This report will examine the factors that could affect exchange rates this week 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 for the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The US Dollar has continued to maintain its very strong position against both the Pound and the Euro hitting the best rate to buy Euros since July. In a national poll, which measures consumer confidence, the Investor’s Business Daily (IBD) reported that the ‘index continues its longest stretch in positive territory in more than a decade.’
The report also saw a jump in the Personal Financial Outlook, which rose 10.5% in November showing that consumers in the US feel very positive about the future of the US economy.
In the meantime, the US stock market has hit its highest level in history yesterday. US President Donald Trump has been a bit more open towards North Korea and has almost offered an olive branch in order to end the standoff regarding the nuclear issue.
This has seen the Dollar strengthen by over 0.5% against the Pound or the difference of £770 on a currency transfer of USD$200,000 highlighting the importance of keeping your broker up to date with your particular requirement.
The jobs market in the US has shown some very strong signs in recent months and tomorrow brings with it the latest US Initial Jobless Claims, which measures the number of people filing new benefits.
Apart from a brief rise in September owing to the recent hurricanes the figures have fallen from 416,000 in 2012 to an expectation of 235,000 at tomorrow’s release, which supports the evidence of how strong the US economy is at the moment.
The Federal Reserve are due to next meet on December 13th to decide on their latest interest rate decision and as I have been writing on a number of different occasions over the last few months I think the US are ready to raise rates once again before the end of the year. Expectations are 87% for a rate hike and this is in part another reason for the Dollar strength against all other major currencies.
With the US economy doing very well in terms of GDP, inflation under control and also a very strong labour market I think another rate hike is fully justified and I think we could see GBPUSD exchange rates drop below 1.30 during the course of this month.
Therefore, if you’re looking at buying US Dollars it may be worth securing your currency in advance. If you don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!