This US Dollar report will address the factors that are likely to affect exchange rates in the coming weeks if you are buying abroad or making a currency transfer. The table below shows the difference in USD you would have achieved when buying £200,000 over the course of the past week.
|Currency Pair||% Change||Difference on £200,000|
High yielding interest rates with a strong economy and outlook to raise interest rates even further this year meant that the Dollar has been the investor’s choice so far in 2017, until now. The dollar’s recent fall from grace has been largely attributed to the Republicans admission that it didn’t have enough votes to pass the bill to replace Obamacare.
The market have subsequently viewed this as the latest failing from the Trump administration and does pose a serious question – Have Americans started to lose faith in Trump?
I would largely expect this negative trend for the dollar to continue. An inability to pass reforms will start to effect growth. For that reason, I do not see the Federal Reserve rushing to raise interest rates as previously planned.
The market will now scrutinise any data releases or sentiment for clues as to whether growth has been affected in the up and coming weeks although I wouldn’t expect this to start filtering through straight away. The dollar received some much needed respite yesterday following better than expected housing data and crude oil reserves.
Today, the latest jobless (employment) data will be released. A strong labour force in the US keeps the hopes of raising interest rates again this year for the FED alive. If I were trading dollars today, I would also keep an eye on the ECB interest rate and subsequent monetary policy, if Mario Draghi is anything but dovish in his statement afterwards, I would expect for investors to sell their positions in the dollar and start to fill positions in the Euro.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.