The US dollar has remained the currency of choice recently with pound to US dollar rate dropping to hit 1.27 over the last few days.
Strong US dollar owing to global uncertainty
This is great news for anyone looking to sell US dollars to buy pounds at the moment. Indeed, they are close to their best level to sell US dollars all year.
The US dollar Index (DXY) published recently has shown that the dollar is now performing at its best level in 2 years against a number of different currencies.
The economy is doing rather well compared to both the UK and in Europe and this is one of the reasons why the dollar is doing so well.
Global investors appear to be moving money in to the US dollar owing to its safe haven status.
US China trade wars strengthens US dollar rate
With the US-China trade wars not likely to be ending in the near future this could see further strength ahead for the US dollar.
However, what should be concerning to US consumers is that they could soon start to feel the effect of the increased tariffs when paying for Chinese goods.
This could potentially cause a problem in the longer term for the US economy.
How could the next Brexit vote impact the pound to US dollar rate?
Meanwhile in the UK the pound continues to feel the negative effects of Brexit. Little headway has been made between the Tories and the Labour Party.
Corbyn has said that he will oppose the next Withdrawal Agreement when it is voted for in early June.
With markets expecting this next deal to be voted against this has moved us closer to the potential of a no deal.
It also means that Theresa May will announce her resignation and could be replaced by a pro-Brexit Prime Minister. This also heightens the chances of a no-deal Brexit.
Overall, I think we could see further problems in the near future for the pound vs the dollar.
Therefore, if you’re looking at buying US dollars and would like to save money compared to using your own bank and would like a free quote then contact me directly using the form below, I look forward to hearing from you.