Donald Trump has lashed out at the Federal Reserve Bank (Fed) criticising the US Central Bank for having interest rates so high. The next move by the US Central Bank is now predicted to be a cut, owing to recent weak jobs data and inflation data.
|Currency Pair||% Change (Month)||Difference on £200,000|
At the turn of the year the market was predicting a series of interest rate hikes; the shift in sentiment is therefore quite dramatic. This has seen the US dollar losing some ground, but with the US currency a safe haven, and still offering one of the highest interest rates of the world’s leading economies, it is retaining much of its strength.
Today, there are a series of important economic data releases for the US, with Inflation data released at 13:30.
A key topic in the questions of whether the US Federal Reserve should be considering changing rates is the expectations of Inflation. With Inflation levels low at 0.1% currently, there is a growing expectation of the Fed being forced to cut rates, to help stimulate a higher level.
The next Federal Reserve interest rate meeting is a week today, on the 19th June, where investors will be closely monitoring the commentary for clues as to where policy is headed next. Any clients with a US dollar transfer ahead might wish to register their interest with their account contact, ahead of today and next week’s news.
Even with the recent weakness displayed by the US dollar, the pound to US dollar rate looks like it will remain at some of the lower levels of 2019. The pound appears in no position to be capitalising against the US currency, with Brexit uncertainties holding back sterling. It might be that sterling will now find itself struggling as the Tory leadership race continues with no clear sign of what Brexit lies ahead. No-deal has definitely been a concern for the market and its likelihood as an option is holding the pound lower.
Friday of this is when we we will is Retail Sales data for the US released, another key factor in determining how the US economy is performing.
Trump and the trade wars are also a concern for the US economy and investors moving forwards. Key events ahead include the Japanese G20 Summit where Tump has threatened increased tariffs for China.
It is possible GBP/USD interbank levels remain below 1.30 for now, with little chance of a sharp move higher. Clients looking to buy US dollars might wish to content themselves with purchasing on any small spikes in their favour as the troubles for the UK appear to far outweigh concerns for the United States.
Contacted Jonathan M Watson following his advisory report on the BBC. He was clear, concise and took the time to completely understand my financial & personal position. It was my first time purchasing a chalet abroad and therefore understandably nervous about trusting someone I had never met with so much family money! Jonathan proved to be responsive to all my requests, telephoning immediately upon any query.
Service is always excellent. I have been a client of Jon Watson for many years and always feel that I receive a personal service. I have recommended them to many of my contacts and will continue to do so.
Service from Jonathan Watson was more than 100%, more than a pleasure to do business with, a gentleman of the highest order.