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 30 days affecting USD rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
Yesterday afternoon Chairlady of the Federal Reserve Janet Yellen gave her latest testimony. Mrs Yellen speech didn’t provide any further information than that we already knew. She emphasised gradual interest rate hikes are required however it was important to monitor inflation. It is important to note that Chairlady gave no indications to when the Fed plan to make their next gradual rise.
Mrs Yellen speech was similar to Fed’s Brainard speech Monday evening, however Brainard was slightly more dovish as she stated inflation could fall again on Friday which would therefore reduce the chances of an interest rate hike at the September meeting.
For clients that are involved with US dollars it is important to keep your eye on inflation data released Friday at 1.30am. If inflation falls below the current 1.7% I believe it is very unlikely the FED will raise rates until December at the earliest. If inflation is released at 1.7% or above a September hike looks more likely.
With US officials currently investigating Russian meddling into the US election, it comes as no surprise that the US dollar is under pressure due to Donald Trump Jnr’s meeting with a Russian lawyer before the election campaign. It has been reported that the Russian lawyer had material that would compromise Hilary Clinton’s position and therefore damage her chances of becoming president. By all accounts Trump Jnr was happy to find out more however the meeting only lasted a short amount of time and has been reported as a waste of time.
I wouldn’t be surprised over time this story to be blown under the carpet, however for any client that has involvement with US dollars it just shows at any point Donald Trump or Donald Trump entourage have the potential to influence US dollar exchange rates.
For more information on how future data releases could affect your USD requirement, call our trading floor on 01494 725 353 or email me here.
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