GBPUSD rates back below 1.30

Pound to Dollar Rate Recovers Losses

The US dollar has strengthened in value following a big shift on EURUSD exchange rates as concerns mount over Italian debt. Clients concerned with buying or selling US Dollars also need to contend with what might lie ahead in Brexit negotiations and also this week’s Conservative Party Conference.

There has been a growing belief that we would see a rise in the value of the Pound if Brexit negotiations move further ahead but so far we have not had anything concrete confirmed. The big event this month will be the EU Summit which will start on the 18th October. Clients with a position buying or selling US dollars with Sterling could be in for a very busy period around this event as the market tries to best understand what direction Brexit will take.

Other events to move the GBPUSD exchange rate will be the upcoming news on the UK and US economy. The big news of the week will potentially be US Non-Farm Payroll data coming up. This would stem from changes and shifts in the US labour market, which could easily trigger some volatility on the rates. Clients with a position buying or selling Dollars might wish to note this data, it might see the US Dollar strengthen if the news comes out better than expected.

There is plenty of events up ahead on GBPUSD exchange rates to move the levels, from the big news on Italian debt and Brexit woes to changes and shifts in the US economy. There could also then be news on what we are expecting ahead for Trade Wars with Donald Trump one tweet away from causing market movements.

I think GBPUSD rates will struggle to get back above the 1.30 level now. If you are buying US dollars there could be an argument to move sooner than later.