Following a rebound in demand at the end of last week, the US Dollar is struggling to hold all of its gains. However, while the GBP/USD exchange rate is edging up today, the Pound’s lack of drive is limiting gains, with rising speculation of a bigger coronavirus lockdown possible in Britain.
Last Week: Non-Farm Payrolls Give US Dollar a Rebound
The US Dollar remained weak for much of last week, coming on the tail-end of a highly bearish July for the currency. This and a less dovish than expected Bank of England (BoE) helped the GBP/USD exchange rate climb higher for much of last week.
However, at the end of the week the Pound to US Dollar exchange rate dipped again.
The latest US Non-Farm Payroll report was published, beating expectations in many key prints, which bolstered US Dollar demand. Meanwhile, concerns of negative interest rates weighed on Pound Sterling.
Three Things to Watch For This Week
- UK Job Market Report
Tomorrow will see the publication of Britain’s latest job market report. As the Bank of England (BoE) continues to express concerns about the health of UK jobs amid the coronavirus pandemic, this report will be closely watched by Pound investors.
2. UK Growth Report
Britain’s key Q2 growth rate report, as well as trade and production stats, will be published on Wednesday. Stronger than expected UK growth could bolster Pound support.
3. US Retail Sales Results
Friday’s US retail sales report will give investors a better idea over how US consumer activity and sentiment is holding up amid the US coronavirus crisis.
With many key UK and US ecostats due this week, the Pound to US Dollar exchange rate could advance again if UK data impresses investors. Meanwhile, coronavirus developments will be closely watched as well.