This US Dollar report addresses the factors that could affect exchange rates in the coming weeks to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received in Dollars when buying £200,000 at the high compared to the low during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPUSD2.1%$5,450
Investors flock to the USD following concerns over the global markets

Will the Dollar continue to weaken against the Pound?

The Pound has hit its highest level to buy US Dollars since this time last year as the Dollar has suffered owing to the impact on the economy caused by Hurricane Irma. Although the Hurricane was downgraded it has still caused huge amounts of damage to Florida and the clean-up operation is likely to run into billions.

The next big catalyst for rate movement between the Pound and the US Dollar: firstly, the UK announces its latest interest rate decision tomorrow at midday and this will be closely followed by both Initial Jobless Claims and the latest Consumer Price Index.

Expectations for US inflation are for 1.8% for year on year and with this very close to the Federal Reserve’s target I think this could open the door for a further interest rate hike coming before the end of the year.

In my previous report I stated that we would see one more rate hike before the end of this year and my opinion has not changed. Even though the US has been impacted by the devastation caused by Hurricane Irma I think the economy would be able to cope with another rate hike and any signs of this coming could cause the Dollar to improve vs the Pound.

We end the week with US Retail Sales on Friday afternoon. Retail Sales have been very mixed for the US recently so could this see GBPUSD rates fall at the end of the week so keep a close eye out for the release.

If you are planning a foreign currency transfer then contact your account manager here to discuss the options open to you. Indeed, if you’re planning to sell US Dollars but don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you. Feel free to get in touch on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.