Sterling hits its lowest levels against the dollar since mid April 2012

Thursday has been a quite in terms of data releases in the UK so the GBP/USD cross has been driven by events elsewhere. Over the course of the day rates dropped by over a cent and briefly touched the $1.57 before recovering back over $1.58. Over the last few weeks there has been a growing demand for the U.S dollar as concerns in the Euro-zone escalate.  

With Greece currently without a government and with all parties seemingly apposed to the austerity measures set out by Euro-zone chiefs it looks more and more likely we could see the Greeks leave the single currency. Trading levels reflected the uncertainty as the pound lost ground against the dollar throughout the day until negative data from the U.S in the form of Initial Jobless Claims, Continuing Jobless Claims and the Philadelphia Fed Manufacturing Survey put a halt to the decline.

At the moment it is hard to see a quick return to the highs of $1.63 we saw a few weeks ago, especially after the Bank of England (BoE) announcement yesterday and the dark cloud once again hanging over the UK economy. This is great news for people looking to sell their dollars but for anyone looking to buy the greenback your money is not going to go as far.

With no data due for release tomorrow (Friday) once again sterling will be tested by events in the Euro-zone and U.S.  In the short term a run of negative data coming from the Euro could see rates continue to fall, medium to long term I wouldn’t be surprised if rates pushed back towards the $1.52 that we witnessed back in January.

If you need to convert currency and want to achieve the best pound/dollar exchange rates it is vital you know what options are available. You can protect yourself against rates moving the wrong way, trying to guess which way the market is going to move and leaving your transaction to the last minute could prove very costly.

If you need to buy or sell dollars in the next 12 months, you can send me a no obligation enquiry now. I can then provide you with market information and the options available to help you make the most from your currency transfer. Click here  to send me a direct email or complete the contact form on the homepage of the blog.