Pound US Dollar Exchange Rate Advances as UK Retail Sales Trigger Rush for Sterling
Pound US Dollar Exchange Rate Climbs after Forecast-Beating Retail Sales Results
The Pound has been able to rise by 0.4% against the US Dollar today, primarily on account of the October retail sales results.
On the month and the year, figures have jumped above expectations; this has been attributed to lower temperatures and Halloween-based spending surges.
In other news, former Shadow Chancellor Ed Balls has called for reform in the Bank of England’s (BoE) independence, although not to the level of shackling the central bank completely to the Government’s will.
UK Economic Outlook to Drive GBP USD Rate: Turbulence ahead on Hammond’s Autumn Statement
This coming Wednesday could see a dramatic drop in the Pound US Dollar exchange rate, depending on what is laid out by Chancellor Philip Hammond in the Autumn Statement.
This will be the Chancellor’s first statement, and is expected to include a revelation that Brexit will cost around £100bn, owing to sharply reduced economic confidence and lower tax revenues.
Hammond is also expected to remind spectators that former Chancellor George Osborne’s plans to eliminate the budget deficit have been scrapped in lieu of higher spending.
US Dollar (USD) Losses Seen after Profit-Taking, despite Continued Support for Fed Interest Rate Hike
While it had a strong day of trading on Wednesday, the US Dollar has since dropped off against the Pound and other peers, in the wake of widespread profit-taking on the formerly strong USD.
The latest US economic news has been highly supportive, with Fed official Robert Kaplan giving his support for a near-term interest rate hike.
In Trump news, the President-Elect has raised some eyebrows by holding an impromptu dinner in New York; observers have voiced concern that this sporadic activity may prove a foreshadowing of the 45th’s President’s overall administration.
US Dollar Pound Exchange Rate Predicted to Rally if Further Fed Support for December Rate Hike Comes In
The US Dollar (USD) may managed to claw back its prior gains against the Pound (GBP) before the end of the week, given that a large number of Fed speeches are expected in the near-term.
Today, as well as Fed Chair Janet Yellen giving testimony during the afternoon, remarks are expected from officials William Dudley, Lael Brainard and Charles Evans.
Tomorrow, comments are due from James Bullard, Esther George, Jerome Powell and later on, Robert Kaplan. Should these policymakers all support a near-term rate hike, the odds may rise beyond the current 90%, potentially further supporting the US Dollar in the process.
Source: Currency News
