ExchangeRates.org.uk - The US Dollar (USD) trod water against the majority of its peers on Tuesday following the publication of the latest JOLTs jobs openings data.The index came in above market expectations last month, and rose from a previous multi-year low of 7.372 million up to 7.744 million, outpacing initial estimates of 7.48 million.
However, the ‘Greenback’ struggled to capitalise on the upbeat data release, and remained largely flat against its peers, as the safe-haven currency was marginally undermined by Tuesday’s risk-on trading conditions.
The Pound (GBP) held steady against most other currencies on Tuesday despite the publication of some disappointing mid-tier economic data.
The UK's latest BRC retail sales monitor fell short of expectations, with the index declining from 0.3% to -3.4%, contrary to forecasts of a 0.7% rise.
The recent retail sales monitor, which measures UK retail sales on a comparable basis, reached a six-month low in November which was said to be primarily driven by disturbances from storm Bert and a postponed 'Black Friday'.
Nonetheless, the Pound remained resilient on Tuesday, buoyed by a risk-on market mood given its status as an increasingly risk-sensitive currency.
GBP/USD Exchange Rate Forecast: PMIs to Drive Movement?
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate looking to Wednesday will likely be the publication of the UK’s and the US’s latest PMIs.
Looking at the Pound, the UK’s finalised services index is forecast to fall from 52.0 to 50.0 while the US’s ISM services PMI is also forecast to fall, from 56 to 55.6.
Should the data print as expected, GBP exchange rates could experience fresh headwinds while the US Dollar could be bolstered in the wake of the latest PMIs.
This content was originally published on ExchangeRates.org.uk