Last week’s high: $1.3254
Last week’s low: $1.3030
US Dollar Dragged Down by Trump’s Fed Spat
Last week saw the Pound progressively trade higher against the US Dollar, with a high-profile clash between the Presidency and the US central bank panicking USD traders.
President Donald Trump accused the Fed of being ‘out of control’ and ‘crazy’, primarily because it has been raising interest rates over the year and making the US Dollar stronger.
In the UK, Pound Sterling demand dipped on a Brexit scuffle involving the Democratic Unionist Party (DUP), but the GBP/USD exchange rate still closed near its best level since late September.
USD Outlook: Volatility ahead on Jobs Data and Fed Minutes
This week will bring a mix of major UK and US data releases; the main news will be the UK’s job market stats and US Federal Reserve minutes from its latest meeting.
A slower pace of UK wage growth and rise in jobless claims could cause GBP/USD exchange rate losses, as could a later slowdown in UK inflation rates.
These results would make a 2019 Bank of England (BoE) interest rate hike less likely, which could drag the Pound down.
With the Fed minutes, if they point towards an interest rate hike in November or December this year then the USD/GBP exchange rate could rise sharply.
13:30 US Retail Sales
09:30 UK Jobless Claims
09:30 UK Unemployment Rate
09:30 UK Average Earnings
09:30 UK Inflation Rate
19:00 US Federal Open Market Committee (FOMC) Minutes
09:30 UK Retail Sales
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