The GBP/USD cross rose to $1.2555 this afternoon, the highest we have seen the currency pair since the 9th February after the U.S. dollar lost ground against a basket of currencies.
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After spending the majority of yesterday's trading session bouncing between $1.2470 and $1.2430 the pound has been able to take advantage of the weakening dollar, as you can see from the graph below.
GBP/USD graph
Why has the dollar weakened?
The dollar's value started to fall following the release of the Federal Reserve meeting minutes on Wednesday evening. Although the minutes stated a March interest rate hike is still on the cards, investors were left disappointed because of the lack of urgency shown from the voting members.
Markets had been hoping the minutes would provide a clear insight as to when the Federal Reserve would increase their benchmark rate and back up the recent hawkish comments from Fed Chair Janet Yellen.
The dollar has also been hurt by the lack of progress from some President Trump proposed policies. Since his initial announcement, Trump has failed to provide any further information about his "phenomenal" tax reform, which has caused investors to hold back from heading into the U.S. dollar.
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.
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.
