The Pound has made improvements against the US Dollar ending the week with GBPUSD rates hitting above the 1.32 level after getting close to dropping below 1.30 earlier in the week.
The third and final revision of UK GDP for the first quarter came out on Friday mooring and was increased upwards from 0.1% to 0.2% which gave the Pound a lift against the US Dollar.
US Personal Spending in May saw a fall from the expectation of 0.4% to 0.2% and this caused the Dollar to weaken towards the end of the week.
The Dollar has been the currency of choice for the last few months hitting the best level to sell Dollars into Pounds all year only last week.
The US Federal Reserve has increased interest rates seven times since December 2015 and already twice again this year.
The expectation is for further interest rate hikes to come with potentially two more and this is one of the major reasons for the Dollar’s continued strength during 2018.
With interest rates in both the UK and Eurozone to remain on hold for quite some time to come global investors are ploughing money in to the US with a very positive yield on investments as well as a very strong and stable economy at the moment.
Indeed, with the ongoing Trade Wars between the US and China as well as increased tariffs by Donald Trump this has caused concerned for the stability of the global economy and generally speaking in terms of geopolitical uncertainty the US Dollar tends to strengthen and this is in part why we have seen GBPUSD exchange rates drop dramatically in the last few months.
Since April we have seen the Pound fall by almost ten cents against the US Dollar highlighting the importance of keeping up to date with what is happening on the foreign exchange markets.
If you would like further information about what is happening with the US Dollar or a free quote when buying or selling US Dollars then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]