The Pound to US Dollar (GBP/USD) exchange rate has remained higher during this morning’s session despite a lack of economic data from the UK.
The GBP/USD exchange rate is currently trending around the $1.3858 level as the US Dollar (USD) looks to regain traction following the currencies pullback on Friday.
What’s Been Happening: US Treasury Yield Decline causes US Dollar to Stumble
The Pound US Dollar pairing had been trading in a steady range for much of last week as preliminary UK GDP figures bolstered the appeal of Sterling mid-week.
The US Dollar found itself edging lower throughout the week as lacklustre economic data from the US was unable to push the currency to new highs.
The GBP/USD pairing ended the week trending higher as a decline in US Treasury Yields and strengthening market mood caused the ‘Greenback’ to weaken heading into the weekend.
Three Things to Watch for This Week
- UK Unemployment Rate Data
Tomorrow will see the release of the latest unemployment rate figure from the UK for June, if the unemployment rate continues to fall then the Pound could find fresh support to head higher.
2. US Retail Sales
Tomorrow will also see the release of the latest retail sales figures from the US for July. Retail sales are forecast to have fallen -0.2% which could add pressure to USD exchanges rates
3. UK Inflation Rate
Pound investors will look towards Wednesday’s inflation rate data for July which is thought to have softened to 2.3%, the fall in inflation could cause investors to become wearier of Sterling throughout Wednesday’s European trading session.
A busier calendar for the Pound will see movement largely driven by a slew of economic data throughout the week. Though a slightly quieter week for the US Dollar looks to see the main catalyst for movement driven by the strength of the global market mood towards the end of the week.