Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting US Dollar rates when buying £200,000 during the high and low points on Friday:
|Currency Pair||% Change||Difference on £200,000|
New Atlanta Federal Reserve President Raphael Bostic, who began the job only a few months ago has stated the Fed should aim to raise interest rates gradually despite some weak inflation data. He has stated that overall economic activity has grown at a reasonably solid pace despite the hurricanes that have hit his south east district.
“I think it will be appropriate for interest rates to rise gradually over the next couple of years.” said Bostic at a recent economic forum in Alabama. He also said that despite a softening in inflation he is confident inflation will rebound.
“I’ll be watching the next few inflation reports closely for signs of a pick up.” He said.
I would expect a rate hike at the next FED interest rate decision on 13th December, although this may be somewhat factored into current rates of exchange. I think if you are buying US Dollars with Sterling it may be wise to take advantage of current levels.
Tomorrow we will witness a speech from Federal Reserve Chair Lady, Janet Yellen. It is well worth paying attention to her comments as she could well give hints to her stance on the FED’s interest rate strategy.
On Wednesday we Have the Federal Open Market Committee minutes. Here they determine the appropriate stance of monetary policy and assess the risks to its long term goals of price stability and sustainable economic growth.
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