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Pound Sterling to US Dollar Conversion Rate (GBP-USD) Slumps as Damaging Events Occur on Both Sides
Published: 13 Oct at 5 PM Tags: Pound Sterling, Dollar Exchange Rate, Currency Exchange, UK, Exchange Rates, Inflation,
UK Inflation Downfall Overshadowed Pessimistic US Fed Speeches Today to Push GBPUSD Exchange Rate Down
Having been at the mercy of rival movements yesterday due to a lack of economic publications, the Pound Sterling’s main economic release of the day, the UK Inflation Rate data for September, has proven to be an enormous let-down. Both the monthly and annual base results fell to -0.1% (a negative posting not seen since April this year) while the Core figure showed that the rate had failed to match up with expectations. The rest of the UK data (RPI and PPIs) also disappointed investors for the most part, although a 5.2% rise in the DCLG UK House Prices recording was something of a small saving grace.
This downtrend by the Pound has been so severe that it has been unable to advance against the US Dollar, instead falling to 1.5228 in the exchange rate. The ‘Buck’ has been a particularly easy target lately, given that repeated result shortfalls and Fed dovishness have combined to severely reduce the appeal of the safe-haven currency. Most recently, speeches from Fed officials Lael Brainard, Dennis Lockhart and Charles Evans have all erred on the side of caution with regard to a US interest rate hike; Evans in particular has essentially written off any thought of a rate hike until 2016 at the earliest.
GBP-USD Future to be Decided by Tomorrow’s UK Results and Steady US Market Outlook
The movement of the Pound Sterling to US Dollar conversion rate in the near-future is most likely to be affected by tomorrow’s spate of UK and US releases, although for the UK tomorrow will also be the last data day of the week for the UK. By contrast, US results are set to continue being released on Thursday and Friday as well, therefore any potential gains made by Sterling could be undone before the week is over.
The most prominent UK results tomorrow will be the Employment Change result for the three months to the end of August, the Jobless Claims Change for September and the yearly Average Weekly Earnings for the three months through August. Most notably, the Employment Change is set for a 140k person increase, Jobless Claims are due to reduce by -2.2k and a 3.1% rise has been predicted for Average Weekly Earnings.
On the other side of the coin, the later US results will be chiefly comprised of the Advance Retail Sales figure for September and the Federal Reserve’s Release of the Beige Book. At the time of writing, a 0.2% increase had been predicted for the Sales figure, but given the nature of its contents, no forecasts can be made for the Beige Book. Also notable tomorrow will be the US Mortgage Applications result and a number of PPIs covering a number of different areas.
Having been at the mercy of rival movements yesterday due to a lack of economic publications, the Pound Sterling’s main economic release of the day, the UK Inflation Rate data for September, has proven to be an enormous let-down. Both the monthly and annual base results fell to -0.1% (a negative posting not seen since April this year) while the Core figure showed that the rate had failed to match up with expectations. The rest of the UK data (RPI and PPIs) also disappointed investors for the most part, although a 5.2% rise in the DCLG UK House Prices recording was something of a small saving grace.
This downtrend by the Pound has been so severe that it has been unable to advance against the US Dollar, instead falling to 1.5228 in the exchange rate. The ‘Buck’ has been a particularly easy target lately, given that repeated result shortfalls and Fed dovishness have combined to severely reduce the appeal of the safe-haven currency. Most recently, speeches from Fed officials Lael Brainard, Dennis Lockhart and Charles Evans have all erred on the side of caution with regard to a US interest rate hike; Evans in particular has essentially written off any thought of a rate hike until 2016 at the earliest.
GBP-USD Future to be Decided by Tomorrow’s UK Results and Steady US Market Outlook
The movement of the Pound Sterling to US Dollar conversion rate in the near-future is most likely to be affected by tomorrow’s spate of UK and US releases, although for the UK tomorrow will also be the last data day of the week for the UK. By contrast, US results are set to continue being released on Thursday and Friday as well, therefore any potential gains made by Sterling could be undone before the week is over.
The most prominent UK results tomorrow will be the Employment Change result for the three months to the end of August, the Jobless Claims Change for September and the yearly Average Weekly Earnings for the three months through August. Most notably, the Employment Change is set for a 140k person increase, Jobless Claims are due to reduce by -2.2k and a 3.1% rise has been predicted for Average Weekly Earnings.
On the other side of the coin, the later US results will be chiefly comprised of the Advance Retail Sales figure for September and the Federal Reserve’s Release of the Beige Book. At the time of writing, a 0.2% increase had been predicted for the Sales figure, but given the nature of its contents, no forecasts can be made for the Beige Book. Also notable tomorrow will be the US Mortgage Applications result and a number of PPIs covering a number of different areas.
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Source: moneytransfer.co.uk