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 over the past 30 days.
Currency Pair | % Change | Difference on £200,000 |
---|---|---|
GBP/USD | 3.1% | $8,000 |
In my personal opinion, I feel the 1.35 mark could happen over the coming weeks, with the USD currently in free fall against many of its other major currency pairings I can certainly see this trend set to continue for the coming weeks and months ahead. With president Trump still struggling to pass many of his election reforms, the latest being the highly spoken about healthcare reform, this is causing further USD weakness and highlighting the lack of confidence for the current President. Since Mr Trump has come into the White House we have seen the dollar drop a shocking 8% against sterling and I think this is set to continue over the coming weeks ahead.
On Tuesday we have lots of data out form the US. Manufacturing PMI data looks set to show a fall so we could see further Dollar weakness.
Thursday Jobs data and PMI data again. The jobs data will be closely watched as this is closely linked to interest rate changes, especially as it is so close to their interest rate decision last week.
With so many important data releases due out this week it is very important to be in regular contact with your account broker so that we can help you make an informed decision, key economic data can really move currency markets and with a raft of data due out this week please be aware of any potential movements.
The nonfarm payrolls release is due out on Friday and this represents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in currency markets. Generally speaking, a high reading is seen as positive for the USD, while a low reading is seen as negative, last month these figures came in significantly lower than expected and if we see a similar result this time around be prepared for any market movements.
Thank you for reading my US Dollar currency report, if you have any questions about exchange rates I would be more than happy to discuss them – you can contact me with any queries here.