As I mentioned in my post yesterday, this morning saw the UK release its latest inflation figure. However, with the reading remaining unchanged at 2.3% it has so far done very little to impact the GBP/USD cross. As you can see from the graph below we saw a small spike as the data was released, with the currency pair climbing around 30 pips to hit $1.2439. Some forecasts had suggested we would see inflation fall slightly to 2.2%, which if had happened could have caused the pound to lose ground as it would reduce the chances of a rate increase from the Bank of England.
GBP/USD graph.
World events holding back the U.S. dollar.
Despite Fed Chair Janet Yellen reinforcing the U.S. central banks stance that additional rate hikes are on the horizon, the dollar is being weighed down by the events in Syria and North Korea.
Investors have readjusted their positions after President Trump ordered the strikes in Syria last week, and with the possibility of U.S military action against North Korea, the dollar is struggling to find any momentum and fell against a basket of currencies during the Asian trading session.
Contact me today if you are looking to buy or sell dollars.
With so much uncertainty around the globe, it would be a good idea for anyone looking to buy or sell U.S. dollars to get in touch and discuss the tools we have available to protect you against adverse market movements.
A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.
This protects you against the rate moving against you, and also allows you to budget effectively.
We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.
