The pound was able to make further gains against the dollar today following another poor economic data release from the U.S.
This time round it was the U.S. Gross Domestic Product (GDP) figure that caused the dollar's value to drop, with figures showing the U.S. economy only grew 0.2% in quarter one against an estimate of 1%.
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The poor GDP reading helped push the GBP/USD cross above $1.54 with the currency pair reaching a high of $1.5481 this afternoon, and if the Federal Reserve statement has a negative tone this evening GBP/USD could easily break through the $1.55 barrier.
Over the past couple of weeks the dollar has been in free-fall and today's events have completed an amazing turnaround for the pound.
GBP/USD has now gained over 6% since the 13th April, which makes a huge difference to your money transfer.
Put into monetary terms, a £200,000 transfer will now see you receive over $18,000 more compared to the same trade two weeks ago.
Will GBP/USD rates continue to climb?
I mentioned yesterday that I thought rates would climb above $1.55 and I stand by those comments. The way the U.S. economy is currently performing and the upcoming UK election having little impact on the FX market, I believe the GBP/USD will break through $1.55 mark in the next couple of days.
I also think that Greece will come to an agreement with their creditors in the next few weeks. The European Central Bank and IMF have put far too much time and money into the Greece just to let them default and walk away. If an agreement can be reached I can see the dollar losing even more ground, which in turn will push GBP/USD even higher.
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If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
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