This report will address the factors that are likely to affect exchange rates today if you are making a currency transfer.
Yesterday the slide on the Dollar following Monday’s election debate came to an end. Durable goods orders for the US economy came out and defied expectations of a contraction.
Durable goods are a measure of long-term orders in the US economy. Essentially these are mass orders which take months, even years to fill. Say a car manufacturer needs tens of thousands of a particular model, they are buying these with the expectation of a consumer market in the future. This is why the figure can translate into confidence on the US Dollar.
Markets were anticipating a heavy fall this month, likely with businesses waiting for the outcome of the election and the recent US FED interest rate decision before making long-term plans. But once more it held steady. Instead of a contraction of 1.4% buying activity stayed the same as the month before. The US economy is steadily ticking along, which is why the US Dollar remains close to 31 year highs as it stands.
Unsurprisingly, given the data above, markets are expecting an overwhelmingly positive reading for US growth figures for the year at 13:30 BST today.
Forecasts for yearly growth have jumped by 0.2% from 1.1% just last month to 1.3% now. At face value it may not seem like much, but this represents billions in revenue for the economy, and has a dramatic impact on the Dollar’s value. The confirmation of these market calculations on US growth may be enough to push the central level on USD/GBP back towards the more lucrative end of the 31 year highs we have been enjoying.
The Dollar has struggled to hold its value below 1.30 for very long, as such I suggest that if you have a Dollar selling requirement, you should contact your account manager here now to discuss the options open to you to ensure any tempting levels are seized quickly to avoid the detrimental impact of being ‘last to the party’ on currency movements.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me at firstname.lastname@example.org.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.