Key points:
– British pound ricochets off $1.27.
– US dollar revives upside swing.
– UK GDP, US PCE loom Friday.
The British pound is looking to end a two-day winning streak as the previously dormant US dollar begins to show signs of awakening. Over the past two days, the British pound saw a 0.7% increase to briefly surpass $1.27. However, today, the greenback has made a comeback, pushing the pound down. The UK currency slipped by 0.5% in the early hours, falling to $1.2640 and almost wiping out its weekly gains. The pound-dollar exchange rate has been on a downward trend for the past few weeks, with only a slight 0.7% decrease for the year.
This week, key reports are expected to bring more excitement to the exchange rate. In the UK, the GDP report will be released on Friday, showing the country’s economic growth on a quarterly and annualized basis. On the same day, the US will release its PCE figures, which measure personal consumption expenditures. Analysts are hoping to see a 2.6% increase in prices for May, which is the Federal Reserve’s preferred inflation measure.