 GBP/USD. The US Dollar to Pound Sterling exchange rate is trading up +0.03% at 0.60152 USD/GBP.

A brace of positive news stories from the eurozone have propped up the single currency during today’s session.

The International Monetary Fund’s report on the Cypriot economy, published earlier, revealed that the tiny island’s banking sector is showing ‘signs of stabilisation’ following the £10bn EU/IMF funded bailout of last year. The report went on to assert that the nation’s economic slowdown of 2013 was less pronounced than most economists had been anticipating, providing further good news for investors holding euro-denominated assets.

Meanwhile, there was another positive development from the same corner of the eurozone with the announcement that the region’s policymakers had signed off the next €8.3bn tranche of bailout funding for Greece. The debt-addled Hellenic state has been struggling for some years now, but the EU’s promise to pay €6.3bn by the end of the month, with two separate tranches of €1bn to follow in the early part of Summer, has shored-up confidence in the euroland as a whole.

The Pound euro exchange rate tested lower during early trading, touching off 1.2031 GBP/EUR during this morning’s trading session following these developments. However, the pair has recovered following the New York open and is currently changing hands at 1.2079.

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