Pound to US Dollar Exchange Rate Stuck at 1.22 after Manufacturing PMI

Modified: Tuesday, 1 November 2016 14:05 BST - Written by James Fuller

STORY LINK Pound to US Dollar Exchange Rate Stuck at 1.22 after Manufacturing PMI

Pound Sterling US Dollar Exchange Rate Dips despite Carney’s Commitment

The Pound has failed to establish a foothold against the US Dollar during trading today, having seen little positive movement following Bank of England (BoE) news and feeling the strain after a dip in the first of three UK PMIs.

In the former case, BoE Governor Mark Carney has ended a whirlwind of speculation by setting 2019 as his last year with the bank. However, this has raised the question of whether Carney will stay on for a time after the UK has (finally) left the EU during that year, as is estimated.

Elsewhere, the October manufacturing PMI has recorded a drop from 55.5 to 54.3. While still showing growth, this field may cause alarm if it fails to rise again at the start of December.

Pound Sterling Forecast: GBP Softness Possible if UK PMIs Fall as Expected

So what news is likely to impact the Pound US Dollar exchange rate as the week progresses?

The next UK ecostats to watch out for will consist of two PMI printings for October – the construction result on Wednesday and the services figure on Thursday.

These are both predicted to fall to 52 points, which could put investors in a cautious mood ahead of Thursday’s Bank of England (BoE) announcements at noon.


The UK interest rate is expected to be left on hold at 0.25%, in addition to quantitative easing being left unadjusted. Should Carney make any unexpected statements in the following press conference, a high level of Sterling volatility could arrive.

US Dollar Edges Up against GBP despite Potential Damage of Clinton Email Investigation

The US Dollar has risen slightly against the softened Pound (USD GBP) today, although this comes at a time when widespread USD weakness is being caused by the latest US election scandal.

While it may seem like dredging up old news, the FBI’s legally questionable announcement of its investigation into the emails of a Clinton aide has nonetheless damaged perceptions of the Democratic candidate.

Although Clinton remains ahead in most of the polls, the EU Referendum result showed that polls should perhaps be taken with a pinch of salt; this narrows the lead of the election’s safer option considerably.

US Dollar Outlook: Will Tomorrow’s Fed Rate Decision Bring any GBP USD Movement?

While Fed interest rate decisions are usually momentous occasions, tomorrow evening’s rate news for November may not provoke the usual investor fanfare or trigger much movement in Pound US Dollar exchange rates.

This is mainly due to the vote for US President taking place a week from now, which means that the Fed is unlikely to make any dramatic decisions, such as a rate hike, until after the dust has settled and a winner has emerged.

With that in mind, influence over the US Dollar could still come today from a pair of positively-predicted October manufacturing PMI results, as well as from a rise in the ADP employment change that is forecast for tomorrow.

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