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GBP/USD Exchange Rate Forecast for October 02

GBP/USD Exchange Rate Forecast for October 02

As the dollar has been reaching four year highs in the last week, the pound has been steadily falling in value against it. On Tuesday this week it hit a low of 1.6181 but did recover slightly on Wednesday at one point reaching 1.6226.

The pound fell after data showed that output in the UK manufacturing sector slowed to a 17 month low last month. The PMI fell to 51.6 from 52.2 in August but economists had predicted it would rise to 52.5.

At the same time the dollar lost some value after data showed that manufacturing activity in the US expanded at the slowest rate in three months last month. Nonetheless the dollar still remained strong as employment rose above expectations last month.

At present there are more concerns about the strength of the British economy than the US’ so it seems like this could be a fairly reliable Put option for the short to medium term.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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