Sterling falls to it's lowest levels in 6 weeks

Yesterday saw the pound fall to its lowest levels against the greenback in 6 weeks as continued optimism over the U.S. economy helped boost the dollar.

The GBP/USD cross dropped to $1.56 during the afternoon before recovering back to $1.5627 at the time of writing. These rates are the lowest we have seen since the end of January and are due to a stronger dollar rather than a weaker pound.

Friday’s positive jobs data in the U.S. has reduced the chance of the Federal Reserve pumping more money into the economy to stimulate growth and with a lack of data from the UK meant the pounds performance was driven by events elsewhere.

At the start of the day the GBP/USD rate was sitting close to the $1.57 mark but throughout the day levels dropped by 0.5% to the six week low. Although half a percent does not seem like a huge amount, to put it into perspective a £200,000 trade would have seen you receive $2,000 less in the afternoon than you would have got first thing in the morning.

This is another example of how important timing can be when it comes to exchanging currency. Click here to send me a non obligation email or complete the contact form on the homepage of the blog so we can look at your requirements in further detail.