The US have now finalised a further 25% tariffs on $16 billion worth on Chinese imports which will take effect 23rd August highlighting the escalating trade war. More on how this could impact the USD as a safe haven currency in today's US Dollar report, the table below shows the difference in return you could have achieved when selling £200,000.00 during trading yesterday.
|Currency Pair||% Change||Difference on £200,000|
It has been reported that US trade representatives are considering another round of tariffs worth $200 billion on Chinese imports as soon as September. US President Donald Trump has even suggested imposing tariffs on everything it imports from China which comprises about $500 billion.
In the meantime, China has signalled its intent to retaliate and apply tariffs on a further $60 billion on US imports. The impact on the Dollar and other currencies should not be underestimated considering that Chinese stock markets have been falling as a result of these trade policy decisions. China has also made an official statement to try and support economic growth as there are concerns for a downturn in the Chinese economy.
The outlook for the Dollar remains strong after the US Federal Reserve maintained interest rates at 2% at the last meeting and cited strong economic conditions. US GDP for the last quarter is running at an impressive 4.1% for the second quarter which is the highest since 2014.
The US Fed are still expected to hike twice more this year with the next rate rise expected in September. The Federal Reserve has consistently raised rates in the month of December for the last three years so if the data holds up then there is a high chance there will be a second hike just before Christmas. This should in theory see the Dollar rally higher as we approach considering this has not yet been priced into the market.
US Producer Price Index data is released this afternoon as well as jobless claims although it is Friday’s Consumer price Index inflation data which is expected to show a small pickup in the numbers and which is more likely to get some reaction.
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.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉