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Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Strengthens as Economists Pare Fed Bets, Euro (EUR) Holding Steady ahead of Data

The Pound Sterling to US Dollar (GBP/USD) exchange rate strengthened by around 0.29% on Friday morning.

After a succession of disappointing data results, the US Dollar softened as traders pared bets as to the timing of a benchmark rate hike. US inflation data, due for publication later on Friday, has the potential to provoke a rebound if it prints positively.

The Pound, meanwhile, is generally holding steady versus most of its major peers as traders await British labour market data. Similarly, the shared currency is also trending statically ahead of Eurozone inflation data.

The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4966.

Yesterday…

The Pound Sterling to US Dollar (GBP/USD) exchange rate edged higher by around 0.20% on Thursday morning.

After British housing data significantly bettered estimates, the Pound advanced versus many of its most traded currency rivals. The appreciation has been somewhat laboured, however, with the forthcoming general election causing political uncertainty and stymieing investor confidence.

The US Dollar, meanwhile, is generally holding steady versus most of its major peers as traders await US labour market data due for publication later on Thursday. Demand for safe-haven assets is the primary reason as to why the ‘Greenback’ (USD) halted losses from Wednesday’s disappointing data results.

The Pound Sterling to US Dollar (GBP/USD) exchange rate is currently trending in the region of 1.4858.

Euro (EUR) Exchange Rate Declines on S&P Downgrade

After Standard & Poor’s (S&P) decided to downgrade Greece’s credit rating, the single currency softened versus most of its major rivals. Geopolitics in Greece has weighed heavily on trader risk-appetite, which has seen increased demand for safe-haven assets.

Pound Sterling (GBP) Exchange Trending Higher on Housing Data

The solitary British economic data publication on Thursday produced a positive result, causing the Pound to tick higher versus many of its most traded currency competitors. RICS House Price Balance came in at 21% in March, eclipsing the median market forecast of 15%.

RICS stated that with more potential buyers entering the market ‘there remains an ongoing imbalance between supply and demand which is acting to push prices upwards.’

‘Whilst new instructions to sell increased last month, new buyer inquiries are also rising strongly, which is effectively creating a situation where we have under-supply and prices are rising as a result. But as more properties come onto the market, this should help address the imbalance.’

Political uncertainty, as we draw ever closer to the general election, has seen Sterling gains somewhat laboured.

The Pound Sterling to US Dollar (GBP/USD) exchange rate has fallen to a low of 1.4809 today.

US Dollar (USD) Exchange Rate Holds Steady ahead of Labour Data

Whilst traders await US jobs data, the US Dollar is generally holding steady versus most of its major peers. With the Federal Open Market Committee (FOMC) stating that rate increases would be subject to data results, with particular reference to labour data, there is a reluctance to invest amid fears of disappointing results.

The US Dollar managed to avoid continued declination from Wednesday’s disappointing data results thanks to increased demand for safe-haven assets. The ongoing situation in Greece has seen significantly dampened market sentiment due to the prospect of a forced Greek exit from the Eurozone.

Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast to Fluctuate

Given that the US labour market data has the potential to provoke significant ‘Greenback’ volatility, the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to fluctuate over the course of Thursday’s European session.

Friday will see heightened GBP/USD volatility with British labour market data and US inflation data due for publication.

The Pound Sterling to US Dollar (GBP/USD) exchange rate reached a high of 1.4880 today.