This US Dollar report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past week.

Currency Pair% ChangeDifference on £200,000
GBP/USD1.9%$6,520
Producer prices fall to 1 year low

U.S Dollar looking a little shaky but still holding firm

The Dollar is a currency well and truly in focus at present thanks to the issues in America, Donald Trump, North Korea and the possibility of further interest rate hikes before the end of the year.

With so many different things impacting Dollar exchange rates you would expect them to be all over the place but at the time of writing this we have seen GBP/USD nestled around the 1.30 mark after a very flat day of trading yesterday.

A report I read merely a week ago confirmed that bets in the city are now in favour of USD weakness rather than USD strength for the first time in over a year, which suggests those involved in the financial markets are bracing themselves for some Dollar weakness in the coming weeks.

This is no great surprise when you have a fairly erratic President, a potential war on the cards and in fighting within your country, not to mention the prospect that we may not see the full four interest rate hikes that had been expected this year.

With all this uncertainty hanging over the head of a currency you would usually expect a big drop off but due to the stature of the Dollar and the fact it is still perceived as a ‘safe’ currency in these turbulent times around the world it is still clinging on to its value.

If you have USD to sell you are still over 10% up on what you could have achieved just over one year ago. If you are in the position that you need to buy or indeed sell Dollars for any major currency then feel free to contact our trading floor today for a more in depth overview of what lies ahead. You can call us on 01494 725353 and we will be more than happy to help you.

U.S Data this week

Today at 13:30pm we have U.S Retail Sales data due out, with expectations of a slight rise in spending from consumers.

Tomorrow evening is probably the most important part of the week for the Dollar in an economic sense, as we have the release of the Federal Reserve meeting minutes from their last interest rate decision. Not only will we find out why they decided to leave rates on hold at 1.25% but we will also find out what their plans may be for rate movements going forward.

The markets had expected four interest rate hikes this year so any hint from Janet Yellen that four may become three and we may see some late evening Dollar weakness.

Finally, on Thursday we have Jobless Claims data which is essentially another measure of unemployment in the States. This release is out at 13:30pm so be sure to be watching closely if you are nearing a USD exchange.

To contact one of our experienced brokers to discuss Dollar exchange rates feel free to call our trading floor on 01494 725353.

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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.