This US Dollar report will address the factors that are likely to affect exchange rates today if you are buying abroad or making a currency transfer. The table here shows GBP/USD movement on Friday:
|Currency Pair||% Change||Difference on £200,000|
The US Dollar has lost significant ground over the majority of major currencies of late. The Euro sits at the best levels against the Dollar since 2014 and GBP/USD briefly hit 1.43 last Thursday, the highest levels since before the EU referendum.
US President, Donald Trump spoke at the World Economic Forum in Davos on Friday and reiterated how firmly he believes in putting “America First.”
He said that trade reforms would create international prosperity, but his actions speak louder than words and his current demands in regards to the North American Free Trade agreement are considered to be unrealistic and could really hurt both Canadian and Mexican economies.
He was very positive hailing the US economy, saying “Growth is strong and the stock market is smashing one record after another. Business, consumer and economic confidence is the highest in decades.”
He continued by stating “The world is witnessing the resurgence of a strong and prosperous America.”
Despite Trump’s tone it did little to strengthen the Dollar, but the impact could be more than meets the eye as it could be seen as restraint to the current fall for the green back across the board. This theory is backed by Friday’s small drop in GDP from 3.2% to 3%, and the Dollar slightly strengthening.
Core Personal Consumption Expenditure is due out later today. It is a measure of how much consumers spend on average in a month. It gives an idea on inflation levels and as US rate hikes are being held back due to struggling inflation this release could have more importance than usual and could impact the Dollar.
Fed Interest Rate Decision – On Wednesday we will see the Fed interest rate decision. Considering the current situation in the US I would be very surprised to see a rate hike at this meeting. The monetary policy meeting following the decision however could be a market mover.
Fed’s Monetary Policy Statement could give indication to monetary policy moving forward.
Following the Interest rate decision there is the monetary policy statement. This could prove influential as the possible three US rate hikes have been put in doubt this year. If there is any hint to how many predicted hikes may occur this could cause volatility to Dollar rates.
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.
Always helpful and extremely efficient. You have saved me a great deal of money over the last 10 years I have lived in Cyprus.
Excellent overall experience, helped by professional advice, quick and simple transaction and a very competitive rate.
Very efficient and professional. Excellent customer service.