Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. This US Dollar report looks at the factors that are likely to affect exchange rates over the coming weeks. Below are movements in just 30 days affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
One of Donald Trump’s key pledges to repeal and replace the “Affordable Healthcare Act” (Obamacare) was once again delayed on Friday afternoon. With the Republican Party controlling 52 seats in the Senate (out of 100) and Republican Senators Rand Paul and Susan Collins opposed to the new “Better Healthcare Act” the vote is expected to test the slim Republican Party majority.
On Friday afternoon, Mitch McConnell (Senate Majority Leader) announced the vote was to be postponed while Senator John McCain recovers from surgery to remove a blood clot above his left eye earlier that day.
This caused investors to question the strength of the Republican Party and Donald Trump’s ability to push through legislation promised in his campaign if one seat is all that separates a win from a loss. Resulting in a USD selloff over the course of Friday afternoon and giving GBP the boost it need to break the key 1.30 GBP/USD resistance level, even pushing further to break 1.31 and reach levels not seen since September 2016 after disappointing inflation and retail sales data releases for the US. A £200,000 GBP/USD transfer today could gain you an extra $3,100 when compared to Friday morning.
If you have a USD purchase requirement in the coming months it may be wise to lock in the current GBP/USD rates through the use of a forward contract, allowing you to easily remove the volatility from your transfer. Contact your account broker here at Foreign Currency Direct on 01494 725353 to learn more about the wide variety of contact options available to you.
Thursday this week we see the release of Initial and Continuing Jobless Claims at 13:30pm, measuring the number of people claiming state unemployment insurance and giving an insight into the strength of the US labour market. At the same time, Philadelphia Fed Manufacturing Survey for July is released, detailing conditions in the manufacturing sector. The market has forecast the release to come in significantly below last month’s reading of 27.6 at 22.9 so this could be one to watch for those with a USD transfer requirement.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have. Feel free to get in touch on 01494 725 353.
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