Foremost Currency Group

Make the most of your currency

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

GBP/USD Risks Losses on US GDP Boom

Last week’s high: $1.2930
Last week’s low: $1.2731

GBP/USD Boosted by Cautious Fed Outlook

Last week saw the Pound rise against the US Dollar and close around $1.2844 on Friday.
In the UK, the government revealed its no-deal Brexit plans. Analysts gave a mixed reception to the measures and Chancellor Philip Hammond reiterated the dangers of a bad Brexit deal.
US Dollar traders had a late-week shock when Federal Reserve policymaker James Bullard suggested that interest rates were ‘very close to neutral’, implying few future rate hikes.
Mr Bullard will vote on interest rates in 2019, so this was seen as a dovish precursor to future rate decisions.

Chance of USD Rally on GDP Data

On a shorter-than-usual week, GBP/USD exchange rate movement is most likely to be driven by US news.
The main event is Wednesday’s US Q2 GDP estimate – forecasts are for economic growth to have rocketed from 2.2% to 4%. Such results could bring a mid-week USD rally.
Further USD support could come if personal incomes and spending levels are reported higher on Thursday, while Friday’s UK consumer confidence reading might exacerbate existing GBP/USD losses if it shows growing pessimism.

Key Events
29th August
13:30 US GDP Growth Second Estimate (Q2)
30th August
13:30 US Personal Income and Spending
31st August
00:01 UK GfK Consumer Confidence
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.

Arron Morris
Senior Currency Broker
adm@fcgworld.co.uk

© Copyright 2013 to 2018 | Foremost Currency Group Ltd | All rights reserved