Despite positive news coming out of the UK this morning, GBP/USD exchange rates fell by nearly a point in the afternoon as better than expected Jobless Claims in the States strengthened the U.S dollar. For more information on the exchange rates I can offer click here.
First thing this morning there was more good news for the UK economy, Industrial and Manufacturing Production numbers beat initial expectations to strengthen claims the UK maybe on the road to recovery. Industrial Production rose by 0.7% when the forecast had been for the sector to grow by 0.3% and with Manufacturing Production performing even better (a rise of 1.1% against the forecast of 0.4%) the pound gained nearly half a point against the dollar to push exchange rates towards $1.5585.
Are you looking for the best exchange rates? click here
In what was a busy day in terms of data releases for the UK, the Bank of England (BoE) announced that interest rates will remain at 0.5% and will keep it's Quantitative Easing (QE) programme unchanged at £375 billion. The announcement from the BoE came as no real surprise and didn't cause any real movement in the currency markets. Last month's GDP figures, which showed the UK economy grew in quarter one have reduced the need for the BoE to step in to try and boost growth.
However, the gains sterling made this morning were soon wiped out as positive news from the states in the form of Initial Jobless and Continuing Jobless Claims strengthened the dollar. Initial Jobless Claims fell by 12,000 and Continuing Claims fell by 15,000 and the figures had an instant impact on the market as exchange rates fell from $1.5580 to $1.5487.
The last few weeks have been particularly choppy for cable with positive news from the UK and U.S causing some big swings in exchange rates. We have already seen sterling gain nearly 5% against the dollar since the start of March but it seems the pound may have run out of steam as exchange rates struggle to break through $1.56. Some analysts are still predicting we will see the pounds value fall over the course of the next few months with forecasts for Sterling/Dollar to drop back towards $1.47 in the next six months.
Whether you are a business or a private client looking to buy or sell dollars in the coming weeks, the one thing that will help you make the most from your currency transfer is getting the timing right on your transaction. By using the different tools that are available I can help you target a rate that might not be currently available or put a safety net in place to protect you from any adverse market movements. For more information on how I can save or make you money click on the link below and complete the contact form for a free, no obligation consultation.
Click here to complete the contact form
