As the Sterling section of today’s report covers extensively, speculation is currently fuelling much of the market movement and sentiment.
The USD’s safe haven status and the fact it has maintained its fantastic value of the last few month has meant that it as a favourite of traders trying to find a currency stable enough for them to confidently leave their funds in as we head into the Christmas period.
As such its value is artificially soaring through this altered level of demand for US Dollars heading into the holiday weekend so USD holders are seeing the current highs (measured in decades) being extended further in the short term.
This will likely be reversed once markets return to normal come January, with investors suddenly buying up the mountains of cheap Sterling which have accrued during this Christmas period.
Whilst it is not yet the end of the year, many of our customers may not be actively checking currency expectations across the holiday period, so it is prudent to take the opportunity now to point out that whilst there has been a lot of fanfare around Trump, he will not be taking office until January 20th.
He will then be enjoying the attention each President receives from their first 100 days in office, serious volatility can be expected during this period. Trump has not had a policy press conference since July, so markets know very little about what his plans are apart from the ‘pledge’ on his website which is very vague and hardly binding.
News will be continually released, so if you have a US Dollar requirement, whether buying or selling, I strongly recommend that you detail this to your account manager in order to be kept abreast of the evolving situation and avoid falling foul of any sudden turns, or being ‘last to the party’ on any potentially uplifting news. Call our trading floor this morning on 01494 725 353 to talk through some of the potential scenarios that could arise early next year.
Would not hesitate to use again, Joshua from FCD looked after us very well and we were able to get a good rate of exchange, the whole process was very quick and painless.
This was a faultless service from start to finish. Our contact, Joshua, could not have been more professional and efficient. He guided us excellently through all the stages of transferring money to the UK. Joshua even managed to get us the best exchange rate available at the time, and he did this with a pleasant manner and exceptional politeness.