The last few days have been better if you were
looking to buy U.S dollars. Rates pushed to a new one month high following the
decline we witnessed the previous week; negative data from the US and better than expected unemployment data from
the UK
helped rates climb back above the $1.57 mark:
Last week saw a generally disappointing week for
the US Dollar which in turn helped the Pound; unfavourable data releases meant
we saw the GBP/USD rate reach the 1.5734 (a fresh one month high at mid-market)
compared to a high of 1.5562 in the previous week. Euro weakness did persist
throughout the week, helping safe haven currencies such as sterling, and
whispers did bring up whether we might see parity between the EUR/USD before
the end of the year should the continue to weaken as it has been in recent
weeks. The EUR/USD rate fell 0.77% to a low of 1.2216 after German Chancellor
Angela Merkel’s comments added to Euro zone fears, causing people to seek safer
investments.
Over in the states, mixed messages from Fed
Chairman Ben Bernanke caused further uncertainty as he said easing tools are
still available if they are required but might not actually be necessary,
hinting at further Quantitative Easing in the USA. Towards the end of last week
Sterling became the better performer out of the major currencies, although
there was no way you could have described its performance as strong, it did at
least move higher against the dollar and Euro on Thursday and Friday as
outlined in the Euro report. The US Dollar’s disappointing or negative data
included weekly jobless claims, existing home sales and the Philadelphia Fed's
manufacturing index.
The dollar will always benefit from being a safe
haven currency; as soon as investors are “spooked” or want to get out of
riskier currencies they will flock back to the US dollar making it more
expensive to purchase. If you need to purchase dollars it is important to try
and take advantage of movement in the markets and to use our different
contracts to make sure you are budgeting effectively.
To get the ball rolling and so that you can start
to discuss your options, click here and complete the contact form for a free no obligation consultation.
