This US Dollar update will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer. The table below shows the difference in USD you would have achieved when buying £200,000 over the past 7 days.
|Currency Pair||% Change||Difference on £200,000|
Yesterday the Dollar was caught on the defensive against the majority of its major currency counterparts as negative economic data and a downgraded growth forecast from the International Monetary Fund forced the greenback to fall by nearly 1% against the Euro and 0.4% against the Pound, making $300,000 transfer almost £1,100 cheaper. Further compounding Monday’s disappointing releases fresh real estate data came out lower than expected which only added to the market’s fears of a gradual slowdown of the US economy.
Furthermore, the IMF’s decision to slash it’s growth forecast for the US from 2.3% to 2.1% has brought to light the lack of trust the market has in the Trump administration, stating the more time goes on, the less likely it seems the President will be able to act on his promises to bolster public spending and drive economic activity via fiscal flexibility.
It will be interesting to see how the markets react this morning to the news the Trump administration has been hit by another damaging setback as the vote on the repeal of the Affordable Care Act (A major part of Trump’s campaign) has been delayed.
As investors listen in intently for clues as to when the next rate hike will take place, we have had a mixed bag of info from recent Federal Reserve figureheads. San Francisco Fed president John Williams and Fed vice president Stanley Ficher have both publicly raised their concerns of complacency within the banking sectors despite the growing potential of a downturn within the US economy.
However yesterday at a conference in London, Chair Jannet Yellen made clear that the Fed’s regulatory hold over the industry since the 07-09 crash has made the prospect of another financial crisis within our lifetime a very distant prospect. I expect to see statements like this to drive dollar strength, particularly if the GDP figures and consumer spending data come out as expected. Given Consumer confidence is on the rise in the States, if you are looking to buy US dollars, it may pay looking to act before these releases take place.
Thank you for reading my USD currency report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me here.
Fantastic! Money transferred Friday afternoon from my UK account and in my Spanish account same day. Couldnt believe it!
I always use Foreign Currency Direct because the rates are competitive and the service is incredibly efficient and it is so easy to make transfers of currency abroad.