How has the US Interest Rate Hike affected Sterling Exchange Rates (Tom Holian)

GBP USD Exchange Rate Slides after GDP Data Shows British Economy Shrank in June 

Following the decision to increase US interest rates on Wednesday evening GBPUSD rates have dropped below 1.50 and may continue to trade lower during the course of next week.

Tuesday sees the release of US GDP data and this could be revised upwards as recent data has been extremely positive in the US leading to the rate hike in the first place.

GBPEUR rates have been relatively quiet and Wednesday brings the release of revised UK GDP data.

The UK has performed well during 2015 so this could send Sterling exchange rates up vs the Euro during the middle of the week so if you need to buy Euros it may be worth seeing what happens with the data.

In the run up to the Christmas period trading volumes are much thinner compared to the rest of the year which can often result in  a lot more volatility for exchange rates.

Therefore, even with little data to impact the currency markets we could see any announcements this week move the market more than normal.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]