Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. The report below looks at some of the factors that could affect US Dollar exchange rates this week.

Predictions as to whether or not the Fed will or won’t raise interest rates continue to dominate movements on most currency pairings. The strengthening and weakening of the US Dollar leads to major capital outflows into both the Euro, Pound and countless others. One of the reasons GBP/EUR exchange rates have been at such a good level in 2015 is investors piled money into the USD (expecting the Fed to hike rates) causing a large shift on EUR/USD exchange rates, which weakened the Euro against other currencies. One of the reasons the Aussie Dollar and Kiwi have strengthened in recent weeks is that the prospect of the Fed hiking this year has reduced causing capital to flow out of the US Dollar and into those currencies strengthening them.

To see live currency exchange rates for all the major pairings visit our live exchange rates page.

Today at 4pm UK time Fed Chair lady Janet Yellen is speaking which could give us some closer indications as to when they may or may not hike their base rate. The economic data has not kept track with the high market expectations of a hike - inflation has been falling and labour conditions remaining uncertain. The lack of a really solid Unemployment picture combined with continued worries over the strength of the Chinese economy remain the key barriers to the Fed hiking. If I had to put my neck on the line I think it is unlikely the Fed will raise their interest rate in 2015 as there are too many uncertainties. Therefore if you are selling Dollars and waiting on a big improvement, you could be waiting some time.

For more information on how future data releases could affect your and US Dollar exchange requirements, call our trading floor on 01494 725 353 to speak with our specialiast currency brokers, or email me directly at


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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.