Lewis Edmonds
Affiliate Relationship Manager
USD recovers slightly, but for how long?
Despite Hurricane Harvey and geopolitical unrest, the Dollar repaired some of its recent losses with positive economic data for the second quarter.
Request a quoteWith 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 table below shows the difference in Dollars you would have achieved when buying £200,000.00 during trading yesterday.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP/USD | 0.38% | $980 |
US GDP & Job report much better than expected
The US economy grew faster than initially thought in Q2 - the quickest pace in nearly two years. This helped the Dollar to retrieve some recent losses and also helped to keep the hope of an interest rate hike alive later on in the year. The upward revision (3.0% for Q2 compared to 2.6%) was spurred on by increased business investment and consumer spending. This will also help to calm the markets surrounding Donald Trump and his "put America first" motto, which had been under pressure following a string of poor US data releases. On top of this, the ADP national employment report increased dramatically in August, jumping to 237,000 ahead of the government’s official release tomorrow.
Tomorrow’s Non-Farm Payroll report has the capability to provide the dollar with even more strength if these figures are anything to go by.
Trump’s tweets
In what is a tale of two halves, whilst the US economy helped to calm the markets, Donald Trump helped to scare them again. He tweeted ‘The US has been talking to North Korea, and paying them extortion money, for 25 years. Talking is not the answer!’
This combined with the ongoing struggle in Texas regarding Hurricane Harvey means that whilst the US economy shows signs of strength, the US markets are still under pressure from the possibility of war with North Korea and also the worst hurricane it has seen in 50 years. Both of these events have the capability of moving USD exchange rates in an instant, so keep in contact with your broker to remain covered.
Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in assisting you with any queries about an upcoming transfer. Feel free to e-mail me at lme@currencies.co.uk.
