Last week’s high: $1.2855
Last week’s low: $1.2481
GBP/USD Fluctuates by 4 Cents
The Pound US Dollar exchange rate experienced extreme volatility last week as a mini flash crash rocked the currency market.
Although the Pound lost over 1% against the US Dollar mid-week, GBP was able to claw back much of its losses in spite of mixed UK data.
The UK Markit Manufacturing PMI for December showed a better-than-expected increase to 54.2, but analysts attributed this to stockpiling as a result of Brexit concerns.
The UK’s manufacturing data was followed by a weaker-than-expected construction reading and an above-forecast services report.
The US Dollar, meanwhile, came under a little pressure as disappointing economic releases inspired concerns about the US economy.
USD Outlook: Brexit to Dominate GBP Sentiment
Looking to the week ahead, Brexit debates are set to take centre stage once again, as the House of Commons and Prime Minister Theresa May resume discussions over the Brexit withdrawal deal.
USD investors, meanwhile, will be looking ahead to next week’s slew of data releases. Any reports which indicate that the US economy is feeling the strain would be US Dollar-negative.
Next week will also see President Donald Trump meet with China’s President Xi Jinping to negotiate potential trade deals, with investors paying attention to any signs of a compromise between the two leaders.
15:00 US ISM Non-Manufacturing PMI (Dec)
15:00 US Factory Orders (Nov)
17:40 US FOMC Member Bostic Speech
13:30 US Trade Balance (Nov)
15:30 UK BoE’s Governor Carney Speech
19:00 US FOMC Minutes
00:01 UK BRC Like-For-Like Retail Sales (Dec)
09:30 UK BoE Credit Conditions Survey
13:30 US Continuing Jobless Claims (Dec 28)
13:30 US Initial Jobless Claims (Jan 4)
17:00 US Fed’s Powell Speech
22:30 US FOMC Member Clairda Speech
07:00 Manufacturing Production (Nov)
09:30 Trade Balance; Non-EU (Nov)
09:30 Gross Domestic Product (Nov)
13:30 US Consumer Price Index Ex Food & Energy (Dec)
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Foreign Exchange Manager