ExchangeRates.org.uk - The US Dollar (USD) tumbled against the majority of its peers on Wednesday, and was down by over 1% against New Zealand Dollar (NZD) and the Japanese Yeng (JPY), following the publication of a slew of domestic economic data releases.Amongst the data releases came the US’s latest durable goods orders figures for October, which posted a rise of 0.2%, however, came in below a 0.5% expectation.
The preliminary GDP data for the third quarter of the year came in in line with initial estimates of 2.8%, while the latest initial jobless claims also came in below forecast.
The US also released its latest core PCE price index, which stands as the Federal Reserve’s preferred measure on inflation, which came in at market expectation at 2.8% and potentially prevented further USD losses.
Nonetheless, the swarm of domestic data releases rocked USD exchange rates in the aftermath of the releases and saw the ‘Greenback’ falter against the majorly of its peers during the second half of Wednesday’s European session.
The Pound (GBP) experienced a mixed trading session on Wednesday, struggling to find a definitive direction amid a lack of domestic data releases and persistent worries about the UK's economic outlook.
The previous day, President-Elect Donald Trump announced plans to impose a 25% tariff on goods imported from Canada and Mexico, sparking fears that such measures could negatively impact the British economy and subsequently dampened Sterling's performance.
Addressing the potential implications, Bank of England (BoE) official Claire Lombardelli stated:
’I don’t want to speculate on the specifics, but we know barriers to trade are not a good thing, whether they are tariffs or regulatory or others.’
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate looking to Thursday will likely be market appetite for risk, amid an absence of both UK and US economic data releases.
Should markets turn cautious, GBP/USD exchange rates will likely slip.
However, should markets return to Tuesday’s upbeat trading conditions, GBP/USD could begin to firm in the latter stages of the week.
This content was originally published on ExchangeRates.org.uk