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The dollar will be challenged by some welcome data.

The pound to dollar exchange rate (GBP/USD) has stabilised this November and an extension of that recovery looks possible in the coming days.

The exchange rate's movement is overwhelmingly determined to dollar price action, which means it can discount much of the recent domestic UK political turmoil linked to next week's budget event.

Sure, GBP/USD came under pressure last Friday when the government U-turned on previous plans to raise income taxes, but ultimately losses proved limited and confirmed that it's the dollar that really matters.

The dollar has edged lower over recent days and allowed GBP/USD to recover back above 1.31 as investors prepare for the return of official U.S. economic data releases now t

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