As traders in the U.S and Canada returned back to the markets after President’s day, both the USD and CAD weakened against the pound in yesterday’s trading session.
Sterling rose back above the key level of 1.30 and climbed by 1% over the course of the trading day, this would make a purchase of $300,000 almost £2,500 cheaper should you have picked the right time to trade.
|Currency Pair||% Change in 1 month||Difference on £200,000|
The U.S dollar has so many elements impacting it at present that its future is hard to predict, especially when you're discussing the cable rate and need to take into account Brexit complications also.
On the U.S side there are a number of factors constantly impacting dollar strength; global trade wars, Donald Trump’s approach to international politics, the safe haven status of the dollar and the Federal Open Market Committee (FOMC)'s approach to interest rates which is ever changing too.
If you have dollars to buy or sell, or any currency that is pegged to the dollar, get in touch to make us aware of your requirements, we'll be happy to discuss the different options available to manage your currency transfer.
With such a volatile dollar exchange rate a limit order may be a sensible approach. This is where you can set an automatic order to buy or sell at a specific level set by you and this order remains in the market overnight too, this is particularly handy as when the U.K markets close the GBP/USD exchange rate still keeps moving as economic data releases such as the Federal reserve Meeting Minutes are quite often released outside of trading hours.
Should you wish to discuss a limit order or any particular transfer you have pending then feel free to contact our trading floor on 01494 725353 and one of our experienced traders will be happy to explain this handy market tool to you.
Tonight at 19:00 we have the release of the FOMC minutes which will show us what the members of the Federal Reserve (Fed) discussed and how they came to their conclusion in the last Fed interest rate decision in the U.S.
The key points investors and speculators will be looking for are hints to what the Fed plan to do over the course of the year with interest rates. There have been suggestions that the Fed may have discussed pausing their rate hike cycle , which could lead to USD weakness.
One of the reasons the dollar has been so strong is due to the continuous interest rate rises, making the dollar more attractive to investors and therefore increasing demand. Should there be the suggestion that the rate rises are to be halted then we may see the dollar decline further in trading later this evening.
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We spoke with Daniel for only a few minutes and the funds were in our Spanish Bank Account later that day at the best exchange rate one could get on the day. We would never use anyone else to transfer our funds abroad.