This US Dollar report will address the factors that are likely to affect exchange rates today if you are buying abroad or making a currency transfer. You will see in the below table the difference in USD you would have achieved when buying £200,000 at the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
First and foremost a happy Independence Day to all of our U.S readers. One thing to note is that this does mean that trading levels will be a little thinner around the world so exchange rates sometimes can move that little bit more off of minor data releases. There is very little out in the U.S due to the Bank Holiday but should construction figures in the U.K or the U.K inflation hearings throw up any surprises then GBP/USD exchange rates may be in for a volatile day.
Tomorrow evening we have the release of FOMC minutes, which is essentially the minutes from the last interest rate decision meeting in the U.S. As expected the Federal Reserve did raise interest rates to 1.25% which led to very little market movement. The key now is any hints to future rate movements. At the start of the year the Fed had indicated we would see multiple interest rate hikes throughout 2017 and the minutes may give us an idea as to what their plans are in the coming months. An interest rate hike is generally seen as positive for the currency concerned and a cut negative so even the mere hint of a further hike in the coming months and the GBP/USD exchange rate could easily drop back through 1.30 and beyond. Equally, if the discussions indicated that this may be the last rate movement for a while then we may see the Dollar weaken off a little.
The final release of the week for the States in Non-Farm payroll data which is due at 13:30pm on Friday. Non-Farm data is the number of people In Non-Agricultural employment in America and investors will be looking for an improvement on the dire figure that we saw last time around.
Non- Farm data is a great barometer as to how the U.S economy is performing and can have an impact on the Federal Reserve’s thoughts on interest rate movement and other fiscal policies.
I still feel that this is a fantastic time to be selling USD and that eventually the levels we have witnessed recently of 1.30 and below may not be around for too much longer for USD sellers.
If you have USD to sell you are still over 10% up on what you could have achieved just over one year ago. If you are in the position that you need to buy or indeed sell Dollars for any major currency then feel free to contact our trading floor today for a more in depth overview of what lies ahead. You can call us on 01494 725353 or email me here and we will be more than happy to help you.
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The whole process was simple by Daniel Wright. He described the various stages to the process very clearly & was always available to talk to. A very knowledgeable & friendly person! I highly recommend Foreign Currency Direct.
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Would always recommend them. They have their fingers on the pulse and could not be more helpful. Have dealt with Daniel Wright every time who is polite, patient and charming.
We spoke with Daniel for only a few minutes and the funds were in our Spanish Bank Account later that day at the best exchange rate one could get on the day. We would never use anyone else to transfer our funds abroad.