The allegations surrounding Trump's link with the Russian's has hit a new high following his decision to dismiss former FBI Director James Comey. Is this the beginning of a downward spiral for US Dollar exchange rates? The following table shows the difference you could have received when trading between the high and low point of yesterday's trading session.
|Currency Pair||% Change||Difference on £200,000|
US President Donald Trump continues to be firmly under the spotlight as we end the week. The appointment of Robert Mueller the former FBI Director to oversee the inquiry into suspected collusion between the Trump administration and Russia in the US election has ruffled feathers. It follows a brutal week for the President where it was reported that Trump disclosed classified intelligence to Russia. Worse still there was the memo from former FBI director James Comey which refers to Trump stating “I hope you can let this go” suggesting that the President attempted to close an investigation.
The issue for Trump is not whether his campaign colluded with Russia but whether he has obstructed justice by firing James Comey. With calls from Democrats for Trump to be impeached this is likely to have a negative impact on the Dollar due to the additional political uncertainty. Some commentators are saying this could be bigger than Watergate.
For any clients looking to sell US Dollars, rates may have come off the recent 31 year highs but levels remain incredibly attractive. For GBP/USD the Pound is now trying to find a new level of support above 1.30 against the US Dollar.
The Dollar received a boost yesterday after the Philadelphia Fed manufacturing survey rose well above forecast and suggests a brighter and improving outlook for the manufacturing sector.
The survey is important as it can be a good precursor for other manufacturing surveys in the coming weeks.
Despite the stronger numbers the real question is whether the Fed will look to raise interest rates at the next meeting. The threat of impeachment and the political uncertainty that may follow could have an impact on the course the Fed takes. The likelihood of a rate hike in June is perhaps losing some of its appeal and could see added pressure on the Dollar.
With the above in mind, US Dollar buyers and sellers should take the opportunity to detail any requirement to their dedicated broker. With the UK's Election next Month and ongoing scandals surrounding Trump's Presidency, this could be a very volatile period for GBP/USD exchange rates. Call our trading floor on 01494 725 353 or email me here to learn more.
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.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉