This USD forecast examines the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference in US Dollars you would have received when buying £200,000 at the high compared to the low for the past six weeks.
|Currency Pair||% Change||Difference on £200,000|
Cable rates suffered its worst losses seen since December 2016 following last week’s shock election result, hitting sterling by almost 2.5% overnight and forcing it to surrender its hard-earned gains since the snap election was first called back in April.
Unfortunately, sterling’s woes could be set to continue short term as the markets continue to digest the adjustments made by the political counterparts in the build up to next week’s Brexit talks. Evidently, investors are losing faith in the UK’s ability to negotiate trade deals with the EU that will ensure long term competitiveness on the international stage and stability for the pound amid all this political uncertainty. I must say, for now I find it hard to argue with them.
In recent months the Federal reserve have been forced to re-evaluate their ambitious hints to multiple rate hikes this year as Economic data continues to prove inconsistent.
In fact, Inflation, Production and Retail sales figures are all set to disappoint in the early part of this week which may well help Dollar buyers recover some of the heavy losses they have felt over the weekend. I do believe these will only present short-term spikes however as the Fed look set to interest raise rates on Wednesday afternoon.
Trump categorically denied once again any interaction with Russian officials during his election campaign back in October, labelling former Mr Comey a coward via twitter following the former FBI testimony last week. Dollar holders will be hoping that US Attorney general Sessions will be able to bring further clarity when he will face the senate intelligence committee on Wednesday. Former US attorney Mr Brahara on the other hand, an outspoken critic of Trump since his sacking back in April has called for Trump to be brought under official investigation as there isn’t enough evidence that suggests he isn’t guilty. The whole scenario may well cause investors to question Trump’s credibility going forward. Given we at currently sitting at near multi decade highs for those selling dollars, it may be wise to put a plan of action in place before this story gets a chance to escalate further.
Thank you for reading my USD forecast, if you have any questions about Dollar exchange rates I would be more than happy to discuss them – please feel free to get in touch here.
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