Getting the best exchange rate can be achieved by understanding what is driving rates, and with the service of a specialist currency broker. Below are movements affecting US Dollar rates yesterday when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
GBPUSD exchange rates have fallen following a dire night for Theresa May, the Conservative Party and the pound. The poor performance is raising all sorts of questions over not just who will lead the UK but also how this will influence the Brexit vote. There are all sorts of spins and outcomes that could see the pound to US dollar exchange rate taking all manner of directions today and next week.
Next week sees a whole host of important US economic data including Retail Sales and Inflation data midweek. Most importantly, on Wednesday there is the latest US Interest rate decision from the US central bank, the Federal Reserve. The Fed were widely expected to raise interest rates causing the US dollar to strengthen. However if they fail to raise rates or are a little less positive about the future prospects for the US economy and raising rates, we could see the US dollar weaken.
Donald Trump had previously sparked big boosts on the US dollar and stock markets, but since then a series of obstacles to achieving his plans has seen the Trump trade unwound and the US dollar weaken. Effectively calling Donald Trump liar yesterday, James Comey, former director of the FBI gave testimony following his sacking.
This was just another example of Trump losing credibility which whilst not directly effecting the GBPUSD rate is indicative of how Trump is struggling
As markets continue to digest the fallout from the UK election this will be the main driver on the GBPUSD rate today, but as mentioned above there are some key points to consider for next week. We could just as easily be above 1.30 and back to 1.25 next week given the potential for the currency markets to shock and surprise us.
If you haven’t quite seen what you had hoped for on GBPUSD rates then all is not lost in such a volatile market. Today’s surprise outcomes on rates remind us all nothing should be taken for granted and highlights the importance of keeping up to date with the team here and the latest news.
Thank you for reading my USD report, if you have any questions about exchange rates for an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries here.