This report will examine the factors that could affect GBP/USD exchange rates in the short term 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|
Donald Trump continued his tour around the Middle East yesterday delivering a speech in Jerusalem. Trump took the opportunity to suggest peace is a zero tolerance for violence and that the relationship between Israel and Palestine is the key to solving the Middle East’s problems.
The White House yesterday revealed there are plans to sell off half of the 688 million oil barrel stockpile, to raise $16.5bn to help balance the budget. The selloff would take place over the course of 2018 to 2027, however experts have raised concerns as an already saturated market finds ways to maintain profits.
Trump has revealed his plans to change the Governments role by cutting funding by $3.6tn. The proposal claims to balance the budget in the next decade, by essentially removing safety nets for the poorest and piling pressure on college graduates. Trump’s slogan of “Taxpayers First” provides a fairly clear indication of who he’s trying to please.
The 2018 budget proposal does have to make its way through congress and there is thought to be little chance of success. However what this could lead to is a shutdown that was threatened only a month ago. If there was to be a stand-off between the Administration and Congress then the GBP/USD rate could drastically increase.
Today’s Federal Open Market Committee meeting minutes will reveal the discussion that took place by the members who decide the US Interest Rate. Currently there is so much uncertainty that any dovish or hawkish comments could cause the US Dollar to strengthen or weaken.
If there are any hints that due to the current risks in the US the Federal Reserve will stay away from hikes the GBP/USD rate could move above 1.31 for the first time since September last year. If you do have a requirement setting a rate alert with your trader could make sure you’re trading at the high.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would be glad to reply personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail 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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