Daniel Wright
Sales Director
US dollar loses out as Fed cuts interest rates again
US Federal Reserve cuts interest rates from 1.75% to 1.5%. US China trade pact may not be signed in November as previously hoped.
Request a quoteThe pound to US dollar interbank exchange rate increased in value this week, partly because the EU extended the UK’s Brexit deadline by three months, prompting MPs to call a general election.
In addition, the so-called greenback has declined, because America’s central bank, the Federal Reserve, cut interest rates for the third consecutive time.
Meanwhile, it’s been reported that the anticipated US/China trade war truce may not be signed in November, as previously hoped, while Democrats’ impeachment attempt against President Donald Trump continues to progress.
Fed cuts interest rates by 0.25%, down to 1.5%-1.75%
The Federal Reserve (Fed) cut interest rates down to 1.5%-1.75% this Wednesday, the third reduction in a row. The cut was widely predicted, because Fed Chairman Jerome Powell had signalled that the US central bank would continue its “mid-cycle adjustment”, to support America’s economy.
Moreover, in the press conference following the decision, Mr. Powell suggested that US borrowing costs would now stay put for the time being.
Nonetheless, the US dollar weakened after the Fed’s announcement, because lower US interest rates make buying American assets less attractive to the world’s investors.
US/China trade pact may not be signed in November as hoped
Another reason why sterling strengthened versus the greenback this week is because it’s been reported that the US/China trade truce could be delayed.
Until this week, it was hoped that President Trump and China’s Premier Xi Jinping would sign their “first phase” trade pact next month, in Santiago, Chile.
However, an anonymous US official has told Reuters that: “If the [USA/China trade pact] is not signed in Chile, that doesn’t mean that it falls apart. It just means that it’s not ready. Our goal is to sign it in Chile. But sometimes texts aren’t ready.” If there’s a delay, this may affect the US dollar.
Democrats’ impeachment against Trump continues
Lastly, the Democratic Party continues to gather evidence to impeach President Trump, for pressuring Ukraine’s President Volodymyr Zelensky to implicate President Trump’s rival, Joe Biden, in a corruption scandal.
This week, Ukraine expert Lt. Col. Alexander Vindman, who listened to the incriminating July 25th phone call between Presidents Trump and Zelensky, revealed that the White House’s previously-released transcript of the call was incomplete. This too could influence the value of the buck, in future.
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France
Absolutely brilliant service, in particular special thanks to Mr Daniel Wright, who literally took care of us throughout the whole process (we are both pensioners)… we entrusted our life savings to him, and don’t regret it one little bit, Daniel was incredible.
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UK
Daniel Wright was easy to deal with over the phone and very professional. It made the International transfer very quick and easy. I would definitely use them again and recommend to friends.
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Spain
Daniel Wright at Foreign Currency Direct came highly recommended to us by a friend and he and the Company have lived up to this recommendation with every transaction they have completed for us.
J. Warnes
UK
It’s a tad daunting and scary to change currency with a hitherto unknown company, and I was worried about it beforehand. My fears were unfounded: I can assure you that this firm is genuine and does exactly what they say they will do. Daniel Wright is a pleasure to deal.
K. Morrice
Spain
The company gave me great confidence. A complete novice, as I am, in moving large amounts of monies around, my wonderful account manager Daniel was calm and precise in explaining the process to me. He was flexible, informative, professional, friendly. If I can recommend him to anyone then I surely will.