The US Dollar has weakened against both the Pound and the Euro in the last week - Those 31 year highs for USD/GBP may now have come to an end. USD/EUR has also weakened after the first round of voting in the French election. US data has started to look a little softer of late and recent weaker US inflation and retail sales have raised questions over the strength of the US recovery. Data yesterday saw a slide in consumer confidence although new home sales climbed higher suggesting there is still life in the housing market.
The US Dollar has become sensitive to negative data releases after the bold commitment from the US Federal Reserve to continue to hike interest rates throughout 2017.
This afternoon sees US mortgage applications which could give additional clues as the state of the housing market. Tomorrow sees jobless claims numbers and durable goods orders for March which highlight the state of US production.
It is Friday’s US Gross Domestic Product (GDP) numbers though which are keenly awaited and the US Federal Reserve will take a particular interest here. A strong number could see the Dollar make gains if it tempts the Fed to stick with its current rate tightening course this year. However, the consensus is that the US economy may have slowed in the first quarter. For GBP/USD this could mean a break through 1.30 for this pair which could present Dollar buyers with some long awaited opportunities. Those clients looking to sell Dollars may wish to consider taking advantage of what are still incredibly attractive levels. The US Dollar may have dipped but it is likely to have considerably further to fall if the tide has now turned.
Meanwhile a US submarine made a port call in South Korea after North Korea carried out artillery drills to celebrate Armed Forces Day. It may only be a matter of time before things escalate with possible strike action as the USS Carl Vincent aircraft carrier heads towards the Korean peninsula. Overnight a US antimissile defence system has been deployed in South Korea and Donald Trump has summoned the entire US senate for a meeting at the White House today. Developments here are likely to impact on US Dollar exchange rates.
Clients with a US Dollar selling requirement may be wise to act sooner rather than later whilst rates remain at multi-decade highs. Call us today on 01494 725 353 to retrieve a free quote or alternatively, you can email me at firstname.lastname@example.org.
Simply the best FX dealer. The service was excellent and fast. The rate was the best at the time.
Prompt, efficient staff with excellent customer service skills. The whole process is simple and quick with very good rates and same day transfer into my foreign bank account.
Excellent service, easy to use one quick phone call and it’s done. Great rates
FCD were very professional and gave me an excellent rate.