This article discusses the factors that could affect USD rates over the coming weeks in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low since the beginning of the year:
In my personal opinion, I feel the 1.40 mark could happen over the coming weeks and months ahead. With the USD currently in free fall against many of its other major currency pairings I can certainly see this trend set to continue in the coming weeks ahead.
With President Trump still struggling to pass many of his election reforms, he has still not been able to get the support he needs to pass the much discussed healthcare reform. This is still causing US Dollar weakness and highlighting the lack of confidence currently in the latest President. Since Mr Trump has come into the White House we have seen the Dollar drop a shocking 12% against Sterling and I think this is set to continue. At the time of writing this report the rate was 1.361.
The US Fed has confirmed that next month it will start to unwind its Quantitative Easing (QE) programme. The Fed laid out plans to reduce the balance sheet, which is currently sat at an enormous $4.2tn. In the same announcement they also held the current interest rate, but went on to suggest that one further interest rate hike was likely during 2017.
The limit on the reinvestment is scheduled to increase by $10bn every three months to a maximum of $50bn. Off the back of this news the US Dollar rose sharply against many of the major currencies, hitting levels not seen since earlier this month. It was up over a cent against Sterling at 1.3475.
As expected interest rates in the US were kept on hold last night at 1.25%, the US Fed had been expected to try and increase interest rates 4 times over the course of the calendar year, but so far has only managed two rate rises. I am expecting at least one further rate rise this year possibly in December and another steady increase of 0.25%. This would in my view certainly help a currency that’s value has taken a nose dive in recent months.
For more information on how future data releases could affect the US Dollar call our trading floor on 01494 725 353.
Easy, friendly and hassle free. I’ve used many times over nearly 10 years, and always a simple transaction. Can’t recommend enough.
Great, fast, friendly service. Best rates.
We found our experience with Foreign Currency Direct very easy. The person dealing with our transaction was very helpful and friendly. We would definitely recommend them.