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% ChangeDifference on £200,000
FED US Dollar Printing Weakens the USD GBPUSD levels have now reached a fresh multi-year high on recent positive news for the UK pound. This has also been added to continual commentary from the US suggesting their printing policy will continue, in turn weaking the US dollars value. This being Joe Biden’s $1.9 trillion stimulus package which took a step forward on Friday, even with the demand on resources within Washington with President Trumps second impeachment.

US Construction Falls to 6 Month Low

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.

US Data Today

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.


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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.