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 table below shows the difference in USD you would have achieved when buying £200,000.00 during the high and low points during the past month.
|Currency Pair||% Change||Difference on £200,000|
Yesterday marked the 1 year anniversary since Donald Trump won the presidential election, and in this time he has been the driver behind a variety of scandals, political unrest between the US and North Korea, and has struggled to bring many of his promises to fruition. Trump’s proposed tax reforms have now also been stopped from being approved, and yesterday the Senate released their own, amended version of the tax plans. This revised plan includes Trump’s proposed corporate tax cuts from 35% to 20%, however would delay the implementation until 2019. Analysts are predicting that the Senate’s plan will most likely be approved by Congress, and would be mean yet another unfulfilled Trump pledge.
I would expect the outcome of these reforms to impact US Dollar exchange rates in the coming weeks.
Yesterday was particularly volatile for the US Dollar against the Pound, as news of another Conservative resignation in the UK helped the Dollar to make gains throughout the morning. However these gains were quickly reversed when Jobless Claims data was released higher than the previous and expected figures. The number of American’s filing for first time unemployment benefits rose by 10k to 239k, likely caused by a backlog of claims following the aftermath of Hurricanes Irma and Harvey.
The difference between trading at the high vs the low of the day could have meant an additional $1,400 on a £200,000 transfer, and highlights the importance of being in close contact with your broker here, to help you to take advantage of spikes as they occur.
The next US data release to look out for is on Monday evening when the Financial Management Service will publish its Monthly Budget Statement. As this is released outside of trading hours, a Limit Order contract could help you to take advantage of any spikes by automatically booking your currency if it reaches your desired rate. Get in touch with us today to find out how this option could work for you.
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