Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. The table below shows the difference in USD you would have achieved when buying £200,000 over the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD3.35%$8,500

USD strength continues

US DollarsOver the last week the USD has gained in value by over 2% against GBP meaning a £200,000 transfer now gets almost $6,000 less than compared to only Thursday. US data continues to improve and this has been the reason for the movement.

A week ago it was confirmed that the US economy added a better than expected 209,000 jobs in July. Their overall unemployment rate also fell to 4.3% matching the 16 year low struck in May – all very USD positive news.

This all continues to point towards the US economy growing and will continue to put pressure on the FED changing central policy. There was a thought in the market that they would raise interest rates again this year however that is fading in favour for the FED to start to lower their balance sheets.

In the most recent commentary from the FED they suggested that they would slow their quantitative easing by not re-buying bonds that were issued in the past when they expire. This is generally a very positive step for the US economy and the USD as this is miles ahead of plans both in Europe and the UK.

As data in the US continues to show improvements I generally expect the dollar to be one of the main beneficiaries causing the dollar to get more valuable and therefore more expensive to buy.

USD data expected to make the dollar dearer

Later this afternoon we have the US Consumer Price index figures. These are all expected to show improvements for the US once more and as a result I would urge any USD buyers to move sooner rather than later to avoid further escalations in costs.

Escalation in rhetoric with North Korea cause concern

With political tensions becoming ever increasingly stretched around the nuclear program in North Korea anyone with USD, or any currency pegged to the USD, should be keeping a close eye on developments.

Acts of war, or the increasing likelihood of it, is one of the main driving factors on the currency compass and as a result can have a very quick and indeed long standing impact on the value of currency. For live updates on the impact please make sure to note your interest with your personal broker here.

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.