The pound rises against the dollar

Today has seen the pound bounce off of the lows we saw last week, with the GBP/USD cross rising to an intraday high of $1.2249.

The move has seen the pound claw back around a cent since last night after markets had time to digest Nicola Sturgeon's demands for a second Scottish independence vote.

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Sterling initially lost ground against the dollar and euro after Sturgeon stated she would request authorisation from the UK government to hold a new referendum.

However, the pound was able to quickly regain the lost ground and move into positive territory after Sturgeon said the referendum will not take place until the autumn of 2018 or the spring of 2019.

GBP/USD daily graph.

Will the pound rise against the dollar this week?

This week could be one of the most volatile weeks we have seen since the Brexit result in June. Theresa May could trigger Article 50 in the coming days and that is likely to see the pound come under an increased amount of pressure.

On Wednesday the U.S. Federal Reserve will conclude their latest monetary policy meeting and markets are banking on Fed Chair Janet Yellen raising interest rates again. Investors will also be looking for clues about the pace of future increases and if the result is positive we could see the dollar strengthen across the board.

Another event which could impact the GBP/USD cross is the Dutch elections. If right-wing Geert Wilders wins the vote on Wednesday it could prompt investors to pull out of the euro and head to the safety of the U.S. dollar, which in turn could force pound/dollar even lower.

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If you have a requirement to buy or sell dollars in the week's and are worried about the impact this weeks events could have on your transfer, contact me today for a free, no-obligation currency consultation.

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Pound cannot not hold onto gains

We have seen a half cent swing for the GBP/USD cross during today's London trading session, after markets reacted to European Central Bank President Mario Draghi's press conference this afternoon.

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GBP/USD had been hovering around the $1.2150 mark all morning, but during Draghi's speech the dollar started to weaken as investors pulled out of the dollar and headed for the euro.

The move allowed the pound to claw back some of the ground it has lost against the dollar over the past couple of sessions, with the currency pair coming in within touching distance of $1.22. However the gains can only be described as short-lived, as within the space of a four hours the GBP/USD cross was back trading around $1.2140.

 

GBP/USD daily graph.

What did Draghi say?

Over the past few weeks investors have been heading into the dollar, largely down to the potential interest rate hike from the Federal Reserve next week, but also because of the uncertainty currently surrounding Brexit and the French Elections.

Despite all the uncertainty across Europe, Draghi's comments this afternoon have given the euro a much need boost. Mr Draghi stated it was less necessary for the European Central Bank to support the market with ultra-loose monetary policy. He also said the central bank had removed the reference of using all available measures to increase growth and inflation "because the sense of urgency is not there".

What next for the GBP/USD cross?

In the short-term all attention will now switch to tomorrow's unpredictable Non-Farm Payroll jobs report from the U.S. After yesterday's bumper employment change reading, investors will be hoping Friday's job figure is just as positive, which if it is, will all but guarantee another rate hike from the Federal Reserve next week and we could see the dollar strengthen further.

 

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  If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on your transfer, contact me today for a free, no-obligation currency consultation.

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GBP/USD exchange rate hits a fresh seven week low

The pound has lost more ground against the U.S dollar over the course of today, with the currency pair falling to another fresh seven week low of $1.2141. 

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As you can see from the graph below, Chancellor Philip Hammond's 2017 budget did provide the pound with a small amount of support early this afternoon, however, the gains were quickly wiped out after the U.S. posted a huge employment change figure, which helped strengthen the dollar.

GBP/USD graph

Despite Philip Hammond increasing growth forecasts for the current year and reducing the predicted rates of public debt from his November forecasts, it was not enough to help pound as Brexit and the potential interest rate hike from the Federal Reserve continue to weigh heavily on the GBP/USD cross.

Rate hike on the cards

This afternoon's U.S. employment change report has also helped cement investors' hopes the Federal Reserve will increase interest rates at their meeting next week. If Friday's non-farm payroll jobs figure backs up today's employment reading it should all but guarantee the U.S. central bank will take some action next Wednesday.

If that is the case it leave the door open for the dollar to make further gains against the pound and it is just possible it could force GBP/USD towards $1.20.

Do you need to buy or sell dollars?

 If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on your transfer, contact me today for a free, no-obligation currency consultation.

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

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GBP/USD exchange rate drops under $1.22

Today has seen the pound lose more ground against the U.S. dollar as investor continue to bank on the Federal Reserve increasing their benchmark interest rate next week.

As a result of the dollar strengthening the GBP/USD cross dipped to a low of $1.2171 this afternoon, the lowest we have seen the currency pair since the 17th January.

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With today's drop, it means pound/dollar has fallen over three per cent in the past two weeks. Which if we look at in monetary terms, means a transfer of £300,000 into USD today, would achieve around $12,000 less than it did on the 24th February.

GBP/USD graph

When will the pound recover?

It is impossible to say at the moment as we are still in uncharted waters. Even without the prospect of another rate hike from the Federal Reserve, the GBP/USD cross would still be suffering.

Brexit continues to weigh heavily on the value of the pound and until the markets receive some sort of clarity it will be difficult to see the pound clawing back the ground it has lost.

We are still waiting for Article 50 to be triggered, but even once Theresa May gives the go-ahead to leave the EU, we are going to enter into a two year negotiation period and that is also going to cause a huge amount of uncertainty for investors.

 

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on your transfer, contact me today for a free, no-obligation currency consultation.

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GBP/USD exchange rate falls again

The GBP/USD cross has fallen even further today, with the currency pair dropping to $1.2230 this afternoon. After rising to $1.23 during the early hours of this morning's trading session, the pound/dollar exchange has lost over half a per cent throughout today's London session as you can see from the graph below.

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GBP/USD daily graph

Why has the GBP/USD lost ground?

Today's move has been largely down to the U.S. dollar strengthening. Investors seem to be banking on the Federal Reserve increasing interest rates next week, while the dollar has also gained momentum due to the developments in the French elections.

During times of uncertainty the U.S. dollar is often seen as a safe-haven for investors and that is exactly what we have seen today. Former French Prime Minister Alain Juppe, today ruled out running in the upcoming elections, which has been seen as boosting the stock of anti-EU candidate Marine Le Pen.

A poll released last week showed that if Alain Juppe replaced Francois Fillon, he would win the first round of elections with Emmanuel Macron coming in second, ending Le Pen's chances of making it through to the next round.

However, today's developments have ended that theory and following Brexit and Donald Trump, investors are acting on the side of caution and have headed to the safety of the dollar.

Are you looking to buy or sell dollars?  

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit, the Federal Reserve rate hike or the French elections could have on your transfer, contact me today for a free, no-obligation currency consultation.

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

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Pound/dollar exchange rate falls to six week low

Today has seen the pound fall to a fresh six week low against the U.S. dollar, with the currency pair hitting a low of $1.2260 this afternoon.

The decline means the GBP/USD cross has dropped almost 2.5 per cent in the last week, as the pound continues to be weighed down by talk of Brexit, while the dollar is strengthening as investors focus on the potential interest rate hike in the U.S.

 

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Although the drop is not ideal for those of you looking at purchasing U.S. dollars, it will come as welcome news for those who are looking to sell and move your funds back into sterling.

If we look at the move in monetary terms, converting $300,000 back into pounds will today achieve you around £6000.00 more than it did on the 24th February.

GBP/USD one week graph

Why is the pound falling?

As I mentioned above, talk of Brexit is still dragging the pound down. With so much uncertainty surrounding Article 50, the two year negotiation period and the future of the UK economy, investors are wary about moving funds into the country.

Data is also starting to suggest the UK economy is slowing. Since the referendum result Britain's economy has been showing its resilient side. However, following a raft of weaker eco-stats over the past couple of weeks, there are signs consumers and businesses are becoming increasing concerned.

When you add into the mix a potential rate hike for the Federal Reserve this month (which is likely to increase the dollar's value further), we easily see the GBP/USD cross test the $1.20 barrier in the coming weeks.

 

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on your transfer, contact me today for a free, no-obligation currency consultation.

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GBP/USD exchange rate dips as the dollar surges.

Sterling has fallen almost a cent and a half against the U.S. dollar since yesterday afternoon, with the currency pair falling from $1.2475 to $1.2330.

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The move means the GBP/USD cross has fallen to its lowest level since the 20th January this morning, after the dollar gained ground across the board.

GBP/USD graph

Why has the dollar strengthened?

There are two reasons behind the dollar's rise. Firstly, President Trump surprised markets yesterday evening when he gave his first major speech in front of Congress.

Trump stated that he was open to an immigration reform, which would seem him move away from his harsh stance on illegal immigration, something that has dominated the news since he got into office.

The dollar then received another boost this morning after two of the Federal Reserve's policymakers hinted another rate hike is on the horizon.

President of the San Francisco Fed, John William said that a rate rise was on the table for consideration at the central banks meeting in March because of accelerating inflation and full employment.

William Dudley, New York Fed President was also in a hawkish mood, saying the case for tightening monetary policy "has become a lot more compelling".

Will GBP/USD recover?

It is almost impossible to say at the moment. If the Fed do increase interest rates in a couple of week's time it is likely the dollar will gain even more ground against its counterparts.

We are also getting closer to the UK government triggering Article 50. With investors still uncertain about the impact leaving the EU will have on Britain's economy, plus Nicola Sturgeon planning a second Scottish independent vote, the pound looks set to remain under pressure in the coming weeks.

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure are making the most from your transfer, contact me today for a free, no-obligation currency consultation.

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

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