A recent publication by economic Kit Jukes highlights that current GBP/USD exchange rate levels are wildly undervalued. Could now be the best time to buy Sterling with US Dollars? The table below highlights exchange rate movements for GBP/USD within the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
A recent publication by FX research economist Kit Jukes has found the current GBP/USD level of 1.295 to be 12% undervalued at present through multiple FEER (Fundamental Equilibrium Exchange Rate) based econometric models. This poses the question, is now the time to purchase GBP with USD? If the exchange rate were to move to this ‘fair’ level a £200,000 purchase would cost you an extra $31,000. It may be wise to contact your account broker here at Foreign Currency Direct today, even if your currency requirement is not imminent our team can help secure today's rate of exchange for a future transfer through the use of a forward contract, giving you peace of mind.
A recent review of Donald Trump’s tax reform plans by a panel of 37 economists in conjunction with the University of Chicago has found not one respondent agreed the loss in revenue through tax cuts proposed would be offset through increased economic growth. Furthermore, noting if the plans to abolish AMT (Alternative Minimum Tax) had been in effect in 2005 it could have saved the President 86% of his tax bill (a $31.3m saving).
Thursday this week at 12:30pm we see the release of initial and continuing jobless claims, measuring the number of people claiming state unemployment insurance, giving an insight into the strength of the US labour market.
Friday afternoon promises a range of data releases for the US with retail sales and consumer price index figures for April at 12:30pm alongside Baker Hughes oil rig count at 5pm. If any of these data releases deviate significantly from market expectations we could see short term spikes for our well-informed clients to take advantage of, contact your account broker here at Foreign Currency Direct in advance to ensure you are in a position to trade swiftly and seamlessly.
If you are in the process of moving to or from the US, and require the US Dollar with Pound's or vice versa, get in touch with our experts today on 01494 725 353 to see how much we could save you.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.