US jobless claims came in as a surprise after last weeks Non-Farm payroll figures. This will be welcomed by Janet Yellen and could improve the likelihood of a hike from the FED.

Jobless claims data points to a healthy labour market, despite disappointing Payroll data last week.

Jobless data released yesterday provided the dollar with some much needed strength following the worse non-farm payrolls data since 2007. In a week that was quiet in terms of economic releases, yesterday’s data release was a welcomed sight for clients looking to buy sterling with dollars. Janet Yellen, Fed chair lady stated on Monday that data which affects the Fed’s medium or long term outlook would only impact the decisions regarding monetary policy. Despite these comments and a stronger than expected unemployment report, I still feel that the EU referendum is creating too a strong headwind for the US to raise interest rates.

Will the dollar benefit from the global uncertainty created by the EU Referendum?

Dollar sellers may be presented with some fantastic opportunities in the next week or two. As the dollar is a ‘safe haven’ currency, during times of global uncertainty the greenback is often used by investors to protect themselves from volatile market, as investors will put their funds into gold which is sold and bought in USD.

If you want to fix today’s exchange rate to protect yourself from any market volatility, then a forward contract will do just that. By paying a small deposit you can fic an exchange for up to 18 months, removing the worrying of constantly watching the exchange rate.

Any clients with an urgent requirement may want to look at purchasing dollars sooner rather than later, in the lead up to the Scottish referendum USD strengthened by nearly 3 cents against GBP. Call us on 01494 725 353 or email me here to make an enquiry.


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