Pound to US Dollar exchange rates have been unable to break the 1.30 resistance level but tomorrow's big day for the UK could see Sterling buck the trend. The below table provides Pound to US Dollar exchange rate movements year to date (YTD).
|Currency Pair||% Change||Difference on £200,000|
Despite gaining almost 5% against the US Dollar in just the past month alone, I personally think that the Pound will struggle to breach 1.30 in the same fashion that the Pound to Euro exchange rate has struggled to breach 1.20. With cable (GBP to USD) currently sitting at over 1.29 at the mid-market level I think the current levels are attractive for Sterling sellers, when we consider both recent history (in terms of the exchange rates available) as well as the Fed Reserve Banks plans to raise interest rates in the US another 3 times this year.
There is a very busy day for the UK this Thursday in terms of economic data, with the interest rate decision being announced by the Monetary Policy Committee. Although no changes are expected I think if the UK powers that be plan to begin raising rates as the US Fed does, we could see an impact on the GBP/USD exchange rate.
Those of our clients concerned with USD exchange rates will be aware of the potential impact of a Donald Trump comment or tweet can have on the greenbacks value, so this potential market mover should always be watched although I do think markets are being accustomed to his outbursts.
This Thursdays could be a short term market mover, especially if there’s hints of bullish monetary policy movements from the BoE.
Whether or not the US goes on to raise rates will also impact US Dollar sentiment in my opinion, and they’re running out of time to follow through with their intentions after raising rates just once this year.
This Friday could also be busy for US Dollar exchange rates as Retail Sales data and Inflation data will be released at 1.30pm UK time. Feel free to get in touch if you wish to plan your transfers around this time as rates could swing if the data deviates from expectations. Call us on 01494 725353 or email me here to find out more.
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