GBP/USD exchange rates fell away from their recent highs as U.S government officials agreed to ease spending cuts and reduce their ever growing budget deficit. Sterling lost over a cent against the dollar falling from $1.6464 to a low $1.6324 before recovering back towards $1.64 at the time of writing.
For more information on live market prices click here.
The agreement reached by U.S. officials yesterday (Tuesday) is a big boost to the American economy, as it greatly reduces the risk of another government shutdown and a potential breach of the debt ceiling when the existing deal expires in February.
It also adds to speculation the Federal Reserve could look to start cutting back its $85 billion stimulus programme as early as December. This could be a major breakthrough for the dollar which has lost so much ground against most of its major counterparts in recent times.
Want to know when you preferred rates is available?? click here.
All eyes will now be firmly on the FED meeting next week and it could be the perfect Christmas present for those looking to sell dollars. With exchange rates moving against them for the last 4 months, there is now a real possibility we could see GBP/USD drop below $1.60 for the first time since mid-November.
The next week could see some real swings in the FX markets, especially in the run up to the FED meeting. Remember, exchange rates move on rumours just as much as fact, so as tongues start to wag and we get closer to the meeting I would expect to see big movements in cables performance.
If you have a requirement to buy or sell dollars now is the time to get in touch. If you are buying, it worth considering a forward contract to secure your rate close to the two year high, if selling a limit order could help you target a rate that is not currently available.
For more information use the link below to complete the contact form or contact me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.
Click here to complete the contact form.
