The US dollar benefitted yesterday as tensions between the US and Russia continue to grow.
President Donald Trump has threatened to pull out of the Intermediate-Range Nuclear Forces Treaty, signed by the Soviet Union and the US back in 1987 during the final year of the Cold War.
The Russian Government has since responded by saying it would be forced ‘to take measures’ if the US began developing new missile systems. According to President Trump, Russia have been in breach of the agreement in recent years after Russia tested a cruise missile which is banned.
This was also combined with disappointing headlines from the UK surrounding Brexit and Moody’s downgrading Italy’s credit rating which has forced investors to look at less riskier based assets such as the USD, which rose throughout yesterday.
|Currency Pair||% Change in 1 day||Difference on £200,000|
Global trade uncertainty and US/Russian tensions are likely to keep the USD strong throughout the week, in what is a quiet start to the week for top tier economic data. However, we could be set for a change in the Dollar’s fortune by the end of the week as the latest US Gross Domestic Product figures are released on Friday.
Predictions are still set for a solid 3.4% for the quarter’s growth in Friday's results, however analysts are mixed as to how the results will actually look as it is such a large revision from the previous month.
Most noticeably, this effect could start to signal a cooling off of the US economy’s recent surge if the figures do miss estimates and could mean the Federal Reserve will soon have to rethink its aggressive interest rate hike plan. This could cause problems for the USD. I’d suggest that clients with a USD requirement have the appropriate plan in place should this be the case.
Always a fast and efficient service, a good rate and a simple transfer.
Excellent customer service, very friendly and helpful staff. The process of money transfer is painless. Thank you.
The service was effortless to use and I was kept up to date all the way through the process with courtesy calls and advice from the same contact in the selling of my home abroad and returning the funds back to the UK. I would highly recommend this service to friends and colleagues in the future.
Efficient service and good rates. My currency reached my overseas bank same day!
I find the process to be efficient, uncomplicated, and very good value – the exchange rates used are unbeatable, and the fixed service charge is insignificant when sending a large-ish sum.