After what seems like a brief recovery, Sterling lost further ground against the dollar today as exchange rates once again slipped back below $1.63. When I arrived at the office this morning GBP/USD exchange rates we sitting close to $1.6330 but after some weak economic data from the UK and some positive numbers from the States the pound continued to slide against the improving dollar. At the time of writing GBP/USD had fallen by over a cent to reach a low of $1.6225.
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Todays decline means the pound has lost nearly 1.35% against the dollar in just over a week. It might not sound very much but in monetary terms it can make a massive difference. If you were converting £250,000 into dollars today, the drop in exchange rates would mean you receive almost $5,700 less compared to the same trade secured at last weeks high.
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The positive data releases that came out of the States this afternoon will fuel speculation that the U.S. economy is starting recover. If the economy is seen to be improving it could also heighten expectations the U.S Federal Reserve will start to cut back their on-going stimulus package. With FED officials currently holding a meeting there is an outside chance we may get an idea of there tapering plans as early as tomorrow.
I think it is unlikely that tapering will being tomorrow, but if the FED come out and say they will look to start reducing the amount they injecting into the economy in January, the dollar could quickly start to gain momentum against most of its major counterparts.
If you are thinking of buying or selling dollars in the coming weeks and would like to take the element of doubt and risk out of your currency transfer, there are a number of tools I have at my disposal to help you make the most from your money. Use the link below or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.
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