This USD report will examine the factors that could affect exchange rates in the coming weeks 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 points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
GBP/USD rates reached close to a one-year high just a few weeks ago and the Pound has been steadily rising against the Dollar since the end of June, mainly due to a lack of confidence in President Trump and the on-going questions as to Russia’s alleged involvement in his Presidential winning campaign. Yesterday we saw the Dollar struggle yet again against the Pound, as investors began to bet on whether or not the Federal Reserve will raise interest rates in their monetary policy statement this evening. The most recent inflation readings from the US a few weeks back highlighted a slight slowdown in the rise of the price of goods and as a result the feeling amongst investors is that the outlook from the Fed this evening will be a dovish one.
If this is the case then we could see a further decline in the USD’s value this evening and an excellent opportunity for USD buyers to pounce on. USD sellers on the other hand may be wise to move sooner rather than later to limit their exposure to any potential Dollar losses. I personally think it is unlikely that we will see a third rate hike of 2017 tonight, but the Fed did pencil in 4 rate hikes for the year so if there is any hint to further hikes later this year, this could pose a risk to Dollar buyers going forward.
Tomorrow looks set to be another busy day for USD rates, with jobless claims being released in the afternoon which give a good indicator in to the strength of the economy and could therefore have an impact on exchange rates. Following this on Friday are GDP figures for Q2 of this year compared to last year, which look set to show a huge increase. If that is the case we could see a spike at the end of the week for the Dollar which may be a good chance for anyone selling USD to act on. With such a busy end to the week, keeping in touch with your account manager at FCD could help you limit your exposure to any market volatility and help you make an informed decision as when might be the best time to secure your currency exchange.
Thank you for reading my US Dollar report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries here.
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