A mixed bag of economic data sees the US Dollar lose ground. Fresh rumours have surfaced around Trump's connection with the Russians. Could this spell further US Dollar weakness this week? The below table shows Pound to US Dollar exchange rate movements for the duration of yesterday's trading session.
|Currency Pair||% Change||Difference on £200,000|
This morning it has emerged that there are fresh claims that during his meeting with Russian officials last week, President of the United States Donald Trump shared classified information regarding the Islamic State with Russian Ministers. White House officials have hit back at these claims, however this does little to increase the support he is currently receiving from Republicans. I personally believe that this story is likely to cause some US Dollar weakness, as Republican trust continues to erode in the Trump camp, especially after the firing of FBI director James Comey last week. Serious eyebrows are now starting to be raised at Donald Trump.
The USD seems to be on a downward trend against the Pound of late, with the pound showing major resistance at the 1.30 mark.
Data from the US seems to be a mixed bag of late and is causing the market expectations to not match up. For example, last week on Friday – Retail sales showed a worse than expected but still positive incline, followed by a weaker than expected inflation report. A mixed bag of data has helped the GBP/USD rate to come close to testing this 1.30 mark – mainly because market expectations for a rate hike in the US fell as a result of the mixed bag of US data. Expectations are for the US to raise rates in the June meeting. This week is an important week for clients waiting for the 1.30 level to be breached.
Domestically, there is inflation, employment and retails sales data released as covered in my Sterling section which if positive could help to boost Sterling’s value. In the States, housing data and unemployment data will be released this week, which if worse than expected could add to the woes of clients currently trying to sell US Dollars.
Clients looking to sell US Dollars for Pound Sterling still have some of the best levels in decades. Call us on 01494 725353 to get a free quote. We could save you thousands on a transfer.
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