Sterling recovered some of the lost ground against the dollar today with exchange rates climbing back over $1.50 to reach a high of $1.5187. It means we have now seen GBP/USD rates increase from $1.4817 in just three days as markets reacted to the latest minutes from the U.S Federal Reserve. For more information on live rates of exchange click here.
Last night saw the U.S Federal Reserve release the minutes from it's latest policy meeting with the news causing an unexpected drop in the dollars value. The minutes showed that members of the Fed want further evidence that the U.S jobs sector is improving before cutting back on the $85 billion they are currently pumping into the U.S.
For commercial rates of exchange click here.
The U.S dollar has been climbing against the pound ever since Fed Chairman Ben Bernanke said he was planning to faze out the stimulus programme and bring it to an end by mid 2014, this was one of the reasons we have seen exchange rates fall from $1.57 in recent weeks. I think the gains sterling has made against the dollar today could well be short lived though, as it is only a matter of time until the Fed do reduce the amount of QE and when they do act it is likely we will see rates fall again.
Next week also sees the release of the minutes from the Bank of England meeting at the start of the month. Although no action was taken by the MPC to move interest rates or increase the existing QE package, if the report shows that new BoE governor Mark Carney voted for further stimulus we could well see the markets reacted and the pounds value drop against a basket of currencies.
If you need to buy or sell dollars in the coming weeks and want to make the most from your currency transfer use the link below and complete the contact form for a free, no-obligation consultation.
Click here to complete the contact form.
