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% ChangeDifference on £200,000
GBP/USD1.84%$4760

USD trading at its lowest levels since August against foreign currencies

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?

What next for the USD?

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.

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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.