Forex Signals — Pound to US Dollar Exchange Struggle

August 16, 2020 in Forex Signals News

Forex Signals — Pound to US Dollar Exchange Struggle

Pound to US Dollar Exchange Rate Highly Volatile on Coronavirus Jitters

Concerns about the coronavirus pandemic have had a big impact on both UK and US economies, and the Pound to US Dollar (GBP/USD) exchange rate outlook remains dominated by this. Key US data due later today could shift the pair’s movement ahead of next week’s session.

This week has been a volatile and mixed one for GBP/USD. After opening this week at the level of 1.3054, GBP/USD has been fluctuating within a fairly narrow range.

GBP/USD has jumped between lows of 1.3007 and highs of 1.3123 this week. This high was not too far below last week’s high of 1.3176 though, which was the best level for GBP/USD in half a year.

Ultimately, GBP/USD has been able to sustain its impressive July gains. GBP/USD currently trends just above the week’s opening levels but has been unable to sustain further gains.

Pound (GBP) Exchange Rates Limited by Coronavirus Jitters

This week’s UK ecostats have largely beaten expectations. UK job market data and growth rate results both beat forecasts.

On top of this, recent comments from EU officials have boosted hopes that a UK-EU Brexit deal can still be made before the end of the transition period.

However, as ‘second wave’ coronavirus fears worsen across the globe, there are concerns over how the government could react. Speculation has risen that if Britain’s coronavirus situation does not improve, the nation could see continued lockdown.

Britain’squarantinerules for abroad flights have been shifting as well, which has been met with concern from analysts. According to Russ Mould, Investment Director at AJ Bell:

‘And yet until there is a vaccine, the recovery from the coronavirus is likely to be patchy with the risk of travel restrictions between countries when there are localised flare ups.’

Investors are also hesitant to buy the US Dollar (USD). The US economy has been hit hard by the coronavirus, with analysts criticising the US government’s handling of the pandemic.

This week’s US data has been generally optimistic, following last week’s stronger than expected US Non-Farm Payroll results. — candlestick trading

However, the US Dollar’s attempts to rebound fromlowshave been hindered. Hopes for US Congress to reach an agreement over US stimulus have been dampened by continued deadlock and impasse in negotiations.

Pound to US Dollar (GBP/USD) Exchange Rate Awaits US Retail Stats and Brexit Developments

This afternoon will see the publication of this week’s most notable US data.

Forex — Dollar Dips Amid Negative Rates

US retail sales from July will be published during this afternoon’s American session. The report is expected to show that US retail sales saw a major slowdown in activity from June, falling from 7.5% to 1.9%.

Euro to Pound Sterling Exchange Rate

However, if the data beats expectations, it could bolster US economic resilience hopes. This could make it easier for a stronger US Dollar to push GBP/USD down by the end of the week — Forex Signals — Pound to US Dollar

Pound Euro (GBP/EUR) Exchange Rate

On the other hand, the Pound’s ownrecovery attemptson Brexit hopes would become easier if the US Dollar was hit lower by weak US retail results.

Forex Signals — Federal Reserve Decision in Focus

US Michigan confidence data is also due for publication this afternoon. Big surprises in these stats could all cause some movement in the US Dollar outlook.

Looking ahead to next week, UK inflation rate data is due for publication.

However, as August draws on the Pound to US Dollar (GBP/USD) exchange rate is more likely to be influenced by developments in the coronavirus and Brexit situations.

Join our 21,345 Subscribers Forex Signal Packages!!

Originally published at https://www.fxpremiere.com on August 16, 2020.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Forex Signals by FxPremiere.com

Forex Signals by FxPremiere.com

Forex Signals sent daily via Telegram Worldwide www.fxpremiere.com #forexsignals