Monday, 5 December 2016

GBP/USD exchange rate continues to rise.

The pound benefitted from yesterday's Italian referendum with the GBP/USD cross rising to a high of $1.2738 this morning, the first time the currency pair has broken the $1.27 barrier since the 6th October.

With investors focusing on the troubles and uncertainty over in the Eurozone rather than the UK's exit from the European Union, the pound has been unable to take full advantage, climbing around five per cent against the dollar since the beginning of November.

For the best GBP/USD exchange rate click here.

If we look at the move in monetary terms, purchasing $300,000 this morning now costs over £11,000 less than it did five weeks ago, and represents an excellent opportunity for those of you looking to buy dollars in the coming weeks.

GBP/USD graph.

Should I wait to see if the pound climbs even further?

Waiting and hoping the rate improves can be a dangerous game to play, especially when you consider what is just around the corner.

Next week the U.S. Federal Reserve will announce their latest interest rate decision and at the moment it looks very likely the FOMC will hike rates for the first time since December 2015. Many with in market are expecting an increase and a rise has probably been largely priced into the value of the dollar already.

However, if Fed Chair Janet Yellen confirms a rate hike next Wednesday, I still think the dollar will benefit and we could easily see a per cent or so wiped off the value of the GBP/USD cross.

We also have to remember the UK government still need to trigger Article 50 to begin official divorce proceedings with the EU. Although Brexit talk has taken a back seat over the past few weeks I have no doubts the pound will come back under pressure when talks get underway.


Do you need to buy or sell dollars?

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As a specialist in currency exchange, I have a wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

For more information about how I can help or to find out what rate of exchange I can offer complete the contact form by click on the link below.

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