The Pound to US Dollar (GBP/USD) exchange rate has been strengthening since markets opened this morning. The latest Markit manufacturing PMI from the UK has provided the Pound with fresh support at the start of this week.
US Dollar investors await the US’s latest ISM manufacturing PMI this afternoon to drive the ‘Greenback’ higher.
Last Week: Sterling Steadily Rises before Dipping into the Weekend
The Pound had started last week struggling for direction as a lack of economic data from the UK limited the appeal of Sterling.
However, throughout the week the Pound found itself steadily rising on the back of positive coronavirus developments from the UK which provided fresh support towards GBP exchange rates.
The US Dollar saw itself fluctuating throughout the majority of last week as a volatile market mood often caused the ‘Greenback’ to weaken. The end of the week saw the US Dollar soaring against the Pound as the latest personal spending figures from the US bolstered the appeal of the currency.
Three Things to Watch for This Week
- PMI Figures
Throughout the week PMI figures from both the UK and US are expected to drive movement in the pairing. The PMI’s are expected to give an insight into how both respective economies are currently performing as lockdown restrictions have come to an end.
- Non-Farm Payrolls
On Friday, all eyes will be on the latest non-farm payrolls figures from the US, if payrolls rise yet again the US Dollar could find fresh impetus to head higher.
- BoE Interest Rate Decision
Towards the end of the week, all eyes will be on the latest interest rate decision from the Bank of England (BoE), whilst no policy changes are expected investors will be looking towards the tone the bank takes moving forward.
A range of data from both the UK and US is expected to be the main catalyst for movement in the pairing throughout the week.