US Dollar exchange rates dependent on US inflation figures

With GBP/USD exchange rates rising yesterday due to the positive inflation figures for the UK, today is the US Dollar’s chance to fight back with inflation figures of their own. The race is still on to see who will be the first to raise interest rates, and this will be a huge factor in determining the next move for GBP/USD exchange rates over the coming months.

How will today’s data affect US Dollar exchange rates?

At 14:30 this afternoon, inflation figures for July are set to be released and it is expected that there will be a slight increase compared to June and July 2014. This will be followed by the FOMC Minutes at 19:00 from their most recent meeting. If we see positive inflation data this afternoon I think it is highly likely that yesterday’s gains for the Pound will be quickly reversed. It will also be very interesting to see if there are any further hints towards the timing of an interest rate hike in the minutes later this evening.

With this in mind, if you are looking to buy US Dollars today, moving this morning might be sensible to make sure that you don’t miss out on yesterday’s positive movement, as I think GBP/USD exchange rates could be back into the 1.55’s by the close of play today.

If you are looking to sell or buy US Dollars, or would like to discuss the factors affecting USD exchange rates please contact me directly at rjh@currencies.co.uk or call me on +44(0) 1494 725353.

News

Read more articles
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.