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 the past week affecting Pound Sterling rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPUSD5.12%11,180 EUR
Cable breaks 1.30

Improving economic picture emboldens Dollar

The US dollar has risen against the pound to a one month high as the increased likelihood of a US Interest rate hike, and a falling chance of a UK one helps the US dollar. This trend could however easily be upset this afternoon when we have the latest US Labour data. Today at 13.30 is the latest US Non-Farm Payroll and Unemployment data, usually a big market mover on the US dollar and other currency pairings too. There is a real likelihood the recent Hurricanes have influenced the employment situation in the United States and this release will be closely watched. Expectations are for 90K new jobs versus the 156k from last month. Therefore any number coming in below or above expectation could trigger volatility on the US dollar, GBPUSD and other currencies affected by the US dollar.

Selling $100,000 would achieve £3,200 more than just 2 weeks ago.

Could GBPUSD slip below 1.30?

With a series of economic data releases this week showing the US economy improving at a very healthy pace, there is a high expectation the US Federal Reserve will raise interest rates in December. With higher interest rate expectations for Christmas the US dollar could now go further and with sterling under performing it would not be surprising to see the US dollar make up some further ground on the pound.

Whilst Trump remains a thorn in the side of the US dollar the weakness and inherent uncertainty of events in the UK will I believe be more of a factor weighing down the pound. If you have a transfer to make in the future buying or selling US dollars making some plans around the UK interest rate decision is key.

Today’s data is vital for any clients with a shorter term US dollar requirement. Whilst there is a chance the pound could rise if the Bank of England do hike rates in November, this prospect is diminishing and mounting concern over Brexit and Theresa May’s ability to remain PM seems more likely to see the pound lower against the dollar for the rest of 2017.

With North Korean tensions subsiding for now and increased political concerns in the UK and now Europe, the US dollar is once again gaining form. With these events on our side of the Atlantic unlikely to resolve themselves for many months, maybe years the US economy and the dollar could now after a tough few months find renewed resolve and finish 2017 on a high.

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.