With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. This US Dollar report looks at the factors likely to affect exchange rates in the short term for those looking to make a transfer. The below table shows the difference in Dollars you would have achieved when buying £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
Sterling started the day yesterday slightly weaker than on Friday, as investors started to look towards this week’s US interest rate decision and wound down their positions ahead of Theresa May’s landmark speech on Friday.
The pound dropped nearly 0.4% against the dollar meaning a £200,000 transfer at the high compared to the low yesterday would have equated in over $2300 difference.
This Wednesday is a key date for the US Federal Open Market Committee as they meet to discuss their latest interest rate decision.
There is no change to policy expected at this decision, however the US Fed are likely to start to unwind their asset buying purchasing scheme (quantitative easing), clearing their balance sheet which is likely to fill investors with confidence regarding a healthy US economy and could therefore help to strengthen the Dollar against Sterling once more.
This is likely to start next month as they wait for the US economy to return to normal following the devastating hurricanes the US has seen recently.
The FED are also likely to provide an insight into future rate hikes in the US. Chairlady Janet Yellen will provide a statement which should make it clear if there will be another hike in 2017, at the start of the year three hikes were forecast so far there has been two. This may cause volatility and I’m confident that the dollar is likely benefit from this. Additionally for any clients looking at buying dollars, Friday’s speech by Prime Minister Theresa May regarding our position on Brexit could easily be Sterling negative.
For clients looking at buying dollars acting before this evening could well make sure you’re trading near the recent highs. Considering in the last week a $200,000 transfer costs £5,000 less, get in touch with your broker on 01494 725 353 or email me here to capitalise on the current rates.