ExchangeRates.org.uk - At the time of writing GBP/USD was trading at around $1.2824, virtually unchanged from Monday’s opening rate. The Pound (GBP) struggled to catch bids on Monday and remained muted against the majority of its peers as an absence of UK data saw GBP exchange rates struggle to find a clear direction. Amid a lack of domestic data, Sterling remained above ground on Monday following the first address from the new UK Chancellor, Rachel Reeves.
Reeves commented: ‘Our manifesto was clear: ‘Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people’. Where governments have been unwilling to take the difficult decisions to deliver growth — or have waited too long to act — I will deliver. It is now a national mission. There is no time to waste. Growth requires hard choices. Choices the previous government has shied away from, and it now falls to this new Labour government to fix the foundations. There is no time to waste.
As Reeves focussed her speech on the new government’s commitment on delivering growth, GBP exchange rates remained afloat.
US Dollar (USD) Undermined by Shortage of Data
The US Dollar (USD) traded mostly flat against the majority of its peers on Monday as an absence of US domestic data saw the ‘Greenback’ struggle to find a clear trajectory. As such, USD investors were reluctant to place any aggressive bets. Further hobbling USD exchange rates was an uncertain market mood. As a safe-haven currency, unclear trading conditions further undermined USD exchange rates.
GBP/USD Forecast: Central Bank Speeches to Drive Movement?
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate this week will likely be several Bank of England (BoE) and Federal Reserve speeches. Looking at the US Dollar, the Fed’s Chairman Jerome Powell is scheduled to testify before Congress on Tuesday where he will likely be grilled on the Federal Reserve’s decision to keep interest rates at a twenty-year high. Should he imply that the central bank is gearing up to begin loosening monetary policy soon, USD could slump against its peers. Turning to the Pound, Bank of England policymaker Huw Pill is scheduled to deliver a speech on Wednesday. Following a period of silence from BoE officials ahead of the UK’s general election, Pill’s speech will be closely followed by GBP investors for any hints surrounding the future of monetary policy. Risk appetite could also impact the GBP/USD exchange rate this week. Should markets engage in positive trade, the Pound US Dollar exchange rate will likely gain ground, however, should a cautious market mood prevail, GBP/USD could spend the week on the back foot.
This content was originally published on ExchangeRates.org.uk
