Like most of the other major currencies, the Greenback was able to capitalise on a rocky start to the week for Sterling exchange rates, with Cable falling even further past the 1.30 mark and forcing the Pound to surrender a big chunk of it’s hard fought gains from last week. More on the economic data out this week for the Dollar and how it could impact GBPUSD exchange rates below, with the table showing the range of exchange rates and potential Dollar returns when selling £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
With GBPUSD now sitting in pivotal mid 1.28 levels, Dollar holders will now be questioning whether the 1.26 mark from early last month could be achieved once more, particularly as the UK struggles amid more political confusion domestically.
This afternoon’s Business confidence release (Markit Economics) could disappoint those holding out for such gains. The survey has stagnated since the start of the year so it might not fill the markets with confidence given the ongoing trade negotiations with both china and NAFTA members.
For the dollar to holds its ground below the 1.30 mark amidst all this global uncertainty, investors will need clear indications the US has the capability to remain competitive on the international stage despite key trading partners potentially turning their backs.
Similarly, US trade data will be under added scrutiny on Wednesday and has the potential to bring even more volatility to US Dollar exchange rates. Those looking to buy Dollars may want to plan round this event to make sure you can make the most of the next spike in your favour.
Of course, the main market mover state side for this week will be Friday’s Nonfarm payroll data. Because the release plays such an important role in the Federal Reserve monetary policy decision making, another strong reading on Friday would further justify the Fed’s aggressive stance, potentially sending the USD’s value higher. As a result, I feel confident the Dollar will end the week more expensive than it started.
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.
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