The pound has remained relatively flat against the dollar this morning despite the UK unemployment rate falling to 4.8%, its lowest level since 2005.
Looking for the best GBP/USD exchange rate? click here.
Under normal circumstances the positive reading would have seen the pound strengthen across the board. However, with politics and the uncertainty of over the UK's exit from the European Union still concerning investors, the markets have barely reacted to yet another positive piece of UK economic data.
GBP/USD graph
GBP/USD holding above $1.24.
After dipping back into the $1.23's yesterday, on the back of the leaked memo and weaker inflation reading, the pound clawed back the lost ground after the UK government quickly moved to deny any knowledge of the document.
As we approached the open of the London trading session this morning, the GBP/USD cross was in touching distance of $1.25, but with traders focusing on the risks the UK economy faces with Brexit looming, the pound has edged away from this morning's high and is currently trading at $1.2450.
Will GBP/USD climb any higher today?
If it does, I think it's unlikely the move will be down to the pound strengthening. Although sterling has risen in value over the past week, any further gains will be limited due to Brexit uncertainty.
We could however see this afternoons U.S. data impact the value of the dollar. The release of the latest Crude Oil Inventories, Industrial Production figures (month on month) and Capacity Utilization Rate could easily see the dollar weaken if the numbers miss the predicted level, which in turn could see GBP/USD push back towards $1.25.
Do you need to buy or sell dollars?
If you are looking to buy or sell dollars in the weeks or months and want to ensure you are making the most from your transfer, contact me today for a free, no-obligation currency consultation.
As a specialist in currency exchange, I have a wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.
For more information about how I can help or to find out what rate of exchange I can offer complete the contact form by click on the link below.
