The US Dollar remains strong against the Pound with investors continuing to move in to the safe haven currency in this period of heightened volatility, much of which is stemming from the trade war between the US and China. Whilst Britain and the EU have also been dragged in to this rift, the outlook for trade is not looking so promising with China and this is helping see the Dollar strengthen further. Rates for GBPUSD have been driven lower still as uncertainty over Brexit continues to be the main driver for the weakness in the Pound.
Both the strength in the Dollar and the weakness in the Pound are creating very good conditions for those clients looking to sell Dollars to buy Pounds. Brexit will become a major driver in the next few months as the UK moves closer to finalising the withdrawal agreement, ready for March 2019 when Britain leaves the EU. Politics will soon be the main decider in how Brexit turns out once the summer Parliamentary recess is over on the 4th September.
US Gross Domestic Product (GDP) data is released this afternoon and will be an important release to watch. These are the revised second quarter GDP numbers and any growth in the US economy is likely to be received well. This should help strengthen Dollar exchange rates. It should also pave the way forward for another US interest rate increase from the US Fed which could come as soon as September with another one to follow probably in December. Such rate hikes are only likely to help strengthen the Dollar further. In the meantime any developments surrounding Donald Trump’s ex lawyer Michael Cohen and his admission of tax evasion could see the Dollar come under fire.
For more information on Dollar exchange rates and for assistance in timing your exchange at the optimum time then please get in touch with me, James at firstname.lastname@example.org.