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 30 days affecting Pound Sterling rates when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBPUSD2.07%$5,400
How will the Russian election interference impact the US Dollar?

Donald Trump under pressure once more

In recent weeks the commentary coming from the US is that the tax reforms Donald Trump has proposed would be put in place in the months to come. This arguably is one of the reasons why the US dollar has been making inroads against sterling and most of the major currencies lately. However news broke yesterday that the reform bills have hit a stumbling block and won’t be passed in their current state. The Republican party are divided, therefore changes will need to be made before it can be passed to the Senate. With Mr Trump adamant and not prepared to give up any of the changes, I expect this story could put pressure on the Greenback in the weeks to come.

For clients that are selling US dollars to buy sterling, GBPUSD exchange rates have dropped 5 cents in the last 3 months. To put this into monetary value a $200,000 conversion today compared to 3 months ago will generate an additional £5,698. If you are looking to buy sterling with US dollars this month making the conversion sooner rather than later seems sensible.

Will the US raise interest rates in December?

Regular readers will be aware that a central bank's interest rate has a major impact on exchange rates. When a central bank changes monetary policy by hiking or cutting interest rates, we tend to see major fluctuations for that currency.

For months forecasters have been predicting that the Federal Reserve will raise interest rates in December. Personally I believe most of the factors that warrant a rate hike are aligning and therefore a hike is likely. GDP numbers have increased, consumer confidence is at a 10 year high and the amount of jobs created last month was close to 300,000.

However inflation remains below the Federal Reserve target and this could be a reason to hold off until early next year. If the central bank towards the end of this month or early next month hint towards a hike, expect the US dollar to strengthen.

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 drl@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.