50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

UK Borrowing Fears Keep Pound US Dollar Exchange Rate Pressured

Published 22/11/2024, 12:00
UK Borrowing Fears Keep Pound US Dollar Exchange Rate Pressured
GBP/USD
-

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.