Pound US Dollar Exchange Rate Subdued

November 18, 2024 - Written by Frank Davies

STORY LINK Pound US Dollar Exchange Rate Subdued

The Pound to Dollar exchange rate (GBP/USD) treaded water on Monday as both UK and US economic data releases were absent from Monday’s data-calendar.

At the time of writing, GBP/USD was trading at approximately $1.2621, virtually unchanged from the start of Monday’s session.

The US Dollar (USD) remained largely unchanged against most of its counterparts on Monday, due to the absence of significant economic data releases that could steer the currency at the beginning of the week.

After rallying last week following Donald Trump's election win, the USD has taken a more subdued tone this week.

Nonetheless, the ‘Greenback' received some modest backing on Monday from a cautious market sentiment, which saw the safe-haven currency strengthen against several riskier currencies.

The Pound (GBP) stayed within a narrow range against most of its peers on Monday, owing to the absence of substantial UK data at the start of the week.

This resulted in a lackluster performance for Sterling, as investors seemed reluctant to make significant moves on the Pound on Monday ahead of key data releases scheduled for later in the week.

The release of the UK's latest inflation figures on Wednesday is anticipated to spark volatility in GBP exchange rates, with the Pound expected to remain largely unchanged until the upcoming publication.

Looking forward, the main driver of movement the Pound US Dollar exchange rate on Tuesday is expected to be market risk appetite, given the continued absence of UK and US data releases.

If markets maintain a pessimistic outlook, GBP/USD may decline as the week continues.

Conversely, if markets shift towards a more optimistic tone, the currency pair could strengthen heading into Tuesday's European trading session.

Looking at the Pound, Wednesday will bring with it the UK’s latest CPI data for October which could see GBP exchange rates fluctuate during mid-week trade.

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TAGS: Pound Dollar Forecasts