GBP/USD forecast - page 39
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Pound Recovering as Euro Rally Against the Dollar Stalls
The Euro is starting to lose its shine against the US Dollar as we progress through Thursday January 5.
The single currency found itself in a commanding position through the course of Asian trade as a sudden rally higher in the value of the Chinese offshore Yuan triggered a broad-based Dollar selloff.
The GBP/USD pushed higher as a result.
However, the effect of this rare moment of weakness for the Dollar is starting to wear off; the Pound to Dollar exchange rate is trading at 1.2310 on the spot markets having turned lower from a day's best at 1.2364.
The interactions between the Euro and Dollar are absolutely central to the British Pound which continues to ignore domestic data - no matter how good it may be - and take its cue from external factors.
The strong rally in EUR/USD over the past 24 hours has had the predictable effect of sucking the EUR/GBP higher.
For those looking to buy Euros with Sterling it is the EUR/USD pair that is arguably of most importance at present.
The EUR/GBP rose from 0.8450 seen at the start of the week to record a best of 0.8582. In GBP/EUR terms this reprsents a reversal from a high of 1.1834 to a low of 1.1652.
After spreads are applied, some international payment providers were seen offering rates as low as 1.13 this morning while others were offering rates high as 1.16 confirming readers should ensure they are getting a decent deal on FX requirements.
Why the is Euro Rate is Higher Today
The Euro has shot higher on a combination of reasons:
1) It was heavily oversold against the Dollar leading into the new year, a rebound was needed
2) Eurozone data has been good, in particular the stronger-than-forecast inflation data of Wednesday January 4 suggesting the ECB is on course to hit its 2% inflation target
3) A spike in the value of the offshore Yuan has triggered a sell-off in the USD in Asia. This is arguably the main reason for the Dollar's slip - because it is technical in nature it suggests USD weakness could be limited.
4) The US Federal Reserve. On Wednesday January 4 the Fed released their latest FOMC minutes which gives their insights into monetary policy
The Fed contained two notable takeouts: a faster growth due to a large fiscal stimulus under the new US President Donald Trump’s rule and a stronger US Dollar, which could weigh on inflation.
“Today's FOMC minutes were not as hawkish as we had hoped,” says Kathy Lien at BK Asset Management in a note seen by Pound Sterling Live. “At this stage we are leery of buying dollars as the proof is in the pudding and we need to see consistently strong U.S. data to believe that the Fed will press forward with raising rates in the first 6 months of the year.”
The Fed members readjusted their expectations on the upside, highlighting accrued risks for growth and inflation.
Nevertheless, Yellen and her team will likely continue monitor economic data and global financial developments.
The Fed is expected to hike rates three times in 2017, compared to two anticipated prior to Trump’s victory.
source
Pound to Dollar Rate Surges on US ADP Employment Report
GBP/USD pushed sharply higher against the US Dollar on Thursday January 5 following the release of disappointing ADP payrolls data.
The headline figure read at 153k which represents the second lowest ADP number in 34 months.
Mark Zandi, chief economist at Moody’s Analytics, said, “Job growth remains strong but is slowing. The gap between employment growth in the service economy and losses on the goods side persists. Smaller companies are struggling to maintain payrolls while large companies are expanding at a healthy pace.”
The data served to warn traders that those three interest rate they expect from the US Federal Reserve in 2017 are not a done deal.
US Treasury yields fell in the wake of the report, taking the Dollar lower.
The Pound jumped above 1.24 against the Dollar ensuring the rate on offer for those with international payment requirements now lies in a range between 1.1980 and 1.2310.
Focus on the all-important Employment Situation report due out on Friday January 6 will be heightened.
“The worry of course is whether this provides an inkling of a similarly weak figure for tomorrow’s US jobs report, which would likely spark another sharp deterioration in the Dollar.”
GBPUSD trend is down support 1.2300 current price 1.2380
If you gain more information about forex market & also gain profits through forex trading. So hurry up traders you can start successfully trading with us & take 3 days free trial also.