With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in USD you would have achieved when buying £200,000 over the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
We are finishing a fairly hectic end to the week for currency markets with two days of in depth looks at the state of the US jobs market. Last month investors were caught by surprise when US Non-Farm Payrolls data massively overshot expectations producing 222,000 new jobs for June. The resulting strength for the Dollar was evidence of how much President Trump has been touting the health of the US job market under his reign. However, how much can we really draw from this to understand where the US Dollar will move to next?
GBPUSD exchange rates are now at their best level in 10 months as it looks as though Trump is losing his control as he is struggling to pass various forms of legislation.
You could also argue that last month’s record figures were due to a strong introduction to the workforce of people leaving education and joining the work force. With Initial Jobless Claims expected to remain stagnant rather than fall, the Dollar’s value could be tested against both the Euro and Sterling so if you’re in the process of making a currency transfer then keep a close eye out both this afternoon and tomorrow.
Tomorrow afternoon we end the week with US Non-Farm Payroll data as well as the Unemployment rate. If we see lower than expected figures this could potentially see GBPUSD rates move in an upwards direction.
In new developments in the ongoing Russia scandal Donald Trump has now been linked from inside sources in the White House to direct responses to allegations. Whilst Donald Trump Jr denies his father had any knowledge of the meeting between himself and a potential Russian agent, the President allegedly dictated Trump Jr’s initial response to the allegations word for word.
Whilst we are still waiting for more concrete conclusions from the FBI special counsel looking into the negotiations this is the sort of news story which is causing further investment into the Dollar to reduce despite the recent increases in interest rates.
Whilst new sanctions on Russia were imposed yesterday Trump is doing little to distance himself from this and until he does the value of the Dollar could remain under some pressure.
If you are planning a foreign currency transfer then contact your account manager here to discuss the options open to you. Indeed, if you’re planning to sell US Dollars but don’t have the full availability of funds then speak with your account manager about how a forward contract may work for you.
Thank you for reading today's US Dollar currency 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 here.
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