Pound US Dollar (GBP/USD) Exchange Rate Slips despite US Jobless Claims Jump to 19-Month High
The Pound US Dollar (GBP/USD) exchange rate has fallen this afternoon and is currently trading at an inter-bank rate of $1.2889.
The US Dollar rose close to a two-year high against its rivals as data suggested the US economy was outperforming other countries.
Nevertheless, data released on Thursday afternoon revealed that US jobless claims saw its largest weekly gain in 19 months.
For the week ending 20 April, initial claims for unemployment rose by 37,000, whereas during the previous week claims plummeted by 193,000.
Despite this, the underlying trend continued to emphasise the strength of the US labour market which helped buoy the ‘Greenback’.
US Dollar (USD) Edges Up as Durable Goods Orders Hit a Seven Month High
Data released on Thursday afternoon revealed that US non-defence capital goods orders excluding aircraft rose by a higher-than-forecast 1.3%.
This was the largest monthly increase since last July.
Added to this, US durable goods orders unexpectedly rose by 2.7% in March, the highest monthly rise since August.
Economists are hoping that the manufacturing sector, which has been battered by trade tensions and a weakening global economy, will begin to show strength in the coming months.
Sterling (GBP) Falls as 1922 Committee Rules out Early Leadership Challenge
On Wednesday evening, senior British Conservative MPs ruled out changing the rules in order to allow an early leadership challenge.
While the committee ruled out making changes, Chair Sir Graham Brady said MPs requested a ‘clear roadmap’ for Theresa May’s future.
The committee said that the Prime Minister should say when she will resign if her Brexit deal does not get passed.
Commenting on the decision, former minister Robert Halfon said that it could have been ‘entirely wrong’ to bring forth a leadership challenge while Brexit uncertainty continues to loom.
Pound US Dollar Outlook: Will GBP/USD Exchange Rate Rise if US Q1 GDP Disappoints?
Looking ahead to Friday, the US Dollar (USD) could rise against the Pound (GBP) following the release of the US preliminary Q1 2019 GDP.
If GDP growth is not as strong as the previous quarter, it could dampen sentiment in the ‘Greenback’.
The release of the Michigan Consumer Sentiment Index could also cause movement in the pairing.
If sentiment edges up in April, it could provide a slight upswing of support, and the Pound US Dollar (GBP/USD) exchange rate could slip.