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However, the pound did not start the day well. Figures released this morning showed that wage growth in the UK had dipped in the three months to April, meaning the amount workers are taking home is falling as inflation is rising.
The news caused the pound to lose around half a cent against the dollar, with the currency pair falling from $1.2790 to $1.2740, as you can see from the graph below.
GBP/USD graph
So why did GBP/USD rise?
The rise was actually down to dollar weakness rather than sterling strength. The dollar fell across the board after the U.S posted weaker than forecast inflation and retail sales numbers.
Figures showed that retail sales in May suffered their biggest fall in sixteen months, while consumer prices also unexpectedly dropped.
It meant the pound was able to take full advantage and allowed GBP/USD to hit an intraday high of $1.2815, the highest we have seen since the 8th June.
Do you have a requirement to buy or sell dollars?
If you have an upcoming requirement to buy dollars and want to ensure you are making the most of your transfer, contact me today for a free 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 help target a rate that might not be currently available.
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.
