Last week’s high: $1.3233
Last week’s low: $1.3014
Dollar Soars on Bullish Fed and Strong Data
The Pound US Dollar (GBP/USD) exchange rate took a battering last week as a bullish sounding Federal Reserve boosted the US Dollar on one side, and further Brexit instability weakened the Pound on the other.
The Pound did manage to rally mid-week against the Dollar when better-than-expected wage growth figures gave it a boost, but it quickly fell back the next day as it appeared there would be no agreement with the EU at a summit in Brussels where Brexit was to be the main topic of discussion.
Towards the end of the week the US Dollar continued to ride on the wave of positive sentiment caused when the latest Fed meeting minutes were released – when it was revealed that all policymakers had voted to raise interest rates last month.
Looking ahead to this week, Wednesday will see the publication of the latest PMI data from Markit, covering manufacturing, services and the composite reading. Current indications are that we will see an uptick in services, while manufacturing will remain steady, so we can expect some upside pressure on USD rates.
Thursday sees the release of September’s durable goods orders, with current indications being that a slippage will be reported.
Finally, Friday will see the release of the latest GDP figures for Q3, which is expected to reveal a sturdy 3.3% rate of annualised growth, followed by core personal expenditures, which are expected to remain at a robust 2.1% growth.
11:00 UK CBI Industrial Orders (Oct)
09:30 UK Mortgage Approvals (Sep)
14:45 US Markit PMIs (Oct)
13:30 US Durable Goods Orders (Sep)
11:00 UK Distributive Trades (Oct)
13:30 US Gross Domestic Product (Q3)
13:30 US Core Personal Consumption (Q3)
If you need to make a USD transfer but don’t have an account with us, click here to get started.