The US Dollar has gone from strength to strength against the Pound this week, strengthening by as over 2% over the course of the last 7 days to what is now a 6-week high for the greenback. In monetary terms thats a loss to USD buyers of almost £4,000 on a $200,000 purchase and highlights just how important it is to have an experienced currency broker keeping you up to speed with the latest market movements. The US Dollar is historically seen as a safe haven currency in times of global uncertainty, so with Brexit still up in the air and elections approaching across mainland Europe, it is not surprising to see the Dollar rally as it has.
There has also been talk of further interest rate hikes in the US as early as this month, with a number of key members of the Federal Reserve Bank stating that they felt the current economic situation warranted a rate hike, with the economy performing well and wages rising.
The Feds Beige Book report last night, which gives a general overview of how the economy is performing, followed suit, stating that businesses had an optimistic outlook and that consumer spending has been expanding.
Over the coming days I believe we could see USD make further gains against the Pound, with jobless claims released today set to show a fall, meaning more people are in stable employment and contributing to the growth of the economy. There are also a number of speeches from FOMC members on Friday, including Fed Chairlady Janet Yellen.
If they echo the sentiment from earlier this week then I believe we could see further losses for those buying US Dollars with Pounds.
If you have an upcoming US Dollar requirement and are concerned about how the current market volatility could affect the value of your Pounds, dont hesitate to get in touch with us so that we can explain how the various contracts we offer can help you time your currency exchange and potentially save thousands of Pounds. Call us today on 01494 725 353 or email email@example.com
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