This US Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past month.

Currency Pair% ChangeDifference on £200,000
GBPUSD2.1%$5,800 USD
Trump’s tax reforms are finally approved

After months of debate Trump’s tax reforms are finally approved

The breaking news overnight from the US was that the Senate had finally passed President Donald Trump’s much debated tax bill.

Let’s be clear is the most sweeping overhaul of the US tax system in more than three decades and has been criticised by many Democrats for favouring the wealthy business owners (and Trump’s immediate family). Despite this landmark ruling the USD has minimal gains against the other major currencies, with investors already pricing in the expected result.

GBP/USD rates have been extremely range bound over the past 12 hours, with the USD finding plenty of support around 1.34 but failing to make much of an impact below this threshold.

Whilst the bill still needs to go back to the House of Representatives for final approval, this is merely a formality, as they had already given it the green light earlier and paves the way for Trump to deliver on one of his key election promises.

Whatever your thoughts on one of the most controversial president’s ever to grace the White House, he is delivering on many of his campaign pledges. How these will ultimately affect the US economy and the greenback is difficult to say during his early tenure but it is sure to cause further debate amongst financial and economic experts over the coming weeks.

Where next for GBP/USD exchange rates?

With the USD performing well of late against GBP, I cannot foresee a major upturn for the Pound under current market conditions.

As mentioned the greenback has found plenty of support around 1.34 against Sterling over recent weeks and any move back towards 1.35 or above for GBP is almost certainly going to be reliant on a smooth passage through phase two of Brexit negotiations.

Any rise in Sterling’s value seems to be inextricably linked to Brexit negotiations and with so many unanswered questions around this topic, my risk adversity when it comes to the Pound at present is extremely minimal.

With the US economy finally living up to expectations and Trump finding plenty of support in his quest for change, it seems as though the USD is likely to find significant market support over the coming weeks.

Even the President’s twitter outburst seem to be taken with a pinch of salt these days, with the US economy thriving as more jobs are created through internal industrialisation and an increase in their global trade output.

Whilst investor confidence in the UK economy remains low, the Pound’s value will remain fragile in the eyes of investors and as such I would be wary about assuming that the Pound is set for a further rise anytime soon.

For more information on how future data releases could affect your US Dollar requirement, call our trading floor on 01494 725 353 or email me at mtv@currencies.co.uk.

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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.