Pound to Euro Starts the Week off Steady

Pound to Dollar Rate Sinks After UK Announces Tax Hikes

The pound took a cold bath on Wednesday, causing it to sink below the 1.38 benchmark against the dollar. Dampening its spirits was news that the British government is hatching a plan to hike taxes on workers, employers, and some investors to boost the health and social care system. Boris Johnson’s intentions upset some members of his party, which has for decades positioned itself as a defender of low taxes and promised not to raise such levies to fund social care in its 2019...
Pound to Dollar Rate Consolidates Gains

Pound to Dollar Rate Eroded by UK Construction Supply Squeeze

The pounds impressive gains against the dollar last week – a period that saw it touch a three-week high – were eroded slightly on Monday. The damage was done by fresh data showing supply chain issues continue to cause problems across the UK. Britain's construction sector was sluggish in August, growing at its weakest pace since the lockdown in the early part of this year. The slowdown was prompted by a severe shortage of building supplies which have risen sharply in price, a survey showed...
Pound to Dollar Rate Hovers Above 1.37

GBP USD Pound to Dollar Rate Breaks Through the 1.38 Barrier

So far this week, the pound has been pushed higher by moves in other currencies due to a lack of data releases from the UK economy or comments from Bank of England officials. On Thursday, the UK currency continued to edge upwards – driven by global risk appetite and dollar weakness following disappointing US jobs data – before jumping above the 1.38 resistance level. The dollar was still feeling the weight of a much weaker than expected ADP National Employment Report on Thursday. Even encouraging...
Pound to Dollar Rate Rises on Softer-Than-Expected US Jobs Data

Pound to Dollar Rate Extends Gains on Mixed US Data

The pound advanced towards a two-week high against the dollar on Wednesday, benefitting from a risk-off mood in markets that triggered a drop in demand for the safe-haven US currency. A light UK economic calendar means the pound’s fortunes are largely being influenced by other currencies this week. However, two economic indicators did hit the headlines in the UK on Wednesday morning: the most notable being the Markit Manufacturing Purchasing Managers’ Index (PMI). British factory output grew in August, but it did so at the...
Pound to Dollar Rate Extends Gains

Pound to Dollar Rate Extends Gains

The pound stretched its gains against the dollar on Tuesday as it rose to a two-week high. Comments from Federal Reserve Chair Jerome Powell on Friday continued to suppress the dollar and push up the pound. Speaking at the Jackson Hole economic symposium, Mr Powell had stopped short of signalling a precise timeline for a shift in monetary policy – simply saying it could be "this year". In the absence of economic indicators on what was a bank holiday Monday in the UK – and...
Pound to Dollar Rate Plummets as Investor Confidence Wanes

Pound to Dollar Rate Jumps Higher Following Powell Speech

The pound jumped to more than a week's high against the dollar on Friday after the US currency was dragged lower by comments from Federal Reserve chair Jerome Powell. In prepared remarks for a speech to the Jackson Hole economic symposium, Powell stopped short of indicating the timing for a shift in monetary policy after signalling the central bank will remain patient as it attempts to encourage full employment in the economy. The lack of clarity about the potential dialling back of the Fed's...
Pound to Dollar Rate Extends Gains

Pound to Dollar Rate Consolidates Gains

The pound took a breather against the dollar on Thursday, consolidating gains fuelled by a risk-led recovery this week that caused it to move back above the 1.37 level. The UK currency has largely traded in unison with global risk sentiment in financial markets of late – a scenario that has been prolonged by a barren UK economic calendar this week. US economic growth weaker than expected in Q2 The dollar was relatively subdued on Thursday, with investor focus firmly trained on potential clues from the...
Pound to Dollar Rate Consolidates Gains

Pound to Dollar Rate Remains Rangebound

The pound remained rangebound on Wednesday, lacking impetus as investors digested Covid-19 data and waited for the Federal Reserve's annual economic symposium – which begins today – to impact the dollar. Risk appetite has fluctuated recently, with riskier currencies such as the pound boosted by higher commodity prices at the start of the week. However, gains have been capped by concerns about the Delta variant of the coronavirus. A lack of immediate drivers on the horizon – a scenario that has largely been prompted...
GBP USD Rate Consolidates on Interest Rate Expectations

Pound to Dollar Rate Recovers Some of Last Week’s Losses

The pound awoke from its slumber on Monday having touched a fresh one-month low against the dollar on Friday, at the end of a week that saw it record its worst week in two months against the US currency. The upward movement was prompted by a recovery in risk sentiment across markets after global growth concerns had triggered a broad selloff. While the pound managed to recover some of its lost ground against the dollar on Monday, it was still pinned below the 1.37 benchmark...
Pound to Dollar Rate Awaits Influential US Payrolls Report

Pound to Dollar Rate Touches Fresh One-Month Low

The pound continued to struggle against a robust dollar on Friday amid mounting fears global growth is grinding to a halt, the Delta variant of the coronavirus is spreading again. and central banks could pull monetary stimulus sooner than expected. By the end of the day, the pound vs dollar rate was hovering above the 1.36 level having touched a fresh one-month low at 1.3614. The UK currency was also feeling the pressure of disappointing retail sales data on Friday. UK sales unexpectedly fell sharply...