This report will examine the factors that could affect exchange rates this week in order 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 for the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPUSD2.1%€5,050
USD gains after poor UK Inflation data

Could the Pound fight back against the US Dollar?

The GBPUSD rate has been showing signs of improvement during the course of this week, with rates to buy US Dollars with Sterling at their highest level since the beginning of the month.

Yesterday’s economic data showed a fall in Durable Goods Orders during October, from the expectation of 0.3% to -1.2% which is a big difference and has caused the Dollar to weaken against the Pound.

As the durable products often involve large industrial orders they can offer an insight into the strength of the US economy.

I have written on a number of occasions previously that I fully expect the US Federal Reserve to raise interest rates at their next meeting due to be held on December 12th-13th, and although yesterday’s data is unlikely to influence next month’s decision it does show that things are maybe not going well as previously expected.

Last night’s FOMC minutes highlight a little slowdown in the economy but they also hinted very firmly that an interest rate hike is round the corner.

With the US celebrating Thanksgiving Day the Dollar could remain relatively quiet in terms of movement today, so if you’re happy at these levels to either buy or sell US Dollars it may be worth trading today to remove the risk of where the market could open up again on Friday.

If you’re looking at buying US Dollars it may be worth securing your currency in advance. If you don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you.

Strong US Economic Data Expected?

We end the week for the US with a number of data releases which are likely to impact GBPUSD exchange rates. On Friday afternoon both US Manufacturing data and Services data is due to be announced for November.

Both sets of data have both been performing very well during 2017 so I expect to see further positive announcements which could see the Dollar end the week gaining strength vs the Pound.

During the course of this week we have seen the Pound strengthen against the US Dollar by as much over 0.7% or the difference of £1,050 on a currency transfer of USD$200,000 highlighting the importance of keeping your broker up to date with your particular requirement.

For more information on how future data releases could affect your currency 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.