The USD continued its good run against the Pound during Wednesdays trading, with Cable rates falling below 1.27. Continued strength for the Dollar against Sterling and the Euro due to global factors. The table below shows the range of exchange rates available throughout the past month when selling £200,000.00 during the high and low points.
|Currency Pair||% Change||Difference on £200,000|
Despite the Pound once again finding support around this threshold, a move back towards 1.30 does not appear on the cards anytime soon.
The USD has gone from strength-to-strength over recent months, buoyed by not only a strong US economy but also a lack of global risk appetite. This in turn is funnelling investors back to the safer haven USD, which history tells us is the currency of choice during times of global economic slowdowns.
US Retail Sales figures also helped solidify the Greenback's position, with the official figure coming in above the markets expected result.
Yesterday’s Manufacturing data also showed a sharp spike, with worker productivity growing at its fastest pace in over three years.
A continued strong run of data only enhances expectation that the US FED will raise interest rates in September, which if it were to occur would be the third hike this year.
A word of caution to heed however, for those clients holding out for further USD gains. President Trump’s much published trade tariffs seem to be having a negative impact on the US agriculture sector.
China and the Eurozone have hit the US with trade restrictions of their own and this is causing a major slowdown in the export of soybeans, amongst other facets of their agricultural exports. This could have longer-term negative implications for the US economy, as could a continued slowdown in global trade.
President Trump was at the centre of attention again overnight, following his decision to revoke the security clearance of ex-CIA chief John Brennan. Brennan is one of Trumps most vocal critics and the US media have jumped on the story, claiming Trump is restricting freedom of speech, whilst also highlighting the important of free press.
This story is likely to gather pace over the coming days and whilst it may have no direct impact on the US economy or the USD, it is yet another in a long line of incidents, which will cause many to question the integrity of the leader of the free world.
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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