Pound US Dollar Exchange Rate Steady as US Consumer Sentiment Misses Forecasts

The Pound US Dollar exchange rate has been steady heading into the weekend as the US consumer sentiment missed forecasts.

At the time of writing the GBP/USD exchange rate is trading at around $1.3817 as the UK’s economic reopening appears to remain on schedule.

Pound (GBP) Supported by UK’s Hoped Economic Reopening

The Pound has been steadily gaining against the US Dollar today as hopes that the UK’s economic reopening will include travel for the summer begins to seem more realistic following news that Portugal has lifted its UK flight ban.

Though people from the UK are unable to travel until the middle of May, the reopening is hoped to pave the way for other countries to lift their flight bans.

The boss of TUI, Friedrich Joussen has so far been optimistic surrounding the UK’s economic recovery and opening of the travel sector. Speaking to UK television last night Mr Joussen said:

‘We are still confident that we will have a decent summer. All medical advice we are getting as a company says that existing vaccines are working with existing variants. Now they might be less efficient sometimes, but still it’s much better than not being vaccinated.’

The most recent figures from the Office for National Statistics (ONS) have shown then the infections have dropped to their lowest level since September adding further support to Sterling.

US Dollar (USD) Rebounds on Risk-Off Mood  

The US Dollar has spent much of the week dealing with the fallout following dovish comments from the Federal Reserve this week, and a general risk-on mood causing the safe-haven currency to falter against many of its rivals.

Though today the US Dollar has seen a slight rebound in sentiment as a risk-off mood allows the currency to claw back its losses heading into the weekend.

The ‘Greenback’ was further supported by the release of the preliminary Michigan Consumer Sentiment Index for April which rose to 86.5.

Though just below forecasts of 89.6 the growth has indicated that the US’s economy is recovering well from the pandemic.

Pound US Dollar Exchange Rate Outlook: UK Inflation

Over the weekend the GBP/USD exchange rate will continue to be dictated by the global market mood, the USD will hope to rebound further heading into next weeks’ session.

Next week, for Pound investors key inflation data released midweek will hope to give an insight into the UK’s economic performance as the country leaves lockdown measures.

Investors will also keep an eye on retail sales and consumer confidence data releasing next week.

Georgina Clissold

Contact Georgina Clissold