Thursday, 12 January 2017

Pound/dollar exchange rate climbs over two per cent.

Today has seen the pound claw back around two per cent against the U.S. dollar, with the currency pair rising from $1.2046 to its current level of $1.2280.

Are you looking for the best GBP/USD exchange rate?

After plummeting to levels not witnessed for over 31 years during Wednesday's trading session (not including Octobers flash crash), the GBP/USD cross has been rising on the back of Donald Trumps press conference yesterday afternoon.

GBP/USD graph

Markets had been waiting in anticipation for Trumps first press conference since winning the Presidential election, where it was expected that he would take the opportunity to lay out his plans for fiscal spending and taxes cuts.

The dollars value has surged since Trumps surprise victory on the 8th November, but with the President-elect providing very little in terms of future economic policy at yesterdays conference, the dollar has given up some of those gains and given some much needed breathing space to the pound and euro.


Could the dollar fall further?

Potentially yes...As I mentioned in my post yesterday part of the reason the Federal Reserve announced a potential three additional rate hikes in 2017 was try and combat Trumps plans which could boost growth and increase inflation.

However, if Trump fails to deliver, it could mean the Federal Reserve hold back from hiking rates and if that happens it could for investors to pull out of the dollar, which in turn will weaken the currency.


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As a specialist in currency exchange I have a 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.

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