President Trump waded into a war of words with the Federal Reserve after suggesting he was “not thrilled” with the Fed continually raising rates. Presidents through history have rarely criticised the leader of the central bank as it’s considered the Fed should be able to act independently. More on these comments, their impact on the Dollar and economic data to be released during the rest of this week. The table below shows the rage of exchange rates throughought the past month, and the difference in return you could have achieved when selling £200,000.00 during the high and low trading point.

Currency Pair% ChangeDifference on £200,000
GBPUSD4.21%$10,680

The comments caused an immediate fall in the early hours of Tuesday morning which saw the US Dollars losing streak move into its 4th straight day, which is the worst spell since March.

FOMC Minutes and data tomorrow

This evening the Federal Open Market Committee (FOMC) meeting minutes will be released. The minutes are eagerly anticipated by investors as they provide the comments of the members who vote on the Interest Rate decision. At the moment with interest rates being the main focal points these could be a market mover come the end of the day.

Tomorrow like Europe today the latest PMI data will be released along with new homes sales data. The US economy is currently on the charge and it’s hard to imagine there will be little surprise with the data, which is all expected to remain positive.

Jerome Powell Speech

Jerome Powell Speech

The Chairman of the Federal Reserve will speak at the Jackson Hole Symposium, which is a gathering of economic leaders. Powell’s speech is being eagerly awaited as the US continue to raise interest rates, however the main question now is when will the hikes come to an end.

The FED are unable to keep tightening policy as the pressure onto households and borrowing could start to become over bearing, reducing the recent increases in consumer spending and business investement that’s driving the economy.

Investors could find out the end game for the FED which could have an instant effect on the currency markets.

The US Dollar has been on a path of strengthening this year however this last week, following Trumps comments the US Dollar lost more value against most major currencies with the GBP/USD trading above 1.28.

If you’re looking to purchase US Dollars, it may not be long before the Greenback is back trading above the 1.30 level against Sterling. Make sure you’re in contact with your broker to discuss your best options in the current market.   

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

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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.