Pound Dollar exchange rate (GBPUSD)

The Pound Dollar exchange rate (GBPUSD) stayed relatively steady yesterday. The current rate sees 1 GBP = 1.5271 USD, sticking around its March average. It seems that the British currency will continue to stay steady until Thursday’s Bank of England rate decision, which will occur at 11am GMT.

Pound Dollar exchange rate (GBPUSD)

What should we be looking for in the economy which may affect the Pound Dollar exchange rate (GBPUSD) in the coming weeks? The economic outlook in Britain has been slightly brighter of late, with figures showing the construction sector expanded for the first time in two years in March, which may lead the Bank of England to improve its forecasts for the country’s economy when they meet again.

There was also good news from the mortgage sector, which reported that families were continuing to pay down their mortgage debt, which is usually a good indicator of a strong economy.

The issue, however, is when they will meet again. Much of the financial planning that the Bank usually does is on hold as the General Election has recently been announced, and the longer term economic state of the country is unsure at this time. BoE Governor Mervyn King expects inflation to fall back below the 2% target rate later this year, which should strengthen the pound and send the Pound Dollar exchange rate (GBPUSD) back up.