Foreign Currency Direct Foreign Currency Direct
Open an account

US Jobless claim applications took a sudden spike last week with concerns that the record high labour market may be losing steam. Whilst it’s only the first indication with talks of an interest rate cut coming from the Federal Reserve we may not be too far away from seeing the US economic performance begin to cool off.

Currency Pair% Change (Month)Difference on £200,000
GBPUSD2.84%$7,140

Last week we saw the economy create 75,000 new jobs in the month of May which was considerably below the forecasted level and now coupled with an increase in jobless claims a pattern may be emerging.

Likelihood of US Federal Reserve Interest Rate Cut Rises

Retail Sales and Consumer Sentiment

This afternoon there will be two significant releases for the US with the Retail Sales for May, which is expected to show an increase to 0.4%. A few hours later the Michigan Consumer sentiment Index for June will be released which provides an insight into consumer habits.

The US Federal Reserve on Wednesday next week will take centre stage as they provide their latest interest rate decision. There is an expectation that there will be a cut this year but it’s not clear if it will come as soon as June. Potentially more significant than the actual rate decision is the statement that follows along with Chairman Jerome Powell’s comments.

If Powell was to talk of a softening economy with some concerns around the corner the US dollar could lose some of the gains made over the first half of 2019. The US economy is a very tricky market to gauge at the moment with so many factors dictating how the economy moves.

The tariffs from trump will continue to be a factor but one thing to consider is the rising tensions in the middle east. There have been a few attacks of late with relationships starting to strain, this may trigger investors to move funds into safer holdings. The US dollar is considered a safe haven and there could be a steady strengthening of the currency if tensions continue to rise. Make sure you’re speaking to your broker if you have an exchange to complete.             

News

GBP Exchange Rates Continue to Be Influenced by Coronavirus

GBP Exchange Rates Continue to Be Influenced by Coronavirus

The COVID-19 pandemic continues to be the main driver for GBP exchange rates with Andrew Bailey stating the UK was entering the second phase of the crisis.

By Tom Higham
Sterling Falls on No-Deal Brexit Fears

Sterling Falls on No-Deal Brexit Fears

No-deal Brexit fears continue to weigh on sterling as the EU announce economic rescue package.

By Rob Harold
Sterling Under Pressure Due to Brexit Uncertainty

Sterling Under Pressure Due to Brexit Uncertainty

GBP has once more found itself under pressure to to the ongoing Brexcit trade negotiations as both the UK and EU reach a stalemate.

By Tom Holian
Read more articles

 

Download our monthly currency forecast

Download here

 

A. Mear

UK

Amazing Customer service. Great spot rates & reliable transfers

Read our testimonials

P. Ward

UK

Excellent service and very efficient and easy process.

Read our testimonials

C. Meineke

I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service

Read our testimonials
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.