From the latest set of minutes from the Federal Reserve we have seen an indication of another interest rate hike in June of this year. The USD report below discusses how this hint at another rate hike could impact USD rates in the coming months. The table below shows the difference in USD you could have achieved when buying £200,000.00 during the high and low points this week.

Currency Pair% ChangeDifference on £200,000
GBPUSD0.77%$2,179

Trump pulls the plug on North Korea meet

The Dollar felt a little pressure in trading yesterday afternoon as news arose that North Korea and the U.S are back at it again.

Donald Trump yesterday cancelled what would have been a historic meeting with Kim Jong Un in Singapore next month as tensions rose between the two powerful leaders once again.

Trump has accused North Korea of “tremendous anger and open hostility” and this political uncertainty will no doubt impact currencies around the world as it will alter attitude to risk.

economic data from the US to influence US exchange rates this week

The Dow Jones immediately lost value and the Dollar felt a slight pinch too, with China being close to North Korea this may also open up the trade war issue with the U.S and China for further problems.

As the afternoon evolved there were concerns that this may end up moving into war which could send the financial markets into severe volatility.

We have had these close calls before and I would expect that over the course of today and into the weekend we will hear plenty more from both sides, all of our regular readers and indeed most people around the world will be fully aware that neither is shy of the limelight.

Federal Reserve Minutes indicate hike in June and a calm approach to inflation

The Federal Reserve released the latest minutes from their most recent interest rate decision and all indications were to yet another interest rate hike approaching in June.

The U.S have been well and truly on the front foot over the past year or so and with a high chance of interest rates getting up to 2% in June the Dollar may well have a little further to strengthen yet.

Donald Trump’s bullish approach to the U.S economy on the face of it appears to be working very well but time will tell as the year progresses as to just how good these figures are.

The Fed did note that they had no concerns about inflation rising above their 2% target so they may well have suggested there that we may not see further rate hikes later in the year.

We have a number of members of the Federal Reserve due to speak over the course of the afternoon which could throw up some movement for the Dollar as we approach the end of the trading day.

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.