The pound trended lower on Wednesday after the UK’s latest GDP figures prompted a warning from the UK Chancellor.
As average hourly earnings also saw a smaller loss of momentum than forecast on the year the US dollar found cause for bullishness ahead of the weekend.
A higher level of wage growth and tighter labour market could give the Federal Reserve greater incentive to leave interest rates on hold in the months ahead.
Even so, with the Trump administration still pushing for lower interest rates and maintaining a belligerent attitude towards trade the chances of further monetary loosening remain.
If Fed policymakers show greater signs of cautiousness at their December policy meeting USD exchange rates could see a deterioration.
On the other hand, evidence that the central bank is willing to leave policy on hold for longer may offer the US dollar a fresh boost against its rivals.
Any widening of the monthly budget statement could cast a fresh cloud over the outlook of the world’s largest economy and push the US dollar lower, though.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)