The Pound US Dollar exchange rate has been improving recently after hitting as low as just above 1.14 on the Interbank level a couple of weeks ago. However, it appears to have a bit of a block during the course of this week staying in a fairly tight range.
It was announced this week that US jobless claims more than double compared to the week before with over 6.6million people filing for claims. This was a lot worse than the previous estimated figure and some analysts have questioned whether the figure could have been higher. Their reasoning is that it may have taken longer as many states in the US would not have had enough time to account for the total figure.
Clearly this is a real concern for the US economy but as the US Dollar is often used as a safe haven currency the Greenback has showed signs of strengthening. The Pound still remains relatively strong vs the US Dollar but the Euro has started to show real signs of weakness vs the US Dollar.
US. Non-Farm Payroll Data
Later this afternoon will announce new job creation in the US. Non-Farm Payroll data is due to be released with expectations for a minus figure of 100,000. The previous month saw a total of 273,000 new jobs created but clearly this pandemic is demonstrating how serious the news is to the economy in the US and globally.
According to the latest update there are a total of 50,000 deaths caused by Coronavirus with over half of the cases reported happening in Europe. This is why we have seen the EURUSD exchange rate suffering during the course of this week whilst the Pound remains fairly strong vs the US Dollar.
As we go into next week economic data against predictions will become more and more important as a lot of the data released recently having looked at the economy prior to the lockdown in both the UK and the US. Therefore, make sure you’re prepared to move quickly if you have a currency transfer involving Pounds and US Dollars.
If you have a currency transfer to make and would a free quote compared to using your own bank then contact me directly. Also, we are operating business as usual so feel free to send me your enquiry and I look forward to hearing from you.