Yesterday’s high: $1.3220
Yesterday’s low: $1.3145
Pound Climbs against US Dollar Despite Poor UK Trade Data
After recording gains recently, the US Dollar declined ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting minutes report.
As a result, the Pound has been able to continue its recovery against the US Dollar.
This was despite some underwhelming UK ecostats, such as Britain’s August trade deficit update, which came in much worse than forecast at £-5.63b.
Sterling may have been supported slightly by August’s UK manufacturing and industrial production results, which beat expectations in yearly prints.
USD Outlook: Fed Minutes in Focus Today
This evening, the Fed’s latest meeting minutes report will be published and could give markets the next big signals of whether or not to expect a US interest rate hike before 2018.
Bets of a December Fed rate hike are already above 85%, but more hawkish signals from the Fed would definitely help the US Dollar to hold its ground.
The US Dollar could drive GBP/USD for the rest of the week unless UK political news surprises investors, as key US inflation and retail data will be published on Friday.
19:00 US FOMC Minutes
14:00 UK BoE Haldane Speech
13:30 US Inflation Rate
13:30 US Retail Sales
15:00 US Michigan Consumer Sentiment
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