January 6, 2025 – Written by David Woodsmith
STORY LINK Pound to Dollar Rate Week Ahead Forecast: GBP/USD Firm in Turbulent Week
Monday AM Brief: The Pound to Dollar exchange rate edged higher on Monday ahead of a number of US data releases expected this week.
On Monday, the Pound (GBP) experienced a slight rise against most of its major counterparts, even as the UK’s final services PMI for December was released.
The services PMI, a key indicator for the UK economy, registered at 51.1, falling just short of the expected 51.4.
Nonetheless, the GBP maintained its stability after the data was made public, showing resilience despite the minor discrepancy.
On Monday, the US Dollar (USD) failed to capture much investor interest and weakened against most of its major counterparts.
US investors appeared cautious about making significant bets on the ‘Greenback’ ahead of a busy economic calendar this week.
Key economic data releases are scheduled for the coming days: the latest labor data and PMIs will be out on Tuesday, the Federal Reserve’s FOMC meeting minutes will be released on Wednesday, and the crucial non-farm payrolls report along with the latest unemployment rate will be published on Friday.
Anticipation of these important economic indicators left USD exchange rates struggling to attract strong buying interest at the beginning of the week.
Looking ahead, the main driver of movement for the Pound US Dollar exchange rate on Tuesday will likely be the release of several high-impact economic data points from the US.
First up, the US will publish its latest ISM services PMI for December.
If the data shows another rise in this crucial sector, it could provide a lift to the ‘Greenback.’
Later in the day, the US will release its JOLT job openings survey for November.
Should the data remain around the positive levels seen in October, it could further support USD exchange rates.
On the Pound side, the UK will release its latest BRC retail sales monitor for December.
The data is expected to show a recovery, with a forecasted improvement from -3.4% to -0.2%.
If the figures meet these expectations and confirm an uptick in the UK’s retail sales, it could give a boost to GBP exchange rates.
International Money Transfer? Ask our resident FX expert a money transfer question or try John’s new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.
