Last week’s high: $1.3291
Last week’s low: $1.3045
US Dollar Depreciates as Trade Concerns Ease
The Pound US Dollar exchange rate surged to a two-week high last week, with the pairing rocketing up as much as 1% on Thursday amid broad weakness in the US Dollar.
This appeared to be largely a result of easing trade concerns, with the US and China seen to be pulling their punches with their latest round of tariffs.
Aiding Sterling’s rally was the release of the UK’s latest inflation and retail sales figures, both of which surprised investors by beating forecasts in August.
However the Pound’s advance did not come without some hurdles, with renewed Brexit uncertainty denting sentiment and leading GBP exchange rates to cede many of its gains on Friday.
USD Outlook: Will Fed Rate Decision Prompt a Rebound in USD?
Looking ahead, the Federal Reserve’s latest policy meeting will be centre stage this week, with the bank widely expected to vote to raise interest rates this month.
However with the move already largely priced in by markets any upside to USD may be limited, unless a particularly hawkish tone from the bank helps to bolster Fed rate expectations for 2019.
Meanwhile in the absence of any major UK data this week, Brexit is likely to remain the main catalyst for movement in the Pound, with there being potential for some losses unless some positive progress appears to be made.
11:00 UK CBI Industrial Orders (Sep)
15:30 US Dallas Manufacturing Index (Sep)
09:30 UK Mortgage Approvals (Aug)
11:00 UK CBI Distributive Trades (Sep)
15:00 US New Home Sales (Aug)
19:30 US Fed Rate Decision
07:00 UK Nationwide House Prices (Sep)
13:30 US Durable Goods Orders (Aug)
13:30 US GDP Q2 (Final)
00:01 UK Consumer Confidence (Sep)
09:30 UK GDP Q2 (Final)
13:30 US PCE Price Index (Aug)
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