This report examines 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 and low levels over the past month.

Currency Pair% ChangeDifference on £200,000
GBP/USD1.84%$4,796

FOMC Minutes from May FED meeting released

Yesterday evening, the minutes from the 2-3rd May Federal Reserve’s monetary policy meeting were released, and showed that an agreement was made that interest rates would be kept on hold until it was clear that the recent slowdown in the US economy was only temporary.

Although investors expect to see a rate hike during next month’s Interest Rate decision, the majority of the members of the Monetary Policy Committee believed that this would be governed by the economy bouncing back after the slowdown in the first quarter of this year, which the FED are expecting to happen. This dovish tone from the FED prompted the US Dollar to weaken significantly against its counterparts, providing another great opportunity for clients looking to buy US Dollars this morning.

Busy end to the week for US data

This afternoon Initial Jobless claims data will be released at 1.30pm and the expectation is for an increase in the number of people in the US filing for unemployment benefits. However, if this figure is released lower than anticipated, last night’s gains could be reversed once again. Detailing any pending currency requirements to your dedicated Account Manager ahead if this release can allow them to help you to time your transfer for the best possible returns.

Tomorrow will be an important day for US data releases and therefore Dollar exchange rates. At 1.30pm Gross Domestic Product (GDP) figures will provide an insight into the growth of the US economy, and is expected to rise from 0.7% to 0.9%. At the same time, Durable Goods orders for April will also be released which measures the total cost of orders for long-life products such as appliances and vehicles. If these releases are positive as anticipated, we could see the US Dollar strengthen and GBP/USD rates could move further away from the 1.30 mark once more.

For further information on how future data releases could affect your US Dollar requirement, call our trading floor on 01494 725 353 or email me here.

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.

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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.