Pound/Dollar rates have fallen away from the recent highs today, due to data from the UK and USA.
The rate started to fall this morning at 09:30am when a raft of UK data was released that was worse than forecast. Industrial and Manufacturing both showed a decline, House prices didn’t rise and Trade balance numbers were also worse than expected. All of this combined to weaken the Pound and pull GBP/USD lower. It shows that perhaps the economy isn’t quite as resilient as many think, and with Brexit negotiations due to begin within a few weeks, there’s every chance that the Pound will weaken further. Will Pound rise or fall against US Dollar?
Sterling had been doing quite well over the last few weeks, but most forecasts seem to suggest that GBP/USD rates will fall. On the one hand, the Pound isn’t likely to strengthen much until it becomes clear what kind of deal we’ll get with the EU. Also the US are expected to raise interest rates 3 more times this year, and if they do it should strengthen the US Dollar and make it more expensive to buy. Also with events in Syria escalating from a proxy war to direct intervention by the USA, investors may move to safe haven currencies like the USD strengthening it further.
Getting the best GBP/USD exchange rates
With so much going on, it would be prudent for anyone that needs to buy US Dollars to get in touch to discuss the tools we have available to protect you against the rate dropping. The most popular tool for clients purchasing property overseas is a ‘Forward Contract’. This allows you to freeze 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 falling, and 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.
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