The USD has found some support around the current levels against Sterling, following its recent losses. The table below shows the difference between the high and low for the GBP/USD rate during the last month.
|Currency Pair||% Change||Difference on £200,000|
Cable rates are once again trading back above 1.30, bringing some much-needed respite to those clients holding Sterling. It was unusual to see the Pound trading below this threshold for such a prolonged period, especially when you consider the history of the pair.
Looking ahead, despite a slight downturn for the greenback, I am not anticipating any major losses for the USD over the coming days.
The Pound is unlikely to get the required support to help drive it up towards 1.35, with too much uncertainty surrounding the current state of Brexit talks minimising investors risk appetite for GBP.
We also need to factor in tonight’s interest rate decision by the US Fed, when trying to gauge the next movement on GBP/USD rates.
It is now widely anticipated that the FED will hike rates by a quarter base point, up to 2.25%. Whilst this move may have been factored into the USD currency value, at least to some extent, it is likely to be seen as a sign of strength for the US economy if indeed it does occur.
This could help strengthen the USD position again, whilst any further negative reports about how Brexit talks have stalled could also put the Pound under pressure.
Those clients holding Sterling may then be at risk of seeing the pair's value drop back below 1.30, after the Pound has worked tirelessly to break back through what has become a key threshold for the pair.
There is also still a lot of focus on President Trump's escalating trade war with China and how this may negatively affect the markets.
Whilst global trade fell marginally in the wake of Trump’s initial restrictions on a host of Chinese imports to the US, it has not had the sharp decrease that some feared.
If this scenario changes over the coming weeks, then we could see the USD actually gain in value, with investors returning to its safe haven status in times of global market unrest.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
Dealing with Matt is a pleasure, he makes everything very easy, whilst making you feel your money is totally secure.
Service was excellent from Matt Vassallo, speedy transaction at favourable rate.
Great service from Matt – helpful and patient! Would definitely recommend the company & will use them again in the future.
I have used Foreign Currency Direct for three years now and would definitely recommend them. Although my currency purchases tend to be smallish my contact, Matt Vassallo is always very polite and efficient. I shall continue to use them whenever I need Forex.