GBP-USD Exchange Rate Slides Today as US Prepares for Fed Speeches
UK Loans Data Fails to Provide Sterling Edge in GBP-USD Pairing
The Pound Sterling has been unable to make any overall progress against the US Dollar today and given the results in store for the ‘Greenback’, it seems unlikely that a major Sterling rally will be seen before the weekend. The biggest UK data release of today (and the last of the week) has been the BBA Loans for House Purchase figure for August; a rise from 46315 to 47000 loans had been expected but instead, an increase to only 46743 was seen. Although this was a shortfall on the expected growth, the fact that an improvement did occur was enough to prevent Sterling from slipping further against the US Dollar.
Such a slip was a distinct possibility, given that Fed Bank of Atlanta President Dennis Lockhart has been on a three-day run of speeches offering decisively bullish support for the US Dollar and more specifically, the likelihood of an interest rate hike before the end of the year.
No News is Bad News – Lack of Sterling Data Tomorrow means GBP-USD Conversion Rate is Unlikely to Lead into the Weekend
Looking into the near-future, the Pound Sterling has nothing of real economic note happening tomorrow, certainly in terms of planned data releases. The last UK numerical posting was today, and unfortunately for the Pound, the US Dollar will suffer from none of the same data-scarcity tomorrow.
The afternoon will be dominated by the ‘Greenback’, beginning with the Q2 Core Personal Consumption Expenditure. A 1.8% rise is expected as a repeat of the last quarter’s posting and in the base variant, a rise from 3.1% to 3.2% has been forecast. More significantly, the US Q2 GDP results are also due in around the same time and at the very least, no decline has been predicted off the previous figures. The US Dollar may also be helped out by two speeches due from Fed officials; these are a speech by Fed bank of St. Louis President James Bullard in Missouri and a talk by Fed Bank of Kansas City President Esther George in Nebraska. Topping off the US data set will be the optimistically forecast Composite and Services PMIs for September and the University of Michigan Confidence Score for September, which is also expected to rise.