Yesterday’s high: $1.3057
Yesterday’s low: $1.3021
US Dollar Fails to Find Support in Domestic Data
The Pound to US Dollar exchange rate trended near its best levels in over a month on Wednesday. Sterling was able to gain against a weak US Dollar, as the day’s US data failed to notably improve the nation’s outlook.
ISM’s non-manufacturing PMI for August fell short of expectations, only rising from 53.9 to 55.3 rather than the forecast 55.4. Markit’s final August services and composite PMIs also disappointed, both coming in below projections.
As a result of the disappointing PMI data, Federal Reserve interest rate hike bets remained low, with over 67% betting that rates will stay frozen until 2018. Investors were largely unfazed by news that the US trade deficit didn’t worsen as much as expected.
USD Outlook: Fed Speculation in Focus
In recent sessions, some Federal Reserve officials have weighed in with views on the US interest rate outlook. More officials will be delivering speeches in the coming days, which could inspire Fed rate hike bets and US Dollar movement.
UK and US data could also influence GBP/USD exchange rates. US jobless data will come in on Thursday, while Britain’s July trade deficit update will be published on Friday.
13:30 US Jobless Claims
09:30 UK Balance of Trade
09:30 UK Industrial Production
15:00 US Wholesale Inventories
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