Charles Evans, leader of the Federal Reserve Bank of Chicago, and one of the voting members of the Interest Rate setting Federal Open Market Committee, spoke yesterday and provided a cautious but optimistic overview of the US economy. Evans stated, ‘as we often say, policy will be data dependant,' but that ‘the economy’s performance in 2018 was about as close to bliss as a central banker can imagine,' and that the FED’s targets for employment and inflation had gone almost perfectly to plan. Evans also stated that he sees US growth hitting between 1.75% and 2% in 2019, and if monetary policy is appropriate, inflation should remain close to the FED’s target of 2% in the short to medium term.
|Currency Pair||% Change (Month)||Difference on £200,000|
The comments made by Charles Evans helped the US dollar to strengthen yesterday evening against the pound and euro, and signals towards the Federal Reserve hiking interest rates this year if the economy grows in line with the central bank’s expectations, which historically strengthens the currency in question.
With a mixed bag of economic data coming from the US of late, focus will likely be on upcoming data releases for signs of an improving economy. Industrial Production figures for March are expected to be released this afternoon at 2.15pm, and may show a rebound from the two consecutive monthly declines since the beginning of the year.
Trade Balance figures will be released tomorrow afternoon followed by the FED’s Beige Book at 7pm. The Beige Book survey provides an overview on the growth of the US economy as a whole, and has the capacity to cause swings on US dollar exchange rates. As this release is outside of trading hours, clients may wish to consider a Limit Order contract where our systems automatically purchase your currency at a rate determined by you, as soon as this level is reached.
Retail Sales are expected to increase in the month of March following from sharp increases in vehicle sales and fuel prices, and will be released on Thursday at 1.30pm, followed by Continuing and Initial Jobless Claims and the Philadelphia FED Manufacturing Survey. Contact us today to find out more about how these releases could impact a future US dollar currency transfer.
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