• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / US Dollar / Sterling bounces off 1-month lows following positive data

Sterling bounces off 1-month lows following positive data

August 18, 2016 by Rob Lloyd

Sterling bounces off 1-month lows following positive data
  • Strong Retail and unemployment data shock markets
  • Consumer price data showed moderate gains in inflation
  • Moody’s downplay Brexit impact
  • FOMC meeting offers little confidence for US economy

Post-Brexit data surprises markets

gbpusd eu referendumFollowing the Consumer price release on Tuesday which showed moderate gains in inflation, markets have been waiting with anticipate for the important retail sales this morning. Whilst Brexit remains a key concern for global markets, retail sales for the UK came in far stronger than anticipated, with stronger growth MOM and YOY.

Whilst it may be too early to draw conclusions about the impact of Brexit, markets reacted providing Sterling with further support against the US Dollar, pushing rates back to the mid 1.31’s.

Economic releases for the UK will be relatively quiet for the remainder of August, with much of the movements now focused around mortgage approvals and Q2 GDP estimates.

Economic releases may be too early to interpret

The news surrounding today’s retail figures are encouraging at best, markets remain concerned about Brexit and its implications on the British economy. It may take time for the impact of Brexit to impact the UK with small movements likely off the back of further positive data. However a continuous stream of positive data running through into the new year could ease market anxiety.

Moody’s have posted their latest GDP estimates and have downplayed the Brexit impact for next year, raising further optimism amongst investors. If the UK’s outlook remains positive we could see exchange rates move closer to pre-Brexit levels before Article 50.

FOMC meeting provides mixed signals

The FOMC meeting offered little hopes of a FED hike in the near future, whilst some have interpreted this as a possibility the message remains mixed. Global factors i.e. Brexit, economic data and concerns over the future pace of hiring were on the agenda.

It’s difficult to see when or if the FED will hike rates this year. Yellen has been reluctant to hike rates even in the best of times and it’s difficult to draw positive conclusions given the current climate.

If you are looking to buy US Dollars in the short term, the news this morning should provide you with a slightly better rate, but given the lack of economic releases in the coming weeks, Sterling could remain vulnerable to external influences.

Filed Under: US Dollar Tagged With: GBPUSD, Pound strength

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Rob Lloyd

Robert brings with him a wealth of knowledge on what is impacting exchange rates, especially around the subject of the EU Referendum and the implications for Sterling and Euro exchange rates.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy