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British Pound to US Dollar Exchange Rate Hits New 33 Month Best despite Strong US Data
Published: 19 Feb at 4 PM Tags: Pound Sterling, Dollar Exchange Rate, Currency Exchange, UK, Exchange Rates, Economy, Inflation, Pound Dollar Exchange Rate,
The British Pound to US Dollar (GBP/USD) exchange rate continues to go from strength to strength, despite some strong US data today. Optimism around Britain’s potential for recovery from the coronavirus pandemic continues to dominate the pair.
At the beginning of the week, GBP/USD trended in the region of 1.3843 but spent the week trending higher.
A dip to near the week’s opening levels near the end of the week was short lived. Instead, GBP/USD was trending near a 33 month high of 1.4032 before markets closed for the week.
The Pound’s broad bullishness was once again the primary reason for its gains against the US Dollar over the past week. The US Dollar’s weakness on global recovery hopes played a part however.
For most of the week, the Pound continued to benefit from speculation that the UK economy could be one of the first major economies to recover from the coronavirus pandemic.
Britain’s vaccination scheme is on track, and the UK government will reportedly make an announcement on its restriction easing roadmap in the coming week.
Due to this broad optimism, the Pound was little impacted by Friday’s weaker than expected UK retail sales results.
The Pound also found a little extra support on Friday from some stronger than expected UK PMI projections
On the other hand, the US Dollar’s downtrend resumed through the end of the week.
The US Dollar attempted a rebound in the middle of the week, but concerns over the resilience of the US economy cut that rebound short.
Friday’s US PMI projections from Markit showed stronger than expected services data, but as Markit’s US PMIs are less influential than ISM PMIs this was not enough to boost the US outlook.
Next week will be a little quieter for UK data, but it could still be a highly influential week for the Pound to US Dollar exchange rate overall.
Pound investors will be most focused on the UK government’s announcement on its lockdown easing roadmap. Some analysts warn that the government may be more cautious this time, which could hit the Pound lower.
On the other hand, optimism over easing lockdown combined with strong UK job market data on Tuesday could make it easier for the Pound to sustain even further gains.
As for the US Dollar, key US data is due throughout next week.
Fed activity and manufacturing data is due earlier in the week, with key growth rate and durable goods data due on Thursday.
US wholesale inventories and PCE inflation data is due on Friday.
If the US economic outlook shows more signs of strength or the US coronavirus situation improves, the Pound to US Dollar exchange rate is more likely to tumble back from highs next week.
At the beginning of the week, GBP/USD trended in the region of 1.3843 but spent the week trending higher.
A dip to near the week’s opening levels near the end of the week was short lived. Instead, GBP/USD was trending near a 33 month high of 1.4032 before markets closed for the week.
The Pound’s broad bullishness was once again the primary reason for its gains against the US Dollar over the past week. The US Dollar’s weakness on global recovery hopes played a part however.
For most of the week, the Pound continued to benefit from speculation that the UK economy could be one of the first major economies to recover from the coronavirus pandemic.
Britain’s vaccination scheme is on track, and the UK government will reportedly make an announcement on its restriction easing roadmap in the coming week.
Due to this broad optimism, the Pound was little impacted by Friday’s weaker than expected UK retail sales results.
The Pound also found a little extra support on Friday from some stronger than expected UK PMI projections
On the other hand, the US Dollar’s downtrend resumed through the end of the week.
The US Dollar attempted a rebound in the middle of the week, but concerns over the resilience of the US economy cut that rebound short.
Friday’s US PMI projections from Markit showed stronger than expected services data, but as Markit’s US PMIs are less influential than ISM PMIs this was not enough to boost the US outlook.
Next week will be a little quieter for UK data, but it could still be a highly influential week for the Pound to US Dollar exchange rate overall.
Pound investors will be most focused on the UK government’s announcement on its lockdown easing roadmap. Some analysts warn that the government may be more cautious this time, which could hit the Pound lower.
On the other hand, optimism over easing lockdown combined with strong UK job market data on Tuesday could make it easier for the Pound to sustain even further gains.
As for the US Dollar, key US data is due throughout next week.
Fed activity and manufacturing data is due earlier in the week, with key growth rate and durable goods data due on Thursday.
US wholesale inventories and PCE inflation data is due on Friday.
If the US economic outlook shows more signs of strength or the US coronavirus situation improves, the Pound to US Dollar exchange rate is more likely to tumble back from highs next week.
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Source: moneytransfer.co.uk