ExchangeRates.org.uk - The Pound US Dollar (GBP/USD) exchange rate ticked up on at the start of the week as the currency pairing was bolstered by Monday’s cheery trading conditions.The Pound (GBP) strengthened against most of its peers at the beginning of the week, even without any domestic economic data releases driving its movement.
This was largely due to an increased appetite for risk among investors, who favoured riskier assets over safer alternatives.
As a currency that is growing increasingly sensitive to risk sentiment, the Pound benefited from this market trend, leading to a firming of GBP exchange rates, particularly against safer currencies.
US Dollar (USD) Undermined by Cheery Market Mood
The US Dollar (USD) wavered against the majority of its peers on Monday, muted against some of its safe-haven counterparts but slipped against its riskier rivals, as a lack of US data releases at the start of the week left the American currency vulnerable to market appetite for risk.
As a primary safe-haven currency, USD exchange rates benefit from downbeat or cautious trading conditions.
However, as Monday saw investors opt for risker assets opposed to the safe haven ‘Greenback’, the US Dollar was on the back foot for the majority of Monday’s European session.
GBP/USD Exchange Rate Forecast: UK and US Data in the Spotlight
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate looking to Tuesday will likely be some economic data releases from both the UK and the US.
Looking at the Pound, the UK will release its latest CBI distributive trades survey for November which would weigh on Sterling sentiment on Tuesday should the data confirm another drop, this time from -6 to -14.
Turning to the US Dollar, America will release its latest CB consumer confidence index which could underpin the ‘Greenback’ moving into Tuesday should the data confirm an increase in consumer morale this month.
This content was originally published on ExchangeRates.org.uk