Despite all of the Brexit uncertainty damaging the Pound in recent weeks, Sterling has managed to make some incremental gains against the Dollar since the beginning of this year. In fact, a $250,000 purchase today compared with the 1st January would cost just shy of £6,000 less which is a considerable gain when taking in to account how damaging Brexit has been for the Pound.
|Currency Pair||% Change in 1 month||Difference on £200,000|
This movement on cable exchange rates is more down to USD Dollar weakness rather than GBP strength and one of the main factors behind this market movement has been the impact of the Government shutdown in the US. Trump is at loggerheads with the Democrats, who now control the US House after their mid-term election gains, over the $5.7bn of funding Trump is hoping to secure for completion of the wall between the border of the US and Mexico. Neither side look like backing down as things stand and yesterday marked the 24th day of the shutdown, the longest in US history, with 800,000 federal workers going without pay now for three weeks.
Trump could declare a national emergency which would allow him to bypass the House and get the funding he needs to build the wall he has been promising since his Presidential election campaign began, but speaking yesterday Trump ruled this option out saying ‘This is so simple we shouldn’t have to.’ With the negative sentiment surrounding the Pound amidst Brexit, these gains for the Pound should be considered very closely by USD buyers as they may not last depending on the outcome of today’s vote on the EU withdrawal bill. Once the Government shutdown ends the Dollar’s losses are likely to be reversed, so it might be sensible to take advantage of the current spike
In better news for the US and global economy, Trump did state yesterday that talks with China were progressing well and we could therefore see an end to the trade wars that have been hanging like a cloud over the global economy. Trump had threatened to raise tariffs on $200bn worth of Chinese goods in March, but speaking yesterday Trump claimed ‘We’re doing very well with China, I think that we are going to be able to do a deal.’
Simple, fast, great rate. Speedy uncomplicated transaction with no commission and very good exchange rate. Friendly service
We have been using Foreign Currency Direct for more than 10 years. They are very competitive and customer service is excellent.
Excellent friendly service always. We have used Foreign Currencies Direct for many years and always get an excellent rate and service. Can’t fault them.
Everything was managed perfectly. I felt secure in my transaction with foreign currency direct. Nothing was too much trouble and I would certainly recommend their services.