The US Market was closed yesterday for Presidents Day, and so USD rates were driven by economic and political releases from its counterparts. Manufacturing data released from the UK showed that the demand for UK manufactured goods had risen to a two year high, and as such caused GBP/USD to gain by half a cent.
This afternoon we have Manufacturing and Services data released for the US at 2.45pm which are both expected to show small gains, and could allow the USD to recover the losses seen throughout yesterday.
Tomorrow evening the Federal Reserve Board of Governors will release minutes from their latest meeting on 31st January and should provide further clarity on when they may look to raise Interest Rates once again. FED President of Cleveland Loretta Mester spoke last week in Singapore, stating that she would feel comfortable raising rates as long as the economy maintained its strong performance, which so far it has done. Mester has been pushing for a rise in rates for some time now, and with inflation reaching over its target level of 2%, now could be the time for the FED to act on it.
During 2016, four Interest Rate hikes were promised but only one actually came to fruition. With this in mind, there is now far more pressure on the FED to keep their promise of raising rates this year, sooner rather than later. If tomorrow’s minutes point towards a hike in March, I would expect the Dollar to strengthen, pushing GBP/USD back towards the 1.20 levels. As this release is outside of trading hours, any clients looking to sell USD may wish to secure a Limit Order contract. This is where we are able to automatically purchase your currency at a rate determined by you, even when your Account Manager is out of the office. Please get in touch for more information on our range of contract options and how they can benefit you.
Call us on 01494 725 353 or email email@example.com to find out how much we could save you on a US Dollar transfer.
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