After Monday’s lows, the pound gained some ground against the dollar on Tuesday afternoon. Rates broke the $1.57 barrier as news that the UK trade gap was less than expected in January, largely thanks to strong exports of cars to Russia, the US and China.
This is good news for the pound and the UK economy as exports are growing faster than imports, this will reduce the chance that the UK
Some analysts still believe the pound is vulnerable against the dollar as it is widely expected that the U.S Federal Reserve will hold off from further monetary stimulus for the economy. If the Federal Reserve hold off from further stimulus we could see the dollar strengthen and push the GBP/USD cross below the 1.5603 we saw on Monday.
As I have said before when you are exchanging currency it is all about timing, one of the best ways to ensure you are catching any rise in the market is to look at a Limit Order. 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 want. To discuss Limit Orders in more detail click here to send me a direct email or use the contact form on the homepage of the blog.
