This afternoon was fairly quiet on the data front in the US with the Baker Hughes Oil Rig Count being the only main release. This is the number of oil rigs currently drilling in the US with a higher reading showing an increase in production. At the moment Oil has been performing better after the hurricanes took production off line for over a week, meaning the price of oil rose. However now that everything is relatively back to normal from a production perspective the price of oil will start to settle again.
Janet Yellen Speaking Later
The Federal Reserve Chairlady Janet Yellen will be speaking late this evening providing her latest thoughts on the US economy. There is currently a large debate over in the US as the next leader of the Federal Reserve will be decided in the near future. Donald Trump has been vocal that he is not Janet Yellen’s biggest fan and he will be able to put his candidate forward. Yellen will also provide her 5 best options for who should take the role on. The Senate will ultimately decide who the Head will be as they have to provide the final approval.
GBP/USD exchange rate forecast for next week
Sterling has finished the week with a bit of a boost having fallen to a 2 week low earlier in the week. The GBP/USD rate looks set to move back above the 1.32 level and I wouldn’t be surprised to see a rise above the 1.33 level at some point next week.
From Sterling’s perspective we’re just over a week away from a potential interest rate hike in the UK. If there is any confirmation next week that it’s a definite that it will happen then Sterling could receive a significant boost (if the rate hike isn’t already priced in). There was previously a jump from the back of news like this however doubt crept in this week. Any move back towards certainty for a interest rate hike should be Sterling positive.