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 a month affecting Pound Sterling US Dollar rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPUSD3.82%$9980

Economics aside (for now) the US made headlines in the UK yesterday following President Donald Trump’s decision to retweet a video from far-right British group, Britain First. Prime Minister Theresa May has said that President Trump was wrong to re-tweet the video, but insisted that the UK’s and the US’s ‘special relationship’ would continue for now. The concern is that managing a relationship with America and President Trump seems to be a difficult task, one that many political analysts are saying is above Theresa May. This could spell trouble for the UK and trade deals with the US if this relationship breaks down.

Trump’s Tariffs could cause US Dollar weakness

Is Donald Trump about to get his way?

The Dow Jones passed 24,000 for the first time ever yesterday as the Senate comes closer to passing Donald Trump’s tax reform plan.

The reforms would ultimately see corporate tax rate cut from 35% to 20% and individual tax levels would be reformed to benefit the wealthiest Americans.

At present, the Republicans seem to be divided over the tax reforms, with their main concern being the effect this would have the on the lower and middle classes and the worrying signs that this could rip apart the US Government's budget deficit.

From the perspective of the dollar, passing the reforms could potentially strengthen the dollar as they are deemed as pro-business. The big question is will the reforms benefit the ordinary American and will the senate realize this before they vote on whether to pass them. If they aren’t passed, I wouldn’t be surprised to see major dollar weakness as a state of shutdown in congress would most likely occur.

Thank you for reading today’s market 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 lme@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.