Pound US dollar (GBP/USD) exchange rate muted ahead of mid-tier US data
The pound US dollar (GBP/USD) exchange rate is trapped in a narrow range this morning as markets await the publication of several mid-tier data releases from the US.
At the time of writing, GBP/USD is trading at around $1.3047, virtually unchanged from this morning’s opening levels.
US dollar (USD) quiet ahead of domestic data
The US dollar (USD) is struggling to catch bids this morning and is trading mostly flat against its peers as US investors hold off from placing any aggressive bets ahead of some US data expected later this afternoon.
Following yesterday’s mixed inflation reading, where headline inflation cooled more-than-expected while monthly core inflation came in higher-than-expected, USD surged against its peers.
Today, the ‘greenback’ could continue on its upward trajectory following the publication of the latest producer price index (PPI).
As the data is forecast to report an acceleration in underlying price growth, USD could remain on the front foot should the data print as expected.
However, the US will also release its latest initial jobless claims for the week ending September 7. As the index is forecast to show a rise in jobless claims, this could cap any potential USD gains.
In the interim, the American currency will likely remain listless, as this morning’s upbeat mood further stymies the safe-haven USD.
Pound (GBP) flat amid data-light morning
The pound (GBP) is trading sideways against the majority of its peers this morning amid an absence of any market moving UK data.
However, Sterling has managed to recover the majority of its losses from yesterday, following a below forecast GBP reading for August.
The pound is also failing to capitalise on its increasingly risk-sensitive nature this morning, as today’s cheery trading conditions have had little impact on GBP exchange rates thus far.
GBP/USD exchange rate forecast: US data to remain in the spotlight?
Looking ahead, the primary catalyst of movement for the pound US dollar exchange rate tomorrow will likely continue to be data releases from the US.
Friday will see the publication of the US’s latest Michigan consumer sentiment index, which is forecast to show a slight uptick in this month’s reading.
Should the data print as expected, this could see USD remain on the front foot through to the end of the week.
Turning to the pound, UK data will remain scarce for the remainder of the week, and as such, could see GBP exchange rates primarily driven by risk appetite.
Should this morning’s positive market mood prevail, GBP could rise against its peers. However, should markets return to downbeat trading conditions, Sterling sentiment will likely sour.