The US Dollar also took encouragement from a better-than-expected continuing jobless claims figure, which indicates that the US labour market is continuing to tighten.
As all signs continue to point towards the Federal Reserve raising interest rates in December USD exchange rates remain well supported.
US Dollar (USD) Benefits as Durable Goods Orders Beat Forecast
UPDATE: A surprisingly positive US durable goods orders reading for September encouraged the US Dollar (USD) to recover some ground this afternoon.
As orders rose 0.8% on the month, defying forecasts of a -1.5% contraction, this bolstered confidence in the underlying health of the US economy.
Although US pending home sales saw an unexpectedly sharp slump on the month, falling -3.4%, this was not enough to prevent the Pound Sterling to US Dollar (GBP/USD) exchange rate trending lower.
US Dollar (USD) Exchange Rates Wobble as Fed Beige Book Shows Signs of Business Concern
As the latest Federal Reserve Beige Book noted increasing signs of worry among businesses over tariffs and the US-China trade spat this limited the appeal of the US Dollar (USD).
With trade tensions between the US and China looking set to persist for some time to come the US economy appears at risk of coming under greater pressure from tariffs and easing global growth.
Although this is unlikely to discourage the Federal Reserve from raising interest rates at its December meeting, as is widely anticipated, this more cautious message still weighed on USD exchange rates this morning.
Even with global stock markets sliding in response to a cocktail of geopolitical tensions and uncertainties the mood towards the safe-haven US Dollar generally soured.
US Goods Orders Contraction to Add to US Dollar (USD) Weakness
Confidence in the US Dollar could deteriorate further over the course of the afternoon if September’s US durable goods orders data weakens as forecast.
Investors expect to see a contraction of -1.5% on the month, signalling increased consumer caution and pointing towards a further weakening in economic momentum in the months ahead.
Any signs that the US economy is likely to come under greater pressure may give the Pound Sterling to US Dollar (GBP/USD) exchange rate a solid boost.
On the other hand, a narrowing of September’s advance goods trade deficit could encourage the US Dollar to return to a stronger footing.
Focus will also fall on the latest jobless claims figures, which may offer fresh evidence of tightening within the US labour market to the benefit of USD exchange rates.
Rising Odds of No-Deal Brexit Weigh on GBP/USD Exchange Rate
The uncertainty surrounding Brexit continues to weigh on Pound Sterling (GBP) exchange rates, meanwhile, thanks to the impasse over the Irish border issue.
As Theresa May struggles to secure support among MPs the risk of a no-deal Brexit has increased further, limiting the appeal of the Pound.
With the government having set a date for Whitehall to trigger and accelerate preparations for the event of the UK leaving the EU without a deal markets look set to remain in a state of unease over Brexit.
In the absence of a breakthrough in negotiations or an extension of the transition period the GBP/USD exchange rate remains biased to the downside.
Pound Sterling (GBP) Exchange Rates Look For Boost Ahead of BoE Meeting
Some support could be in store for the Pound next week, however, as investors begin to brace for the latest Bank of England (BoE) policy meeting.
If the Monetary Policy Committee (MPC) demonstrates signs of positivity in the meeting minutes this could encourage the GBP/USD exchange rate to climb further away from its recent six-week low.
However, signs that Brexit uncertainty is keeping the BoE in a more cautious state of mind would leave the Pound exposed to fresh selling pressure.
Unless UK mortgage approvals and consumer credit data paint an encouraging picture the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to return to the back foot in the coming days.