USD Exchange Rates As US Congress Agree Budget Deal

It has been confirmed that the US have managed to avoid another government shut down having agreed a budget deal, something it failed to do earlier this year. Previously we had seen the US government shut down as they were unable to agree a budget deal and so for about 3 weeks the US was effectively shut! The deal they agreed at the time was only a short term measure to prevent the country from defaulting on its debt and the impending debt deadline was in January so there was a threat that the US would once again go into shut down. The deal will finance the government for two years and also reduces their budget deficit by $23bn which is a huge step forward for the US economy, surprisingly though we have not seen much Dollar strength as we would have expected this morning, instead the GBP USD exchange rates remain above the 1.64 level on the interbank. So, with the debt issue now resolved the focus for the Dollar will be on when they will begin tapering their Quantitative Easing programme, many of which believe will be towards the end of the first quarter next year.

So, with some of the major US Dollar news now resolved and no longer hanging over the heads of those in the Federal Reserve Bank of America there is a possibility we could now see the USD strengthen over the Christmas period and into the new year meaning the fact we are currently close to a 4 year high on GBP USD should not be overlooked and for any clients looking to buy USD it may be worth making the most of the current levels. To find out more about the current USD exchange rates and the different contract options we can offer clients call us today on 0800 328 5884 or if dialling from abroad 0044 1494 725353 alternatively email me on