Yesterday’s high: $1.3108
Yesterday’s low: $1.3031
Storms and Fed Resignation keep USD Down
The US Dollar fell by -0.5% against the Pound yesterday, owing to economic uncertainties and fears about Hurricane Irma.
In the former case, the resignation of Federal Reserve Vice Chair Stanley Fischer on Wednesday continued to rock the markets. Also preventing a US Dollar rally was the approach of Hurricane Irma, a category 5 weather system. The storm has already battered islands in the Caribbean and is expected to make landfall in Florida between Sunday and Monday. As well as threatening high levels of destruction, Irma also follows on the tail of Hurricane Harvey, which tore along the southern US coast at the end of August.
USD Outlook: Turbulence Possible on Today’s Fed Speeches
After two recent Fed speeches, central bank remarks will remain a strong US Dollar-influencer today. In particular, the Fed’s Esther George and Patrick Harker will both be talking this afternoon. George is considered a policy hawk, while Harker is more centrally aligned. If both policymakers point to monetary policy tightening in the future then the US Dollar could bounce back against the Pound.
On the UK side of the equation, manufacturing and industrial production reports and the national trade balance will be in focus. The production results are expected to prove varied, but a forecast-matching trade deficit expansion might leave the Pound down in the pairing.
09:30 UK Industrial Production
09:30 Manufacturing Production
09:30 Construction Output
09:30 UK Trade Balance
13:15 US Federal Reserve George Speech
13:45 US Federal Reserve Harker Speech
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