Dollar to Pound Exchange Rate OUTLOOK: USD vs GBP Weekly Roundup

October 12, 2014 - Written by James Fuller

STORY LINK Dollar to Pound Exchange Rate OUTLOOK: USD vs GBP Weekly Roundup

The US Dollar (USD) exchange rate softened slightly against the British Pound (GBP) and the Euro (EUR) rates at the start of the week due to a drop in the value of a number of commodities.

Platinum tumbled by 2.8% to its lowest level since July 2009, Palladium also fell sharply by 2.4%. With a lack of market moving domestic data, the USD continued to be under pressure from traders locking in profits.

Where does the USD stand in today's FX markets?

The US Dollar to Australian Dollar exchange rate is -0.1 pct higher with a conversion rate of 1 USD equals 1.15021 AUD.
The US Dollar to Canadian Dollar exchange rate today is converting -0.03 per cent higher at 1.11965 USD/CAD.
The US Dollar to Euro exchange rate today is converting +0.03 per cent lower at 0.79208 USD/EUR.
The US Dollar to Pound Sterling conversion rate is +0.05 pct lower at 0.62238 USD/GBP.

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British Pound softens against the Euro and the US Dollar

The Pound Sterling (GBP) meanwhile retreated against a number of major peers on Monday after UK Business Secretary Vince Cable and the International Monetary Fund both said that the currency is overvalued by 10%-15%.

The comments added to the preceding week’s interview with Bank of England Deputy Governor Ben Broadbent who suggested the same thing and who said that a rate hike is unlikely due to the uncertainty over the strength of the UK economy. Sterling was then mixed after Tuesday’s

Manufacturing Production and Industrial Production data came in stronger and stagnated respectively.

The US Dollar made gains on Wednesday after it rallied from its biggest decline in 12 months. Investors raised their bets for the Federal Reserve to raise interest rates next year.

The currency continued to find support from last Friday’s data, which showed that the US economy created more jobs than expected and saw the unemployment rate fall.

The USD then fell close to a two-week low against the Euro and weakened against the GBP after the Federal Reserve’s policy meeting minutes dampened demand for the currency.

The dovish minutes showed that policy makers argued over the language being used regarding a rate hike with some claiming that a rise is not yet appropriate.

The report also showed that the U.S. central bank cut its growth outlook due to the higher dollar and concerns over global weakness.

The Pound vs Dollar and Euro traded higher following the Fed minutes.

On Thursday the USD rallied against its major peers following the release of stronger than forecast US Jobless Claims data.

The report showed that the number of Americans filing for unemployment benefits in the week ending October 4 fell by 1,000 to 287,000 from the previous week’s figure of 288,000.

The currency could experience volatility in the evening from the Monthly Budget Statement.

As the week ended, the US currency received more support against the majority of its peers as the International Monetary Fund and further weakness from Europe damaged risk sentiment. Investors turned to the safety of the Dollar and other safe havens as concerns grow that the global economy is slowing.

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