GBP/USD exchange rates drop by half a cent

Good afternoon,

Sterling has lost around half a cent since my post on Monday with exchange rates falling from $1.6675 to $1.6627. Manufacturing and construction figures from the UK and the U.S. were the main factors behind the fall, while the UK posted weaker than forecast numbers the States published a stronger reading forcing the rate to slide.

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Sterling suffered on the back of the latest UK Manufacturing and construction figures as both readings failed to meet expectations. Although the numbers indicated growth in the two sectors the fact both missed forecast and fell from Februarys reading meant the pound was unable to hold onto the gains it made during trading on Monday. Manufacturing came in at 55.3 when the forecast level was 56.7 while construction scored 62.5 against a predicted level of 63.1.

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On the flip side, the U.S. produced some stronger numbers as both Manufacturing and construction rose in March against the previous month. The Federal Reserve are looking for signs the U.S.economy is improving in order to keep scaling back their on-going stimulus programme and these latest number will lend support to any decision when the Fed meet at the end of the month.

However, the next couple of days could quickly see things change. The U.S. have some important figures being released and they tend to cause a fair bit of movement for the GBP/USD cross. Tomorrow sees the release of the latest unemployment claims and trade balance figures and on Friday we get the all important non-farm payroll job numbers.

I will of course keep you posted of any sudden movements but in the meantime if you have a requirement to buy or sell dollars in the coming weeks and want to ensure you are making the most from you transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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