Jerome Powell in his speech following the statement suggested he was happy with where the economy was at this point with the inflation level hovering around the targeted 2%.

Whilst there had been some debate with regards to whether the next interest rate hike will be the final of a series from the Federal Reserve, statements from the central bank suggested that next year the Fed are prepared to continue raising rates as required.

The Federal Reserve are expected to raise rates at the next meeting that will come just before Christmas taking the level to 2.5%. President Trump has been incredibly vocal which is almost unheard of for a President when dealing with the independent central bank with regards to the Fed’s policy.

Trump who gave most the country a tax cut earlier this year has seen much of the potential consumer buying power wiped off with increases to mortgages and borrowing as interest rates rise.

Currency Pair% Change in 1 monthDifference on £200,000
GBPUSD4.32%$10960 USD

US Dollar Prospects

President Trump will now be under further pressure with regards to changes as the Lower House of Representatives comes under the control of the Democrats following gains in the mid-terms this week. The US Dollar yesterday regained some of the lost ground from Wednesday with the GBP/USD rate falling back into the 1.30’s following a jump to just below 1.32 a day earlier.

The move above 1.31 is the first time the rate has got that high in 20 days and bearing in mind the GBP/USD rate was down at 1.27 only 7 days ago the US Dollar has given up 3.6% in a short space of time. In monetary terms anyone looking to complete a £200,000 into US Dollars has gained $9000. On the reverse of this if you’re looking to sell US Dollars, it may be worth considering moving your funds before there might be any further movements against you.

Read our monthly US Dollar forecast

Download here

News

Read more articles
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.