The Pound US Dollar exchange rate saw fluctuations this week despite minimal data. Hawkish comments from Federal Reserve policymaker Michelle Bowman boosted the US Dollar, while a cautious market mood bolstered the safe-haven currency. The US Dollar dipped following the release of domestic data showing slow-moving demand and high initial jobless claims.
On the other hand, the Pound was supported by UK manufacturers’ confidence in the economy heading in the right direction. However, a decline in retail sales in June and mixed GDP data limited the Pound’s gains against its peers.
Looking ahead, the primary driver of movement for the GBP/USD exchange rate this week is expected to be the upcoming UK election and various high-impact data releases. The UK election on Thursday could bring volatility to the Pound, while US data releases and the Fed’s meeting minutes will influence the US Dollar’s performance.
Overall, the GBP/USD exchange rate was trading at around $1.2628 at the time of writing, with both currencies facing potential volatility in the days ahead.