With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in USD you would achieve when buying £200,000.00 during the high and low points for the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD6.22%$16,760

Breaking News

The Dow Jones experienced its worst one day points fall in its history. This has prompted a huge sell off in the global markets, prompting a slide in Japanese and Australian markets overnight with the carnage expected to filter through into European and American markets this morning. Expect more news throughout the day and for a volatile day on the markets.

Investors expect US Interest Rate hike in March

Jerome Powell Sworn in

The 16th Chairman Jerome Powell yesterday took the oath replacing Janet Yellen as leader of the Federal Reserve. Powell takes control with a stock market that has boomed but now showing signs of uncertainty along with plenty of focus into interest rate movements. Powell has previously said that he plans to continue with the current policies however there is always scope for a surprise.

There is an expectation that there will be three interest rate hikes in America this year. In March the first hike is expected however if inflation doesn’t continue to increase Powell made be forced to make a difficult first decision.

There are several members of the Federal Reserve speaking this week which will provide some insight into their next move. However if they’re anything like Janet Yellen they may not be giving too much away early on.

GBP/USD back under 1.40

For only the second time in 2 weeks the GBP/USD rate fell below the 1.40 level. Over the past few weeks the rate has jumped up several percent with the difference between the high and the low offering $8140 extra on a well-timed £200,000 transfer.

The US Dollar took a dramatic tumble following comments from the Treasurer Steven Munchin, in which he declared he wasn’t worried for the dollar to weaken. However the lost ground now appears to have been made up and I wouldn’t be surprised if the movement continues.

PMI Data helps surge

Yesterday the latest Non-Manufacturing Purchasing Managers Index data came back significantly better than expected for January. Good data will help the US Dollar to continue to gain and no doubt confirm to investors as to whether or not there will be multiple rate hikes as expected.

If you’re looking to purchase US Dollars make sure you’re in contact with your broker. Setting limit orders or rate alerts could make sure that you’re trading at the right time.

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.