Pound US Dollar Exchange Rate Subdued

October 28, 2024 - Written by Frank Davies

STORY LINK Pound US Dollar Exchange Rate Subdued

The Pound US Dollar exchange rate treaded water on Monday following the publication of some below forecast UK data.

At the time of writing, GBP/USD was trading at approximately $1.2978, virtually unchanged from the start of Monday’s session.

The Pound (GBP) faced difficulties attracting investors on Monday after the release of some disappointing UK data.

The UK's latest CBI distributive trades survey fell short of market expectations this month, with the index declining from 4 to -6, opposing forecasts of an increase to 10.

Following the release, GBP exchange rates struggled to catch bids as investors were cautious about supporting Sterling.

The US Dollar (USD) held steady against most of its counterparts on Monday as a lack of significant US economic data left the currency without a clear direction.

Investors were likely hesitant to make bold moves ahead of several key data releases scheduled for later in the week.

On Tuesday, the latest JOLT job openings and CB consumer confidence figures are due out. Wednesday will bring the US GDP growth rate, while Thursday and Friday will see the release of the latest inflation and labor data.

With a series of important economic indicators on the horizon, the US Dollar remained largely subdued during Monday's European trading session.

Looking forward, the main driver of the Pound US Dollar exchange rate on Tuesday is anticipated to be the release of the latest US JOLT job openings data.

While the data may indicate a slight decrease in new job creations for the previous month, the index is expected to remain close to the strong levels seen in August, potentially bolstering USD.

Additionally, the upcoming CB consumer confidence index could provide USD exchange rates with extra support, given that it is expected to confirm another increase in US sentiment.

Shifting focus to the Pound, Tuesday's data calendar is devoid of UK economic releases which may leave Sterling subdued ahead of Wednesday's Autumn Budget announcement.

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TAGS: Pound Dollar Forecasts