Cable (GBP/USD) has hit a 10-month low over the past 24-hours owing to a combination of Sterling weakness as well as US Dollar strength. The USD report below covers the factors impacting cable exchange rates, and displayed below is the range of exchange rates between Sterling and US Dollar for the past month, showing the difference in return you could have made when selling £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
The new Chairman of the Fed Reserve, Jerome Powell has been speaking over the past couple of days as he testifies in front of the White House. He has ruled out the possibility of the US trade tariffs creating a global slowdown and also said that he sees the US on track for years of further growth.
The US base rate is now 2% which is the highest in the developed world, and the next chance the Fed has to amend interest rates further is on the 1st of August.
The last hike was as recent as June the 13th. There are another 2 potential hikes expected this year, so as it stands the US economy does appear to be firing on all cylinders and this is being reflected in the greenback’s value.
Cable does appear to have support at 1.30 for now, Cable does appear to have support at 1.30 for now, but further pressures for Sterling are likely to result in the 1.29’s being hit sooner rather than later. Especially as the greenback is a safe haven currency as well as a high yielding one.
US President, Donald Trump has made a rare admittance of an error this week after suggesting he misspoke when he appeared to side with Russian President Vladimir Putin over his own security services.
Trump now claims to support the FBI in their claims that there was Russian involvement in the 2016 Presidential election, which is a reversal of his comments earlier in the week in Helsinki. Whilst this news alone is unlikely to move the markets, there could be US Dollar volatility if Trumps position comes under threat which is certainly what his political opponents are hoping for.
Later today there will be both Initial and Continuing Jobless Claims at 1.30pm UK time. This could move markets and do get in touch before lunch if you wish to be kept updated.
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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