Foremost Currency Group

Make the most of your currency

Talk to our friendly team:+44 (0)1442 892060

GBP/USD Tumbles Again as Latest US Data Influences Federal Reserve Speculation

Last week’s high: $1.2511

Last week’s low: $1.2407

Pound to US Dollar Exchange Rate Fails to Sustain Gains amid Lasting Brexit Fears

The Pound to US Dollar exchange rate ended last week trading lower as the latest Brexit jitters and US data kept the pair under pressure.

Sterling initially rebounded as the Conservative Party leadership contest finally came to an end, but the currencies gains were capped by comments from EU officials.

The remarks indicated that the EU is unwilling to renegotiate the UK-EU withdrawal agreement, which bolstered fears for a no-deal exit.

This made it easier for the US Dollar to push GBP/USD lower at the end of the week.

The US Dollar, meanwhile, fluctuated amid speculation that the Fed could cut US interest rates by as much as 50 basis points next week. However, as Friday’s US growth rate data beat expectations, Fed interest rate cut bets lightened and the US Dollar saw some late-week gains.

USD Outlook: Federal Reserve July Decision in Focus

The Pound to US Dollar exchange rate could be driven more by data and Central Bank news this week as we have a busy economic calendar ahead.

The US data to look out for includes Personal Consumption Expenditure (PCE) data on Tuesday, manufacturing PMIs on Thursday, and July’s Non-Farm Payroll report on Friday.

UK consumer confidence data will be published as well, but the week’s central bank news is more likely to be influential.

If the Federal Reserve cuts rates by 0.25% on Wednesday and doesn’t adopt an overtly dovish tone, the US Dollar could benefit. However, a sharper rate cut or indications that rates could be cut more aggressively in the months ahead would be USD negative.

The Bank of England’s (BoE) August policy decision on Thursday could prove influential if the bank has any new comments to make regarding Brexit and the new UK government.

Speaking of the government, any surprising shifts in tone from Prime Minister Boris Johnson on the Brexit process are likely to remain a big focus for Pound traders.


Key Events

29th July

15:30 US Dallas Fed Manufacturing Index

30th July

13:30 US Personal Consumption Expenditure (PCE)

15:00 US Pending Home Sales

31st July

00:01 UK GfK Consumer Confidence

13:15 US ADP Employment Change

13:30 US Employment Cost

14:45 US Chicago PMI

19:00 US Federal Reserve Policy Decision

1st August

09:30 UK Manufacturing PMI

12:00 UK Bank of England Policy Decision

15:00 US Manufacturing PMI

2nd August

09:30 UK Construction PMI

13:30 US Trade Balance

13:30 US Non-Farm Payroll Report

15:00 US Factory Orders

15:00 US Michigan Consumer Sentiment


If you need to make a USD transfer but don’t have an account with us, click here to get started.

To keep up to date with the US Dollar, visit the USD blog in our Currency News section.

Alastair Archbold
Currency Trader
T: 01442 892 062

© Copyright 2013 to 2020 | Foremost Currency Group Ltd | All rights reserved