Today has seen a half point swing for GBP/USD exchange rates. When trading opened this morning rates were sitting just above $1.6620 but Sterling continued its recent slide against the dollar as the cross fell to a low of $1.6572. The lowest we have seen the currency pair since the 12th February.
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Today's move means the pound has now lost nearly 1.5% against the dollar in the last three weeks and as I mentioned in Monday's post, the lack of data coming out of the UK leaves the door well and truly open for the dollar to strengthen.
When dealing with currency a 1.5% move may not sound like much but for a business with invoices to pay or for a private client looking to purchase a property a decline in exchange rates all of a sudden leaves you in a position to find extra funds. To put the decline over the last three weeks into perspective a £200,000 trade into dollars will now see you receive around $4,500 less compared to the same trade secured on the 17th February.
As I have said on a numerous occasions over the last few weeks there is growing speculation that we will start to see the dollar strengthen over the course of 2014. If the U.S. Federal Reserve continue to cut their stimulus package it should only be a matter of time before the dollars value starts to benefit. The current stimulus package was one on the main reasons why GBP/USD climbed over 13% in the last 12 months and if the programme is wound up by the end of the year it is more than likely we see the dollar begin to fight back.
As a specialist currency broker I can offer a range of currency contracts to help you make the most from your transfer, even if you don't require your funds straight away. If you wanted to protect yourself against adverse market movements or target a rate that might not be currently available I can certainly help.
For more information on the types of currency contracts or to see what rate of exchange I can offer, use the link below and complete the contact form for a free, no-obligation consultation. Alternatively call me on my direct line 0044 (0) 1442 892 065.
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