Last week’s high: $1.4064
Last week’s low: $1.3861
BoE Rate Speculation Helps Pound to Rally
The Pound stumbled against the US Dollar throughout much of last week’s session as both the UK’s latest employment and GDP figures came in worse than expected.
However Sterling sentiment was able to recover at the tail end of the week following increased speculation that the Bank of England (BoE) would target a May rate hike.
Meanwhile the US Dollar started off strong last week as renewed confidence in the US currency was buoyed by the minutes from the Federal Reserve’s latest policy meeting.
However while markets welcomed the hawkish minutes, a drop in US Treasury yields led USD to relinquish some of its gains at the end of the week.
USD Outlook: GDP Figures to Weaken USD?
Looking ahead, the US Dollar may come under pressure this week as the US publishes its latest GDP estimate, which is expected to confirm that economic growth slumped from 3.2% to 2.5% in the fourth quarter.
However the Pound may also struggle this week with the publication of the UK’s latest PMI figures as economists forecast that activity in the manufacturing and construction sectors is likely to remain muted in February after slumping at the start of the year.
09:30 UK Mortgage Approvals Jan
15:00 US New Homes Sales Jan
13:30 US Durable Goods Orders Jan
00:01 UK Consumer Confidence Feb
13:30 US GDP Q4
09:30 UK Manufacturing PMI Feb
15:00 US ISM Manufacturing PMI
09:30 UK Construction PMI Feb
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Senior Currency Broker
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