Pound Dollar rates hit 3 month high
The Pound vs the US Dollar is now trading at its best levels to buy US Dollars with Pounds since the end of August.
With the Pound improving this has created some good opportunities for those looking to convert Pounds into US Dollars.
The US Dollar has slowly begun to weaken following falls in US inflation recently as it appears as though the Fed’s policy of interest rates has started to work.
Inflation is still extremely high in the UK whilst the US has started to see a fall.
This could be attributed to the Federal Reserve’s aggressive stance with its interest rate policy during the course of this year.
Inflation has begun to fall in the US and there are expectations that the Fed may be considering a slow down in their pace of interest rate hikes.
The minutes from the most recent FOMC released this week suggest that policymakers are expected to slow down their pace of rate hikes which has caused the US Dollar to weaken.
Indeed, GBPUSD exchange rates are now trading above 1.20 and even started to trade above 1.21 during the course of this week.
The expectation for the next Fed rate hike is now 50 basis points compared to their recent 75 basis point hikes.
What will happen with US GDP?
As we move forward into next week we could see further movement for GBPUSD exchange rates on Wednesday.
This is when the US will release the latest US GDP figures for the third quarter.
As the world’s leading economy this will be closely watched by anyone with a US Dollar transfer to make so make sure you’re prepared to act quickly if the markets start to move late Wednesday.
If you have a currency transfer to make and would like a free quote then contact me directly and I look forward to hearing from you.
Email me directly Tom Holian [email protected]