Pound Sterling has come under pressure once again vs the US dollar after last week’s EU Summit did little to support the pound. The summit had promised to deliver progress prior to the meeting but little happened last week which caused the pound to fall as no positive news came out.
Since April, the pound has fallen by over 10 cents vs the US dollar which is a difference of £9,200 on a currency transfer of USD$100,000. This highlights the importance of making sure you’re well informed and well prepared when making a currency transfer.
Positive US economic data
The dollar has gone from strength to strength over the last few months and this has been supported by a number of interest rate hikes, as well as sustained improvements in unemployment levels. These dropped to 3.7% which is close to the lowest recorded in US history.
So far, it appears as though the Trade Wars between the US and China have helped to improve the value of the US dollar as global uncertainty has increased and global appetite for risk appears to be lower. This will typically help to support the US dollar and is part of the reason for the current strength of the greenback.
Could there be a Conservative Party leadership challenge?
Meanwhile, turning the focus back towards what is happening in the UK, there is more pressure being piled on Theresa May’s position as Prime Minister.
Over the weekend reports have emerged that she is coming under pressure from a number of Tory back-benchers who appear to be gearing up for a challenge to her leadership.
However, many have argued that this will result in huge problems for the Tory Party as there is no clear leader that could easily replace her which could open the door to the Labour Party.
With so much uncertainty in the weeks ahead, if you have a currency transfer to make before the end of the year it’s a good idea to consider your options. Feel free to use the form below to get in touch. I’ll be happy to respond personally and discuss the factors likely to impact your currency requirements.