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Pound Sterling GBP Exchange Rate Edges Higher vs USD CHF

November 18, 2015 - Written by James Fuller

Mixed US Housing Market Data Weighs on USD ahead of FOMC Minutes



Conflicting housing market data out of the US this afternoon has triggered uncertainty amongst investors ahead of tonight’s Federal Reserve minutes.

The first release of significance Stateside came in the form of the latest weekly Mortgage Approval data and the result please holders of the US Dollar (currency : USD).

A week-on-week increase of 6.2% marked a significant turnaround from the previous week’s showing of -1.3% and the Buck enjoyed a short burst of support as a consequence.

GBP to USD Conversion Rate Holding above 1.52 Today



However, the publication of a disappointing set of October Housing Starts data at 1330hrs GMT triggered renewed doubts about the future performance of the US unit.

Analysts had been anticipating a print of -3.8%, so expectations were not high, but the showing of -11.0% still came as a bitter disappointment for the Greenback.

Futures markets still indicated that investors still believe that there is a 71.7% chance that the US Federal Reserve will increase interest rates before the end of the year, in spite of the soft Housing Starts figures.

However, in the currency markets, the Pound Sterling US Dollar exchange rate climbed back above the 1.5200 GBP USD threshold in the aftermath of the statistics.

Analysts forecast that if futures market continue to imply such a high percentage chance of a US rate hike on 16th December, then the Pound US Dollar exchange rate will edge lower.

GBP to CHF Close to 1.55 Today



Elsewhere, Europe’s share exchanges experienced a pronounced wobble during early trading today before recovering when New York opened.

Renewed unrest in Paris and last night’s apparent foiling of another attack in Hamburg appear to have set investors’ nerves on edge, while a print of 0.0 from this month’s Swiss ZEW Survey, (down from October’s 18.3), added to the mood of risk aversion.

The Pound Sterling Swiss Franc exchange rate spiked to close to the 1.5500 GBP CHF level as a result.

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TAGS: Pound Dollar Forecasts Pound Sterling Forecasts Pound Swiss Franc Forecasts

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