GBP/USD exchange rates fell today after weaker than expected UK mortgage numbers. Trading opened this morning with the Sterling/dollar cross sitting just below $1.6225 but the negative data caused rates to drop throughout the day to a low of $1.6134. Todays decline has left exchange rates at their lowest level for nearly a month and with little data out of the UK this week, the pounds performance looks likely to be determined by events elsewhere.
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Figures released this morning by the British Bankers Association showed the number of mortgages taken out in October had fallen slightly compared to Septembers numbers. There were 42,808 new loans approved last month, a fall of only 375, but despite only a very small decline there was a relatively large impact on the pounds performance.
What can we expect this week?
As I have already mentioned there is not much to get excited about in terms of data releases from the UK, the only data of any real note will come on Wednesday when the Office of National Statistics release second Gross Domestic Product (GDP) estimate for quarter three. Any change from the first estimate and Wednesdays forecast reading of 0.8% could cause some sudden movements for the GDP/USD cross.
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There are a few more releases over in the states this week which could impact the dollars value. Building permits and Consumer confidence numbers are due to be released on Tuesday, with Core durable good orders and Unemployment claims being released on Wednesday.
The U.S. economy is being closely watched at the moment and any improvements will add to speculation that the Federal Reserve could soon start to wind down its $85 billion monthly asset purchasing programme.
I will keep you updated throughout the week of how exchange rates are performing, but in the meantime if you have a requirement to buy or sell dollars and want to ensure you are making the most of your transfer use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.
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