Sterling has lost a bit of momentum since my lost post as rates dropped back below $1.6350 towards the end of last week. Trading today though has seen the pound claw back over half a per cent against the dollar, which has seen the GBP/USD cross break through $1.64.
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Will rates continue to rise?
That question seems to be on everyone's tongue at the moment. Unfortunately I don't have a crystal ball but if we look at what has caused GBP/USD
to jump over 5% since September it is mainly down to dollar weakness. Yes the pound and the UK economy have been performing well but with all the issues that have come out of the United States in the last few months it is hardly surprising the dollars value has dropped so much.
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However, speculation seems to be mounting that the U.S. Federal Reserve are on the brink of reducing its on-going stimulus package. Following Fridays positive job numbers and a reduction in the unemployment rate some market experts are predicting we could see tapering begin as early as 18th December. If that were to happen I would expect the dollar to instantly strengthen, what impact it has on exchange rates will depend on amount the stimulus package is reduced by.
If you are thinking of buying dollars it is certainly a good time to do so, even if you don't need the funds straight away you can secure your rate of exchange for up to two years into the future. For more information on how to take advantage of the current rate use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.
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