The Pound US Dollar (GBP/USD) exchange rate is drifting lower again today as it comes under pressure due to rising US bond yields.
As reported at 11:01 am (BST) in London, the GBP/USD was trading at $1.3962, down 0.25%; the pair earlier hit a trough of $1.3959, while the daily peak is now at $1.4031.
What could alter investors' perception is this week's preliminary first quarter GDP numbers which are due out on Friday; now, economists are predicting that the numbers will remain flat at 1.4% on a year-over-year basis and 0.4% unchanged at a quarter-over-quarter basis.
If you believe that the Fed will do what it has done for the last 30 to 40 years, then you will have to come to the conclusion that this will be positive for the dollar'.
'For the time being, and before all of the monthly data are in, we still on balance expect the MPC to raise rates next month.
The Pound (GBP) exchange rate looks to rally at the start of this week's session as a number of analysts appear confident that the BoE is still set to hike rates in May despite some dovish comments from Governor Mark Carney last week.
Carney's suggestions that he was "conscious that there are other meetings over the course of this year" caused the odds of a May rate hike to plummet from 85% to 56% last week, which in turn saw Sterling nosedive from its recent highs.
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The pound is facing similar troubles against the euro, dropping 0.1 per cent this morning and struggling to hold onto €1.1401 and avoid its lowest rate for April.