With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The below table shows the difference in USD you would have achieved when buying £200,000.00 during the high and low points for this week.
|Currency Pair||% Change||Difference on £200,000|
The US dollar could come under renewed pressure as the economic data continues to disappoint the markets. US housing starts released yesterday which measures how many family homes are constructed fell by 4.7% in September which is the biggest decline in six months. It is another worrying data release after the weaker non-farm pay rolls earlier this month.
US non-farm pay rolls unexpectedly fell in September with a sharp decline in the numbers which is creating some uncertainty as to whether the US Fed will hike interest rates in December. US data is proving difficult to measure at present after the fallout from the recent hurricanes although some of the numbers are very wide off the mark.
This afternoon sees a host of US data releases which could create some volatility for the dollar. US jobless claims are released this afternoon whilst the Philadelphia Fed manufacturing survey could give us some more clues as to the health of the manufacturing sector. A bad run of economic data is likely to see the US dollar weaken if the December rate hike is put back to 2018.
The dollar has received a small boost this week however after speculation that US president Donald Trump was pushing for John Taylor to take over from Fed Chair Janet Yellen. This is good news for the dollar as he is perceived as more hawkish than Janet Yellen and would suggest that the Fed will continue the course of interest rate increases it has outlined so far. Janet Yellen’s term ends in February so she will still hold the reins at the November meeting.
Although Fed policy makers Dudley and Kaplan were speaking yesterday there were no clues offered as to what will happen in December. All eyes are now on the data.
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 😉