Dollar to Pound FX Report: USD-GBP Exchange Rate Weekly Roundup 2015

Modified: Monday, 16 February 2015 22:59 BST - Written by James Fuller

STORY LINK Dollar to Pound FX Report: USD-GBP Exchange Rate Weekly Roundup 2015

US Dollar Exchange Rate Outlook vs the British Pound Sterling (16th Feb 2015)

At the start of the week, the US Dollar exchange rate softened slightly as it lost steam following the preceding weeks strong economic data releases.

The better than forecast employment data had boosted expectations that the Federal Reserve will begin hiking interest rates as soon as the summer and sent the currency climbing.

The Pound Sterling meanwhile experienced little in the way of movement at the start of the week due to a lack of domestic market moving economic data releases. Instead, the currency’s movements were a result of concerns regarding the Greece situation.

US Dollar Weakens vs the Pound and Euro

On Tuesday, the US Dollar softened against several major peers including the Pound as a rise in oil prices supported commodity-based currencies.

The run of support received from last week’s strong jobs data also faded to send the ‘Greenback’ lower.

With no market moving domestic data released, the US Dollar experienced little in the way of movement.

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

The Pound Sterling was higher against the US Dollar as economists were spooked by the possibility of a Greek exit from the Eurozone.

Chancellor of the Exchequer George Osborne warned that there would be a ‘very bad’ outcome if the Greece situation were not resolved.

The currency found more support following the release of UK manufacturing and industrial production data as well as the latest NIESR GDP estimate for the first quarter of 2015.

Midweek The US Dollar was trading steadily against its major peers as a lack of domestic market moving data releases offered little direction for traders. All eyes were focused on the peace talks to end the Ukraine conflict and the negotiations between Greece and its creditors.

The US Dollar was trading steadily against the Pound as investors await the release of US Jobless Claims and Retail Sales data. Against the Euro, the ‘Greenback’ softened as emergency talks between European Finance Ministers ended inconclusively.

On Thursday the Pound Sterling advanced strongly and reached a 1-month high against the US Dollar after the Bank of England inflation report resulted in Bank of England governor Mark Carney suggesting that interest rates could rise sooner than forecast.

As the week ended, the US Dollar softened against the majority of its most traded peers as domestic retail sales and jobless claims data released in the preceding session came in worse than forecast.

The fall in retail sales was particularly worrying as consumer spending makes up around 70% of the nation’s economy.

US Dollar Exchange Rate Forecast

The USD could claw back some ground later in the session if the latest Michigan Consumer Sentiment data comes in better than forecast.

The US Dollar to Pound exchange rate is expected to remain under pressure at the start of next week due to US markets being closed for the President’s Day National holiday.

Key Dollar (USD) Exchange Rates Today (16/05/2015):

The US Dollar to Australian Dollar conversion rate is -0.02 pct lower at 1.28762 USD/AUD.
The US Dollar to Canadian Dollar exchange rate is +0.13 pct higher with a conversion rate of 1 USD equals 1.24712 CAD.
The US Dollar to Euro exchange rate converts +0.46 per cent higher at 1 USD is 0.88140 EUR.
The US Dollar to Pound Sterling exchange rate today is converting +0.29 per cent higher at 0.65112 USD/GBP.

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