Over the weekend, on Saturday morning the news was out that the US, UK and France has jointly carried out airstrikes in Syria. Depending on how this plays out, the repercussions could have an impact on global exchange rates. The USD report discusses how the USD could be affected by this. The table below shows the difference in USD you could have achieved when buying £200,000.00 during the high and low points during the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD2.71%$7,740 USD
Brexit Tensions & Oil Prices keep the Pound low vs the US Dollar

Ripples of the Syria missile strikes

On Saturday we woke to the news that air strikes had been carried out by a joint effort from the US, UK and France. Over 100 missiles were fired at Syrian chemical weapons facilities whilst the Syrian government and their ally Russia, claim to have intercepted and destroyed 70 of those. The air strikes were premeditated, and the Russians were warned last week by Trump to “get ready”, who will now have to accept the “consequences” promised by the Kremlin.

The western powers called the operation a success and labelled it as limited and targeted strike that does not further escalate tensions in the region and that does everything possible to prevent civilian casualties.

There is a feeling that Asaad’s regime got off lightly and in a perverse way have helped him out.

Whenever the tide of the Syrian Civil War has turned against him, President Asaad has launched chemical weapons attacks before stepping back as international actors fight his battles for him.

What is certain is that this attack on Syrian chemical weapons facilities will not help US-Russian relations and comes at a time when the trade war between the US and China is also contributing to tensions in international affairs. It is an uncertain time for the dollar.  

Retail Sales Optimism

The US retail sales to be released today at 12:30 GMT and are expected to increase 0.3% month on month in March while the part of the retail sales, is seen rising 0.4% month on month.

There is also a speech from the Atlanta Federal Reserve Bank President Raphael Bostic at 17:15. He is expected is speak about the economy and rural market trends.

How will the Dollar react?

Trump’s popularity jumped - and his disapproval rating dropped - after his first air strike on Syria, in April of 2017. My feeling is we could see a stronger dollar in the short term. Expect tests as soon as international tensions increase and domestic pressure mounts around Trump’s offices being raided by the FBI and America’s turnaround on NAFTA. 

With all the latest updates as events unfold and economic data is published, our brokers can help you maximise your next transfer, please get in touch to benefit from their expertise.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

Download our monthly currency report

Download here

News

Read more articles

 

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.