This report will examine the factors that could affect exchange rates in the coming months to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low rates for the past fortnight.
|Currency Pair||% Change||Difference on £200,000|
Major investment bank Goldman Sachs have shared that they believe global growth will increase to the tune of 3.9% annually until 2020, however they suggested the US will decelerate to just 1.5%.
Donald Trump has made keeping growth at 3% a key part of his administration, recognising it as one of his economic key focuses. The current tax reforms that are being debated are designed to provide consumers with more spending power in turn helping the economy grow. However the challenges the tax reforms are facing and the likes of Goldman Sachs reporting that there will be a major decrease in growth could spell future US Dollar Weakness.
Yesterday the Markit Purchasing Managers Index for Manufacturing and Services were both released better than expected. There will be several further released this week starting today with Durable Goods orders and New Homes Sales data. Considering the recent hurricanes in the south I wouldn’t be surprised to see the data below the expected.
On Friday to end the week there will be Gross Domestic Product data for Q3, compared to this time last year the release is expected to be 0.5% lower coming at 2.6%.
Data in the US at the moment holds the key as to whether or not the Federal Reserve will raise interest rates for the third time this year. If the data in the next few months is positive then there is expected to be another hike, however anything below the expected level could sway the Federal Open Market Committee Members.
If the FED raise rates in December it could be a good opportunity for US Dollar sellers to capitalise on rates. In the next 2 months the GBP/USD may fall below the 1.30 level which would be the first time since the start of September. Contact your broker to discuss how rate alerts could make sure you’re trading at the right time.
Thank you for reading my US Dollar report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
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