Last night the Fed Chair Jerome Powell decided to keep interest rates on hold at 2.5%, however he announced that two future rate cuts could materialise this year, as policy makers are concerned about how the ongoing trade war is going to impact the US economy.

Currency Pair% Change (Month)Difference on £200,000
GBPUSD2.51%$6,520

In recent months US President Donald Trump has stacked the pressure on Mr Powell, as Trump wants lower interest rates as he believes the overpriced US dollar is hurting US companies.

Mr Powell defended the Feds approach as he stated that the US economy remains strong, however uncertainties about the outlook had risen and therefore the central bank would monitor closely. The pressure Trump is putting on the Fed appears to be working and this could result in cuts. For more information on US interest rates and how this may impact your currency exchange feel free to contact the trading floor.

G20 summit to take centre stage

G20 summit to take centre stage

Looking ahead, next week’s G20 summit could have a major influence on US dollar exchange rates moving forward. This week President Donald Trump took to his twitter account to announce that he has had a good conversation with President Xi of China and that they would be having a long-extended chat on the 28th and 29th in a bid to find a resolution regarding the US-China trade war. With the Chinese economy slowing due to the pressures imposed by the US, could it be the case that the Chinese are close to caving in and agreeing to Donald Trump’s terms? If you are converting US dollars short or medium term feel free to register your interest by calling the trading floor and your own personal trader will keep you up to date as developments unfold.

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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.