US President Donald Trump and Putin have held their first official talks in Helsinki yesterday and this meeting comes just a few days after the US had charged 12 Russian intelligence officers with hacking over the recent election in the US. The market report below looks into how the meeting yesterday could impact USD, depending on the outcome of these talks. The table below shows the difference in return you could have achieved when selling £200,000.00 during the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
Trump has not commented on this particular issue and has claimed that everything will be discussed including global trade, military and the ongoing problems between the US and China.
Trump has been very outspoken about what has happened in the past between the US and China and now wants to reignite better relations between the two global powers.
A few years ago tensions escalated when Russia annexed Crimea by invading Ukraine and relations broke down between Russia and the previous administration.
As yet the meeting has not caused too much of a ripple for the US Dollar but I’m confident that if the talks go well this could lead to further Dollar strength as it can only be good for the global economy.
The US Dollar has maintained its recent good run against the Pound and this was helped by US Retail Sales coming out as expected yesterday afternoon at 0.5% for June. Retail Sales were also revised upwards from the previous month and this is the fifth time in a row that the data has risen.
As the US Federal Reserve has increased interest rates twice this year and now seven times since December 2015 I fully expect more rate hikes to come before the year is out and this is why I would not be surprised to see GBPUSD rates fall towards 1.30 in the near future.
According to the DXY US Dollar Index, which measures the Dollar against a number of different currencies, the Greenback is now at its highest levels all year. The US Dollar has remained strong as a lot of global investors who have been concerned about the ongoing US China Trade Wars have sought the safe haven of the US Dollar.
However, in the longer term the Dollar could start to weaken as a strong Dollar will lead to US consumers buying goods and services from overseas and therefore contribute to a rising Trade Deficit.
Therefore, if you’re in the process of buying US Dollars in the short term it may be worth taking advantage of current GBPUSD 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.
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