The Pound has hit its best rate to buy US Dollars since the end of September after the US has announced a couple of lower than expected data releases during the course of this week.
Although the Federal Reserve have almost guaranteed that interest rates will rise at December’s meeting, as the economy is showing some signs of a slowdown this has led to the US Dollar weakening vs the Pound.
US Durable Goods published this week showed a slowdown and with Friday afternoon’s data showing a slowdown with both Services and Manufacturing data this could influence the Fed to not increase interest rates as quickly as many might expect during 2018.
The economic data is not really cause for alarm but rather highlights that things are not going as well as previously expected.
Clearly the US economy is doing better than the UK and with the ongoing uncertainty with the Brexit talks this is keeping the Pound under a huge amount of pressure vs the US Dollar.
The next Brexit meeting is due in mid-December and the tone has been a little more positive recently so if the talks go well this could see the Pound making improvements against the US Dollar during the middle of next month.
On Wednesday the US releases its first estimate of GDP for the third quarter expected to show 3.2% year on year so anything different could cause a lot of volatility for GBPUSD exchange rates.
Many of my clients have opted for a forward contract recently when selling Dollars which allows you to fix an exchange rate for a future date if you don’t have the full availability of funds at the moment.
If you have a need to make a currency transfer in the coming days, weeks or months then feel free to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency compared to your bank or another currency broker.
Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will respond to you as soon as I can.