US Dollar close to all time highs vs Sterling
The GBPUSD exchange rate has recently touched close to all time lows following the mini-budget two weeks ago.
The US Dollar is often viewed as the global safe haven currency.
This is in part why we have seen the Dollar strengthen so much recently.
The ongoing issues in Ukraine have caused a flight to safety of the US Dollar.
Indeed, the Dollar also hit its best rate to buy Euros in the last few weeks owing to the global uncertainty.
With oil prices hitting record highs earlier this year, this is another example of why the Dollar remains as high as it is against a number of different currencies.
Oil prices are priced in US Dollars so when the prices rises this often helps the Dollar.
Energy Issues in the UK
Turning the focus back towards the UK, we have seen a huge amount of uncertainty in the UK economy in the last fortnight.
Things appear to have settled down a little this week. However, energy prices have risen for many across the UK since the start of October owing to the price cap.
The turbulence of the mini-budget news also caused issues for pension funds and banks.
Many banks and mortgage providers removed some of their products with interest rates predicted to go as high as 6% at some point next year.
The Bank of England are targeted at keeping inflation at 2%.
With inflation in the UK around 10% the central bank are left with little alternative but to raise interest rates.
Typically an interest rate hike would often lead to Sterling strength.
However, in recent months the opposite has happened.
This is because the accompanying statements have been rather gloomy with a recession predicted to happen in the UK.
For anyone selling Dollars to buy Euros or indeed another currency that is pegged to the US Dollar we are seeing excellent opportunities to take advantage of current US Dollar strength.
IF you would like a free quote when selling US Dollars or any other currency then contact me directly Tom Holian [email protected] and I look forward to hearing from you.