Jerome Powell, the new Chairman of the Federal Reserve is due to speak twice this week. Investors will be looking to these first speeches for insight into future monetary policy, with interest rates a specific topic of interest. The table below shows the difference you could have achieved when buying £200,000.00 during the high and low points of the past week.

Currency Pair% ChangeDifference on £200,000
GBPUSD1.9%$5,320 USD

Jerome Powell set to make appearances

This week will see appearances from new Governor of the Federal Reserve Jerome Powell in front of the House of Representatives Financial Services Committee and the Senate Committee on Banking, Housing and Urban Affairs. He is due to speak today and tomorrow.

This will be the first public appearance of the new Governor and due to this reason, it would be highly likely that we may hear his views on future financial policy and investors and speculators will be waiting for any hints on how he plans to approach interest rates in the year ahead.

His first FOMC meeting as chair will be held on March 20-21and with analysts expecting three interest rate hikes in the year ahead, one being in March any change to this expectation will lead to Dollar volatility.

Economic data that could keep the dollar strong

Very busy week for U.S economic data

Yesterday saw the release of New Home Sales data which came out a little worse than expectations, which is two months in a row of weak readings. The general feeling however is that due to poor weather in the North East of the United States these figures may not be a totally true reflection of the current performance.

Today we have numerous economic releases of interest including Trade Balance, Durable Goods orders and Manufacturing data from 13:30pm through until 15:00pm, with Jerome Powell speaking at 13:30pm as mentioned earlier in this report.

On top of the new Fed Governor’s speeches today and tomorrow we have a huge amount of economic data due out, which will also have an impact on USD exchange rates.

Tomorrow Powell is due to speak a little later at 3pm but the release of data comes out from 13:30pm once again. GDP (Growth) figures and Core Personal Consumption are the first releases of the day from the States, with Pending Home Sales and the new Fed Governor speaking at 3pm.

13:30pm is the key time this week for those of you with a Dollar exchange to carry out in near future, again another large release on Thursday with inflation and Jobless Claims data both coming out.

Manufacturing and Construction figures are out at 15:00pm with Manufacturing expected to have improved and Construction to have dropped off a little, so these two may even each other out.

Friday is a little quieter with the main focus being the Banker Hughes Oil Rig count which is out shortly after the U.K market closes and at 6pm.

For releases outside of office hours a limit order can sometimes be a great option, meaning if your chosen rate becomes available even merely for a matter of seconds then your currency will be bought out automatically for you.

To contact one of our experienced brokers to discuss Dollar exchange rates feel free to call our trading floor on 01494 725353 or email me using djw@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.