Last week’s high: $1.4025
Last week’s low: $1.3746
Pound Nosedives as UK GDP Disappoints
The Pound to US Dollar exchange rate continued to retreat last week, with Sterling being met by considerable weakness in the wake of the UK’s latest GDP figures.
Data published by the ONS reported that UK economic growth sank to 0.1% at the start of 2018, down from 0.4% at the end of last year.
This prompted further concerns as to whether the Bank of England would raise interest rates in May and prompted GBP/USD to strike a new seven-week low.
Meanwhile rising US treasury yields helped to buoy the US Dollar last week, while some better-than-expected US GDP figures prevented the currency from suffering a similar fate to the Pound on Friday.
USD Outlook: USD Poised to Rise if Fed Strikes more Hawkish Tone
Looking ahead, it’s set to be a busy week in terms of US data, with the latest employment figures and PMI readings all likely to prompt movement in the GBP/USD exchange rate.
However the most impactful event this week is likely to be the Federal Reserve’s latest rate decision, with the US Dollar likely to surge if the bank shows any indication it may increase the pace of monetary tightening later this year.
Meanwhile the UK is also set to release some of its own PMI data this week, with the Pound possibly sliding if private sector growth continues to disappoint in April.
13:30 US PCE Inflation (Mar)
09:30 UK Manufacturing PMI (Apr)
15:00 US Manufacturing PMI (Apr)
09:30 UK Construction PMI (Apr)
13:15 US ADP Employment Change (APR)
19:00 US Fed Rate Decision
09:30 UK Services PMI (Apr)
13:30 US Trade Balance (Mar)
15:00 US Services PMI (Apr)
13:30 Non-Farm Payrolls (Apr)
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