With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table shows the difference in Dollars you would have achieved when buying £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The US Federal Reserve confirmed last night that they will be keeping interest rates on hold which came in line with expectation. With Fed Chairlady Janet Yellen’s last meeting it was little surprise that they decided to kept rates on hold.
The overall tone was rather positive from the Federal Reserve and the minutes did suggest though that further rate hikes will be coming during the course of 2018 with a potential 2 or 3 throughout the year ahead. Indeed, the next expectation is for another interest rate hike in March. With a new Fed Chairman set to take over from Yellen the message is likely to remain the same.
With Janet Yellen now being replaced after 4 years of office, under her control the unemployment level has fallen to its best levels in 17 years as well as creating 10 million new jobs in the US.
After having its worst run in a long time against the Pound the Dollar has shown brief signs of slowing down its losses. Later today the US releases its latest set of Initial Jobless Claims. Expectation is for 238,000 so anything different could cause further movement for GBPUSD exchange rates. However, arguably much more important for the future of the US Dollar and monetary policy is tomorrow’s Unemployment Rate for January as well as Non-Farm Payroll data due out at 13:30. The jobs market is very important for the Fed going forward so tomorrow’s data is crucial for getting an insight into future monetary policy.
Meanwhile US President Donald Trump gave his first State of the Union Speech this week and although his approval ratings appear to be looking low he was rather bullish in his tone.
He claimed that 2.4 million jobs have been created as well as taking credit for the US stock market which has ‘smashed record after record.’ However, the US Dollar remains under a lot of pressure and we are now trading close to pre-referendum levels for the Pound vs the US Dollar.
Therefore, if you’re looking at selling US Dollars it may be worth securing at current levels. Speak with your account manager about the various options available to you including Stop Loss and Limit Orders.
Thank you for reading today’s US Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at firstname.lastname@example.org.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!