This US Dollar report will discuss factors that could affect USD rates in the coming days in order to keep you 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 for the year to date. For current exchange rates visit our live exchange rates page.
|Currency Pair||% Change||Difference on £200,000|
Those following the US Dollar to Sterling exchange rate will know the greenback hit a 3-decade high against Sterling in the wake of the Brexit vote, mostly due to fears over the UK economy but also due to US Dollar strength. The Pound has since recovered around half of these losses as it gradually recovers, although yesterday’s disappointing UK wage growth figures put the brakes on this slightly, as the growth of wages in the UK isn’t keeping up with inflation.
At times US President Trump hasn’t helped the Dollar's cause, after creating some drops in the US Dollar himself with some outlandish comments and admissions, but he can’t be blamed for the recent setbacks to the US economy as they’ve come in the form of natural disasters.
Many homes as well as buildings within the financial centre of Florida have been destroyed by Hurricane Irma since the weekend with the clean-up operation likely to cost billions, and this has come almost immediately after Hurricane Harvey which may be an even costlier natural disaster in financial terms.
These issues coupled with North Korean geopolitical tensions as well as some internal strife have understandably put the US Dollar under pressure, and not only is GBP/USD trading at a 1-year high but EURUSD is also around an 18-month high making the buying of Dollars cheaper for our clients.
Later today there will be the release of Inflation data in the US for August as well as Unemployment data. Both have the potential to influence whether or not there will be an additional interest rate hike in the US which could impact US Dollar rates, as a rate hike is generally considered a positive for the underlying currency.
Tomorrow there will also be a key release as Retail sales figures for August will be announced. Expect any major deviations from the expected drop to 0.1% to result in fluctuations for USD pairs.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me directly at firstname.lastname@example.org.