The pound continued its recent revival against the dollar today with exchange rates rising over a cent to reach a high of $1.5375 before falling back over the course of trading today. Sterling has now gained around 1.75% against the greenback since the 2nd August following more positive news for the UK economy this morning. For more information on live rates of exchange click here.
After the better than expected UK Construction figures on Friday (see Fridays post) todays boost for cable came after the UK Services Sector beat economists expectations. The Services Purchasing Managers Index (PMI) increased to 60.2 in July compared to 56.9 in June (a reading over 50 indicates growth) which meant the sector grew at its fastest pace for over six and a half years. GBP/USD exchange rates reacted to the positive reading by climbing from $1.5266 to $1.5375 to once again show that the UK recovery is starting to gather pace.
For commercial rate of exchange click here.
All eyes will now turn to Wednesday's Bank of England Quarterly Inflation report were it is expected the MPC members will start to issue some Forward Guidance. If the markets react well to the report it is possible we could see exchange rates push back towards $1.55, especially as it seems more and more unlikely the U.S Federal Reserve will look to start tapering the $85 billion they are currently injecting into the U.S economy anytime soon.
With the potential to see some big swings in the GBP/USD cross in the coming weeks it is important to know what tools are available to help you make the most of your currency transfer, whether you are buying or selling dollars I have a range of currency contracts at my disposal to either protect you against adverse market movements or help achieve a rate of exchange that might not be currently achievable. For more information on how I can help use the link below and complete the contact form for a free, no obligation consultation.
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