Last week’s high: $1.3270
Last week’s low: $1.3100
Pound Finds Support from Upbeat PMI Figures
The Pound US Dollar exchange rate initially tumbled last week, with investors flocking to USD in the face of rising trade tensions.
Sterling was able to mount a solid recovery on Tuesday and Wednesday however, with some upbeat PMI figures bolstering expectations of a rate hike from the Bank of England (BoE) in August.
While these expectations were further bolstered by some hawkish comments from BoE Governor, Mark Carney, rising Brexit uncertainty saw the Pound remain muted in the latter half of the week.
At the tail end of the session we saw the US Dollar stumble as the latest domestic jobs data revealed US unemployment unexpectedly rose in June.
USD Outlook: USD Poised to Rise as Inflation Soars
Looking ahead, the biggest event on data calendars this week looks set to be the latest US CPI figures.
This could prompt some sizeable losses in the GBP/USD exchange rate should US inflation have risen from 2.8% to 2.9% in June as forecast, with the uptick likely to bolster Fed rate expectations.
Meanwhile it’s looking a lot quieter in terms of UK data this week, although the pound could find some gains at the start of the session should domestic industrial production have rebounded as expected in May.
09:30 UK Trade Balance (May)
09:30 UK Industrial Production (May)
15:00 US JOLTs Job Openings (May)
13:30 US PPI (Jun)
13:30 US Core Inflation (Jun)
13:30 US Inflation (Jun)
15:00 US Michigan Consumer Sentiment (Jul)
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