– Written by
David Woodsmith
STORY LINK GBP/USD Price Forecast: Can Pound Sterling Hold $1.35 if UK Growth Stalls?
The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range on Thursday as markets prepared for a pair of high-impact UK and US data releases due on Friday.
At the time of writing, GBP/USD was trading at $1.3550, leaving the pairing virtually unchanged on the day.
The Pound (GBP) was little changed on Thursday, with a lack of new UK economic releases keeping Sterling confined to a relatively tight trading range.
Attention remained focused on the upcoming UK GDP figures, which appeared to discourage significant moves in the Pound as GBP investors held back from repositioning ahead of the week’s main domestic economic release.
Meanwhile, the US Dollar (USD) remained largely rangebound on Thursday as markets looked ahead to Friday’s US consumer price index.
The ‘Greenback’ found some support from broader market forces, with a risk-off tone lending strength to the safe-haven currency.
However, concerns surrounding US trade and foreign policy continued to weigh on USD, preventing the currency from gaining much traction.
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Near-Term GBP/USD Forecast: Will Stalling UK Growth Drag on the Pound?
Looking ahead, GBP investors are set to focus on Friday’s latest UK GDP figures.
Growth is expected to have stalled in July, and a weak opening to the third quarter could weigh on the Pound.
Such a result would renew concerns about the health of the British economy and could reduce expectations for further interest rate hikes from the Bank of England (BoE).
For USD investors, attention will turn to the latest US CPI figures.
A moderation in inflation during August could put pressure on the ‘Greenback’, while evidence of persistent price pressures could lend the currency support.
Risk appetite could also remain important for the pairing.
Should risk-off conditions persist, the safe-haven US Dollar may benefit, while the increasingly risk-sensitive Pound could struggle.
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TAGS: Pound Dollar Forecasts
