Although the Pound is trading against the US Dollar at around an 8-week high, the US Dollar has been performing well itself against all other major currency pairs.
The US Dollar index, a measure of the value of the US Dollar against a basket of other major currencies, has hit its highest level since 2002. A lot of this bullishness can be attributed to improving sentiment towards the US now the highly contested Presidential Election is over, coupled with some impressive economic data out of the US.
The Pound was the only gainer against the Dollar last month which has come as a surprise to me as many had warned of a Dollar and US equities sell-off in the unlikely event that Trump won.
The President Elect has had a mixed week after aggravating relations with China publicly by congratulating the Taiwanese president on her election. On the other hand, he’s endeared himself to many by saving over 1000 jobs at Carrier Corporation, a ventilation specialist based out of Connecticut. This took place after Trump cut short a holiday and threatened to put a 35% tax on the company if it shifted production overseas. Perhaps this is a sign that he’s actually going to do some of the things he said he would during his election campaign.
Moving forward I do expect to see Trump’s policies impact USD exchange rates as he does appear to be staying true to the anti-globalist narrative that won him the election. This is where making your account manager aware of your price targets can really benefit you as markets can move instantly when a prominent figure says the right/wrong thing, as we’ve seen many times this year.
I expect Thursday’s Initial and Continuing Jobless Claims to be the biggest news releases for the US Dollar this week. Both figures will be released at 1.30pm and the figure for new claims is expected to show 268k. Expect any deviations from this level to move the markets and feel free to get in touch if you wish to plan around this time.
The Pound remains favourable against the US Dollar despite expectations for a US interest rate hike next week. The Pound has gained over 3 cents against the US Dollar in the last month presenting excellent opportunities for US Dollar buyers. Call us today on 01494 725 353 or email me here if youd like to discuss an upcoming transfer.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.