It was announced yesterday that President Trump and Kim Jong-Un will meet in Singapore on June 12th, a potential sign for easing tensions as the North Korean leader has said he will cease nuclear testing. Today's market report addresses the current political situation between the US and a number of other countries, and how this has been impacting the Dollar this year. The table below shows the difference in USD you could have achieved when buying £200,000.00 during the high and low points of the last month.

Currency Pair% ChangeDifference on £200,000
GBPUSD6.6%$17,900
Trump and Kim Jong-Un due to meet on 12th June

Best time to buy Pounds with US Dollars this year

Yesterday, the US Dollar reached its highest level against the Pound seen since December. GBP/USD rates hit 1.347, after the Bank of England decision to keep Interest Rates on hold, and UK growth forecasts were revised down for the remainder of the year. This provided those of our clients buying Sterling with US Dollars with the best opportunity to do so this year.

A £200,000 purchase became $1,600 cheaper yesterday afternoon compared to just a few hours before, which highlights the importance of having a trading account set up, ready to take advantage of as and when any spikes occur.

Donald Trump and Kim Jong-Un to meet on 12th June

It was also announced yesterday that President Donald Trump and North Korean leader Kim Jong-Un will meet for the first time in any US President’s history, in Singapore on 12th June. It would seem that political tensions are easing, as Mr Kim has promised to stop nuclear testing and intercontinental ballistic missile launches, and close down a nuclear testing site, all ahead of the key meeting next month. It is expected that the two leaders will discuss North Korea’s nuclear weapons programme, as the US are pushing for this to end completely, and for good.

Although the US Dollar is seen as a safe haven currency in which investors flock to in times of political and economic uncertainty, the mounting concerns over potential tensions between the US and North Korea have certainly taken its toll on the USD since last year, and if the two leaders can come to an agreement I would expect this to cause considerable US Dollar strength.

However, with Trump announcing his withdrawal from the Iran Nuclear deal just days ago, and reports overnight that China could demand oil imports to be priced in Chinese Yuan, this could have an extremely negative impact on the value of the US Dollar. Any of our clients with a US Dollar requirement in the short to medium term should keep an eye on these events as they unfold.

The next key US economic data to watch out for will be on Tuesday when Retail Sales figures for April will be released, and are expected to show an increase from 0.2% to 0.5%. If this is the case I would expect further US Dollar strength therefore clients wishing to purchase US Dollars could benefit from moving ahead of this announcement.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me 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.