This US Dollar report will address the factors that are likely to affect exchange rates in the short term if you are buying abroad or making a currency transfer. The table below shows the difference in USD you would have achieved when buying £200,000.00 during yesterday's trading.
|Currency Pair||% Change||Difference on £200,000|
The Dollar has come under a spell of weakness after US Senate Majority Leader Mitch McConnell delayed a vote on the controversial issue of healthcare legislation. This is important for the Dollar going forward as the delay is reducing confidence that US President Donald Trump will be able to proceed with his tax reforms and infrastructure spending. This healthcare bill is the first stumbling block before any real progress can be made. A lack of progress is dollar negative so the healthcare issue is an important aspect to watch amongst all the other battles Trump is facing.
The dollar weakened further after US housing data disappointed the markets. Pending home sales fell by -0.8% against expectation of a rise of 0.8% and the supply of housing is being blamed. It is the third month running where home sales have fallen.
The US dollar has also been impacted by events at the ECB Forum on Central Banking in Sintra, Portugal. Bank of England Governor Mark Carney, ECB President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda all made speeches which have created considerable market reaction for all of the major currencies. The US Dollar has weakened on the back of the news as Mario Draghi and Mark Carney both signalled a shift in monetary policy later this year. This has seen the Dollar react quickly with funds moving out of the Dollar and into sterling and the Euro.
Those clients looking to buy Dollars could finally start seeing some better times around the corner. This is a major shift from the central banks and if correct the Dollar could start to weaken further. Future interest rate hikes in the US are not certain either and any softening from the Fed in this respect could see the dollar under further pressure.
Thank you for taking the time to read my US Dollar report, if you have any queries about what could affect your exchnage rates in the coming weeks please don't hesitate to get in touch. Feel free to call on 01494 725 353 or email me here.
Always helpful and extremely efficient. You have saved me a great deal of money over the last 10 years I have lived in Cyprus.
Excellent overall experience, helped by professional advice, quick and simple transaction and a very competitive rate.
Very efficient and professional. Excellent customer service.