This US Dollar report will examine the factors that could affect exchange rates this week in order 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 at the high compared to the low for the past month.
|Currency Pair||% Change||Difference on £200,000|
Overnight Donald Trump delivered his first ‘State of the Union’ speech to Congress where he provided his views on the current state of the US economy, and his plans for the year ahead. He attempted to bring unity between the Democrats and Republicans with a more muted tone than usual, however his tough stance on immigration and the wall between the US and Mexico meant that he failed to deliver this. A poll released shortly after Trump’s speech showed that he had received the least positive reaction from the public in over 20 years. Only 48% of Americans said they had a ‘very positive’ view on the speech, compared to 57% after Barack Obama’s first State of the Union address.
The US Dollar has weakened against the Pound and Euro overnight which has provided another excellent opportunity for clients purchasing Dollars first thing this morning.
This afternoon sees the release of US housing data, and most importantly the Federal Reserve’s latest Interest Rate Decision and Monetary Policy Statement to follow at 7pm. This will be the last Interest rate setting meeting FED Chairlady Janet Yellen attends, before she is succeeded by Donald Trump’s replacement of choice, Jerome Powell.
Although it is widely expected that Interest rates are to be kept on hold this month, any signals to future hikes will be keenly watched for by investors. Markets are anticipating the next rate hike to be in March which would match the FED’s estimates of 3 hikes this year, and if this is alluded to we could see the US Dollar strengthen. As this announcement will take place outside of trading hours, we can still help you to take advantage of any swings in Dollar rates, by placing a Limit Order contract to automatically purchase your currency when it reaches your chosen level. Get in touch with us today to find out how this service can work for you.
For more information on how future data releases could affect your Dollar requirement, call our trading floor on 01494 725 353 or email me here.