This US Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved in USD when purchasing £200,000 at the low and high levels during the past month.

Currency Pair% ChangeDifference on £200,000
US Jobless Claims Rise

Positive US Consumer Expectation survey

The US Dollar strengthened against the Pound and Euro yesterday morning after a consumer expectation survey was released by the New York Federal Reserve, showing that US households are expecting to increase spending in the coming months, and that finding and keeping jobs will become easier owing to a strong labour market. 35% of households surveyed in June also said that they are more financially stable than they were a year ago. However these gains were reversed slightly when the Labour Market Conditions Index for June was released yesterday afternoon which showed a far lower reading than expected and previously. This was then outweighed by Consumer Credit Change which was far better than the previous and expected figure, providing a yo-yo day of trading for the Dollar.

When Consumers are noted to be borrowing more money, this shows positive signs for the economy in question, as it shows higher consumer confidence to be spending larger sums of money rather than saving.

Will FED speeches provide clarity on next Interest Rate hike?

This afternoon two of the Federal Open Market Committee members, Brainard and Kashkari are scheduled to speak, and could provide an idea of when the FED will next look to raise Interest rates in the US once more. It is still expected that the FED will raise rates once again this year, however any signals as to when this may be would likely cause the USD to strengthen.
Tomorrow evening the Federal Reserve will release their Beige Book report which should provide a clear overview of the current economic climate in the US, and will be keenly watched by the markets. This report is produced 8 times a year, with the last being on May 31st, and is used to inform rate setting members of changes in the economy for each US district since their last meeting.

Thursday will be another volatile day for USD exchange rates as Continuing and Initial Jobless claims are released, followed by FED Chairlady Janet Yellen testifying to Congress. This could be another opportunity for their intentions of another rate hike to become clearer, and as this will be televised we should expect large swings on the value of the Dollar. Getting in touch with us today will allow us to help you to plan your currency exchange around these events, helping you to trade at the best possible time.

Thank you for reading my USD report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries here.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. 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.