This US Dollar report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low yesterday.
Currency Pair | % Change | Difference on £200,000 |
---|---|---|
GBP/USD | 3.2% | $8,490 |
There was a whole raft of economic data for the US released yesterday, which provided a mixed yet predominantly negative view of the US economy. Personal Income and Spending figures were down in June compared to the previous month, along with Manufacturing PMI data (Purchasing Managers Index) from ISM (Institute for Supply Management). However, Markit, - another major economic research institute – released their Manufacturing PMI as slightly better than the previous and expected figure. All in all, this negative overview combined with impressive UK Manufacturing data also released yesterday resulted in the best opportunity for clients buying US Dollars with Sterling in 11 months as rates moved above 1.323.
Another factor affecting the USD is the ever-growing lack of trust in the Trump Administration. Trump tweeted late on Monday evening that it was a ‘great day at the White House’ after firing Communications Director Anthony Scaramucci after only 10 days in post, leaving many wondering – who’s next?
Later today Unemployment figures for June will be released and these follow suit and are also negative we could see GBP/USD move above 1.33. Later on FOMC (Federal Open Market Committee) members Mester and Williams will be speaking this evening. Following concerns over US inflation, which has lead to reports indicating that the Federal Reserve won’t look to review interest rates until December, these speeches will likely be a key focus and driver for USD exchange rates. Anything positive, and we could see the US Dollar gain in value, however if they mirror the FEDs dovish tones of late then this could provide yet another excellent opportunity for USD buyers.
Tomorrow will likely be a big day for our clients holding GBP or USD, as Super Thursday in the UK sees an Interest Rate Decision and the Quarterly Inflation Report, whilst the US sees a flurry of economic data including Initial and Continuing Jobless claims, Services and non-manufacturing data along with Factory Orders. Get in touch with us today to help you to plan your transfer around this event.
Thank you for reading today’s US Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at here.