GBP USD Exchange Rate Still Struggling to Recover from Latest Lows

Modified: Monday, 10 October 2016 15:35 BST - Written by David Woodsmith

STORY LINK GBP USD Exchange Rate Still Struggling to Recover from Latest Lows

UK Economic News: Pound to US Dollar Rate Around 31-Year Low Today

While the Pound managed to stage a slight recovery against the US Dollar during trading today, the GBP USD rate is still considerably lower than it was at the beginning of last week.

The Pound began last Monday at 1.29 against the ‘Buck’, it deteriorated in value over the week (especially Friday), to close trading in the area of 1.24 late on Friday.

The closing dive is suspected to have been caused by a computer error or a ‘fat finger’ trade, though as a Bank of England (BoE) investigation is still ongoing, the true cause may prove to be neither of these factors.

Slow Data Week Set to Leave Pound US Dollar Exchange Rate Rudderless

The present week is set to be a quiet one when it comes to UK domestic data, given that the most frequent announcements will concern whether the Bank of England (BoE) has been successful in its routine bond-buying efforts.

Early on Tuesday, the British Retail Consortium (BRC) like-for-like sales figure is due; this has an ‘improvement’ predicted from -0.9% to -0.3%.

The week’s big UK news will come on Friday morning, when August’s annual construction output figure is expected to shift from -1.5% to -1.1%.


None of these reports are likely to have a particularly significant impact on Pound Sterling to US Dollar (GBP USD) exchange rate trading.

US Dollar in High Demand on Columbus Day after Fiery US Presidential Debate

Making opposite moves to the Pound, the US Dollar has been able to climb in value against many of its peers thanks to the outcome of the latest televised debate between Hillary Clinton and Donald Trump.

With the shadow of the latest sexism scandal hanging over him, Trump was considered to have performed worse in the debate, which conversely raised the appeal of his democratic rival.

A Hillary Clinton administration has long been linked to supposed economic stability for the US, which is a much sought-after quality given the recent volatility seen in global markets.

Fed Speeches and US Market Data to move GBP USD Exchange Rate Tomorrow

The next US news likely to impact the Pound Sterling to US Dollar (GBP USD) exchange rate is due on Tuesday, when Fed official Charles Evans speaks. Further Fed remarks are expected over the afternoon from fellow official Ester George.

Also due tomorrow afternoon will be the US Redbook results for October, which typically show how retail sales have fared. Previously, an annual rise and monthly decline were recorded.

The afternoon’s big US news will be the Fed labour market conditions index for September. This has a rise from -0.7% to 1.5% predicted.

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