The USD got more expensive to buy yesterday following the latest talks between the US and European leaders. This meeting seemed to conclude with an agreement being met and suggests that further tariffs between the US and EU have been avoided. The USD report below looks into the increase seen by the Dollar as a result of this update, and the potential for Sterling to fall further against USD. The table below displays the range of exchange rates between Sterling and US Dollar for the past month, highlight the importnce of timing your transfer correctly to maximise on your return.
Currency Pair | % Change | Difference on £200,000 | |
---|---|---|---|
![]() | ![]() | 2.85% | $7,600 |
This update in trade negotiations added value of the USD resulted in it becoming more expensive to buy by almost a cent on the day. This news also helped mask some poor economic data that was released from the US throughout yesterday. Jobless data from the US showed a contraction along with durable goods orders which would have normally resulted in USD weakness.
The USD got more expensive to buy yesterday following the latest talks between the US and European leaders. This meeting seemed to conclude with an agreement being met and suggests that further tariffs between the US-EU have been avoided. This added value of the USD resulted in it becoming more expensive to buy by almost a cent on the day. This news also helped mask some poor economic data that was released from the US throughout yesterday. Jobless data from the US showed a contraction along with durable goods orders which would have normally resulted in USD weakness.
Through today we have further key data from the US as we start to see the next monthly cycle of economic data being released. Focus today will very much be on US GDP figures along with Consumer spending figures. Both are expected to show a large improvement which will likely strengthen the Dollar further making it yet more expensive to buy.
This news will equally increase the likelihood of the Federal Reserve increasing rates at their next meeting. The next decision is Wednesday of next week so the data today could very much set the tone and direction for the GBPUSD pairing for the next week. Generally most expect the US economy to continue to perform well resulting in the US raising rates next week.
As this gets priced into the market I for one would not be surprised to see GBPUSD rates threaten the major level of resistance of 1.30 in the near term. This is a level that was tested only a week ago but we have not ended the day below 1.30 since August last year.
With the UK struggling both politically and economically I personally think that seeing GBPUSD rates under 1.30 is more a question of when rather than if. Good news for USD sellers however anyone that is buying USD have seen their costs climb by nearly 10% in a matter of 3 months.
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.