Foremost Currency Group

Make the most of your currency

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

GBP/USD Strikes Seven-Week Low as UK Economic Growth Slows to Just 0.1%

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.

 

Key Events

30th April

13:30 US PCE Inflation (Mar)

1st May

09:30 UK Manufacturing PMI (Apr)

15:00 US Manufacturing PMI (Apr)

2nd May

09:30 UK Construction PMI (Apr)

13:15 US ADP Employment Change (APR)

19:00 US Fed Rate Decision

3rd May

09:30 UK Services PMI (Apr)

13:30 US Trade Balance (Mar)

15:00 US Services PMI (Apr)

4th May

13:30 Non-Farm Payrolls (Apr)

 

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
Currency Trader
T: 01442 892 065

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