Any uncertainty that looked on the cards for the US Dollar appeared to be hidden away after Donald Trump admitted to knowing about the payments to Stormy Daniels over an alleged affair.
This comes after the President over the last few months had denied having any knowledge of what his lawyer Michael Cohen was doing when he paid Daniels $130,000 to keep quiet. The US Dollar continued on its charge yesterday as it moved away from an eight cent low against Sterling only two weeks ago.
The last few days have seen the US Dollar strengthen against both Sterling and the Euro with the EUR/USD rate back below the 1.20 level which is the first time since the start of January 2018. The main reason for the Greenback’s strength has been attributed to the expected increase in interest rate hikes this year, which some have suggested could be more than the forecast three at the start of 2018.
In the table below you’ll see high to low GBP/USD rate movement and the difference when exchanging £200,000 to Dollars over the last month:
|Currency Pair||% Change||Difference on £200,000|
Sticking with interest rates the rest of the world are looking less likely they will be keeping pace with the US, the UK who looked like the next economy to raise rate now seem unlikely to follow. At the moment it looks like investors may continue to back the USD over most major currencies and the strength could be set to continue into the near future.
The start of the month brings the latest jobs data for the US, with Non-Farm payrolls set to be released this afternoon. This release is the number of new jobs created in the United States not including any jobs in the agricultural industries.
There is expected to be almost double the amount of jobs from the previous month of March with 192,000 estimated. It's worth noting however, that in the US employment is currently at record highs therefore it would not be surprising if expectations were not met. In my opinion if this was to happen I am not sure it would have a major effect on the US Dollar at present, which could well keep on its path towards the 1.30 level against Sterling.
If you're looking to sell US Dollars the latest surge in dollar strength isn’t going anywhere anytime soon, so make sure you're in contact with your broker. For more information on how upcoming events could affect USD exchnage rates, please call our trading floor on 01494 725 353.
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