Since last Wednesday, when GBP/USD exchange rates reached a high of $1.5515 we have not seen massive amount of movement for the cross. The pound did gain a little more ground against the dollar on Thursday when rates very briefly edged over $1.5550 but since that point the pound has dropped slightly back below $1.55. With a lack of key data releases at the start of the week in todays post I will take a quick look at what we can expect for the GBP/USD cross over the next few days. For more information on live market prices click here.
With the Bank of England (BoE) having now issued 'Forward Guidance' any UK data releases may now have a bigger impact on the UK economy and the FX markets. The first major data releases (since Mark Carney said interest rates will remain on hold) will come on Wednesday in the form of UK unemployment figures and the BoE minutes from the monthly meeting.
Usually the BoE minutes are highly anticipated as it shows how the MPC members voted in regards to Quantitative Easing (QE) and interest rates. This time round there hasn't been much speculation as we now know what the BoE's plans are and the minutes shouldn't through up any surprises but if the report shows another 9-0 vote in favour of no QE then we may see the pounds value increase across the board.
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Any major movement will come from the unemployment figures, last week Mr Carney stated the central bank will not look to increase interest rates until unemployment in the UK falls to 7%. Unemployment currently stands at 7.8% and the initial forecasts are for that number to remain the same. However, nothing is ever certain and if the number of people out of work has increased we will move further away from the 7% threshold and could lead to some the gains sterling has made against the dollar being wiped out.
I will of course keep you updated with how Wednesday's news impacts exchange rates but if you need to buy or sell dollars in the coming weeks it is worth contacting me to discuss your options. With a range of currency contracts at my disposal I can protect you against any adverse market movements as well as help target a rate that might not be currently available. Use the link below and complete the contact form for a free, no-obligation consultation.
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