Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting the USD return when buying £200,000.00 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
Donald Trump’s first Anniversary this weekend was overshadowed as the US Government was forced to shut down after the Senate failed to reach an agreement on the Federal Government funding for the next few weeks.
One of the main sticking points for the Democrats was the protection from deportation of over 700,000 migrants who came to the US as children.
Once again Trump took to Twitter, thanking the Democrats for giving him a nice present to celebrate his anniversary, and the disagreement sparked an entire weekend of blaming between Trump, the Republicans and the Democrats.
The Government has never been shut down whilst the same party has controlled both Congress and the White House, and the last time a government shutdown occurred was in 2013 which lasted for 16 days.
As the Republicans do not have enough seats in Congress to win a majority to pass major legislation, they rely on some support from the Democrats, which didn’t happen by the midnight deadline on Friday. As of today, the government shutdown will cause hundreds of thousands of federal workers to be unpaid and out of work until a resolution is found, creating a huge dent on the US economy, and further doubts over the Trump’s capabilities as President.
This news does not bode well for an already struggling US Dollar, which is currently trading at close to a 3 year low against the Euro, and unless an agreement is made imminently, I feel that we could see GBP/USD break through 1.40 for the first time since before the Referendum, and EUR/USD through 1.25 last seen in November 2014.
There is a host of economic data released from the US this week, including Housing data, and Manufacturing and Services PMI from 12pm on Wednesday, Jobless claims on Thursday and Growth figures for the last Quarter of 2017 on Friday. If these releases show any further cracks in the US economy, the US Dollar could continue to weaken against the Pound and the Euro. The Euro has been performing particularly well of late, and as EUR/USD is the most traded currency pairing in the world, investors have been moving their funds away from the Dollar and into the safer investment of the Euro. For any clients looking to sell US Dollars, it may be wise to protect themselves from further losses by getting in touch with their Account Manager here today.
Thank you for reading my US Dollar currency report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
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