Pound/dollar exchange rates recover some lost ground

Good afternoon, despite a poor run which has seen GBP/USD exchange rates drop by almost 4% since the turn of the year, today has seen a slight upturn in Sterling's fortunes against the dollar. With a lack of data due out from the UK this week rates remained relatively flat over the course of Monday and this morning. The mid-market price was hovering around $1.57 before a sudden spike Tuesday afternoon saw cable reach $1.5772, a gain of nearly 0.5%.

So what caused this spike?

As I mentioned there is little out this week from the UK so in my opinion the rise was not from sterling strengthening. Around the time of the of the gains Consumer Confidence figures from the states were released and were much lower than forecast. The figures from the Conference board highlights the level of confidence that individuals have in U.S economy and a high reading can positive for the USD, while a low reading can be negative. Today's figures came in 5.4 points under what was expected and could be the reason why we saw the dollar lose some ground against the pound.

 In my roll as a currency broker, I have access to currency forecasts from a range of different sources. One of my brokers have revised their forecasts in the last 24 hours for GBP/USD exchange rates.They are forecasting that rates will push back towards $1.62 within the next 3 months, this is great for those looking to purchase dollars but not so good for clients looking to sell.



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This of course is only one predication and with a range of forecasts available it is impossible to predict which way the markets will move. With that in mind, if you haven't done so already, you need to find out what tools are available to help you make the most out of your currency transfer. I can offer a range of currency contracts that can give you the flexibility and the peace of mind to help you make an informed decision.

For more information on the currency contracts click here.