Dollar to Pound Sterling Report: USD/GBP Exchange Rate Weekly Roundup

Modified: Monday, 9 February 2015 09:44 BST - Written by Frank Davies

STORY LINK Dollar to Pound Sterling Report: USD/GBP Exchange Rate Weekly Roundup

Dollar Exchange Rate Outlook vs the British Pound Sterling (Feb 2015)

At the start of the week, the US Dollar softened against the Pound as it remained under pressure from the previous week’s GDP report released by the Commerce Department.

The data showed that the U.S. economy expanded 2.6% in the final three months of 2014, below expectations for a 3.0% gain and was a sharp slowdown from the growth figure of 5.0% recorded in the three months to September.

As the session progressed, the currency softened further as a ISM Manufacturing PMI report came in below forecasts.

US Dollar Holds Firm vs the Pound and Euro

On Tuesday, the US Dollar was steady against the Euro and Pound following the release of the previous session’s economic data releases.

Against the Australian Dollar, the USD surged close to a new six-year high after the RBA cut interest rates.

The currency was then put onto the retreat as a report showed that factory orders fell sharply in December, raising concerns that the US economy was slowing.

Pound to Dollar (GBP/USD) Exchange Rate Higher on PMI

Midweek The US Dollar was softer against many of its major peers due to the release of more mixed data from the world’s largest economy.

The Pound Sterling firmed against a number of its major peers as UK Service PMI data came in positively.

As the service sector is the dominant sector of the UK economy, a strong figure has more of a positive impact than the previous manufacturing and construction PMI reports, which both came in better than forecast.

On Thursday, the US Dollar gave up some of the gains recorded in the previous session as concerns over falling oil prices weighed upon sentiment. The currency had strengthened after the Institute of Supply Management said that its non-manufacturing PMI increased to 56.7 last month, up from a reading of 56.2 in December. Analysts had expected the index to inch up to 56.3 in January. The Pound then advanced to a three-week high against the US Dollar as the Bank of England left interest rates unchanged.

As the week came to an end the US Dollar rallied strongly against all of its major peers and surged back to its best level since 2013 as data showed that non-farm payrolls data increased more than expected last month.

According to the U.S. Department of Labour said non-farm payrolls rose to a seasonally adjusted 257K, from 329K in the preceding month whose figure was revised up from 252K. Analysts had expected U.S. non-farm payrolls to rise 234K last month.

US Dollar Exchange Rate Forecast

The US Dollar is likely to remain supported against its major peers next week as the strong data has increased speculation that the Federal Reserve will raise interest rates this year.

Key Dollar (USD) Exchange Rates Today:

The US Dollar to Australian Dollar exchange rate today is converting -0.35 per cent lower at 1.28387 USD/AUD.
The US Dollar to Canadian Dollar exchange rate converts -0.12 per cent lower at 1 USD is 1.25044 CAD.
The US Dollar to Swiss Franc exchange rate converts -0.26 per cent lower at 1 USD is 0.92390 CHF.
The US Dollar to Euro exchange rate is -0.31 pct lower with a conversion rate of 1 USD equals 0.88118 EUR.
The US Dollar to Pound Sterling exchange rate today is converting +0.03 per cent higher at 0.65640 USD/GBP.

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