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 for last Friday during trading hours effecting US Dollar rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBP/USD0.9382%$2440
Hurricane Irma hits Florida

Hurricane Irma hits Florida

Hurricane Irma has now hit Florida. The 400 mile wide storm with 130mph winds is wreaking havoc. There has currently been reported three dead from car crashes in Florida and twenty five dead from when the storm hit the Caribbean. There are now three million people without power. The hurricane has reduced in strength however dropping from a category 5 to a category 2. Investors have been leaving the US dollar for fear of the economic fall out for the US economy. It has fallen in value against the majority of major currencies. It will be difficult to judge how much negative impact this will have on the economy and the value of the US Dollar until we have sufficient news in regards to the damage caused from the Hurricane. Our thoughts are with those who are effected.

Stanley Fischer resigns from the FED

The Pound now sitting at a near month high against the US dollar following the impact from hurricane Irma and the resignation of Stanley Fischer. Fischer was the vice chairman of the Federal Reserve since 2014 and has decided to call it a day following turbulent times for the FED.

The resignation has caused a decline in US economic confidence. His departure was not at the best time for the FED and there will now be four board seats from the seven vacant.

Chief economist for J.P Morgan, Michael Feroli stated “Fischer was the voice of experience and his international standing was impeccable. The resignation adds a further element of uncertainty to policy and who will be running policy next year. It adds to the cloudiness of the outlook of monetary policy.”

No doubt his boots will be very difficult to full. It is suspected his resignation is due to irreconcilable differences with Donald Trump over his economic policy. Since 2008’s economic crisis, banks and lenders have been under heavy regulation, if these regulations are relaxed there are fears the US could be brought back to the brink of another economic collapse.

CPI Data could cause volatility on GBP/USD on Thursday

Consumer Price Index data (CPI) is released on Thursday. CPI is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services.

It is a measure of inflation and has the power to move markets. I would expect a minor increase, but if figures come in away from expectations expect volatility.

Retail Sales Figures on Friday could alter US Dollar Value

Retail Sales data is released on Friday and is an indicator of consumer spending which gives an idea as to the health of the US economy. It is anticipated there will be a slight reduction which could cause dollar weakness.

Thank you for reading today’s USD report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk.

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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.