The GBP to USD exchange rate held a positive predisposition a week ago after a few post-Brexit information discharges gave optimism to Pound speculators. The sterling’s exchange rate, nonetheless, fell back against the U.S. dollar currency rate during Friday’s trade amid some growth in the USD currency rate.
The British pound to U.S. dollar exchange rate stood just above the key level of 1.31 during Monday, however, the GBP exchange rate lost its strength and investors optimism, as the USD exchange rate rallied against the basket of other currencies.
It is impossible that GBP/USD currency rate will edge higher this week as financial specialists and forex traders are looking to purchase the Sterling from its most exceedingly awful levels, however hawkish Fed policies could keep the U.S. Dollar exchange rate strong.
GBP currency rate rallied against the USD conversion rate last week amid consumers spending increased 1.5% in the month of July and increased 5.4% on the year, relative to analyst’s expectations of 0.1% and 3.9%, respectively. Sales growth for department stores and specialist retailers were the key drivers for strong retail sales data.
However, traders believe that there is no upcoming important data from the Great Britain this week, which could again raise Brexit headlines. Economic stimulus measure and purchasing of bonds from the market will slightly help the Pound exchange rate against the US dollar.
On the other hand, U.S. dollar rate is likely to experience volatility in the coming days due to several upcoming economic reports and Fed’s meeting.
British Pound to US Dollar exchange rate is currently standing around 1.316, which is the highest level of last two weeks. The Sterling and USD exchange rate has an instant resistance at 1.315, and could experience a support around 1.3100. The pound sterling’s conversion rate could rise further against the US dollar in the coming days, if USD currency conversion rate experienced poor economic reports and unhelpful comments from the fed’s chairman.