US Dollar to Pound Sterling Exchange Rate Weekly Analysis

Modified: Sunday, 8 March 2015 14:30 BST - Written by David Woodsmith

STORY LINK US Dollar to Pound Sterling Exchange Rate Weekly Analysis

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

The US Dollar exchange rate had a strong week against the Pound Sterling as market jitters over Europe and expectations of a US rate hike caused investors to favour the ‘Greenback’.

As the week got under way, the US Dollar remained stronger against its most traded peers as data released in the previous week continued to support the currency.

Data, which showed that the world’s largest economy expanded at an annual rate of 2.2%, beat forecasts for a growth figure of 2.1%. Markit’s Manufacturing PMI beat forecasts but the ISM Manufacturing PMI came in just below expectations. Despite that, both PMI’s were comfortably above the 50 level, which divides expansion from contraction.

Pound to Dollar Exchange Rate Weakens on Slowing House Prices

The Pound Sterling softened against a number of peers at the start of the week after domestic data showed that UK annual house price growth slowed to its weakest level since September 2013.

According to Nationwide, house prices fell by -0.1% in February, that report was then countered by a better than forecast manufacturing PMI and mortgage lending data.

USD Firms vs EUR and GBP Exchange Rates

Midweek, the US Dollar firmed against the Euro and Pound as investors awaited the release of US economic reports. Traders widely shrugged off a softer than expected ADP Employment report as Markit’s Composite and Service PMI’s beat forecasts.

The Pound Sterling was little moved against its major peers as economists look ahead to the release of the latest Markit/CIPS Services PMI report.

With the manufacturing and construction PMI’s released earlier in the week coming in stronger the currency was supported. However, the services PMI came in just below expectations causing the currency to give up ground against the ‘Greenback’.

On Thursday, the US Dollar surged to a new 11-year high against the Euro and strengthened to a monthly high against the Pound.

The ‘Greenback’ was stronger due to increased safe haven sentiment as investors remain jittery over the Greece situation and as the ECB announced its QE programme and the BoE left interest rates unchanged.

As the week ended, the Pound Sterling held at a 3-week low against the US Dollar. The US Dollar remained higher against its major currencies, despite the release of downbeat U.S. jobless claims and factory orders data.

The USD/GBP exchange rate is likely to experience a quieter week next week due to less important events taking place. The main mover of the week will likely by Friday’s US retail sales and Wednesday’s UK Production data.

Latest Dollar Currency Rates Today:

The US Dollar to Australian Dollar conversion rate is 1.29607 USD/AUD.
The US Dollar to Canadian Dollar exchange rate converts at 1 USD is 1.26230 CAD.
The US Dollar to Swiss Franc exchange rate today is converting at 0.98577 USD/CHF.
The US Dollar to Euro exchange rate is 1 USD equals 0.92222 EUR.
The US Dollar to Pound Sterling exchange rate today is converting at 0.66502 USD/GBP.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Daily Curre Forecasts