Money Transfer.co.uk
Compare money transfers, currency exchange and international transfer
Thu 25 Apr 2024 03:16GMT
Compare Money Transfers. Safe. Fast. Free.
A money transfer through a foreign exchange broker is the smart move. With excellent exchange rates and fee-free transfers, you could save time and money.
I need to send money...
Pound to US Dollar Exchange Rate Advances on Weaker US Dollar but Gains Limited
Published: 15 Apr at 3 PM Tags: Pound Sterling, Dollar Exchange Rate, Currency Exchange, UK, Exchange Rates, Economy, Inflation, Pound Dollar Exchange Rate,
While the Pound struggled to mount much of a recovery against other major currencies this week, the Pound to US Dollar (GBP/USD) exchange rate has been gradually advancing. The Pound is benefitting from weakness in the US Dollar.
Last week saw GBP/USD tumble from the level of 1.3830 down to 1.3705, as the Pound was sold in a bout of profit-taking.
After touching near a monthly low at the beginning of this week, GBP/USD has been trending with an upside bias again. The Pound is taking advantage of the US Dollar’s weakness despite its own lack of drive.
At the time of writing on Thursday, GBP/USD is trending in the region of 1.3775.
Demand for the Pound is limited this week. Investors are hesitant to keep buying the British currency amid a lack of fresh upside surprises in the UK outlook.
Optimism about Britain’s potential to recover from the coronavirus pandemic, as well as the so far smooth reopening of Britain’s economy, is keeping Pound investors overall bullish and helping Sterling to hold its ground.
New data suggests that UK job ads and restaurant bookings surged this week due to Britain’s continued economic reopening.
However, it is largely due to weakness in the US Dollar that GBP/USD is advancing this week.
As speculation for tighter monetary policy from the Federal Reserve unravels, the US Dollar is tumbling back from recent highs. Dovish comments from Fed officials and unsurprising US inflation data is offsetting hopes for any tighter US monetary policy.
This has made investors less eager to hold onto safe havens and less eager to hold onto the US Dollar. On top of this, US Treasury yields continued to pull back from recent highs, also due to lower inflation and Fed expectations.
At the same time, it is leading to higher demand for US Dollar rivals. Even the relatively weak Pound has been able to benefit from this movement.
For now, optimism about the UK recovery outlook is keeping Sterling buoyed. However, surprising US data in the coming sessions could cause a shift in movement.
US Dollar investors may react to US retail sales data this afternoon. Surprising data could even shift the US Dollar outlook. US industrial production and housing data is also due before the end of the week.
Unless upcoming US data beats forecasts considerably though, investors may not have much reason to buy the US Dollar in the coming sessions. This could leave the Pound the more appealing currency as US Dollar rivals continue to recover.
As for the Pound, continued UK coronavirus developments will remain in focus. Next week, UK job market and retail data could also cause movement in the Pound to US Dollar (GBP/USD) exchange rate.
Last week saw GBP/USD tumble from the level of 1.3830 down to 1.3705, as the Pound was sold in a bout of profit-taking.
After touching near a monthly low at the beginning of this week, GBP/USD has been trending with an upside bias again. The Pound is taking advantage of the US Dollar’s weakness despite its own lack of drive.
At the time of writing on Thursday, GBP/USD is trending in the region of 1.3775.
Demand for the Pound is limited this week. Investors are hesitant to keep buying the British currency amid a lack of fresh upside surprises in the UK outlook.
Optimism about Britain’s potential to recover from the coronavirus pandemic, as well as the so far smooth reopening of Britain’s economy, is keeping Pound investors overall bullish and helping Sterling to hold its ground.
New data suggests that UK job ads and restaurant bookings surged this week due to Britain’s continued economic reopening.
However, it is largely due to weakness in the US Dollar that GBP/USD is advancing this week.
As speculation for tighter monetary policy from the Federal Reserve unravels, the US Dollar is tumbling back from recent highs. Dovish comments from Fed officials and unsurprising US inflation data is offsetting hopes for any tighter US monetary policy.
This has made investors less eager to hold onto safe havens and less eager to hold onto the US Dollar. On top of this, US Treasury yields continued to pull back from recent highs, also due to lower inflation and Fed expectations.
At the same time, it is leading to higher demand for US Dollar rivals. Even the relatively weak Pound has been able to benefit from this movement.
For now, optimism about the UK recovery outlook is keeping Sterling buoyed. However, surprising US data in the coming sessions could cause a shift in movement.
US Dollar investors may react to US retail sales data this afternoon. Surprising data could even shift the US Dollar outlook. US industrial production and housing data is also due before the end of the week.
Unless upcoming US data beats forecasts considerably though, investors may not have much reason to buy the US Dollar in the coming sessions. This could leave the Pound the more appealing currency as US Dollar rivals continue to recover.
As for the Pound, continued UK coronavirus developments will remain in focus. Next week, UK job market and retail data could also cause movement in the Pound to US Dollar (GBP/USD) exchange rate.
Advertisement
Source: moneytransfer.co.uk