This market report looks at the factors that could effect the rate of exchange for your currency transfers in the short term. In the table below you will see the change from high and low for GBP/USD for the last month.

Currency Pair% ChangeDifference on £200,000
GBP/USD3.6%$9,500

Could GDP data strengthen the US Dollar versus the Pound?

The Pound vs US Dollar exchange rate has been trading either side of 1.30 during the course of the week as the US has shown glimpsing signs of a slowdown recently.

This afternoon at 1:30pm the US releases their latest GDP figures for the first quarter of this year. The expectation is for 2.2% which would be seen as good news for the US. The latest set of minutes from the Federal Reserve confirmed that interest rates will be kept on hold.

However, there are some expectations that an interest rate hike may take place next month. Therefore, this afternoon’s announcement will be key to what may happen with monetary policy next month. Most of the members of the Fed wanted to see a gradual reduction in asset purchases as the market stabilises.

One of the problems that the Fed faces though is that of Trumpgate and the issue surrounding the recent firing of FBI director Comey. If the Fed does raise rates next month though this is likely to see GBPUSD exchange rates fall.

Indeed, according to a recent poll some traders are expecting a US interest rate hike in June at 83% with a 46% chance of the Fed raising rates twice before the end of the year.

Durable Goods Orders for April are due out at the same time as GDP figures and as this measures goods planned to last for three years or more this is often used to determine the future health of the US economy.

My prediction for this afternoon is for the US Dollar to strengthen against the Pound so if you need to buy US Dollars in the short term it may be worth organising this before the data release and the long Bank Holiday ahead for both the UK and the US Memorial Day.

For more information on how future data releases could affect your US Dollar requirement, call our trading floor on 01494 725 353 or email me here.

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.

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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.