Pound to US Dollar exchange Forecast: How could US economic data released this week effect GBP/USD exchange rate?

GBP USD Remains Largely Rangebound

Will the US Fed cut interest rates?

Today we will see the release of Manufacturing Purchase Manager Index (PMI) data. Then tomorrow we will witness non-Manufacturing data and the very difficult to predict Non-farm pay roll to finish the week on Friday. On Friday we will also see US Fed chairman, Jerome Powell’s speech, this has the potential to cause volatility as we could hear hints to any future monetary policy change. US President Donald Trump has previously made it very clear that he expects rates to be cut down far below the current 2% level, it is no doubt expected that President Trump would have preferred a 0.5% cut over a 0.25% cut following the Fed’s recently released target to reach 1.75% in line with inflation levels.

US-China trade war latest developments

The US-China trade war continues on but the outlook is looking hopeful for both sides. Ahead of talks with the US in a few short days, China has stepped up its game in an attempt to offset the damage done by the tariffs added to 50% of their exports. Currently, factory output growth is at a 17 year low and car sales have been down near enough consecutively for over a year creating a real sense of urgency for the Chinese government. With a clear need for a deal to be reached for the Chinese. The onus is on the Chinese to bring an end to this trade war however there are still some major stumbling blocks that need to be overcome.

Brexit continues to cause uncertainty

Brexit remains a mess with many potential outcomes, uncertainty is never good for the currency in question and with the potential of a general election or Boris being ousted as PM the Pound could be expected to remain fragile until we have some form of clarity.

During unpredictable times you may wish to be in contact with a currency specialist who can provide the latest currency updates. Foreign Currency Direct PLC has specialised in foreign exchange for over 19 years and we are authorised as an e-money institution by the FCA. If you already use a provider, I can perform a comparison within minutes, to give you an indication of the potential saving you could make by using Foreign Currency Direct for your international currency transfers.