Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
US employment data released yesterday as per the ADP National Employment report was weaker than expected despite the manufacturing sector creating the most jobs in 15 years. The report can be used as a good precursor to the non-farm payroll data released on Friday which could make for a volatile end of the week for the US dollar. US non-farm payroll includes both the public and private sectors and expectation is for a fall to 198k, down from 261k the month prior. A weaker number could be seized upon by the US Fed which meets on Wednesday 13th December, when an interest rate hike is widely expected, making it the third December running that the Fed has hiked. Whilst a rate hike should be largely priced in to the markets by now, it is still likely to help support the dollar.
The aggressive tax cuts which have just been passed are expected to have a positive impact on the dollar, which could help see the currency strengthen throughout 2018.
Donald Trump is back in controversial mode as he made a speech yesterday recognising Jerusalem as the capital of Israel causing a major upset in the Middle East and reversing decades of US policy. The move has been condemned internationally including by Prime Minister Theresa May and there will inevitably be unrest in the region. The news is politically explosive and the President is likely to make the headlines for some time to come. However the dollar is more likely to come under pressure later this week ahead of a potential government shutdown in the US when government funding expires this Friday. President Trump stated that a government shutdown could happen and cited disagreements between the Republicans and Democrats over immigration causing the breakdown.
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