The recent global uncertainty surrounding NAFTA, and issues in Europe have caused investors to send their funds to the safe haven currency the USD. Today's US Dollar report discusses how this is impacting exchange rates currently. The table below shows the difference in Dollars you could have achieved when buying £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
For clients that are new to the currency markets the price movement of GBPUSD over the last 6 months just shows how important it is to keep in contact with your currency trader. Only 6 weeks ago cable exchange rates were in the 1.43s, 11 cents higher than today and many forecasters were suggesting 1.50 could be on the cards by the end of the year.
However, a U turn in the NAFTA negotiations, global uncertainty such as the current problems in Italy have led speculators to flock to the safe haven US dollar, positive US economic data, poor UK economic data and finally Brexit uncertainty has caused the major fall in cable exchange rates. To put this fall into monetary value a $200,000 purchase is now £11,500 more expensive. For clients buying US dollars it looks like further falls could be on the horizon therefore arranging a transfer sooner rather than later may be your best option.
On the first Friday of every month the US release their latest Non-Farm payroll numbers, average earnings and unemployment rate numbers all at 1.30pm. At this time we can experience major currency fluctuations as the releases are so important for future monetary policy decisions made in the United States. Non-Farm payroll which is the amount of new jobs created is set to be released at 185k which is 21k more jobs than last month, average earnings is set to show a 0.1% improvement and finally unemployment is set to remain at 3.9%.
If the numbers all meet the expectation I would expect this could be seen only as a positive as the data supports further interest rate hikes for the Federal Reserve. My personal opinion is that GBPUSD could break 1.30 if the US data impresses and the upcoming Brexit talks don’t go to plan.
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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