US Dollar update and how to get the most from your currency exchange.

US Dollar update

The dollar opened the day against the pound in the mid $1.56’s. As I mentioned yesterday the BOE minutes saw the pound lose ground against a number of currencies and the data release had a bigger effect on the pound than most had predicted.

Throughout the morning the GBP/USD cross has been slowly recovering, at the time of writing we have seen a 0.5% rise in the rates. News from Germany that business confidence was at a 7 month high would have given investors added belief that the Euro-zone could be about to turn a corner. When you have positive news coming from Europe investors tend to leave the Safe Haven status of the Greenback and head back into Europe, this will lead to the dollar losing strength and make it cheaper to purchase.

However with many analysts still concerned that the Euro is under threat any talk of a Greek default or a Euro recession could see the pound/dollar start to move back towards $1.50 as investors look to protect themselves with a flight to safety. 

With limited data coming out the UK and US today it could be a rather quiet day for the GBP/USD cross. Friday however is a much busier day and we could see some movements in the market, tomorrow will see finance ministers and central bank governors come together to discuss the global economy at the latest G20 meeting.

There is also Gross Domestic Product (GDP) information released from the UK and New Home Sales data from the US.

How to make the most of your currency exchange

If you want to make the most of your currency exchange there are a number of ways I can help. Yesterday I told you about a Stop Loss Order which can protect you from any adverse movements, but what if the rates are moving in the right direction?

With a Limit Order you specify the exchange rate you are hoping to achieve, a price that may not be currently available. Your currency will automatically be purchased if the market exceeds this level and you'll get the rate you wanted.

If you need to buy or sell dollars in the coming weeks or would like to discuss Stop Loss or Limit orders, you can use the contact form on the blog home page or click here to send me a direct email.