With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. In the table below we have shown the change from high and low for GBP/USD over the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBP/USD2.08%$5,320

“One And Done” Rate Hike – Once More This Year?

It’s been no secret that recent economic data releases from the US have failed to live up to expectation over the last week, from Nonfarm Payrolls under delivering by 47k jobs to weak construction spending there simply hasn’t been much to smile about.

Whilst I do not believe the poor run of economic data releases will be enough to derail a 0.25 percentage point interest rate hike to 1.25% at the next FED meeting on Wednesday 14th June, (with the probability currently standing at 94% according to FED fund futures). It is the possibility of further interest rate hikes later this year is looking less and less likely as the odds for the FED to stand pat after this meeting increases from 37% to 50%.

Economic Data To Drive Markets This Week

Consumer Credit Change released tomorrow at 8:00pm will give an insight into the level of money borrowed by individuals and show the extent to which consumers can afford large expenses, fuelling future economic growth.

Initial and Continuing Jobless claims, released on Thursday at 1:30pm will be closely watched by investors and traders alike to see whether the bad run US employment data continues after a disappointing Nonfarm Payroll published on Friday came in 48k below expectation, forcing USD to surrender more than 1.5 cents against GBP. If this release fails to impress the market we may see a temporary spike for clients with a USD purchase requirement. It may be wise to contact your account broker here at Foreign Currency Direct in advance of the release to ensure you are in a position to trade swiftly and seamlessly.

Finally Friday at 18:00pm we will see the release of Baker Hughes Oil Rig Count, totaling the number of rigs drilling exclusively for oil.

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

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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.