The Pound has remained under a lot of pressure vs the US Dollar recently and I think we could see further losses coming in the near future.
The US economy has been going from strength to strength recently and this has been reflected by the US Federal Reserve’s monetary policy to increase interest rates.
The Federal Reserve has increased interest rates 7 times since December 2015 and there is a strong chance that we will see another two rate hikes before the end of the year which could strengthen the Dollar even further.
With US inflation data due out later this afternoon, this could provide further support for the Fed to look at raising rates at their next meeting.
The current level of inflation stands at 2.8% with the expectation for it to come out at 2.9% and if inflation continues to rise, the typical way to combat rising inflation is to increase interest rates which is likely to strengthen the US Dollar.
Therefore, if you’re considering buying US Dollars it may be worth getting this organised in the very near future.
The ongoing Trade Wars are also causing the Dollar to remain strong, as when the global economy comes under pressure then this often encourages investors to seek out safe havens including the US Dollar and the Swiss Franc.
We could be in for a very busy afternoon as the UK Government is due to be releasing the Brexit white paper which will detail the proposals following last weekend’s Chequers meeting.
Even after 2 years since the Brexit vote back in June 2016, it is still unclear as to what is happening with the Brexit talks but the likelihood is that we could see the Government opt for a softer Brexit and this could ultimately help provide some support for the Pound so make sure you keep a close eye out as the story unfolds.
If you have a currency transfer to make and would like to save money when exchanging US Dollars then contact me directly here for a free quote; I look forward to hearing from you.