Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements for this year to date, and how a purchase of £200,000 would have been affected when buying at the high levels compared to the low.

Currency Pair% ChangeDifference on £200,000
GBP/USD+5.23%$13,523.79
USD weakens as the year starts

US Dollar suffers as Hurricane hits Houston

US President Donald Trump is being tested once again as almost 12-years exactly since Hurricane Katrina hit the States, the US now has another natural disaster to deal with in the form of Hurricane Harvey. Much of the southern territory of Texas is now at or below sea level after the most powerful hurricane in 50-years has hit the state; yesterday afternoon it was announced that the Houston dam had overflowed as 10s of thousands of volunteers did their bit to help. As it stands the total cost to the region hasn’t been announced, but oil prices have fallen as a number of oil refineries have been forced to close which could result in less demand for North American crude. At the same time US gasoline prices surged to a 2-year high so we’re already seeing the impact on the economy.

The issues surrounding the unfortunate unfolding’s in Houston have added to the issues the US is already facing. Financial markets are now of the opinion that there is less chance of a rate hike after Fed Chairlady Janet Yellen opted not to comment on rate hikes during her speech last week at the Jackson Hole Symposium, and there is also the issue of whether Trump will replace her next year.

Add this to Trump's quick reaction to North Korea's actions late on Monday night, it appears that many investors would rather hold funds in other safe haven currencies for now rather than the greenback or at least that’s what the US Dollar Index is suggesting (the USD index currently sits at a 15-month low).

Key Data releases for the US Dollar this week

At 2.30pm today we see the release of US GDP data for the 2nd Quarter this year. The expectation is for an improvement to 2.7%, so expect any deviations from this figure to result in movement for the US Dollar. There is a lot of data scheduled for release this Friday out of the states but I expect the Non-Farm Payroll figures released at 1.30pm to be the standout release as it covers new jobs in the US excluding agricultural ones.

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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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.