Dollar to Pound FX News: Best Exchange Rate in 4 Months

September 4, 2015 - Written by John Cameron

STORY LINK Dollar to Pound FX News: Best Exchange Rate in 4 Months

The US Dollar exchange rate has enjoyed healthy gains in its conversion rate against the British Pound today, as a general indication of growth in the US economy over the past week has strengthened the standing of the ‘Buck’ considerably.

The week got off to a slow start following alternately optimistic and pessimistic statements from key Federal Reserve policymakers at the Jackson Hole Symposium over the weekend, but the first major US result was announced on Tuesday. The US ISM Manufacturing score for August had been forecast for a slight drop from 52.7 to 52.5, but the actuality of events saw a -1.6 point drop for the result down to 51.1. Although still showing growth, this result was a definite indicator of slowdown in the US economy, and this was reflected in an immediate dip in the US Dollar’s value against the Pound from 0.6533 to 0.6515.

Recent Exchange Rates Compared

The Dollar to Argentine Peso exchange rate close at 7.89320, Dollar to Australian Dollar exchange rate close at 1.44790, Dollar to Canadian Dollar exchange rate close at 1.32815, Dollar to Swiss Franc exchange rate close at 0.97139, Dollar Euro exchange rate close at 0.89682, Dollar to Pound exchange rate close at 0.65909, Dollar vs New Zealand Dollar exchange rate close at 1.59068, Dollar v Turkish Lira exchange rate close at 3.00676, and the Dollar to Rand exchange rate close at 13.86455.

This turned out to be a very rapid knee-jerk reaction, however, as the ‘Buck’ sprang back after the dip, ending the day with a conversion rate of 0.6534. The ‘Greenback’ made little overall movement on Wednesday, owing to the US Factory Orders figure for July and the Employment Change result for August, both falling short of expectations. Thursday was a particularly positive day for the US Dollar against the Pound, however, as while the Non-Manufacturing Composite for August did fall as had been predicted, the loss was only from 60.3 to 59, instead of the decline to the expected 58.2 points.

Employment and Payrolls to be Deciding Factor in ‘Greenback’ Performance into the Weekend.

The ball is thoroughly in the US Dollar’s court today; the only UK data releases has already come and gone as the annual New Car Registrations figure for August showed a 9.6% rise on the previous total of 3.2%, although this information is classed as low impact and is unlikely to hold much sway over the pairing.

Later on today, the US Unemployment Rate and Change in Non-Farm Payrolls results for August are coming out, and forecasts have been cautiously optimistic. It is worth remembering that while some Fed members spoke out against introducing a US interest rate rise in September due to the chaos caused by the stock market crash that began on August 24th, none explicitly stated that rate rises were off the table for the month, and any further signs of positive performance in the US economy are sure to generally strengthen support for the ‘Greenback’ up until the next Federal Open Market Committee (FOMC) meeting at least.

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TAGS: Pound Dollar Forecasts