This US Dollar report will examine the factors that could affect exchange rates in the coming weeks 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 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
The Dollar weakened against the Pound at the end of last week, firstly with a lack of confidence in the US after their proposed tax reform bill has been delayed until 2019, whilst the UK economy showed significant strength with the fastest rise in industrial production so far for 2017 in September. In fact, we saw the Pound gain by almost 1% against the Dollar on Friday, meaning that, if timed effectively, a $200,000 purchase could have cost as much as £1,500 less. This kind of movement over the course of a day goes to highlight just how important it can be to have an experienced broker acting as your eyes and ears on the market who can highlight these kinds of gains to you.
US President Donald Trump, who has caused a lot of volatility on USD exchange rates with his comments since becoming President, was once again in the headlines over the weekend at the APEC (Asia-Pacific Economic Co-operation) Summit, after he claimed that there were some imbalances in the agreement that hurt American citizens and that he would continue to put America first.
There was a glimmer of hope for the Dollar on Friday afternoon however, with one of the Federal Reserve’s ‘interest rate setters’ claimed that an interest rate hike in December looked highly likely and that he had pencilled in three further interest rate hikes next year which would see rates reach a level of 2.5% by the end of next year.
This would make the Dollar a far more lucrative investment for investors and businesses, especially compared with the UK and Eurozone where it looks as though rates are going to remain low for some time and therefore this could offer some excellent opportunities for Dollar sellers in the future.
Those looking to buy Dollars in the short-term may be sensible to move sooner rather than later and capitalise on the current market which is one of the best times to buy Dollars in the past calendar year.
On Wednesday this week we have inflation figures from the US which are currently set to show a fall. If that is the case, then we could certainly see the case for a rate hike next month increase and therefore a spike in the Dollar’s value. This will be followed by jobs data on Thursday and housing data on Friday, so keep in touch with your account manager here for the latest market movements.
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