Yesterday’s high: $1.3134
Yesterday’s low: $1.3065
US Dollar Benefits from Weak Pound
Despite concerns relating to US tax reform, the US Dollar advanced against a weak Pound yesterday.
Investors sold the Pound on Monday in reaction to a report from The Sunday Times that indicated 40 Conservative MPs were prepared to sign a letter of no confidence in UK Prime Minister Theresa May.
With May’s domestic position less-than-stable since the snap general election earlier in the year, Pound traders are concerned that this could have a negative effect on the Brexit process.
USD Outlook: UK Inflation Stats in Focus
The Pound could be influenced on Tuesday by Britain’s upcoming Consumer Price Index (CPI) data. If UK inflation beat expectations in October, it could cause speculation that the Bank of England (BoE) may be pressured into tightening monetary policy again sometime in 2018.
However, potential political developments are likely to have an even stronger impact on Pound movement.
As for the US Dollar, it’s unlikely to see much shift in direction in the coming sessions unless there are developments in US tax reform, or unless Wednesday’s US inflation data comes in well below expectations. Poor US inflation could dent the Federal Reserve interest rate outlook.
09:30 UK Inflation Rate
13:30 US PPI
09:30 UK Job Market Report
09:30 UK Jobless Claims
13:30 US Inflation Rate
13:30 US Retail Sales
15:00 US Business Inventories
09:30 UK Retail Sales
13:30 US Jobless Claims
13:30 US Manufacturing and Industrial Production
If you need to make a USD transfer but don’t have an account with us, click here to get started.
Senior Currency Broker
T: 01442 892 065