GBPUSD exchange rates have enjoyed stability in recent days, comfortable sitting at the 1.44-45 mark. This could be about to change this afternoon as we hear the latest US figures. Data is expected to be positive and anything to the contrary could see rates strengthen. You can view live interbank rates here for the latest exchange rates.

Markets predicting a positive end to the week for the Dollar

Over the past few weeks we seem to have entered one of the most stable periods for GBP/USD exchange rates in recent memory. Previously we had become used to seeing rates trading between 1.41 and 1.45 yet a period of relative stability around the 1.44-45 mark has firmly been established.

This may change today. In the afternoon retail sales figures for the US will be released and the consensus is for growth in the sector to almost double from March.

It seems analysts are applying the same logic to the UK, who enjoyed a generous boost to their retail markets thanks to the onset of an early Easter this year. Due to the size of the US economy, data from that same month has simply taken longer to tally and then release. However, underwhelming data posted from the US recently shows there is potential for this to be an overestimation.

Just last week employment growth came it at 25% lower than expected, and it is now becoming obvious to markets that the US economy’s rally, which began at the start of last year, is beginning to slow.

Furthermore, most of their recent inflation data has become a point of concern. Inflation is a measure of prices, and if spending activity is healthy, you should see a parallel rise in prices. Low inflation normally correlates to low spending activity, so I believe there is room for the pundits to be surprised once the official figure is released later today.

Whenever currency markets are surprised, it tends to get the most serious movements on exchange rates. If you have a Dollar buying or selling requirement, I strongly recommend detailing your requirements to your broker to be informed of any unexpected movements which will affect your transfer.

This afternoon could see GBPUSD rates change once again with the latest US retail sales. You may wish to get in touch with our brokers to discuss options ahead of the big event. Feel free to call us on 01494 725 353 or email me here for more information.


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