This US Dollar report discusses factors that could affect USD exchange rates this week. In the table below you’ll see high to low GBP/USD rate movement and the difference between the high and low when exchanging £200,000 Pounds to US Dollar over the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
In recent weeks the US Dollar has been clawing back some of the losses against Sterling and the Euro, as investors eagerly await the next interest rate hike from the Federal Reserve.
In recent weeks Fed members have confirmed that an interest rate hike is likely to occur at the December meeting and the federal funds futures market are now pricing in a 70% chance. In addition there are other core reasons to why cable (GBP/USD) exchange rates are on the decline, they are, disappointing UK economic data, Brexit negotiations stalling and investors flocking to the US Dollar due to political unrest in Spain and the tensions with North Korea.
With many economic events happening at present which have a major impact on the Pound and the US Dollar I expect exchange rates to continue to fluctuate between 1.30 and 1.35. Therefore for clients that are converting Pounds into US Dollars or US Dollars into Pound an option that could secure you an extra cent or two on your exchange rate is a limit order. This is where you set a rate above what we can achieve at present and if the market improves to your desired rate we will buy the currency automatically on your behalf.
As our regular readers will be aware, Non- Farm payroll numbers (number of jobs created in non-agricultural businesses) coupled with Unemployment rate (unemployed workers divided by the total civilian workforce) numbers are released on the first Friday of each month. Past history tells us that these releases have the potential to have a major impact on US Dollar exchange rates for the month ahead.
Non-Farm payroll numbers are set to show a steep decline compared to last month and recent months, with figures set to be released below 100k. If this materialises this could cause a sell off of US Dollars which would make buying US Dollars cheaper. Furthermore Unemployment numbers are set to remain at record lows of 4.4% which should potentially curb some of the selloff that may materialise.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me at email@example.com.
Dayle Littlejohn was very helpful and professional. I have already recommended your company to friends.
Very friendly professional and efficient service. Dayle Littlejohn is outstanding.
Excellent experience every time. I always feel as though it is a personal service with the staff getting to know me as a person rather than just a customer. Special thanks to Dayle Littlejohn.