Pound to US Dollar forecast: What will move GBPUSD levels this week?

GBP USD Exchange Rate Pulls Back as UK Inflation Hits Fresh 40-Year High 

Pound to US Dollar rate under strain

The pound to US dollar exchange rate is likely to come under some scrutiny this week, with a series of releases to move the currency markets. Expectations are for the GBP/USD exchange rate to come under influence from a number of different sources, including both Brexit and also more global factors.

On the US dollar, there are also a series of domestic issues to contend with, including the prospect of a slowing economy leading to the US cutting interest rates. This week, we have US GDP (Gross Domestic Product) data and also Non Defense Capital Goods Orders, two important releases to shape the outlook for the US dollar. Any signs that the US economy is struggling might see the US currency weaken.

The flipside of this however, is that as a safe haven currency, the US dollar can actually strengthen in times of economic uncertainty. If there are fears that the US and global economy will not be performing as well as hoped, then the US currency might rise in value. This is because the market will buy the US dollar as a ‘shield’ against risk elsewhere.

Iran tensions to strengthen US Dollar

If you are looking at the more global factors driving the US dollar, this is also something to look out for. Tensions with Iran are a prime example of the type of uncertainty, that could easily see the US dollar rise in value. A further factor to be aware of is the G20 Summit this week, as it influences global attitudes to risk, thereby leaving the US dollar exposed to changes in sentiment.

UK Economic data this week

The end of the week is the release of this latest UK GDP data, plus we need to be aware of any developments with the Conservative leadership campaign. The prospect of Boris Johnson’s character being called into question again could see an unravelling of the front runner’s campaign, watch this space!

Thank you for reading, as you can see we could be in for a very busy few sessions on GBP/USD exchange rates. We can help with the planning and timing of any currency transfers you might need to consider for personal or business. Therefore, if you have a GBP/USD or USD/GBP transfer to consider then please do get in touch to discuss further the market and your options.