The US dollar has improved against the pound during yesterday afternoon’s trading session as the pound vs US dollar exchange rate has been trading either side of 1.30. The US dollar has felt the benefit of a reduced global risk appetite and this is one of the main reasons for the continued strength of the Greenback.
|Currency Pair||% Change (Month)||Difference on £200,000|
On Monday evening, US existing home sales fell more than the expectation for last month, and although they do provide an insight into the US economy the markets are likely to remain focused on Friday’s US Gross Domestic Product (GDP) data for the first quarter of 2019.
The US economy has been doing very well during 2018 so another strong data release for the first quarter could result in further dollar strength so make sure you’re well prepared for what could be a very volatile end to the trading week.
The expectation for annualized year on year growth is for 1.8% so any signs of an improvement could see as strong end to the week for the US dollar.
During the course of this week we have seen the value of a barrel of oil move in an upwards direction after the US imposed sanctions on Iran’s oil supply. Oil prices have hit their highest level in six months as oil supply globally has been reduced by the US’s announcement.
The US has demanded that buyers of Iranian oil will need to stop any further purchases or face sanctions themselves.
Prior to last year’s sanctions Iran was previously the fourth largest producer in OPEC but have since had their production limited.
US President Donald Trump has claimed that both Saudi Arabia and the UAE will be able to accommodate any shortfall from the lack of production in Iran so although oil prices have been going up they may begin to stablise in the short term.
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