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||% Change||Difference on £200,000|
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.
Superb service. Fast efficient and friendly staff, getting you the best value for your money.
Very straightforward, no hidden charges together with the best exchange rates. Excellent service. Highly recommended.
They always answer the phone straight away, they are very helpful and always call back. They have the best rates.
Brilliant service. One of the best companies ever dealt with. Had time to talk to me and offer great rates too.