This Euro 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 during trading hours on Friday 24th.

Currency Pair% ChangeDifference on £200,000
GBPUSD0.61%$1640
Presdient Trump and Kim Jong Un take centre stage

Tense negotiations on US tax cuts expected

President Donald Trump wishes to implement a $1.4tn package of tax cuts for both individuals and businesses. He has put a time scale to sign of the cuts by the end of the year, many of which deem to be unrealistic.

Senate Republic leaders are aiming to put a vote forward as early as Thursday which means negotiations will be intense and may also go through the night.

Democrats are expected to attempt to delay proceedings. The tight, unrealistic time constraint could well cause this to occur.

Republican senator, Ron Johnson from Wisconsin has indicated he will not support the cuts as it would give a clear tax advantage to corporations. A cut from 35% to 20% is being put forward. Johnson’s stance will not sit well with Trump.

This situation creates a great deal of uncertainty in regards the US economy so expect volatility on USD this week. If you are moving Sterling to US dollars I would be watching the markets like a hawk, poised to move on a spike in my favour.

US events of consequence this week

The Organisation for Petroleum Exporting Countries (OPEC) meeting is due on Wednesday and could have bearing on the markets. The current deal on oil constraint is in jeopardy due to some members threatening to flood the market, such as Saudi Arabia. The potential breakdown of the North American Trade Agreement (NAFTA) between Mexico, Canada and the United States could also have implications at the OPEC meeting.
US GDP is also due on Wednesday and any move away from the predicted 0.1% rise could hit the green back.
Thursday brings Personal Consumption Expenditures which also influence US dollar value. Manufacturing Purchase Managers Index (PMI) follows on Friday gives us an idea as the health of this sector. This is a significant contributor to US GDP so has the potential to cause market swings.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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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.