With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below tables shows the difference in USD you would have achieved when buying £200,000.00 during the high and low points during trading hours yesterday.

Currency Pair% ChangeDifference on £200,000
GBP/USD0.47%$1240.00

Donald Trump is coming to the end of his tour across Asia as he met with the controversial Philippines President Rodrigo Duterte. The islands President has waged war on drug users and dealers in the country with thousands of people being killed in his efforts to crackdown on the problem. Trump chose not to bring up human rights in his private meeting with the President and this has faced criticism, however with a 18 nation summit set to take place there’s no doubt this will be glossed over with more focus on the North Korea situation.

US Dollar Continues to Strengthen

bundle of US DollarsYesterday the GBP/USD rate fell to near 2-week lows once again edging towards the sentimental 1.30 level. It was the first week of September that the rate last fell below this point, however the pressure being faced by Theresa May and the UK Government is the main reason for the rate returning to such attractive levels for any clients looking at selling dollars to buy pounds.

Janet Yellen, Fed Chairlady will speak tomorrow morning along with Bank of England Governor Mark Carney, and if Janet Yellen’s speech gives any hints as to whether the Fed will be raising interest rates this year, I would not be surprised for the 1.30 level to once again be tested. Carney is notorious for weakening Sterling when he speaks, especially after downplaying future economic policy tightening following the central bank raising interest rates earlier this month. Several members of the US Federal Reserve have suggested there will certainly be a December interest rate hike, with some going one step further calling for three next year.

US Inflation Data – Will the US raise interest rates again this year?

Later this week US Inflation data will also be released which is expected to fall from 2.2% to 2.0%, following the disruption caused by the hurricanes through the middle of the year. However, should the data beat the expectation then good inflation data could essentially nail on an interest rate hike in December. If you’re looking to purchase US Dollars soon the uncertainty in the UK coupled with the optimism of a further rate hike, it may be worth acting sooner rather than later. Make sure you contact your broker so they can discuss your options to mitigate the risk from market movements.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.