GBP/USD exchange rate falls again.

The pound has slipped further against the dollar since my post yesterday morning, with the currency pair now trading at $1.2419.

For the best GBP/USD exchange rates click here.

Following yesterday morning's we weaker than forecast UK inflation reading, the GBP/USD cross fell further in the afternoon after Fed Chair Janet Yellen hinted at a possible rate hike at one of the Federal Reserve's upcoming policy meetings.

While testifying in front of the Senate Banking Committee, Chair Yellen stated that it could soon be "appropriate" for the bank to raise interest rates, and delaying an increase would be "unwise" because it could lead to the Federal Reserve having to move too quickly later on, and could push the U.S. economy into a recession.

GBP/USD graph

This morning's UK economic data has also added to the pounds woes, with figures showing wage growth dipped in quarter four of 2016. Average weekly earnings rose 2.6% but missed economists' predictions of 2.8% and caused the GBP/USD cross to fall around 0.4%.

With wage growth falling and inflation rising, it could become a worrying time for consumers. If inflation moves higher than wage growth over the next few months, it will mean people will be worse off and could also lead to the pound losing more ground against its counterparts.

Do you need to buy or sell dollars?

 

If you are looking to buy or sell dollars in the weeks and want to make sure are making the most from your transfer, contact me today for a free, no-obligation currency consultation.

As a specialist in currency exchange I have a range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by click on the link below.

Click here to complete the contact form.