Since my last post on Thursday GBP/USD exchange rates continued to rise reaching a high of $1.5439 first thing this morning, with the pound still finding support following last weeks inflation report. However, sterling could not hold onto the gains during today's session with the currency pair falling nearly a cent to $1.5355, a loss of 0.55%.
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Why has the pound lost ground?
The main force behind GBP/USD rates falling today will be down to the on-going uncertainty surrounding Greece. The second round of talks between Greece and its creditors started today and with neither party seemingly prepared to compromise the value of the euro continues to come under pressure.
This has led to investors to seeking the safety of the U.S. dollar which in turn is making it more expensive to buy. Despite falling a cent against the dollar today the pound was actually up around half a cent against the euro this afternoon.
What could impact exchange rates this week?
There are a number of key releases which could impact the pound and dollar this week and cause some market volatility. From the UK we will have the latest retail figures, claimant count change and unemployment rate, we will also see the Bank of England minutes from their meeting at the start of the month.
From the States some of the key releases include the latest Building Permit number, PPI month on month and the Philly Fed Manufacturing Index.
All have the potential to cause rates to move and I will keep you updated as events unfold. In the meantime if you have a requirement to buy or sell dollars and want to ensure you are getting the best possible exchange rate, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
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