The dollar could be set for a volatile period after US President Donald Trump has announced a delay to the 1st March deadline when new tariffs on Chinese exports to the US were expected to take effect. The dollar, which has benefitted from its safe haven status amidst global uncertainty, has started to come under some pressure reducing demand for the safe haven currency. The decision to delay is welcome news for the financial markets which fear further tariffs will be negative for global growth. Donald Trump has cited “substantial progress” in the recent talks whilst indicating that he would meet with Xi Jinping to finalise the details although no date has yet been set.
|Currency Pair||% Change in 1 month||Difference on £200,000|
How the dollar reacts from here on will depend on the detail, how successful these talks have really been and whether they can ultimately be concluded. Any suggestion that a deal cannot be reached for example would likely see investors moving quickly back into the dollar which should see dollar strength.
Rates for GBP USD have broken over 1.30 for the pair over renewed optimism that a deal with be reached between Britain and the EU. UK Prime Minister Theresa may will be meeting the EU’s chief negotiator Michel Barnier today and any positive noises could result in gains for the GBP USD pair.
A statement from the Prime Minister is expected later today and clients with pending dollar requirements should plan around this event. With so many differing outcomes from Brexit clients may wish to take the risk out of the volatile currency markets to avoid disappointment.
There is a raft of US economic data this afternoon. US building permits, housing starts and house prices should offer some clues as to the strength of the housing market. US Fed Chair Jerome Powell is also testifying this afternoon and any guidance offered on interest rates going forward should help shape dollar exchange rates.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉