Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting the Pound to US Dollar rate and the difference in value when when buying £200,000 at the high compared to the low point:
|Currency Pair||% Change||Difference on £200,000|
The US Dollar has performed impressively over the last week against its currency counterparts, gaining by 2.7% against the Pound and 2.1% against the Euro. A series of positive economic data including a report that wage inflation had hit 2.9%, its highest level in 8 years, and far lower than expected Jobless Claims, has helped the Dollar to rally significantly. This has caused investors to flock to the US Dollar, as positive news on wage inflation usually signals that higher Interest rates are just around the corner. A speech tomorrow afternoon from FOMC (Federal Open Market Committee) member Loretta Mester may shed some more light on this, and will be keenly watched by investors for any hints towards hiking interest rates at their next meeting on 21st March.
This evening, a Monthly Budget Statement released by the Financial Management Service may give some indication on the FED’s (Federal Reserve) next move. It is expected for the statement to be far more positive than December’s release so this could help the US Dollar to strengthen further.
Wednesday will likely be a key driver for US Dollar exchange rates, as Retail sales data and Inflation data for January will both be announced at 1.30pm. Inflation is set to match last month’s reading of 2.1%, however any deviation from this could create big swings on US Dollar rates.
Inflation is a key barometer to deciding future monetary policy, and with investors already expecting an Interest Rate hike in the near future, if this data does not impress there is a risk of significant losses, which could far outweigh the potential for any small gains should the reading come in as expected. If you have a currency transfer to make in the short to medium term, get in touch with us today so that we can help you to take advantage of any spikes as they happen.
Thank you for reading my US Dollar report, if you have any questions about USD exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
Simple, fast, great rate. Speedy uncomplicated transaction with no commission and very good exchange rate. Friendly service
We have been using Foreign Currency Direct for more than 10 years. They are very competitive and customer service is excellent.
Excellent friendly service always. We have used Foreign Currencies Direct for many years and always get an excellent rate and service. Can’t fault them.
Everything was managed perfectly. I felt secure in my transaction with foreign currency direct. Nothing was too much trouble and I would certainly recommend their services.