Pound to US Dollar Exchange Rate Steady as US Trade Data Buoys Safe-Haven Demand

The Pound to US Dollar exchange rate held steady today, together with the pairing currently fluctuating around $1.36.

Pound to US Dollar Exchange Rate Steady as US Trade Data Buoys Safe-Haven Demand

The US Dollar firmed yesterday following the publication of December's US Durable Goods Orders, which dropped below forecasts from 1.2% to just 0.2%.

'Growing in demand for long-term manufactured goods slowed in December, as the overall economic recovery lost momentum at the end of last year.

'New orders for durable products --goods designed to last at least three years--climbed 0.2% to a seasonally adjusted $245.3 billion in December compared with November, the Commerce Department reported Wednesday. This was the eighth straight month of gains, although the increase was the smallest since last August.'

Consequently, demand for its safe-haven'Greenback' has risen since the outlook for the world's largest economy gets more unclear.

Meanwhile, USD investors conscious bracing for the release of past week's Initial Jobless Claims, which are expected to collapse out of 900,000 to 875,000.

Consequently, we could observe a number of the'Greenback's benefits compromised as the prognosis for unemployment in from the US enhances.

Pound Holds Steady as UK Covid-19 Cases Continue to Put Pressure on NHS
Sterling held constant now owing to alack of especially UK data releases. The GBP/USD exchange rate being influenced by UK Covid-19 developments instead.

But today found reports that Covid-19 cases have to continue to fall to raise pressure on the NHS.

Paul Elliott, professor of epidemiology and public health medicine at Imperial, remarked:

'We are definitely heartened that we are now seeing what looks like a decline in the past week of our poll. But we really need to acquire prevalence down more quickly because the pressure on the NHS is very intense right now.'

In UK economic information, industry experts have reported that UK car production slumped to the lowest level since 1984 last year.

British car factory production dropped by 29% compared to 2019.

Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), said that this was'the worst in a generation'.

As a result, Pound dealers are becoming more and more worried about the UK's ability to recoup its market this year, as Covid-19 cases continue to put pressure on the health service.

US Dollar traders will be looking ahead to tomorrow's book of January's Michigan Consumer Sentiment Index.

Any improvement in the prognosis for the US market, however, could limit demand for the safe-haven'Greenback'.

Nonetheless, if Europe continues to battle with increasing cases of this coronavirus, then we could see demand for USD growth.

Pound investors, meanwhile, will be eyeing the UK's domestic Covid-19 situation.

Any indications that falling Covid-19 cases could ease strain on the NHS -- or vaccinations are increasing throughout England -- would raise the GBP/USD exchange rate.

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