Pound to Dollar Rate Mounts Mini Recovery

Pound to Dollar Rate Mounts Mini Recovery

The pound climbed to within touching distance of the 1.35 level against the dollar on Thursday after receiving much-needed support from better-than-expected growth data. Although its rise was nominal compared to its descent earlier in the week when it slumped to a multi-month low (1.342). The UK economy grew by 5.5% in the second quarter of 2021, exceeding forecasts of 4.8% growth, Office for National Statistics figures showed. UK Gross Domestic Product (GDP) is now just 3.3% off pre-pandemic levels. UK house prices increased by 0.1%...
Pound to Dollar Rate Slides to Eight-month Low

Pound to Dollar Rate Slides to Eight-month Low

The pound slumped to an eight-month low against the dollar on Tuesday, as concerns escalated that the fuel crisis consuming the UK could lead to a sharp slowdown in economic growth alongside a surge in inflation. The UK currency fell as low as 1.353, which represented its biggest daily drop against its US contemporary this year and the lowest level since January. Panic buying of petrol in recent days has been attributed to broader supply chain pressures that threaten to stifle the economy’s recovery...
GBP USD Rate Consolidates on Interest Rate Expectations

Pound to Dollar Rate Reacts to Positive Risk Sentiment

A lack of material stats from the UK economy on Monday left its direction in the hands of market risk sentiment. So, when positive sentiment materialised as fears of the economic impact from China Evergrande Group's debt situation receded slightly, the pound moved back above 1.37 against the dollar. This marked a change in fortune for the pound vs dollar rate, following a slump in value late last week as uncertainty surrounding China Evergrande took its toll. Fears that China Evergrande could default on over...
Pound to Dollar Rate Mounts Mini Recovery

Pound to Dollar Rate Arrests Gains

The pound vs dollar rate embarked on a rollercoaster ride towards the end of last week. On Thursday, the pair jumped above the 1.37 benchmark after the Bank of England revealed that two of its policymakers had voted for an early end to pandemic-era government bond-buying. Consequently, markets brought forward their expectations of an interest rate hike to March. It wasn’t long before the post-BoE rally dissipated, however, with the pound tumbling back into 1.36 territory on Friday. A sell-off in global stock markets following...
Pound to Dollar Rate Recovers Losses

Pound to Dollar Rate Recovers Losses

The pound vs dollar rate bounced off the 1.36 level on Thursday after the Bank of England (BoE) revealed that two members of its Monetary Policy Committee (MPC) voted for an early end to pandemic-era government bond-buying. The news brought forward bets on an interest rate rise to March, providing the pound with a platform to jump above 1.37 against the dollar as it recovered almost all its losses for the week. As anticipated, the BoE held its main interest rate unchanged at 0.1% and...
Pound to Dollar Rate Buoyed by BoE Comments

Pound to Dollar Rate Poised for BoE Meeting Minutes

The pound dropped to a fresh one-month low against the dollar on Wednesday – slipping ever closer to the 1.36 level – as investors extended expectations of an interest rate hike by the Bank of England (BoE). Despite a muted dollar in early trading and the easing of the risk-off mood in markets after debt-laden Evergrande – China’s second-largest property developer – calmed nerves by saying it had resolved the payment due on a yuan-denominated bond, the pound remained in the doldrums. Fed sets the...
Pound to Dollar Rate Hovers Above 1.37

Pound to Dollar Rate Hovers Above 1.37

The dollar consolidated its gains against the pound on Friday as it continued to benefit from better-than-expected US retail sales numbers, which raised bets on the strength of the US economy and monetary policy tightening before the end of the year. Retail sales unexpectedly rose last month, data from the US Census Bureau showed on Thursday, increasing 0.7% from July despite expectations of a 0.8% dip. The figures revived expectations that the US Federal Reserve – which holds its two-day policy meeting this week...
Pound to Dollar Rate Reacts to Upbeat UK Data

Pound to Dollar Rate Reacts to Upbeat UK Data

The pound vs dollar rate jumped above the 1.39 resistance level on Tuesday – albeit briefly. Propelling the UK currency higher was a combination of dollar weakness and a strong set of UK labour-market figures – with the latter re-focusing investor attention on the Bank of England’s (BoE) timeframe for tightening monetary policy. Job vacancies moved above one million for the first time since records began as the UK economy’s recovery from the Covid-19 pandemic continued; while payrolls rose by more than economists had...
Pound to Dollar Rate Awaits Influential US Payrolls Report

Pound to Dollar Rate Buoyed by UK Jobs Figures

The pound edged lower on Monday, moving further away from the one-week high it hit against the dollar on Friday. A quiet economic calendar left investors waiting for fresh data to assess the strength of the post-lockdown economic recovery and when interest rates could be increased. Inflation – which the Bank of England (BoE) expects to rise sharply and hit a peak of 4% this year – and retail sales figures will be published later this week. Official jobs data arrived this morning. Employers added...
Pound to Dollar Rate Shrugs Off UK’s Economic Woes

Pound to Dollar Rate Shrugs Off UK’s Economic Woes

The pound was sanguine on Friday, shrugging off news that the brakes were applied to the country’s economic rebound in July. Investors in the UK currency instead chose to focus on the Bank of England’s (BoE) renewed hawkishness, which is outweighing any underwhelming economic indicators that emerge from the nation’s economy – causing the pound vs dollar rate to jump as high as 1.38847. BoE Governor Andrew Bailey told lawmakers last week that while economic growth was plateauing, he believes a minimum criteria for...