This USD 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 at the high compared to the low for the past month.

Currency Pair% ChangeDifference on £200,000
Trade Tariffs Continue to Impact on the Dollar

USD strengthens despite mixed US data

The US Dollar strengthened significantly against the Euro and Pound yesterday, meaning that any clients selling Dollars would have received an additional €3,000 and £1,700 on a $200,000 transfer if timed at the highest point compared to the lowest point of the day. The main reason for this was due to the announcement from the European Central Bank yesterday that although its current bond buying programme would be reduced, it would be extended to at least September 2018. This spooked investors who moved their funds out of the Euro and into the safer haven currency of the Dollar, therefore strengthening its value. Another reason for US Dollar strength yesterday was due to Initial Jobless Claims data being released better than expected at 233k, which was the number of US citizens filing for first time unemployment benefits last week.

US data yesterday wasn’t entirely positive for the US, with Continuing jobless claims (people claiming ongoing unemployment benefits) and Pending Home Sales data both released worse than expectation.

GDP data expected today

Gross Domestic Product (GDP) data for the third quarter of this year will be released this afternoon at 1.30pm and expectation is for a fall compared to the previous quarter to 2.5%. If this is the case I would expect the gains made yesterday for the Dollar to reverse, making it cheaper to buy.

Clues to Interest Rate hike in December

Looking to next week, Wednesday provides a host of economic data for the US to keep a close eye on. Construction and Manufacturing data, along with the Federal Reserve’s latest interest rate decision and Monetary Policy Statement will all be announced throughout the afternoon, and could be a particularly volatile day for USD exchange rates. It is expected that the FED will look to raise interest rates at their meeting in December as they have done for the last two years, however any clues as to their future monetary plans would likely impact US Dollar rates. Should you not wish to gamble on this, we have the option of a forward contract which allows you to lock in today’s rate of exchange for just a small deposit. Get in touch with us today to find out how this can work for you.

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.