On Monday, the GBP to USD exchange rate was flat ahead of the release of the United Kingdom’s key jobs data on September 14.
Moreover, Furlough schemes are set to end and could drive more jobs in the market. However, skills shortages weighed on price pressures propelled by supply bottlenecks and high commodity prices.
Meanwhile, the Bank of England is expected to increase its borrowing cost by the end of 2022. In addition, the move could be earlier if the UK inflation rate increases and the economic rebound slows down.
Accordingly, experts mentioned that considering higher rates would increase the GBP to USD exchange rate to the $1.40 level.
Consequently, investors closely watched the upcoming BoE policy meeting on September 23.
Moreover, market participants turned their attention to the release of the UK inflation data, employment, and retail sales figures this week.
On September 14, July’s unemployment rate is expected to fall to 4.60% from 4.70%. Then, the forecast for retail sales plunged by 2.50% from the previous rate of 0.70%
Subsequently, the August Consumer Price Index is set to be released this September 15, with a forecasted rate of 2.90%. Meanwhile, July’s CPI declined to 2.00% from its previous data of 2.50%.
Meanwhile, the CHF currency against the sterling increased by 0.08% to $1.27. Consequently, the GBP/JPY pair declined 0.04% to $152.07. Likewise, the GBP/CAD pair declined 0.14% to $1.75. Similarly, the EUR/GBP pair tumbled 0.06% to $0.85.
Euro to Dollar Exchange Rate Plunged
Meanwhile, the euro-to-dollar exchange rate declined as the GBP remained flat. The single currency plunged by 0.17% to $1.18 as investors eye the US data on the consumer price index this Tuesday.
Moreover, the inflation data will be the highlight of the economic calendar.
Accordingly, investors forecasted a decline in the data as the gap between supply and demand eased.
Retail sales are also estimated to plummet to 1.00% from 1.10% last July.
Additionally, industrial production is forecasted to fall by 0.50% from the previous data of 0.90%.
Furthermore, the USD/JPY pair hiked 0.04% to $109.97. The same with the USD/CHF pair as it climbed 0.20% to $0.92. Consequently, the NZD to USD exchange rate dropped 0.08% to $0.71. Accordingly, the USD/CAD pair is unchanged at $1.27. Then, the AUD/USD pair 0.14% tumbled 0.16% to $0.73.