This US Dollar update looks at the factors that could effect the rate of exchange for your currency transfers in the short term. The table below shows the difference in USD you would have achieved when buying £200,000 over the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The Chicago Purchasing Manager’s Index was released yesterday and came in much lower than expected. This data is heavily linked to the Institute of Supply Managers Manufacturing PMI which has the capability to heavily influence the Dollar’s value. If yesterday’s data release is anything to go by, we could see further Dollar weakness today.
As this is the start of the month this week, there are a few pivotal data releases for investors to digest.
This week we see manufacturing and services data midweek and then to end the week nonfarm data and employment data. Nonfarm payrolls rose by 222K in June and the employment rate remained at 4.4%, some of lowest levels seen since the 2008 crash.
Will this week’s nonfarm data follow suite? The expectation is for the data to level out slightly following the massive jump last month, however if there is less than expected I wouldn’t be surprised to see the dollar weaken further.
The recent outlook for the US seems to have changed of late. One of the key concerns for the US Federal Reserve of late is the softening in inflation. Recent reports have indicated that because of this the Fed won’t be raising interest rates at their September meeting as initially planned and will look to raise rates at the December meeting instead. For this reason, I expect the dollar to remain under pressure in both the medium and long term.
The Russia – US disagreement over the Baltics escalated yesterday with US vice President Mike Pence telling them the message from Donald Trump is ‘we are with you’. If this escalates any further, I wouldn’t be surprised to see short term weakness in the dollar as investors look for other currencies with less risk.
Thank you for reading today’s US Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.