This update discusses recent US events and how the US Presidential election could impact US Dollar exchange rates.

Yesterday two bombs were found in separate locations. Ahmad Khan Rahami planted two separate bombs, neither of which were successfully detonated and thankfully no one was hurt.

Acts of terror are known to adversely affect the currency in question. It can cause investors to see a currency as more risky. I think that if this attack had been any worse then cable rates could have been affected, however the markets were fairly subdued after the attacks.

Another question is how will this affect the run up to the US presidential election? Donald Trump has already made it clear that through tightening immigration controls, one of his core policies, this would not happen on his watch. I personally believe that this could be a turning point for the republican.

US interest rate decision

The US interest rate decision is one of the most important events in the economic calendar and as a result anyone with a currency requirement should be in contact with their account manager as it is more than likely it could affect your purchase.

In the build up to the interest rate decision rates are typically more volatile. Mix this with recent events and we could see sudden jumps in cable rates.

Poor economic data of late in the form of unemployment data, retail sales figures and inflation have meant that the likelihood of a rate hike is around 20% this month. I personally believe that it is unlikely we will see the US raise interest rates on Wednesday however I am sure that we will get a clear path of when the US will raise rates. As mentioned, the run up to any interest rate decision can make the markets volatile so it may wise to keep in contact with your broker for the latest up to date news.

For further information on events that could affect your currency exchange please call our trading floor on 01494 725 353 or email me directly at


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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.