The US took to the polls yesterday afternoon, which marked the 2 year anniversary of Donald Trump being elected as President, for the US midterm elections. These elections take place every two years and gives us the best insight into how the people of the US view how the President and his Republican Party are faring so far.
The full results of these elections will be clearer as we head into the morning, however it has been announced this morning that Trump and the Republicans have lost the majority in the House of Representatives for the first time in 8 years, however he has gained some seats in the Senate. This means that going forward it is likely to make it difficult for Trump to pass new legislations through lower Congress. The US dollar has begun the day lower against the pound and euro, and clients with US dollar exposure could benefit from getting in touch with their account manager here this morning to understand what this means for their currency purchase, and how movements throughout today could impact the cost of their transfer.
|Currency Pair||% Change in 1 month||Difference on £200,000|
All eyes will now turn to Thursday evening when the Federal Reserve will announce its latest Interest Rate decision and Monetary Policy Statement, which could result in significant US dollar movements. The US economy has been performing incredibly well in recent times, and all signals point towards the FED continuing to raise Interest Rates well into 2019. US Unemployment levels are at record lows of 3.7%, which was the lowest level recorded in 49 years just last week. Average Earnings are also increasing significantly and were released last week at 3.1%, showing growth at the fastest pace since 2009, and 250,000 new jobs were created in October. US GDP (Gross Domestic Product) is also one of the highest in the world at 3.5%.
That being said, it is widely expected that the FED will decide to keep Interest Rates on hold at 2.25% at Thursday's meeting, as FED officials have suggested that they will continue with its gradual pace of hikes. However if the central bank decides to surprise the markets and raise interest rates to 2.5% we would almost certainly see the US dollar rally against all of its currency counterparts. As this announcement is outside of our trading hours, clients have the option of securing a Limit Order contract where our systems will automatically book your currency at a rate determined by you, as soon as it reaches this level, and can help you to capitalise on rate movements in your favour as soon as they happen.
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.