This US Dollar report will examine the factors that could affect exchange rates in the short term to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD5.3%$13,590
Positive US CPI Data could mean an imminent rate hike from the Fed

Best Services data released in 12 years

The US Dollar strengthened slightly yesterday against the Pound and Euro following from ISM’s Non-Manufacturing PMI for September being released at 59.8, the highest figure in 12 years. The last time this index was released higher than this was in August 2005, before the recession in 2007-2009. A figure above 50 is viewed as being positive for an economy, and a figure over 55 is seen as being exceptional. Americans employed in the service sector account for 8 in 10 of all those employed in the US, so this news was particularly positive for the US economy. The US economy is performing remarkably well of late, with low levels of unemployment and new jobs being created at record highs. However even this wasn’t enough to provide the US Dollar with any substantial gains as investors awaited last night’s speech from FED Chairlady Janet Yellen.

Yellen’s speech in St Louis last night

Unfortunately Yellen did not comment about the possibility of interest rate hikes, or provide her views on the economy in her opening speech at the St. Louis FED’s annual Banking Conference.

This afternoon sees a host of US data being released, including trade balance data and jobless claims at 1.30pm, followed by factory orders, and speeches from four of the rate setting members of the Federal Open Market Committee. These speeches could potentially provide investors with the news they have been waiting for regarding changes to monetary policy in the near future.

Non-farm Payrolls expected to plummet

Tomorrow sees the release of Nonfarm Payrolls which happens on the first Friday of every month. This is a key mover of USD rates, as it calculates the number of new jobs created in the previous month, outside of the farming sector. It is expected that September’s reading is likely to be released far lower than the previous month, as Hurricane’s Harvey and Irma caused widespread damage to Texas and Florida, which also caused Initial jobless claims to rocket in the month of September. A fall in new jobs created from 156k to 98k is expected, however any deviation from this figure could heavily impact USD exchange rates.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.