Firstly let me apologise for not posting anything for the last few days, computer issues prevented me from being able to sign into my blog, which considering how volatile the markets have been has been exceedingly frustrating!
The last 48 hours have seen some huge swings for the Sterling/dollar cross. On Wednesday U.S Federal Reserve (FED) Chairman Ben Bernanke announced there would be no change to the existing bond buying programme, which is currently seeing the FED inject $85 billion per month into the U.S economy. The dollar immediately suffered as GBP/USD exchange rates reached $1.6150 for the first time since the 11th January 2013. For more information on live market prices click here.
Speculation had been mounting in the build up to Mr Bernanke's announcement that this was the time the FED would begin to scale back the stimulus package. In fact, investors and market players were so sure this was going to be the case, meant the only question remaining was by how much it would be reduced. Mr Bernanke's decision has left everyone scratching their heads as he is basically saying the U.S economy is still in a state of emergency and that tapering would not begin until there are continued signs of improvement.
Want commercial rates of exchange? click here
However, the gains for Sterling have not lasted for very long. Yesterday morning the UK released its latest retail figures and with the result coming in well under forecast, the pound quickly dropped back to $1.6070. There was also some positive news for the dollar as Existing Home Sales and the Philly Fed Manufacturing Index both beat expectations to help claw back some of the ground the dollar had lost over the previous 24 hours. As I have mentioned it has been a volatile few days and at the time of writing the GBP/USD had dropped back to $1.6007, almost a cent and a half down from Thursday's high.
So what next?
With exchange rates unexpectedly sitting over $1.60 it is certainly an excellent time to purchase dollars and despite the recent drop, rates are still over 9 points high than at the start of August. If you are selling dollars all is not lost, the FED are still hopeful they will be in a position to begin tapering before the end of the year and if that is true there is every chance rates will move back in your favour.
If you need to buy or sell dollars in the coming months, leaving it to chance could prove very costly, especially as the FX markets have been extremely volatile recently. If you would like more information on how I can help and the exchange rates I can offer you can either use the link below and complete the contact form or call me directly on 0044 (0) 1442 892 065 (quoting ADM blog) for a free, no-obligation consultation.
Click here to complete the contact form.
