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.
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 firstname.lastname@example.org or call me on +44(0) 1494 725353.