Sterling continued its recent trend with GBP/USD pushing towards $1.70. Over the last week the pound has reached a number of fresh highs against the dollar and today was no different. A rise of over a cent during trading today meant the currency pair peaked at $1.6995, rising from $1.6887 when the markets opened this morning.
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The pound is certainly seems to be the dominant force in the currency markets at the moment and this was highlighted today as Sterling rose against most of its major counterparts. Nothing seems to be able to break the pounds momentum at present and not even the better than forecast U.S. job numbers we witnessed on Friday could put a dent in Sterling's performance.
If this trend continues and we break $1.70 there maybe no stopping the pound and it might not be too long until we see rates get back to the kind of levels we witnessed prior to the financial crisis in 2008. The tapering efforts from the U.S. Federal Reserve seem to be having little impact on the dollars value, especially as they have played down any chance of an interest rate rise in the near future. If the UK continues to post better economic numbers than the States it is hard to see how the dollar will recover.
It looks as though the Bank of England will raise interest rates before the Federal Reserve and European Central Bank and if that happens the UK and pound will be the preferred destination for potential investors which is once again likely to boost Sterling's value yet again.
The next few months will be key if you are looking to sell dollars, unless the U.S. can put together a string of positive data releases I can only really see rates going one way and that is up. GBP/USD has risen nearly 14.5% in the last 10 months, so if you are looking to sell dollars it important to know what you can do to protect yourself against further adverse movements.
As a specialist currency broker I have a number of tools at my disposal to ensure you are making the most from your currency transfer. For more information on what options are available or to find out what rates of exchange I can offer, 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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