Pound to Dollar Rate Subdued by Political Woes
The pound picked up where it left off the previous day, rising to a nine-day high of 1.3979 against the dollar overnight on Thursday. Propelling it higher was the Fed’s dovish outlook following its two-day meeting of monetary policymakers, who believe it is too early to consider rolling back the central bank’s emergency support – a tone that prompted the dollar to weaken.
A dearth of data from the UK economy this week has shifted investor focus to other events, including political developments in Westminster, where Prime Minister Boris Johnson has had several accusations levelled at him: how he responded to the pandemic; who paid for the refurbishment of his Downing Street flat; together with an inquiry into leaks of private information from his office.
Despite benefiting from softer dollar conditions, reports that costs for Mr Johnson’s flat were initially covered by donations – and the subsequent investigation by the Electoral Commission – appear to be limiting the pound vs dollar rate’s push towards the 1.40 resistance level.
The second – and final – piece of data from the UK economy this week was released this morning: a report by Nationwide showed annual house price growth bounced back to 7.1% in April, from 5.7% in March – the average price standing at £238,831, up 2.1% from March. The housing boom has maintained its momentum, with April posting the biggest monthly rise in UK house prices since February 2004.
US economic rebound gains momentum
The dollar, which was dogged by Fed inflicted headwinds yesterday, was hoping a raft of data from the US economy could reverse its fortunes.
The most hotly anticipated release was the latest gross domestic product (GDP) reading – the sum of all goods and services produced in the economy. The figures from the Commerce Department showed economic activity has boomed in 2021, as rapid vaccinations and government spending helped the US economy rebound from the Covid-19 pandemic. GDP jumped 6.4% for the first three months of the year on an annualised basis – the second-best period for GDP since Q3 2003. Q4 of 2020 accelerated at a 4.3% pace.
New weekly jobless claims dropped to a fresh pandemic-era low last week, as the accelerating pace of vaccinations continues to support the labour market’s recovery. Initial jobless claims remained below 600,000 (553,000) for a third straight week, falling to their lowest level since mid-March 2020 before the pandemic dented the US economy.
Looking ahead
Several notable pieces of data are scheduled for release in the US today, including personal income and personal spending figures.
The post Pound to Dollar Rate Subdued by Political Woes appeared first on Pound Sterling Forecast.
Source: https://www.poundsterlingforecast.com/2021/04/pound-to-dollar-rate-subdued-by-political-woes/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).