Pound to Dollar Outlook: GBP/USD Exchange Rate Forecast Revised Lower After US Jobs Data

February 8, 2015 - Written by John Cameron

STORY LINK Pound to Dollar Outlook: GBP/USD Exchange Rate Forecast Revised Lower After US Jobs Data

A distinctly disappointing major UK data set and another round of strong US jobs numbers have conspired to send the Pound Sterling (currency:GBP) lower versus the US Dollar (currency:USD) during Friday afternoon’s session.

Pound to US Dollar Exchange Rate Forecast

The UK’s Office of National Statistics confirmed earlier today that the UK’s trade deficit had increased to its widest level since 2010 last year. The shocking figures were blamed by analysts on a sharp fall in the level of domestic exports, which had plummeted by a vast £14.6bn during 2014 in comparison to the year before.

With the Pound strengthening against the currency of Britain’s major trading partner – the euro - during the past two months, the 2015 outlook for UK trade is far from rosy.

Meanwhile, this afternoon’s economic statistics from the US painted a much brighter picture of the current situation in the world’s premier economy, with over 200,000 jobs having been generated in the combined non-farm industries for the eleventh month on the trot last month.

The print of 257,000 was ahead of the consensus expectation among analysts of a 230,000 showing, so the US Dollar climbed as a result.

The GBP USD exchange rate had dropped to 1.5256, having tipped the scales at an intraday high of 1.5352 earlier on.

Meanwhile, this week’s revelation from the People’s Bank of China (PBoC) that it is taking steps to actively weaken the Yuan has led to commentaries from various analysts suggesting that the global economy is entering a period of competitive currency devaluation.


The PBoC announced that it will be cutting its minimum capital requirement for the nation’s retail banks.

The idea is that China’s bourses will now be able to advance larger volumes to individuals and small to medium businesses across China, easing credit flow problems and promoting increased levels of domestic growth.

Diana Choyleva of Lombard Street Research backed up this theory earlier, stating that, ‘the real economy desperately needs a weaker Yuan.’ China’s policy easing is likely to favour the Commodity Dollars into the medium term, potentially sending the Pound Sterling to Australian Dollar and New Zealand Dollars sharply lower.

Dollar Exchange Rates Today (Updated 09/02/2015)

The Pound to US Dollar conversion rate is -0.03 pct lower at 1.52347 GBP/USD.
The Euro to US Dollar exchange rate is +0.31 pct higher with a conversion rate of 1 EUR equals 1.13484 USD.
The Canadian Dollar to US Dollar exchange rate today is converting +0.12 per cent higher at 0.79972 CAD/USD.
The Australian Dollar to US Dollar exchange rate converts +0.35 per cent higher at 1 AUD is 0.77890 USD.
The New Zealand Dollar to US Dollar conversion rate is +0.81 pct higher at 0.74110 NZD/USD.

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