Exchange rate forecasters witnessed the US Dollar to Pound foreign exchange pairing reach the best levels since Autumn 2013, as the GBP fell by over 1.1% against the USD.
The Pound to Dollar exchange rate fell as the UK’s Services/Composite PMI for September came in below forecast levels and the US employment figures were above forecast.
The latest Sterling and US Dollar conversion rates today:
– The pound to dollar exchange rate converts at 1 GBP buys 1.59727 USD.
– The euro to dollar conversion rate today is 1.25158.
– The dollar to euro exchange rate is 1 USD converts as 0.79899 EUR.
– The dollar to pound exchange rate is 0.62607.
Please Note: these are inter-bank forex rates to which margins are applied when sending money abroad such as pounds to dollars – speak to a recommended FX provider to lock in the best foreign exchange rates. Also get free email updates or rate alerts.
Dollar rate Today: GBP/USD falls over strong US unit
The movement in the GBP/USD pairing saw industry expert Neil Jones assert; ‘The Dollar is performing well across the board after the nonfarm payrolls data and Pound-Dollar is lower as a consequence. Data divergence is behind the Pound-Dollar move. The market will be revising interest-rate increases. Some expectation may result in forecasts for a Federal Reserve rate hike prior to a Bank of England hike.’
The US economy was expected to have added 215,000 positions in September, following a positively revised increase of 180,000 in August.
However, employment in the nation actually rose by 248,000, taking the US unemployment rate to a six year low of 5.9% and leading investors to bet that the Federal Reserve might bring forwards its timeline for increasing interest rates.
Separate US data was also positive. The final US Markit Services PMI index was increased from 58.5 to 58.9.
According to Markit economist Chris Williamson; ‘The PMI surveys signalled an easing in the pace of economic growth in September, but there’s good reason to believe that growth will be sustained at a robust pace in coming months and could even pick up again.
A slowing in the pace of service sector growth in September matched a similar easing in the pace of manufacturing output growth seen during the month, suggesting the overall pace of economic expansion dipped to the weakest since May. But the surveys nevertheless still point to the economy growing at an annualised rate of at least 3% in the third quarter’. US trade figures also came in above forecast levels.
The US ISM non-manufacturing index wasn’t quite as positive given that it softened from 59.6 in August to 58.6 in September.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The US reports to pay most attention to in the coming week include US Consumer Credit figures on Tuesday, MBA Mortgage Applications figures on Wednesday, Thursday’s Initial Jobless and Continuing Claims figures plus Wholesale Industries stats and Friday’s US Monthly Budget Statement.
The direction taken by the Pound Sterling to US Dollar exchange rate could also be determined by the publication of the Federal Open Market Committee’s recent policy meeting minutes.
If the minutes are hawkish in tone the US Dollar could continue this week’s rally and climb to fresh highs against the Pound.
Former Federal Reserve Chairman Ben Bernanke is also scheduled to speak at the World Business Forum on Tuesday and discuss the global economy in New York on Wednesday. Industry experts will be interested to discover the previous chief’s opinion on the new policy direction being taken by the central bank.