This US Dollar report will examine the factors that could affect exchange rates in the short term 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 over the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBP/USD2.5%$6,520
USD at best level to buy Sterling in 6 months

Will GBP/USD BREAK 1.30

In my personal opinion, I feel the 1.30 mark is a matter of when and not if. With Trumps continued outrageous comments and behaviour causing USD weakness I feel the Pound could break the 1.30 mark in the upcoming weeks. At the time of writing this report GBP/USD rates are sat at 1.2920 which is extremely close to a six-month high within the market for this currency pairing. With continued perceived weakening of sterling since the election some may have thought that GBP/ USD rates may have moved further apart, however with President Trump in the White House nobody knows what might happen and when. With his latest CNN wrestling stunt has not gone down well with many questioning why the president of the most powerful country in the world feels the need to behave in this manner.

Interest rate minutes released tonight

Tonight we have the release of the minutes from last month’s interest rate decision meeting, as expected last month interest rates were increased to 1.25% which did not lead to any significant market movement, but if there are any signs of future interest rate rises this could cause movements within the markets. We have been told to expect four interest rate rises in 2017 and so far we seen just the two, Janet Yellen remains bullish about the interest rate rises and is confident another two rate rises will happen in 2017. Generally when a country increases its interest rates this is perceived as positive by the markets and therefore increases the value of the currency involved.

 

Non-farm payroll data

The nonfarm payrolls release presents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in currency markets. Generally speaking, a high reading is seen as positive for the USD, while a low reading is seen as negative, last month these figures came in significantly lower than expected and if we see a similar result this time around be prepared for any market movements

Thank you for reading my US Dollar currency report, if you have any questions about exchange rates I'd be more than happy to assist, feel free to get in touch 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.