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The move over the course of today means the pound has risen nearly two per cent since yesterday morning and leaves the currency pair within touching distance of its highest level since the 14th December.
GBP/USD graph
Why is the pound/dollar exchange rate rising?
Although the pound has stabilised in recent weeks, the driving force behind the GBP/USD cross rising is down to dollar weakness.
January saw the U.S. dollar record its worst start to a year since 1987, as fears continue to mount over the start of President Donald Trump's administration, with Trump failing to back up his promises to cut taxes and increase fiscal spending,
Investors seem to be worried over Trumps protectionist trade stance and the impact it could have on the U.S. economy. There is also signs the new administration are attempting to devalue the U.S. dollar, as I mentioned in my post yesterday (click here for yesterday's post).
Federal Reserve meeting.
Later today the U.S. Federal Reserve (Fed) will conclude their latest policy meeting. It is likely the Fed will be waiting for clarity over President Trump's future economic policies before raising interest rates again, but if Fed Chair Janet Yellen hints about when the next hike might take place we could see the dollar strengthen slightly.
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.
