This week we are due to see multiple data releases from the US including services and manufacturing data, and the initial estimate for GDP for quarter 1. Positive data is expected which is likely to offer further strength to the Dollar. The table below shows the difference in USD 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|
The US Dollar has strengthened recently against both the Pound and the Euro as Trump continues to assert his power globally. The US President has criticised OPEC by saying that oil prices are ‘artificially high.’ Oil prices fell by 1% shortly after the announcement after hitting their highest level in three and a half years.
During early 2016 prices were as low as US$30 per barrel, which led to an agreement to curb production. However, Trump has claimed that there are ‘record amounts of oil all over the place’ and ‘this will not be accepted.’
With the US having already begun Trade Wars with China could this be another move by the President to assert his power on the global stage. He has already introduced tariffs on both steel and aluminium imports and it is appears as though Trump wants to continue with his protectionism stance.
Later today the US will announce the latest Services & Manufacturing data for April. The expectations are for a rise compared to the previous month so another good announcement could see GBPUSD exchange rates move in a negative direction. On Thursday Initial Jobless Claims are also due to be released with the expectation for another strong performance, which is likely to help the Dollar vs, the Pound.
Ultimately, the most important day of the week in terms of economic data to affect the US Dollar will come on Friday when the first estimate of Quarter 1 GDP data is released in the US.
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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