Tuesday, 9 May 2017

GBP/USD exchange rate update

The GBP/USD cross has fallen slightly over the course of today, with the currency pair now trading just above $1.29.

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The exchange rate has dropped after the dollar regained some of the ground it lost following Emmanuel Macrons victory in the French elections on Sunday.

As you can see from the graph below the pound has lost around half a cent, but as things stand it is still an excellent time to purchase dollars.

GBP/USD graph

As I mentioned in my post yesterday the GBP/USD cross hit a fresh seven month high on Sunday evening, and even though the pound has edged lower today, exchange rates are still around 6.5% higher than they were in March.

What could happen over the next few days?

We have no major data announcements coming out of the UK today or tomorrow, so any movement for the GBP/USD cross is likely to stem from U.S.

In my opinion I think we will continue to see GBP/USD bounce between $1.29 and $1.2975 until the Bank of England's inflation report and interest rate decision on Thursday.

If the Bank of England hint at a rate hike, then we could see GBP/USD break $1.30. However, we could easily see the central bank cut their growth forecasts, which would see the pound give up some of the gains we have seen over the past few weeks.


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