Last week’s high: $1.2561
Last week’s low: $1.2442
USD Dollar Sinks as the Fed Hints at Imminent Rate Cuts
The Pound US Dollar (GBP/USD) exchange rate rose last week following the Federal Reserve’s hints at a possible rate cut this month.
This came following comments from Fed Chairman Jerome Powell who said that global trade tensions and the strength of the global economy had weighed on the US economic outlook.
He also told the Financial Services Committee that a rate cut would come in the next meeting off officials later this month.
Meanwhile, Sterling benefited from Thursday’s Bank of England financial stability report, which said that the UK financial sector was ‘prepared’ for Brexit.
The GBP/USD exchange rate closed the week slightly higher, with US markets generally unmoved by the publication of the US PPI figures for June, which exceeded forecasts at 2.3%.
USD Outlook: Dovish Fed Commentary to Boost GBP/USD Further?
Looking to the week ahead, we could see the Pound hold onto its gains if the UK average earnings figures for May confirms that wage growth has risen.
Any further dovish commentary from Jerome Powell on Tuesday could also weigh further on USD.
09:30 UK Average Earnings Excluding Bonus (May)
13:30 US Retail Sales Control Group (Jun)
18:00 Fed’s Chair Powell Speech
09:30 UK Retail Price Index (Jun)
09:30 UK Consumer Price Index (Jun)
13:30 US Housing Starts (Jun)
09:30 UK Retail Sales (Jun)
13:30 US Initial Jobless Claims (Jul)
15:00 US Michigan Consumer Sentiment Index (Jul)
Foreign Exchange Manager