US Durable Goods orders data was released yesterday and showed a downturn from 0.3% to -0.1%. This indicates the cost of orders received my manufacturers for goods designed to last longer than three years, and was caused by lower demand for computers and IT equipment, which could impact business spending in the final quarter of this year. On the other hand, the number of people filing for first time unemployment benefits was lower than last week, marking 86 straight weeks of claims under 300,000, the longest stint on record since 1970, and points towards a strong jobs market.
Pending Homes Sales Index data also impressed, showing that contracts signed last month had risen by 1.5%, a sign of a steady housing market. This mostly positive data, combined with Brexit fears of the UK leaving the single market altogether, caused USD/GBP to rally by a cent.
Donald Trump has once again caused offence, this time to the family of Muslim soldier Captain Khan, by claiming that he would still be alive if Trump had been President. With only 10 days to go until the Presidential Election, outrageous comments occurring on a daily basis, and the polls keeping Hillary Clinton in the lead for some time now, it’s looking a lot like a Clinton victory. However, a lot can change in 10 days and the polls can also be very wrong – we only need to think back to the Referendum in June for an example of this. If you have a USD transfer to make in the short term future, it would be wise to put a plan in place with your Account manager here as soon as possible.
Today at 1.30pm will reveal Preliminary US GDP data for Q3 of this year and is expected to show a large increase from 1.4% to 2.5%. The key data to watch out for next week will be on Wednesday when the FED will announce their Interest Rate decision and subsequent monetary policy statement. Although it is very unlikely that they will change their stance so close to the Election, any insights into a hike in December could cause volatility on USD rates.
With the case for a FED hike strengthening, clients holding Sterling for US Dollars could be presented with less favourable rates in the weeks ahead. Call our trading floor if you would like to learn more on how this could impact your buying or selling requirements.
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It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.