GBP/USD exchange rates break $1.59

Good morning,

Following the dovish comments from Fed Chair Janet Yellen last night, this morning has seen GBP/USD exchange rates climb to their highest level since November. In my last post I mentioned that the currency pair had climbed to a fresh one month high but this morning's move completely eclipses yesterday's rise.

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Speculation had been mounting that last night's FOMC meeting would provide us with a clear picture of when the Federal Reserve would raise interest rates. Ms Yellen said that the central bank could look to raise interest rates this year but it was the comments that followed that really impacted the value of the dollar.

It appears the central bank want further improvement in the labour market and are looking for inflation to return closer to the banks 2% target before increasing their benchmark rate. By not giving a definitive answer the dollar lost ground across the board, a move that has seen GBP/USD break through $1.59 this morning.

This latest move is excellent news for those of you looking to purchase dollars, converting £200,000 will see you receive over $8000.00 compared to the same trade last week.

I would say that the U.S is still in pole position to raise interest rates first but if the UK can tackle its inflation issue and the U.S. economic recovery starts to falter, the next few months could be very interesting for the GBP/USD cross.

If you have a requirement to buy or sell dollars in the coming months 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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