Donald Trump’s new administration has failed at its first attempt recently as members within his own party forced Republicans to cancel a vote on healthcare reform. This was one of his promises in his campaign to get into the White House. It casts doubt on his ability to deliver on other promises and unsettled investors as they were also hoping for imminent tax cuts that may now not materialise.
This news changed the value of the US Dollar as investors pulled money out of the greenback over the last week and when added to that the pound gains resulted in GBP/USD rates rallying up. Rates are currently sitting within a cent of the highest levels that we have seen within the last 3 months.
Moving forward the Twitter account of President Trump seems to be somewhat muted and instead investors are looking at the success of the new administration making progress with the pledges made. I very much think the value of the USD is somewhat linked to any success or failings by the new administration in delivering their promises.
On Friday the FED reached a big milestone back to the road of normality following the financial crises in 2008, with their target inflation level of 2% being reached. This pushed up the value of the USD making it more expensive to buy.
The market expectations for Fed rate hikes have changed a lot recently, from the initially forecasted 4 through 2017 to probably 2 further hikes. The likelihood of a change to interest rates in the US will continually impact the value of the US Dollar so should be keenly watched by all with exposure to the USD.
This afternoon Manufacturing figures are released for the US and are expected to show a slight fall. This in turn will probably make the USD cheaper to buy and as a result USD buyers may wish to move this afternoon at potentially some of the highest levels we could see for some time.
If you have a US Dollar buying or selling requirement in the coming days and weeks, be sure to stay in touch with your currency broker so you don’t miss out on any market movements. Call our trading floor on 01494 725 353 or email me at firstname.lastname@example.org if you’d like to talk about an upcoming transfer.
First class service as ever from Stephen Eakins. Very quick and superb advice!!
Excellent service from Stephen Eakins as always. Manages to achieve a high standard of professionalism and efficiency combined with a friendly approach.
Sending money to France has been so easy. I was amazed at how simple the process was. Steve Eakins is a pleasure to deal with, no fuss or drama just a great, friendly attitude.