The USD continues to find support against GBP, but fell away from its nine month high during trading on Tuesday.
Whilst the pound did manage to find a level of support yesterday, the key threshold of 1.30 has historically provided plenty of resistance for GBP. Despite this threshold being surpassed during yesterday’s trading, are we likely to see any major advances above this threshold over the coming days? This outcome still seems relatively unlikely, especially if you were to base it on the recent market trend.
|Currency Pair||% Change (Month)||Difference on £200,000|
In truth, the pound has seen its value decrease for the most part in April. The EU’s decision to grant the UK an extended Brexit deadline until the end of October has not helped to facilitate a positive market perception around the UK economy, and the pound has seemingly suffered because of the current wave of public negativity currently associated with Brexit.
This in turn has caused a steady decrease in sterling’s value and whilst the current downward trend will not last forever, any major advancement for GBP from the current levels, may require a helping hand from the US Federal Reserve (Fed) later today.
There is a host of key economic data out for the US today, which is likely to hold weight with any clients looking to execute a GBPUSD currency exchange ahead of the bank holiday weekend here in the UK.
Manufacturing Purchasing Manager's Index (PMI) data is released initially alongside employment data, both of which have historically proven to have a direct impact on the USD’s value.
With the US economy continuing to outperform most analysts’ expectations, which was confirmed in yesterday’s 3.2% Gross Domestic product (GDP) figure, a negative reading is not anticipated by the markets.
It is the US Fed’s interest rate decision and monetary policy statement which may carry with it more weight for investors.
The Fed had previously claimed they would look to slow the pace of further rate hikes, with just two-rate rises originally predicted for 2019. However, with such positive economic numbers emanating from the US, will the Central Bank have to revaluate its monetary policy stance for the remainder of the year?
Those clients holding the pound will of course be hoping for a dovish statement, which in the past has leant itself towards a prospective upturn in GBP’s value.
Similarly, if US economic output were to slow over the coming weeks, coupled with any potential breakthrough in the current Brexit stalemate, this could also help to alleviate some of the pressure, which has been building on GBP over recent weeks.
From the initial contact with the broker, through my dealings with the compliance folk, the experience was the same, a great blend of efficiency and friendliness, plus I got a great rate, well done Matt and the team.
Matt and Jonathan were excellent and most professional. Through out I felt I was in good hands – they took time to explain everything to me and were very patient when I was experiencing some technical problem with my own bank.
Matt was very helpful and efficient, very good service.