After falling to a fresh five year low against the dollar on Friday, the pound managed to claw back some ground during today's session after the U.S. posted some weaker than forecast economic numbers and the International Monetary Fund (IMF) cut the U.S growth forecast.
For a free currency consultation click here.
Sterling/dollar exchange rates recover
Following today's events GBP/USD exchange rates rose almost two cents with the currency pair climbing from $1.4609 to $1.4797.
To put today's move into monetary terms, converting £200,000 into dollars will now see you receive nearly $4,000 more than first thing this morning. Once again it shows you how quickly things can change and how important it is to get the timing right on your transfer.
What caused today's move?
The dollar's drop in value can be put down to two main factors today. Firstly the Core Retail month on month figures and Producer Price Index (PPI) numbers both failed to meet the predicted level.
The retail figures are the primary gauge of consumer spending, while the PPI numbers are a leading indicator of inflation and with the Federal Reserve looking for inflation to climb before raising interest rates today's numbers could have impacted investor confidence.
Just after the release of the Eco-stats the IMF announced they were cutting the U.S. growth forecast to 3.1% for 2015 and 2016. The announcement triggered a dollar sell-off, wiping out the gains the greenback made last week against the pound and euro.
Get in touch
If you have a requirement to buy or sell dollars in 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.
Click here to complete the contact form
