GBP to USD Exchange Rate Approaches a Two-Week High

GBP to USD Exchange Rate Approaches a Two-Week High

On Thursday, the GBP to USD exchange rate rallied near a two-week high with gains. The pound sterling jumped 0.05% to $1.3776 against the dollar.

Moreover, the EUR/GBP pair edged down 0.01% to $0.8595 Analysts noted that the European Central Bank could signal back its pandemic-era stimulus. Consequently, this caused the rapid movement of the pound against the euro.  Meanwhile, the US dollar index slightly declined 0.01% to $92.50. 

Last Wednesday, the greenback extended its fall as market participants turned into riskier assets.  Furthermore, the US currency still bears the dovish stance of the Federal Reserve on the outlook for the monetary policy.  Remarkably, the USD moves slowly ahead of the release of the US jobs data this week. 

Investors turned their focus to jobless claims and nonfarm payrolls that could impress the market.  Also, the reports potentially gave prospects of an announcement of the tapering timeline.

In the United Kingdom, the purchasing manager’s index survey for the manufacturing sector posted better data in August. Whereas the British factory output improved at the weakest rate for six months as supply chain problems emerged.  In addition, house prices also inched up after declining in July. 

The reported data revealed that house prices increased by 2.10% from July to August, edging from the forecasted 0.20% hike.

Nevertheless, the UK fully reopened its economy, contributing to an 11.00% increase in property prices compared to last year. Meanwhile, the pound sterling moved higher against other currencies.

GBP/JPY pair rose 0.06% to $151.51, while GBP/AUD pair soared 0.11% to $1.8705. Likewise, the GBP/CAD pair edged up 0.12% to $1.7391. Similarly, the GBP/NZD pair inched up 0.16% to $1.9499.

Major Currency Pairs Mixed, USD Softens

Furthermore, major currency pairs mixed as the greenback softens on the recent report of the US labor market.

The US dollar dropped after the ADP National Employment Report revealed that the data fell short of the estimates.

In August, the private payrolls improved by 374,000 from 326,000 in the previous month. Still, the data is far from the expected 613,000.

Meanwhile, the NZD/USD pair also lowered to 0.04% to $73.0245. The EUR/USD pair also plunged 0.01% to $1.1835. On the other hand, the AUD/NZD pair soared 0.15% to $1.0425. Likewise, the USD/INR pair extended a gain of 0.13% to 73.085. The USD/CHF pair also rose 0.09% to 0.9157. Moreover, the AUD/USD pair edged up 0.07% to $0.9157.