US Exchange Rates Following the Fed Minutes
Last night it was revealed that the Fed began discussions on how it will raise short term interest rates. The Fed has kept interest rates at a record low since 2008 when it cut interest rates dramatically in an effort to stimulate the economy and ward off recession. However, despite the discussion it remains unlikley that a rate rise is imminent, in fact the expectation is for a rate hike in the second half of 2015 and will depend on some sustained positive economic data but the fact that it is on the central bank’s radar is a positive step forward for the US economy. This is also a positive sign for the global economy as with the US economy having such a large impact on the other major economies and may help make the decision for the Bank of England as to when to raise interest rates a little easier. Currently expectation is for the Bank of England to raise rates in the Spring of next year but the fact the economy is improving and other major central banks are talking about possible interest rate rises then we may see speculation increase about an earlier interest rate hike in the UK which could provide Sterling exchange rates with a boost.
So, if you are looking to buy or sell USD and you would like to discuss the current rates or the options available to you please feel free to contact our experienced team of traders on 0800 328 5884 or alternatively email us on firstname.lastname@example.org