Pound Sterling US Dollar GBP USD Exchange Rate Forecast Slips on US GDP Data
February 26, 2016 - Written by John Cameron
STORY LINK Pound Sterling US Dollar GBP USD Exchange Rate Forecast Slips on US GDP Data
US Dollar (USD) Exchange Rates Gain after GDP Bettered Estimates
This afternoon’s US Gross Domestic Product growth and Personal Consumption Expenditure data has had a pronounced effect on the US Dollar (currency : USD) as well as many other leading currencies. The initial version of America’s Q4 growth numbers suggested that the world’s premier economy had expanded by a paltry 0.7% during 2015 and analysts feared the worst for the latest revision to this figure, published a short time ago.
The consensus expectation amongst FX insiders was for a downward adjustment to 0.4% for the year-on-year US growth result. The upward revision to 1.0% therefore came as a pronounced surprise for investors, triggering a flurry of activity and considerable price action in the markets. The US Dollar recorded sustained gains against the Pound Sterling in the aftermath of the release, with the GBP USD exchange rate peeling back from an intraday high of 1.4043 to touch the 1.3900 threshold.
Canadian Dollar (CAD) Exchange Rates Track USD Gains
Meanwhile, the go-ahead news from across the border helped the Canadian Dollar (currency : CAD) post renewed gains against the UK unit which sent GBP CAD down to the verge of the 1.8700s. Price action for the export-driven Australian Dollar (currency : AUD) and New Zealand Dollar (currency : NZD) followed the same pattern against the Pound.
However, the positive performance from the Commodity Dollars and the Buck may have been predicated on false assumption according to Chris Williamson of leading research agency Markit. Williamson stated earlier that the US, ‘GDP number was revised higher in part due to a bigger than previously thought contribution from inventories, something which often happens due to weaker than expected demand, meaning inventories could act as a drag in the first quarter as excess stocks levels are wound down again.’
Today’s upward revision therefore may well trigger a weak showing from the US Q1 GDP data, due for publication later in the year. This outcome would cause investors to up their GBP USD exchange rate forecast.
Advertisement
Like this piece? Please share with your friends and colleagues:
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 Canadian Dollar Forecasts Pound Canadian D Forecasts
Comments are currrently disabled
- US Dollar Outlook: Fed 2024 interest rate cut "starting to look increasingly more out of reach" - April 26, 2024
- US Dollar Outlook Improves After Stronger Than Expected US Inflation Data - January 11, 2024
- US Dollar to Swedish Krona Rate: Sell USD/SEK at 10.98 target of 10.65, say MUFG - November 6, 2023
- Euro to Dollar Forecast: 1.02 in Three Months say Rabobank - October 17, 2023
- Pound US Dollar (GBP/USD) Exchange Rate Rallies amid Elevated BoE Rate Hike Bets - April 26, 2023
- Pound US Dollar Exchange Rate News: GBP/USD Trades Narrowly as UK Wages Hit 20-year Low - September 2, 2022
- Euro US Dollar (GBP/USD) Exchange Rate Spikes as Risk Sentiment Improves - July 25, 2022
- Pound US Dollar Exchange Rate News: GBP/USD Rises amid Positive Data - December 6, 2021
- GBP/USD News: Pound US Dollar Exchange Rate Rebounds on Mixed Data and Risk-On Mood - October 22, 2021
- Pound to US Dollar Week Ahead Exchange Rate Forecast: BoE Key Risk - May 6, 2024
- Euro to Dollar Outlook: Divergence "may add Downward Pressure over Short-term" say MUFG - May 6, 2024
- Pound to Euro Week Ahead Forecast: 1.1560 - 1.19 Ranges by End-2024 - May 6, 2024
- Pound Sterling: Downbeat OECD Outlook Undermines GBP, EUR Below 1.17 - May 2, 2024
- Pound Sterling Below 1.25 as Dollar Dominates Ahead of Fed Policy Decision - May 1, 2024
- Pound to Dollar Rate Outlook: "Risks are Biased Towards U.S. Dollar Losses" - April 30, 2024
- Pound to Euro Forecast For Week Ahead: Where Next for GBP/EUR? - April 28, 2024
- Pound to Dollar Week Ahead Forecast: "Further GBP Weakness in Coming Weeks" - April 28, 2024
- Euro to Dollar Exchange Rate Forecast Lowered to 1.05 at Goldman Sachs - April 28, 2024
- US Dollar Outlook: Fed 2024 interest rate cut "starting to look increasingly more out of reach" - April 26, 2024