The Pound has made some gains vs the US Dollar during yesterday’s trading session sending the Interbank level back towards 1.29. We have already seen a rather volatile period for USD exchange rates during August with a movement of four cents from the high to the low during last month.
We have seen a steady decline for the Pound since Easter with exchange rates hitting their lowest level to buy US Dollars with Pounds in almost a year over the last few days.
However, we saw a change in sentiment yesterday with news from the Brexit talks that they appear to be improving slightly.
Rumours are that the position between the UK and Germany appears to be improving and this led to the Pound making some very positive gains yesterday afternoon following the release.
Later this afternoon the US will update the markets with their latest ADP Employment change and Initial Jobless Claims for August.
Both will provide us with a key indicator as to how the US is performing and could result in Dollar strength later today if the data shows some positive news, so if you’re thinking about making a transfer in the short term then make sure you pay close attention to this announcement later today.
However, arguably we could see even more volatility for GBPUSD exchange rates with the latest set of US Non-Farm Payroll data which measures new jobs created outside of the agricultural sector and this will take place at the same time as US unemployment data which is predicted to show a level of just 3.8%.
With employment so strong in the US, we could see further interest rate hikes in the future for the US and whilst the economy continues to remain strong I think even if we do see any gains for the Pound they will be generally short-lived.
If you have a currency transfer involving US Dollars and would like to know more about the factors likely to impact your exchange rates feel free to contact me directly for a free quote using firstname.lastname@example.org, I look forward to hearing from you.