This US Dollar report will examine the factors that could affect exchange rates in the short term 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% ChangeDifference on £200,000
US jobs back in focus

Will the Dollar continue to strengthen against the Pound?

The Pound vs US Dollar exchange rate has continued to fall recently after a brief period above 1.30. The US economy has been showing signs of strong growth recently and combined with positive employment figures recently this has led to the Dollar strengthening against the Pound.

Yesterday saw the release of US Industrial Production which showed output rose by 0.2% compared to the expectation of 0.3%. Manufacturing also showed a fall but this was counterbalanced by strong manufacturing employment data. The weaker Dollar vs the Euro is helping to continue to increase the order books in the US and this is helping the overall economy.

With mining remaining strong as well as an improving oil price the sector is deemed as fairly positive at the moment. Indeed, one suggestion is that USDGDP could even hit 3%+ for the third quarter of 2017, which is clearly much higher than the UK which has had its growth forecast downgraded by the Bank of England for both this year and next.

We also saw the latest set of Initial Jobless Claims which highlights the strength of the employment market in the US and provides the Fed with further evidence in support of another interest rate hike. The Federal Reserve remain split as to what to do in terms of rate hikes with one side showing caution with the other worries about the delay. I personally expect at least one more rate hike to occur as the US economy is clearly in a strong position.

This is part of the reason why the Dollar is strong against the Pound and with the FOMC due to meet in September I don’t think we will see a rate hike then, but I do expect one more before the end of the year particularly if the economic data continues to show signs of improvement.

If you are planning a foreign currency transfer then contact your account manager here to discuss the options open to you. Indeed, if you’re planning to sell US Dollars but don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you, feel free to get in touch on 01494 725 353 or email me here.


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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.