Yesterday’s high: $1.3377
Yesterday’s low: $1.3312
GBP/USD Fluctuates as Investors Anticipate Brexit Developments
Some analysts reckon the Federal Reserve may not hike US interest rates for a while after December, which weighed on US Dollar demand on Monday.
While markets widely agree that the Fed is preparing to hike US interest rates in December, marking the third rate hike of 2017, an uncertain inflation outlook and an unclear picture of US fiscal policy plans have clouded the Fed’s 2018 outlook.
US tax reform plans have been on the cards for most of the year but investors are still uncertain how much of the plans will pass through Congress.
The Pound, on the other hand, edged higher for most of Monday as investors anticipated fresh developments in the Brexit process.
USD Outlook: Brexit Developments in Focus
The Pound to US Dollar exchange rate is likely to be influenced by any changes in the Brexit outlook over the coming days.
If UK or EU negotiators soften their positions on the Northern Ireland border or show concessions in an effort to accelerate the pace of negotiations, the Pound will see stronger demand. Sterling could also be influenced by UK data later in the week.
As for the US Dollar, it could be influenced by wholesale inventories data on Tuesday, but investors are likely to wait for key US growth data and personal consumption data later in the week before making big moves on the currency. Tax reform news could also influence the ‘Greenback’.
07:00 UK Nationwide Housing Prices
13:30 US Wholesale Inventories
13:30 US Growth Rate
15:00 Fed Yellen Speech
UK Consumer Confidence
13:30 US Jobless Claims
13:30 US Personal Income and Spending
14:45 US Chicago PMI
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