It has been another quite day in terms of the economic data releases with no figures coming from the UK or the U.S. Despite the lack of numbers the dollar continued to rise against the pound with the GBP/USD cross falling back to $1.7056, taking us close to the lowest level we have seen for three weeks.
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Why has the dollar been strengthening?
It seems as though the dollar is still being driven by the comments made by Fed Chair Janet Yellen last week. During her two day testimony in from of the Senate banking committee Mrs Yellen indicated a rate rise could come sooner than markets anticipated if the labour market continues to improve.
Will the GBP/USD cross recover the lost ground?
Potentially yes, but there a number of factors to take into account. It now looks as though a interest rate rise in the UK has been priced into the market but we are still waiting to hear when the first hike will take place. If we get a clear indication from the Bank of England about when it will take place we could see the pound start to strengthen.
What to look out for?
Any announcements from the Bank of England or the U.S Federal Reserve. This week we will see the minutes from the BoE monthly meeting, which will give us an insight to how the MPC members are voting. If we see a change in stance from any of the committee members we could see the pound rise across the board.
What to do if you are buying or selling dollars.
If you are thinking of buying or selling dollars in the coming weeks or months and want to ensure you are making the most from you transfer, it is important to know what all of your options are. As a specialist currency broker I have a range of currency contracts available to ensure you are protected against adverse market movements or in a position to target a higher rate.
For more information on the types of contract or to find out what rates I can offer use the link below to complete the contact from or call me directly on 0044 (0) 1442 892 065.
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