Will Current GBP Trend Continue? (Matthew Vassallo)

Pound to US Dollar Rate Outlook: GBPUSD Drives Lower on Global Uncertainty

GBP/EUR rates have moved back through 1.26 on the exchange this week, moving the currency pair up to a two year high. It looked as though Sterling may come under pressure yesterday when UK employment figures were released, with average earnings coming in worse than expected. It quickly recovered however and with unemployment figures holding firm at 6.5%, it is likely the Pound will continue to find support around the current levels.

Looking ahead to the end of the trading week and there is little data of note for the UK. This morning we have some inflation data out for the Eurozone, which could prove to be a key market mover if figures come outside expectation.

GBP/USD rates continue to hold firm above 1.70, despite yesterday’s announcement by FED governor Janet Yellen that the US economy was improving. GBP/USD rates have been trading above 1.70 for some time now and every time the USD spikes and it seems pressure will be on this resistance level, it quickly runs out of steam.

GBP/AUD rates have moved back through 1.83 this week and close to a 3 month high. GBP has performed well against the AUD recently but as yet, we have not seen levels return to the four year highs witnessed at the turn of the year. Personally I feel this is unlikely to happen in the short-term, even more so following the release of the latest Chinese GDP figures. These were released yesterday and showed an improvement from Q1, news which has boosted the AUD this morning and could help to push levels back below 1.82 on the exchange.

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