With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in USD you would have achieved when buying £200,000 during the high and low points during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBP/USD2.1%$5,450
Trade war appears to be on hold

Will the US Dollar continue to strengthen against the Pound?

GBPUSD exchange rates have continued to strengthen this month after flirting with 1.30 on the Interbank level a number of times during June.

The likelihood is that we’ll see further rate increases for the world’s leading economy after already having had two rate hikes earlier this year. The Pound vs the US Dollar has fallen to a 2 week low as economic data in the UK also shows signs of a slowdown.

Yesterday afternoon the latest announcement from the JOLTS Job Openings for May showed a fall in new job vacancies to 5.66m down from 5.967m.

The data is collected from employers including retailers, manufacturers and different offices each month. It is not nearly as important as Non-Farm Payroll Data or Jobless Claims but will often cause a small movement for USD exchange rates but even though it came out lower than expected the USD strengthened vs the Pound after the MPC members chose not to discuss interest rates at yesterday’s speeches.

This afternoon Fed Chairlady Janet Yellen is due to take centre stage and will likely be talking about interest rates going forward this year. I predict we will see one if not two further rate hikes during 2017 so any allusion to this during today’s speech due to be held at 3pm UK time this afternoon could lead to further US Dollar strength vs the Pound.

Therefore, I expect to see further Dollar strength against Sterling so if you need to buy USD Dollars it may be worth organising this in the short term.

Tomorrow afternoon US Initial Jobless Claims are due out and if they come out better than the expectation of 245,000 then I think this could provide further support for the Federal Reserve to look at raising rates. Combined with this we end the week with US Inflation data on Friday afternoon at 1.30pm which could hammer home further support for another interest rate hike coming in the short term.

For more information on how future data releases could affect your USD requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.