Pound US dollar (GBP/USD) exchange rate dented despite data-light morning
The pound US dollar (GBP/USD) exchange rate is ticking lower this morning as markets await some significant US data later this afternoon.
At the time of writing, GBP/USD is trading at around $1.3166, down roughly 0.2% from this morning’s opening levels.
US dollar (USD) fluctuates ahead of domestic data releases
The US dollar (USD) is largely mixed this morning, down against some of its riskier counterparts but faltering against its safer assets, as US investors likely hold off from placing any solid bets ahead of some significant economic data later today.
The US will release its latest GDP growth estimate for the second quarter of the year, which is forecast to confirm 2.8% growth levels. However, should the data show any divergence from the preliminary estimate, USD could slip.
Also scheduled for release this afternoon are the latest initial jobless claims for the week ending 24 August. Will signs of a weak US jobs market also hobble USD exchange rates this afternoon?
Pound (GBP) wavers amid lack of data
The pound (GBP) is also fluctuating this morning, and is ticking up against several of its peers however is slipping elsewhere, as another data-light trading session sees Sterling struggle to find a clear trajectory.
However, the pound has seemingly shaken off yesterday’s downside following fresh concerns over the overall health of the UK economy.
Following a speech from UK Prime Minister Kier Starmer, where he warned of a ‘painful’ upcoming UK budget, Sterling slipped against the majority of its peers.
GBP/USD exchange rate forecast: US data to remain in the spotlight?
Looking past the duo of impactful data releases scheduled for release this afternoon, the primary catalyst of movement for the pound US dollar exchange rate for the remainder of this week will likely continue to be US economic data.
Friday will see the publication of the Federal Reserve’s preferred measure on inflation, the core PCE price index.
July’s index is forecast to report another downturn in domestic inflation, and is expected to cool from 2.7% to 2.6%.
Should the data print as expected and confirm a fall in the Fed’s preferred gauge on inflation, this could ramp up Fed interest rate cut bets further, and undermine USD exchange rates at the end of the week.
Turning to the pound, UK data will follow suit and continue to be largely absent from tomorrow’s data-calendar, which could see Sterling continue to trade without a clear direction.
However, should markets remain cheery moving into Friday’s European session, GBP could be lifted thanks to its nature as an increasingly risk-sensitive currency.