This Dollar update looks at the factors that could effect the rate of exchange for your currency transfer in the short term. In the table below you’ll see high to low USD exchange rate movement when exchanging £200,000 over the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
At the end of last week GBPUSD plummeted from 1.2930 to 1.2780 making a $200,000 purchase £1,800 more expensive. With the Labour party gaining momentum against the conservative party this is being described as the main reason for why the pound has plummeted in value. Please refer to the sterling section of this report for more information.
A key economic data release that has a major influence on exchange rates is the central banks interest rate decision. When a central bank raises interest rates this tends to strengthen the currency whereas when a central bank cuts interest rates the currency tends to devalue. It is widely expected that the Federal Reserve will hike interest rates on June 14th as growth figures were revised up to 1.2% which shows the US economy is doing well and consumer spending has risen by 0.6% which would have pleased the Chairlady Janet Yellen.
My personal opinion is as long as President Donald Trump does not make headline news for the wrong reasons a hike will materialise and therefore GBPUSD could fall away from the higher 1.20s that we have been experiencing over the last 3 weeks.
With the pound losing momentum in the run up to the UK general election on June 8th and the strong chance that the US will raise interest rates, the safe option would be to consider purchasing US dollars sooner rather than later. For clients that believe Theresa May will still pull through and win a majority there is a chance that some of the losses could be revered therefore waiting until the election is over could provide an extra cent or two.
For more information on how your Dollar exchange could be affected by future data releases, call our trading floor on 01494 725 353 or email me here.
The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.
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