It has been another positive day for the pound with the GBP/USD cross rising nearly one per cent during today's trading session. Sterling/dollar exchange rates climbed from $1.5333 this morning to $1.5472 midway through this afternoon, moving the currency pair to within touching distance of $1.55, a price we have not seen since the turn of the year.
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It seems that Janet Yellen and the FOMC members are concerned with slower wage growth and the current level of global uncertainty, and by raising rates early they could actually impact economic growth in the U.S.
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The news from the Federal Reserve last week seems to have taken the wind out of the dollars sails and gives the pound some extra breathing space. Since GBP/USD exchange rates dropped under $1.50 in January the pound has been gaining steadily and is close to gaining 3.5% in the last month.
However, with Greece and the Eurozone still dominating the headlines the volatility we have seen over past few weeks could be set to continue. The Greeks only have a few hours left to present their new proposal to its creditors and if an agreement cannot be reached, the loan extension that was agreed on Friday will collapse and revive fears that Greece will default and leave the euro.
A Greek default could plunge the FX markets into disarray and could leave investors looking for safer options. The U.S dollar in renowned for its safe-haven status and any uncertainty surrounding Greece could see the U.S. dollar benefit, wiping out the gains the pound has made over the past month.
If you have a requirement to buy or sell dollars in the coming weeks or months and are worried what impact global events will have on your currency transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
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