ExchangeRates.org.uk - The Pound US Dollar (GBP/USD) exchange rate was dented last week following several positive data releases from the US.At the time of writing the GBP/USD was trading at around $1.2643, down roughly 0.2% from Friday’s opening levels.
The US Dollar (USD) began the week marginally firming against its peers as an uptick in US treasury bond yields boosted the ‘Greenback’.
The USD remained on its upward trajectory moving into Wednesday as the country’s latest inflation data rose and printed at a four-month high.
On Thursday, another positive data reading, in the form of the US’s latest PPI data, further underpinned the US Dollar before a lack of US data on Friday left the American currency mostly muted at the end of the week.
The Pound (GBP) started the week with little movement against most of its counterparts as a lack of UK economic data left the currency without a clear direction.
On Tuesday, GBP exchange rates were primarily influenced by market sentiment.
Investors' growing appetite for risk helped Sterling strengthen against several safe-haven currencies.
The week continued with a dearth of economic data, with no significant UK releases on Wednesday or Thursday.
This absence of data weighed on the British currency, causing a noticeable drop in GBP exchange rates on Thursday.
On Friday, the Pound's decline persisted after the release of October's GDP figures, which came in below expectations, signaling a second consecutive month of economic contraction.
GBP/USD Exchange Rate Forecast: BoE and Fed Rate Decisions in the Spotlight
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate looking at this week will likely be the publication of both the Bank of England (BoE)’s and the Federal Reserve’s upcoming interest rate decisions.
Any surprise reductions or changes in language from either central bank could infuse significant volatility into GBP and USD respectively following Wednesday’s Fed meeting and Thursday’s BoE meeting.
This content was originally published on ExchangeRates.org.uk