The USD has been performing well against the Pound of late, despite Trump's withdrawal from the Iranian Nuclear agreement and trade policies. This USD report discusses how this could impact the safe haven currency. The table below shows the difference in Dollars you could have achieved when buying £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD5.5%$15,860

Despite growing fears over rising oil prices and global trade the USD continues to perform well against Sterling
Despite growing fear over President Trump’s policies and the potential destabilisation of the US economy, the USD continues to perform well against the Pound.

Cable rates continue to trade around 1.3550, with the USD now firmly set under the 1.40 threshold. This seemed like a far cry only a month or so ago, when the Pound was finding a lot of support above this level, with the markets seemingly set for a move back towards 1.45 and maybe even beyond.

This complete turnaround is why I have been suggesting that client take advantage of short-term opportunities, due to the uncertainty that continues to engulf the current global markets and the inevitable unpredictability of currency exchange movements.

Trade wars a concern however US interest rates continue to impress

Where next for GBP/USD exchange rates?

Fast forward and we are now in a position where Sterling is fighting to stay above 1.35 against the greenback; with UK Prime Minister Theresa May trying to rally Conservative MP’s around a Brexit strategy, which may actually advance negotiations beyond the current malaise.

Whilst the USD has advanced over recent weeks, there are growing fears over rising oil prices and how these could negatively impact advanced economies such as the US.

Add to this, major concerns over Trump’s trade policies and his withdrawal from the Iranian nuclear deal and there are enough negative variable to convince me the current trade prices are well worth taking advantage of.

It is very rare that Cable rates trade below the current levels.  Those clients with an upcoming USD/GBP transfer to execute, need to ask themselves whether we are now in a position where the downside risk outweighs the upside gains.

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.