With the currency markets constantly moving, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table displays the difference in Dollars you would have achieved when buying £200,000 over the past month.

Currency Pair% ChangeDifference on £200,000
GBP/USD1.7%$4,600

Sterling makes gains against the greenback despite Political uncertainty

Sterling’s gains yesterday were mirrored against the USD, with the Pound finding some support early this week.

GBP/USD rates moved through 1.29, with a move through 1.30 now a real possibility. The Pound’s value has increased over recent weeks despite the current cloud of uncertainty hanging over the UK, both economically and even more poignantly at the moment, politically. Sterling has still found enough investor support to test this key threshold against the greenback and although the USD has found some support around this level, it may not be enough to protect it from further losses.

Trump’s decision to pull out of the Paris Accord agreement lambasted by world leaders

The current market is extremely difficult to predict but there is no doubt that business & investor confidence in the US economy has dropped. President Trump has a tendency to destabilise the market with his extreme views and bullish comments and the latest stage to unfold is his decision to remove the US from the Paris Accord.

This has been met with distain by many of the world’s leaders and indeed some of the US' closest allies. Climate change is an issue the previous President Obama took extremely seriously and it once again highlights to many Trumps’ lack of leadership ability.

This has put pressure on the USD and with economic data in the US patchy at best, it is unlikely in my opinion, that the USD will return to the dizzying heights of 1.25 or below against GBP.

The Pound itself may struggle to sustain any major advances beyond 1.30 in the short-term. Of course, tomorrow’s general election will have an influence on the Pound’s ability to drive forward but my overall perception of the market leads me to conclude that GBP/USD will likely increase over the coming months, especially when you also consider the history on the pair.

With little economic data of note out for the US over the coming days, GBP/USD rates will likely be shaped by tomorrow’s UK election result and also the on-going fallout on Trump’s decision to distance the US from the Paris Accord.

For more information on how future data releases could affect your US Dollar requirement, call our trading floor 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.