Getting the best USD exchange rate can be helped by understanding what is driving rates. Below are movements over the last week affecting GBP/USD rates and the difference when buying £200,000:

Currency Pair% ChangeDifference on £200,000
GBP/USD1.73%$4,680 USD
Trade Tariffs Continue to Impact on the Dollar

US Dollar weakness halted but still likely

The recent gradual decline of the US Dollar was dealt a surprise on Friday as the US economy created more jobs than expected in the latest Non-Farm Payroll report. Detailing the number of new non-agricultural jobs being created, the surprise increase to 209,000 versus the 180,000 expected helped the Dollar to claw back some ground after a tough few weeks.

This week is vital for the US Dollar with a series of economic data releases which could impact GBPUSD exchange rates. Developments and trends on the US Dollar are also important for clients buying and selling other currencies as behaviour on the US Dollar can influence a number of other currency pairings.

The biggest news for the US Dollar this week is the Inflation data released Thursday and Friday. Friday’s job market data has helped the US Dollar to rise but this could easily be undone on Friday.

Inflation data is predicted to show further declines and remain low putting further pressure on expectations of interest rate hikes in the future. The current spike for the US Dollar could easily be shifted by Friday so if you need to sell USD for Pounds moving sooner than later could be best.

Will GBPUSD remain above 1.30?

Lately the US Dollar has weakened as market suspicions and concerns over Trump and positive effects he would have on the US economy melt away. Whilst Friday’s news has settled some of the more immediate concerns there are still many unanswered questions.

Donald Trump was very quick to take the credit for the improvements but should be mindful he too will now be taking responsibility if the numbers fall. Looking at the trend of behaviour I am inclined to predict more uncertainty than less from the Trump administration. I would expect therefore GBPUSD to remain above 1.30 and stand by my previous belief that the US Dollar will continue to soften.

However we must also not forget the US Dollar’s status as a safe haven currency and with North Korea hitting the headlines once again, any surprise military activity could lead to the US Dollar rising. A series of trade sanctions on coal and seafood, two of its biggest exports signals a further deepening of the crisis.

The US Dollar as a safe haven currency will appreciate in times of uncertainty and should these sanctions trigger a military response from North Korea we could see dramatic changes on the currency.

If you have any questions about US Dollar exchange rates I would be more than happy to discuss them – you can contact me directly with any queries at jmw@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.