Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000 during the high and low points of the past 30 days:

Currency Pair% ChangeDifference on £200,000
GBPUSD3.6%$9,400
Trump’s Tariffs could cause US Dollar weakness

How will the Dollar fare as the US government look to avoid shutdown?

The USD is likely to come under scrutiny throughout today’s trading as their Government Shutdown Limit comes to a head. Simply put, if the Republicans and Democrats are unable to come to an agreement on federal spending for 2018 by the end of today then the Government will essentially go in to shutdown which would spell bad news for the Dollar. As reports surface throughout the day on developments in these negotiations there are likely to be volatile swings in the Dollar’s value, so keep in touch with your account manager here throughout the day to make sure you are well informed of any movements.

There is also a raft of data releases from 13:30 onwards this afternoon, namely average earnings, unemployment and Non-farm payroll data that could impact on the Dollar’s value and are therefore worthwhile keeping an eye on. Average earnings for November are expected to show an increase and will be watched closely by Federal Reserve ‘rate-setters’ ahead of their Interest rate decision next week. Healthy average earnings would certainly pave the way for a rate rise and could therefore offer a boost to the Dollar. Regular readers will be aware of Non-farm payrolls and how unpredictable they can be and therefore their potential impact on exchange rates. They gather information on the number of new jobs created in all non-agricultural businesses, but these can be very difficult to predict and the actual figures often come in vastly differently to initial expectations.

Fed set to raise interest rates next week

As previously alluded to the Fed’s hotly anticipated interest rate decision is due to be announced next week on Wednesday evening. Many of the Fed’s committee members have been talking in recent weeks with extremely bullish comments about future monetary policy and it is widely expected that there will be a rise in rates to 1.5% which would be the third hike this year. This would make the Dollar a far more attractive proposition for investors compared with the EU or UK for example and we could therefore see a flow of investment in to the US which would make the Dollar more expensive to buy.

Thank you for reading today’s USD report, I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at rjh@currencies.co.uk.

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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.