The US Dollar has gone from strength to strength as the economy has continued to perform well, and this has left the Pound to US Dollar trading within a cent from the best levels of the year for much of this week.
How could Non-Farm Payroll figures affect the US Dollar
Today’s economic data releases could impact the Dollar’s value moving forward though, as this afternoon the US jobs market will be evaluated as both Unemployment data and Non-Farm Payrolls will be released and these releases will provide us with an overview of the health of the US economy.
There have been some weak releases in this area of the US economy through 2019. Last month the figure disappointed when US Non-farm Payroll figures showed that only 75,000 new jobs were created outside of the agricultural sector.
The reason today’s release could result in market movement is because there have been rumours and also hints from the US Federal Reserve Bank that there could be an interest rate cut from the US Fed sometime this year, with some market commentators believing that this could happen as soon as the end of this month.
A weak reading in today’s release could confirm this so I think that we could see some market movement between cable (GBP/USD) this afternoon. Those of our readers following this pair should be aware of this release at around 1:30pm (UK Time), and feel free to get in touch if they wish to be kept updated regarding any GBP/USD exchange rate changes.
UK politics the key influence on Pound Sterling exchange rates
There are no releases out of the UK before the weekend so UK politics is likely to remain the key driver for GBP exchange rates.
One of the key drivers of the Pound’s value at the moment revolves around the Conservative leadership contest as the winner will become the next UK Prime Minister, and could adopt a different approach to Brexit compared to what we’ve had over the past couple of years, so this topic is worth monitoring if you have an upcoming currency exchange.
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