ExchangeRates.org.uk - The Pound US Dollar (GBP/USD) exchange rate traded mostly flat on Thursday despite the publication of some above forecast UK borrowing data.At the time of writing the GBP/USD was trading at around $1.2647, virtually unchanged from Thursday’s opening levels.
The Pound (GBP) faltered against most of its counterparts on Thursday following the release of the UK's latest government borrowing data.
The Office for National Statistics (ONS) reported that UK government borrowing surpassed expectations, reaching £17.4bn in October compared to a forecast of £12.3bn.
This weighed on GBP exchange rates, underscoring the constrained fiscal flexibility facing the UK Chancellor ahead of the spring statement.
The US Dollar (USD) managed to tick up against the majority of its peers on Thursday as the American currency was underscored by a cautious market mood.
As an acutely safe haven currency, USD exchange rates benefit from downbeat trading conditions.
Due to escalating tensions in the Russia-Ukraine conflict, markets opted for safer currency’s, bolstering the UYS Dollar.
Looking ahead, the primary catalyst of movement for the Pound US Dollar exchange rate on Friday will likely be the publication of both the UK’s and US’s latest PMI data for November.
Looking at the US, the latest PMI data is forecast to report another mixed reading, with the latest services index forecast to rise while the manufacturing index is expected to remain in contraction territory (a reading below 50).
Should the data print as expected, USD exchange rates could waver during Friday’s European session.
The UK is also set to release its initial PMI figures for November.
With the manufacturing sector anticipated to edge into growth territory (indicated by a reading above 50) and the crucial services index expected to hold steady at 52, these developments might provide a modest boost to the Pound at the end of the week.
However, the UK is also scheduled to release its newest retail sales figures, which are projected to decline from the previous 0.3% to -0.3% which could potentially put GBP exchange rates in a weakened position following the publication.
This content was originally published on ExchangeRates.org.uk