Pound to US Dollar: What happened this week to influence exchange rates?
It’s been a fairly quiet week for pound to US dollar exchange rates, with the mid market levels fluctuating just over 1 cent. The main talking points was, Fed Chair Jerome giving a fairly dovish speech which heightens the expectation of an interest rate cut later in the month, UK GDP for may being released at 0.3%, US inflation falling to 1.6% however monthly inflation showed a slight improvement and the TV debate between the two candidates set to take over No10.
Tory leadership contest: What are the candidates’ opinions on Brexit?
Next week the Tory leadership contest will be in full swing. After watching the TV debates its clear to see that both want to leave at the end of the October, however Boris wants to leave with or without a deal whereas Jeremy Hunt can’t guarantee the UK will leave by the end of October. Therefore, if Boris continues to steam ahead in the polls I don’t believe this is a positive for the value of sterling and the pond could continue to lose ground, a similar trend we have seen over the last 8 weeks.
Key economic data releases next week
The key UK data release to look out for are the average earnings numbers on Tuesday morning. A slight rise is expected which is good news for the UK. Retail sales for the US and a speech by Fed chairman is also set to take place on Tuesday. Will Jerome Powell, give further indication in regards to the interest rate decision at the end of the month? Inflation for the UK is set to be released Wednesday and 2% is expected which would be no change. Lastly Consumer Sentiment Index is set to finish the week on Friday and a small fall is expected.
Personally, I expect the Brexit saga to be the main talking point next week and pound to US dollar exchange rates could fall further as Boris Johnson steams ahead with the bookies and polls. If you are buying or selling the pound next week or in the upcoming months, feel free to highlight your requirements and I will happy to keep you updated. You can contact me directly using the form below.
