Pound to Dollar Edges Off Best Conversion Level in One Month after Euro Complex Corrects on Draghi Hints
Analysts at ScotiaBank believe the short-term British pound to dollar exchange rate forecast remains bullish:
"GBPUSD short-term technicals: neutral-bullish—Cable has traded in a well-defined range between 1.5415/1.5505 over the past week and looks poised to extend above 1.5505 towards 1.5650. We like the GBP’s performance on the crosses from a chart point of view as well, with EURGBP pushing below support in the mid-0.73 area this week and GBPCAD extending through 2.01 resistance."
After a Euro-area Bank Lending Survey showed that European bank's lending conditions eased in response to the current program of quantitative easing, the EUR-USD and EUR-GBP exchange rates advanced.
Negative EUR/USD correlation meant that the US asset edged lower against the Pound Sterling in response.
Latest Pound / Dollar Exchange Rates Today
On Thursday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.859
The GBP to EUR exchange rate converts at 1.164 today.
At time of writing the pound to pound exchange rate is quoted at 1.
Please note: the FX rates above, updated 25th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
British Pound Hits Best Dollar Rate of 1.55 Ahead of ECB Policy Announcement
The Pound to US Dollar exchange rate briefly touched 1.55 interbank in yesterday’s foreign exchange market for the first time since 21 September in a quiet day in the foreign exchange market that is likely to be dominated this week by the next policy announcement due from the European Central Bank (ECB) tomorrow.
In the UK, Bank of England (BoE) Monetary Policy Committee (MPC) member Ian McCafferty said yesterday in a speech that the gradual return of the so-called 'natural' interest rate to pre-crisis levels as the UK economy recovers means that raising UK interest rates from their all-time record low of 0.5%a rate set in March 2009 at the height of the financial crisis should not be left ‘too late’. McCafferty said that this assessment is based on how he saw the balance of risks around inflation until 2017.
McCafferty said "If we on the MPC are to achieve our ambition of raising rates only gradually, so as to minimise the disruption to households and businesses of a normalisation of policy after a long period in which interest rates have been at historic lows, we need to avoid getting 'behind the curve' with respect to the neutral rate. And for me, that provides an additional justification not to leave the start date for lift off too late".
UK Government Borrowing Data Forecast to Provoke GBP-USD Exchange Rate Volatility Today
Later on today’s sees the publication of the latest UK government borrowing data and tomorrow the latest UK retail sales which should generate a bigger market move than yesterday’s insipid day’s trading.
In the US, the US Commerce Department reported that construction on new US homes rose for the first time in three months in September with a rise of 6.5% recorded last month to reach an annualised rate of 1.21 million units.
Analysts at Barclays commented that "Stronger-than-expected housing starts suggest more residential investment. "However, much of this activity is likely to show up in construction spending in the fourth quarter. Our third quarter GDP tracking estimate remains unchanged after rounding at 1.2%.”
US Dollar Forecasts - Predictions: US Rate Hike Speculation Forecast to Dictate USD Movement
Meanwhile, San Francisco Federal Reserve President John Williams said in an interview with Bloomberg that the US economy has good momentum behind it and should the economic information worsen following a rate hike the central bank could dial back on that tightening.
Williams said that in his opinion, what matters is not when the US Federal Reserve begins to raise interest rates but rather that the move comes when the US economy is strong and enjoying good momentum.
GBP/USD Trends Higher on Thursday's Forex Markets
On Thursday morning the Pound Sterling advanced versus its major peers in response to much better-than-anticipated Retail Sales in September.
The GBP/USD conversion rate continues to trend in the region of a four-week high as traders await US labour market and housing data.