The pound sterling (GBP) is forecast to remain vulnerable against the US dollar (USD) on global foreign exchange markets as interest rate differentials between the US and UK continue to narrow.
Further narrowing in rates to the advantage of the USD is seen on the eve of a new month after it was shown US GDP (Q2) came in at 4%, well ahead of the expectation for a reading of 3%. All bets are on the Federal Reserve being forced to consider raising US interest rates in 2015.
August 1,2014
The British pound (GBP) remains caught in a downtrend against the US dollar, moving broadly inline with 2y relative interest rate spreads which are heading in favour of the USD.
(The difference between interest rate yields in the US and UK is a key determinate for the exchange rate at the moment).
July 30,2014
Looking at the currency markets mid-week we note the British pound (GBP) is looking decidedly weaker against both the EUR and USD.
However, weakness against the euro will likely be contained, concerns of further losses against a strengthening US dollar will however likely continue.
July 30,2014
Positive news for the UK on Friday as second quarter GDP figures showed an 0.8 pct increase, with the UK economy now at its biggest size since the recession.
July 25,2014
The bulls who have driven the pound sterling (GBP) rally of 2014 were this week hoping for some respite from a recent correction lower being experienced by the currency.
The Bank of England (BoE) could have delivered some support by giving a clear indication that they were on the cusp of raising rates. This week's release of minutes from the July meeting of the interest rate setting committee failed to deliver any fresh clues - GBP fell in response and enters the weekend in soft fashion.
July 25,2014
July 25,2014
Exchange rate markets are seeing some welcome volatility through the mid-week trading sessions after a recent pause.
The greenback strengthened back below $1.35 against the euro and in the process all but clocked new 2014 highs against the single currency.
July 24,2014
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