Pound To Dollar Outlook - Today's GBP USD Exchange Rate Forecast, Sterling To Euro Predictions & Conversion Rates

Published: 20 Oct 2017 21:23 Forex

us dollar exchange rates vs pound and euro
Friday's exchange rate markets saw the British Pound to Dollar rate ease lower following the release of on-target US Advance Retail Sales figures and a better-than-forercast University of Michigan Confidence index. The GBP USD exchange rate stands 0.13 per cent lower at 1.62374 (15/09/2014 17:00 GMT).

The US Dollar (USD) began the day trading strongly against rivals like the Pound Sterling and Euro as the prospect the Federal Reserve bringing forward its timeline for increasing interest rates lent the safe-haven asset support.

As stated by one forex strategist; ‘There has been quite a significant shift in terms of interest-rate expectations in the US. When you compare that to what the ECB and Bank of Japan are likely to do – both expected to ease further – that contrast has been the biggest factor giving support to the Dollar.’

Can the GBP/USD rally into September to achieve best levels of 2014? Let's look at the latest forex levels today (as of 15/09/2014):

- The pound to dollar exchange rate is 0.06 per cent lower at 1.62498.

- The euro to dollar exchange rate converts 0.2 per cent lower at 1.29342.

- The dollar to euro exchange rate>has a conversion rate of 1 USD = 0.77315 EUR.

- The dollar to pound exchange rate converts at 0.61539.

As the European session progressed, demand for the Pound was undermined by a below-forecast UK construction output report.

British Pound could sink up to 10% on Scottish YES vote!

ADVERTISEMENT
foreign exchange rates
Sterling was also feeling the pressure as industry experts estimated that the British asset could lose up to 10% of its value if Scotland opts to leave the UK when the highly-anticipated referendum is held next week.

In the view of economist Bluford Putnam, a ‘Yes’ vote could trigger an instantaneous 5% drop in the Pound and it could send the currency ‘on a long slide downward as uncertainty piles on uncertainty.’ The Pound Sterling to US Dollar shed nearly 0.2% to hit a low of 1.6201.

Tweet to your followers:"Sterling could fall 10% against the US Dollar on a Scottish yes vote"

Meanwhile, the US Dollar advanced as a leading measure of consumer sentiment jumped to a 14-month high.

The University of Michigan Confidence index exceeded expectations when it climbed from 82.5 in August to 84.6 in December, the strongest reading since the middle of last year and a much better increase than the rise to 83.3 anticipated.

The report saw one locally-based economist comment; ‘Consumer sentiment is beginning to increase, and that is a reflection of the improving employment situation, and lower gas prices are a plus as well. We’re more upbeat about the consumer than we have been because the pieces do finally seem to be falling together. US retail sales figures also confirmed a month-on-month increase of 0.6% in August. This followed a positively revised gain of 0.3% in July. Sales less autos were up 0.3% last month.

Sterling to Dollar Forecast - what's in store for GBP/USD this week?

Any reports which add to the argument in favour of the Federal Reserve bringing forward its timeline for increasing interest rates are likely to lend the US Dollar support in the run up to next week’s Federal Open Market Committee policy meeting. The FOMC is due to gather on Wednesday.

This month is expected to see the conclusion of the tapering of stimulus, but the central bank is unlikely to introduce any further policy changes at this time.

Other US data to focus on next week includes the nation’s industrial/manufacturing production figures, the US Consumer Price Index for August, US Building Permits/Housing Starts, Initial/Continuing Jobless Claims figures and the US gauge of leading indicators.

Any of these reports could provoke movement in the Pound to Dollar exchange rate in the week ahead.

Advertisement

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016 - 2022. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone. Find out more here.

Related News

Top Global FX Exchange Rate Forecasts - Latest Data Projections From Financial Institutions and Market Analysts

Euro to Dollar forecastPound to Euro forecastPound to Dollar forecastEuro to Pound forecastUS Dollar to Canadian Dollar forecastUS Dollar to Yen forecastAustralian Dollar to US Dollar forecast