The US dollar has continued to strengthen against the pound, causing GBP/USD exchange rates to hit their lowest level to buy US dollars with pounds since June 2017.
The US dollar has gone from strength to strength and continued with its impressive economic data, and has seen the benefit of both political and economic concerns across the globe. Indeed, in the last month the GBP/USD exchange rate has dropped by 4 cents, or the difference of £4,800 on a currency transfer of $200,000.
Yesterday afternoon, US Consumer Confidence figures were released at their best levels in over 18 years for this month and this helped the dollar to improve against both the pound and the euro. Donald Trump tweeted his pleasure at this:
Just out: Consumer Confidence hits highest level since 2000.
— Donald J. Trump (@realDonaldTrump) October 30, 2018
Will the US/China trade war be resolved in December?
Turning the focus towards the trade wars it appears as though US President Donald Trump may be softening his tone towards China by saying, “I can make a deal right now, I just say they’re not ready. I think we’ll make a great deal with China, and it has to be great”.
With a potential meeting taking place next month between President Trump and Chinese President Xi Jinping, could we see an end to the current trade war between the two nations?
We have a huge amount of economic data due out over the next few days in the US, starting with today’s Employment Report which could show a small drop and create some short term us dollar weakness, which could help GBP/USD exchange rates.
Bank of England decision could impact GBP/USD exchange rates
However, with the Bank of England interest rate decision coming out tomorrow I think we could see a problem ahead for the pound, as the Central Bank are likely to adopt a relatively cautious tone and focus on the ongoing uncertainty of Brexit, which is why I think we could see GBPUSD exchange rates fall even further towards the end of this week.
Therefore, if you’re planning a currency transfer, make sure you’re well prepared for a busy end to the week. Feel free to get in touch using the form below if you’d like further information on the factors impacting cable rates at the moment. I’ll be happy to respond personally.