Similarly to the Euro, the Pound has also lost an alarming amount of ground against the Dollar since the turn of the New Year, with a €250,000 purchase now almost £4,000 more expensive.
This loss for the Pound has mainly been attributed for similar reasons to the fall against the Euro, but with the US Fed also raising interest rates in December, the Dollar really is in the driving seat compared with Sterling at present.
After raising rates for only the second time since the financial crash in December, the Fed announced that there would be three further hikes in 2017. Many investors may take this with a pinch of salt since the Fed also made similar comments at the beginning of last year, but with Trump’s administration many are predicting that the US economy will grow at a fast pace this year and therefore there will have to be further rate hikes to keep up with his promises of further spending which should in turn see inflation rise.
Speaking earlier this week, Fed spokesperson Jeffrey Lacker issued a bullish statement in which he said "Monetary policy rates are likely to increase, and my view is that they may need to increase more briskly than markets appear to expect.” If that is the case then I believe that we could see further gains for the Greenback against the Pound and maybe even a move towards 1.10 by the end of the year.
Looking further ahead this week we also have a number of other speeches from Federal Reserve spokes people tomorrow followed by a speech from Fed Chairlady, Janet Yellen on Friday. If they echo Lacker’s bullish stance from earlier this week then we could see further gains for the Dollar. There are also retail sales figures on Friday afternoon for December at 13:30 and with these set to show a massive improvement compared to November we could see the Dollar finish the week as well as it began.
For more information on how upcoming events could affect a US Dollar transfer call our trading floor on 01494 725 353 or email me directly at firstname.lastname@example.org.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.