EX: USD To GBP Exchange Rate Gains Today Despite Weak Domestic Data
Despite Drop in US Consumer Confidence, GBP-USD Exchange Rate Falls
As traders prepare for Wednesday’s Federal Open Market Committee (FOMC) interest rate decision, the US Dollar strengthened versus most of its major peers.
This is despite weak domestic data results which saw Durable Goods Orders contract, and Consumer Confidence decline beyond expectations.
Latest Pound / Dollar Exchange Rates Today
The Pound to US Dollar exchange rate: GBP/USD converts at 1.531 (0 change from yesterday)
The US Dollar to Pound exchange rate converts at 1 USD is 0.653 GBP.
The US Dollar to Indian Rupee exchange rate: USD/INR conversion is 64.978.
The US Dollar to Euro exchange rate today is converting at 0.905 USD/EUR.
The US Dollar to Australian Dollar exchange rate: USD/AUD conversion is 1.402.
Note: the foreign currency rates above, revised as of 28th Oct 2015, are inter-bank prices that will incur an extra cost by your bank for any international money transfer requirements. Speak to a recommended FX provider for personal and business related currency transfers.
Pound to Dollar Exchange Rate Predicted to Hold Losses after UK GDP Missed Estimates
The Pound Dollar exchange rate declined by around -0.4% on Tuesday afternoon.
After British economic data failed to meet with expectations, the British Pound softened versus many of its closest currency rivals.
After a significant slump in manufacturing output dragged on growth, third-quarter Gross Domestic Product came in at 0.5% on a quarterly basis; dropping below expectations of 0.6% growth.
The depreciation wasn’t as considerable as it could have been, however, given that recent news of Chinese investment in British manufacturing should see a reversal of fortune for the ailing sector.
As usual, the services sector was the driving force behind British growth.
The Pound Sterling to US Dollar exchange rate is currently trending in the region of 1.5297.
US economic data produced disappointing results on Tuesday but the US asset climbed versus many of its peers.
This is due to the fact that, whilst the Federal Open Market Committee are not expected to move on rates at this time, the accompanying statement is likely to be hawkish.
Now that the People’s Bank of China (PBoC) has cut the cash rate there is more scope for the Fed to tighten policy.
However, today’s disappointing data results could be used as an excuse to continue using dovish rhetoric in response to questions regarding the timing of a lift-off.
The Pound Sterling to US Dollar exchange rate was trending within the range of 1.5285 to 1.5359 during Tuesday’s European session.
Forex News Today: Euro to US Dollar Conversion Rate Cools ahead of German Consumer Confidence
The Euro to US Dollar exchange rate softened by around -0.2% on Tuesday afternoon.
Although dovish policymaker outlook highlighted by European Central Bank (ECB) President Mario Draghi continues to weigh on sentiment towards the common currency, the Euro was trending statically versus most of its major peers thanks to subdued market trade with investor focus dominated by the forthcoming Federal Reserve interest rate decision.
A below-forecast result from Eurozone Money Supply data had minimal impact on Euro movement during Tuesday’s London session.
The Euro to US Dollar exchange rate is currently trending in the region of 1.1041.
US economic data publications produced mostly disappointing results on Tuesday.
Whilst September’s Durable Goods Orders contracted less-than-anticipated, the -1.2% depreciation registered certainly doesn’t give rate hawks a lot to hold on to.
October’s Consumer Confidence print also failed to impress after falling to 97.6 despite the median market projection that confidence would hold at 102.9.
The drop in the headline figure suggests that consumers are losing confidence in the likelihood that the domestic economy will strengthen considerably in the near-term, although current conditions remain comparatively favourable.
The Euro to US Dollar exchange rate was trending within the range of 1.1027 to 1.1079 during Tuesday’s European session.
Indian Rupee to US Dollar Exchange Rate Forecast to Trend Narrowly as Oil Prices Crash
The Indian Rupee to US Dollar exchange rate was trending within a tight range on Tuesday afternoon.
Crude oil prices crashed by over 2.5% during Tuesday’s European session after news surfaced that the US plans on selling a huge portion of their oil reserves.
This essentially shows that US stockpiles have exceeded expectations, adding to the global supply glut and weighing heavily on crude futures.
The Rupee benefits from low oil prices which can account for the moderate appreciation seen today.
The Indian Rupee to US Dollar exchange rate is currently trending in the region of 0.0153.
US Dollar Forecast: Will the FOMC Indicate Near-Term Rate Hike?
Tomorrow will be significant for those invested in the US Dollar with the FOMC rate decision dominating trader focus.
The currency market is likely to see subdued trade ahead of the decision such is the influence on market volatility.
The FOMC are very unlikely to move on rates, given the short period of time between decisions to fully assess data trends, but the accompanying press conference with Fed Chair Janet Yellen should be revealing.
If Yellen opts to take a hawkish tone the US Dollar would strengthen considerably, and the currency market could see heightened volatility as traders prepare for a period of tighter monetary policy.
The Indian Rupee to US Dollar exchange rate was trending within the range of 0.0153 to 0.0154 during Tuesday’s European session.
US Dollar to Pound Update
As traders await the Federal Reserve interest rate decision, due to be announced 18:00 GMT, the US Dollar to Pound Sterling exchange rate is trending within a limited range.
