As of this morning Donald Trump is the elected candidate for the republican party which will add further pressure on the Dollar in weeks to come. You can keep up to date on the latest cable exchange rates here.
Sterling US Dollar began the week at a 4 month high touching 1.47 at its highest level as it appears as though we may not have as many interest rate hikes as previously expected. Late last year the expectation was for as many as 4 interest rate hikes during 2016 but now the expectations have fallen to just 2. However, personally speaking I would be surprised to see more than one as with the global economy slowing down and the US set to go to the polls later on this year it would be difficult for the Federal Reserve to justify this taking place. This is part of the reason for the recent bout of Sterling strength but the strong Pound did not last for too long.
GBPUSD rates fell owing to the poor set of UK data to start the week and this was extended by some positive US data during late afternoon’s trading session.
Later today we have ADP employment figures with expectations for another 196,000 new jobs created and anything better could see further USD strength but this will be closely followed by Trade Balance data for March. I think this could cause GBPUSD rates to wobble as it could show signs that the US economy is not necessarily ready for the proposed rate hikes.
Later this afternoon the US publishes both Services data as well as Manufacturing data and owing to the Dollar having remained very strong particularly against Sterling I think we could see a decline in both data sets. We end the week with arguably the most important news all month for GBPUSD rates when US Non-farm payroll data is published on Friday afternoon. The expectation is for 200,000 new jobs down from 215,000 the month before and anything lower could see GBPUSD rates gain and possibly top the recent 4 month high. Good news for anyone looking to purchase Dollars with Sterling.
GBPUSD exchange rates sit at a 4 month high and with the looking EU referendum there is a chance these rates may not be available as we approach June. In the event you have USD buying requirements, speak to one of our knowledgeable currency brokers on 01494 725 353 or email me here.
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