G20 summit and the impact on the US Dollar vs the Pound

Trump trade optimism sends the Pound to AUD rate lower

G20 Summit Update

The news coming from the G20 summit could be positive for anyone looking to convert Dollars into Pounds.

US president Donald Trump has claimed that ‘we are back on track with China.’

After months of ongoing negotiations could we be nearing the end of the dispute?

So far tariffs have been imposed on a huge number of goods coming in to the US from China.

This has caused a lot of geopolitical tensions and a lot of movement on the global currency markets.

Investors have flocked to the US Dollar as a safe haven currency so this could cause movement for GBPUSD exchange rates.

According to some reports the US will not levy new tariffs on Chinese exports.

Following the conclusion of the G20 summit both leaders have agreed to reopen the talks and this could only be seen as good news.

What to expect for GBPUSD exchange rates next week

As we go into next week we could see further movement on GBPUSD exchange rates on Wednesday.

In the UK, Services data is released for June. The expectation is for 50.6 so anything lower could cause problems for the Pound against the US Dollar.

On Wednesday afternoon the US will release Trade Balance figures for May as well as Initial Jobless Claims. The jobs market has been very strong in the US recently.

Therefore, another positive data release could see further Dollar strength in the middle of next week.

If you are in the process of buying US Dollars it may be worth getting this organised early in the week.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to save you money compared to using your own bank.

If you would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian