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Donald Trump ripped into China yesterday afternoon from his twitter account accusing them of not coming through with buying more US agricultural products such as Soya beans. Trumps team are currently meeting with the Chinese with rumours surfacing earlier in the week that some sort of deal may be close. However following yesterday’s outburst, it seems unlikely that there is much truth behind a deal being around the corner.

Currency Pair% Change (Month)Difference on £200,000
GBPUSD4.75%$10,640
Could the US Dollar come under selling pressure?

Trump vs Federal Reserve

Late this afternoon the Federal reserve are expected to deliver their latest interest rate decision, which analysts forecast will be a 0.25% cut. Trump has relentlessly commented on the Fed’s actions in the past whilst he has watched them raise interest rates 2% since he became President in 2016.

Trump has called for there to be cuts to the interest rates so that consumers would have increased expenditure rather than paying back more on borrowings, his policy has been to lower taxes whilst the Federal Reserve have been raising rates. Some may see this is the Fed finally giving in to the President’s demands however having followed their own path for nearly three years the economy may need the cut.

Federal Reserve Chairman Jerome Powell will provide his latest comments and their may be the question of pressure from President Trump, in previous statements he has laughed these off and this could stay the same.

The key indication the market may be looking for is if there are plans for future cuts this year or whether they make this change and see what happens in the near future. There may be some changes to the market once the decision is announced but so often is the case that the markets could have potentially priced in the expected. If you’re looking to make a transfer in the near future involving US dollars, you may wish to get in touch with your broker to discuss your options.

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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.