April 29, 2021 - Written by John Cameron
STORY LINK GBP/USD Forecast: Pound to US Dollar Exchange Rate Mixed on UK Economic Optimism
The Pound to US Dollar (GBP/USD) exchange is mixed today after the latest US jobless claims released this afternoon missed forecasts.
At the time of writing the GBP/USD pairing are trading at around $1.3959 as the Pound continues to find support in economic optimism surrounding the UK’s recovery from the second wave of the coronavirus pandemic.
Pound Sterling (GBP) Exchange Rate Mixed on UK Economic Optimism
The Pound has been mixed against the US Dollar for much of today’s session as UK economic optimism helps to support Sterling sentiment in absence of any notable data.
It comes as the UK has secured a further 60 million doses of the Pfizer vaccine to be used as ‘booster jabs’ in Autumn to help protect further against coronavirus.
At a Downing Street press conference yesterday evening, Health Secretary Matt Hancock was adamant that England was ‘on track’ for the next set of lockdown easing due to come in force on the 17th May.
Professor Jonathan Van-Tam also added that:
‘We are running as a typical seven-day average at just over 2,000 people testing positive per day. My sense is that probably we are at or close to the bottom at the moment in terms of this level of disease in the UK.’
US Dollar (USD) Exchange Rate Mixed as US Jobless Claims Miss Forecasts
The US Dollar has found itself mixed against the Euro the Pound today following the Federal Reserve’s latest interest rate decision yesterday.
The Fed chose to keep monetary policy unchanged as expected, however a more optimistic and upbeat tone from on the outlook on the US economy had caused USD to strengthen against many of its major rivals.
Analysts at ING commented on the new hawkish tone from the Fed saying:
‘Most significantly the Fed has dropped its assessment that the pandemic “poses considerable risks”. Risks do of course “remain” and the recovery is "uneven and far from complete", but this is a notable shift from the Fed.’
‘They also acknowledge the recent firm activity data and improved jobs market. Both are recognized as having have “strengthened”, whereas in March they had merely “turned up recently” after a period of moderation.’
This afternoon however the latest jobless claims from the US were lacklustre, as jobless claims missed forecasts of 549,000 instead falling to 553,000.
However, the claims have fallen to their lowest level since the pandemic began more than a year ago.
GBP/USD Exchange Rate Forecast: US Consumer Sentiment in Focus
US Dollar traders will be keeping an eye on the latest US consumer sentiment index for April which is forecast to have risen to 86.5 which could give an extra boost to USD heading into the weekend.
Pound investors will keep an eye on any coronavirus developments in the coming days, as the next phase of lockdown easing fast approaches investors will want to make sure nothing gets in the way of the reopening of the UK’s economy.
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TAGS: Pound Dollar Forecasts