Sterling continued its march against the dollar with GBP/USD exchange rates climbing nearly a cent and a half during today's trading session, despite a weaker than forecast UK GDP reading earlier today.
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This morning saw the release of the UK's quarter one GDP reading, which showed growth in the UK had slowed with the economy only rising 0.3% against a predicted level of 0.5%.
On the back of the GDP release GBP/USD exchange rates slipped around three quarters of a cent to $1.5175 but quickly recovered, as once again the dollar suffered from another weak data release.
A weaker than forecast U.S. consumer confidence report heaped further misery on the dollar and with investors becoming ever more cautious ahead of the Federal Reserve statement tomorrow, the pound was able to break through the $1.53 barrier to reach a high of $1.5333.
All eyes on the FED
Tomorrow evening will see the Federal Reserve announce their latest interest decision and after the recent poor run of economic data releases, no one is expecting any surprises from Chairwoman Janet Yellen.
As I mentioned yesterday there had been a number of bets on the FED raising rates as early as June. However, that now seems increasingly unlikely and tomorrow's statement will be closely monitored for any clues about when a rate hike might take place.
If it looks as though a rate hike will be pushed back towards the latter part of the year we can expect the dollar to weaken further tomorrow, which could see GBP/USD push towards the $1.55 mark.
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