Pound US Dollar Exchange Rate Slumps

December 13, 2024 - Written by David Woodsmith

STORY LINK Pound US Dollar Exchange Rate Slumps

The Pound US Dollar exchange rate trod water on Thursday following the release of the US’s latest PPI and initial jobless claims data.

On Thursday, the US Dollar (USD) climbed against most of its counterparts following the release of two key economic indicators.

The latest Producer Price Index (PPI) for the US surpassed expectations, increasing from 0.3% to 0.4%, contrary to forecasts that it would decline to 0.2%.

However, the US's initial jobless claims for the week ending December 7 unexpectedly rose by 17,000, bringing the total to 242,000.

Despite the mixed economic data, the US Dollar still managed to rise against the majority of its rivals.

Pound Sterling (GBP) Directionless Amid Data Void

On Thursday, the Pound (GBP) failed to capture much investor interest, drifting lower against the majority of its peers, as an ongoing lack of economic data this week left GBP exchange rates largely directionless.

Investors were also likely hesitant to make bold moves on the Pound given the significant economic data set to be released on Friday.

The UK’s latest GDP figures are due out, which could inject volatility into the Pound as the week comes to a close.

GBP/USD Exchange Rate Forecast: UK GDP Data in Focus

Looking forward to Friday, the main driver of movement for the Pound US Dollar exchange rate will likely be the release of the UK’s latest GDP data for October.

If the GDP figures meet expectations and show a recovery from the previous -0.1% to an expected 0.1%, GBP exchange rates could strengthen by the end of the week.

On the US Dollar’s side, there are no domestic data releases scheduled for Friday, which means the ‘Greenback’ may trade without a clear direction, influenced primarily by broader risk sentiments.

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TAGS: Pound Dollar Forecasts