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 week affecting US Dollar rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPUSD0.81%$2180

The US economy in the last few months has moved from strength to strength, and 2018 looks set for the trend to continue. Since the US Federal Reserve has started to raise interest rates and President Trump has started to create a commerce focused economy, the forecasts look optimistic. There is expected to be an increase in global growth with an emphasis in Asia, which Trump recognises as a main focus.

Should the US economy continue to improve then the US Dollar could move towards the 1.30 level against Sterling and 1.15 against the Euro in 2018. The latest tax changes in the US should help businesses release funds to invest further, which again should encourage further growth whilst consumers could find themselves with extra cash to spend.

Is there room for further improvements for Sterling?

Consumer Confidence Remains Very High

Confidence amongst consumers remains at a near 17-year high as the end of 2017 looms. Following record breaking black Friday weekend sales, consumer optimism is rocketing with many expecting a tax cut in the New Year. There have been some concerns that a major budget deficit gap could start to appear as Trump plans to give back $1.5 trillion to the tax payer in 2018. However, his theory suggests the taxs will be collected as money is spent.

If you’re looking to purchase US Dollars in the near future then trading sooner rather than later could make sure you’re still trading at a good level. Recently the rate hasn’t moved more than 2 cents above the current level across the last 18 months.

Brexit uncertainty weighing on the pound and positive US economic news look set to dictate the rate either way. Keeping in touch with your broker and setting rate alerts in the market will make sure you’re trading when there is a spike in your favour.

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.

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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.