Pound/dollar exchange rate falls a cent

This morning sees the pound trading around a cent lower against the U.S dollar, with the currency pair falling from yesterday's high of $1.2581 to $1.2484.

 

For the best GBP/USD exchange rate click here.

The pound has lost ground despite better than expected economic data from the UK. Figurers produced by the Office for National Statistics (ONS) showed Britain's manufacturing sector grew at a faster pace than had been predicted, with output rising 2.1% against the forecast level of 0.3%.

The data shows the UK economy is continuing to defy economists' predictions the country would suffer a downturn following June's Brexit vote, and there was further good news as a separate ONS release showed the UK's trade deficit had narrowed in December.

GBP/USD graph

 

Why has the GBP/USD cross fallen?

The drop is down to dollar strength rather than sterling weakness. The U.S. dollar has been falling since the turn of the year, as President Tump focused on existing trade policies, however that changed last night after Trump promised to announce a major tax reform within the next couple of weeks.

Trump stated he plans to introduce a "phenomenal" new tax plan, the most aggressive since the era of Reagan. His comments has helped calm investors' fears that have influenced that value of the dollar in recent weeks.  

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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.

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Pound/dollar exchange rate still rising, currency pair hits fresh high.

Hello and good morning,

The pound has risen over half a per cent against the dollar since the London trading session opened, with the GBP/USD cross climbing from $1.2510 to $1.2581, a fresh one week high for the currency pair.

For the best GBP/USD exchange rate click here.

The move this morning adds to the gains we have witnessed over the course of this week, and means the pound has clawed back over 1.7 per cent against the dollar since Tuesday.

If we look at the rise in monetary terms, converting £300,000 into U.S. dollars this morning will now see you receive nearly $6400.00 more compared to the same trade on Tuesday morning.

GBP/USD 48 hour graph

Why has the pound risen?

The pounds value has increased across the board over the past couple of days, and it is mainly down to investor confidence. As I mentioned in my post yesterday morning, investors were quick to jump on the comments made by Kristen Forbes, a Monetary Policy Committee member at the Bank of England.

Forbes stated on Tuesday that the Bank of England might have to reverse Augusts interest rate cut if the UK economy remains solid and inflation continues to pick up.

Her comments have given investor confidence a huge boost and it would seem markets are focusing on the potential rate hike, rather than warnings about the impact Brexit could have on the UK economy.

The pound has continued to rise despite a BoE survey suggesting that employers plan to offer the least generous pay deals for five years and deputy governor Jon Cuncliffe saying that investment in UK businesses is likely to remain very weak in the short term.

GBP/USD forecast

The next few months are likely to bring a huge amount volatility for Sterling crosses especially as we get closer to the government triggering Article 50. I keep reading that as soon as Theresa May invokes Article 50 the pound is going to go into free-fall, however, I actually think we have already seen the pound hit rock bottom.

We have known for months that May plans to trigger Article 50 by the end of March, and we now know she will push ahead with a so called "Hard Brexit" and give up the UK's access to the single market.

I believe both of these scenarios have already been priced into the value of the pound and if the UK economy can stay on its current path then it lays a solid foundation for the pound to rise across the board.

When you take into account the uncertainty across Europe and President Trump trying to devalue the dollar, we could see GBP/USD push back towards the $1.30 mark in the not too distant future.

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.

 

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The pound rises against the dollar. Exchange rate back over $1.25.

Good morning,

What a difference a day makes......After falling to a two week low of $1.2349 yesterday, the GBP/USD cross is now trading back over $1.25 with the currency pair hitting $1.2540 on Tuesday evening.

For the best GBP/USD exchange rates click here.

As you can see from the graph below, the pound/dollar exchange rate has risen over one per cent in the past twenty-four hours after investors were given some much needed confidence.

GBP/USD graph.

 

Why is the pound rising?

There were two announcements yesterday which helped boost the value of the pound. Kristen Forbes, a member of the Bank of England's Monetary Policy Committee, gave a speech yesterday afternoon and hinted that she is on the verge of voting for an interest rate hike.

Ms Forbes stated the robust performance of the UK economy since last year Brexit result had confirmed her hunch that Britain would see out the referendum better than many economists had predicted.

She was also quick to point out the risks of an inflation overshoot by saying "In my view, if the economy remains solid and the pickup in data continues, this could soon suggest an increase in the BoE benchmark rate".

Investors were also keen to take advantage of the mounting pressure on the UK government to give parliament a bigger say on the final deal to leave the EU.

Sterling jumped on comments made by junior Brexit Minister David Jones after he said that parliament would have a meaningful vote on any deal.

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.

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Why is the GBP/USD exchange rate falling?

Good morning,

The dollar has started to gain some momentum since my post yesterday afternoon and as a result the GBP/USD cross has continued to fall.

For the best GBP/USD exchange rates click here.

After dropping to a low of $1.2428 on Monday afternoon, pound recovered slightly last night with the GBP/USD exchange rate edging back towards $1.2475.

However, the chances of a recovery for the currency pair seem to have vanished, as investors have shifted their focus back towards the safety of the dollar, forcing sterling/dollar back into the mid $1.23's, the lowest we have seen since 20th January.

 

GBP/USD graph

 

Why has the dollar strengthened?

With concerns mounting amid the political uncertainty around Europe the dollar has been clawing back some of the ground it has lost since the start of 2017.

Investors are worried that Marine Le Pen's stock is rising ahead of France's presidential election, and that the upcoming elections across Germany and Holland could also have an impact on the future of the Eurozone.

Markets are also becoming nervous about the prospect of the European Central Bank reducing their monthly stimulus programme, and with Greece starting to hit the headlines again because of their on-going bailout package, we could start to see the euro come under even more pressure.

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.

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GBP/USD exchange rate falls back into the $1.24's

Today has seen the pound give up more ground against the U.S dollar, with the GBP/USD cross falling to an intraday low of $1.2428.

For the best GBP/USD exchange rates click here.

The latest decline for the currency pair means the pound has now lost over 2.1 per cent against the greenback since Thursday, when the cross was trading close to $1.27 as talk of Britain's exit from the European Union continues to weigh heavily on sterling.

GBP/USD graph

The pound has weakened after reports emerged that UK Prime Minister Theresa May faced fresh challenges over her plans for removing Britain from the European Union.

Last week saw lawmakers vote in favour of May's plans, but there are now signs of dissent from within the Conservative Party which could force the bill to be amended.

Parliament are about to being a three day debate on the law giving Theresa May the right to Trigger Article 50, which will then be followed by a number of votes on whether to include extra conditions before her official talks begin.

Theresa May has already stated that parliament will be given the chance to accept the deal she reaches with the EU, but it now seems that MPs want to have more control.

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.

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GBP/USD exchange rate falls again.

The pound slipped further against the U.S. dollar this morning after the latest UK Services PMI reading came in lower than forecast.

Click here for the best GBP/USD exchange rate. 

After falling around 1.5 per cent yesterday on the back of the latest Bank of England inflation report, the GBP/USD cross fell another 0.4 per cent following the Services figure and means the pound has given up all of the ground it has made over the course of this week.

GBP/USD graph

Figures released by Markit this morning showed growth in Britain's dominant service sector slowed in January, with the sector recording its first slowdown for four months. However, Markit were quick to state there was an increase in optimism over future prospects from within the sector, although firms reported that price pressures remained intense.

Jobs day.

 

Things could have got even worse for the GBP/USD cross this afternoon after the U.S. announced its latest Non-Farm Payroll jobs numbers.

Markets were expecting 170,000 jobs to have been created last month, but the actual reading smashed the predicted level, coming in at 227,000. Usually such a positive number would see the dollar strengthen, but on this occasion the greenback failed to make any ground as the Bureau of Labor Statistics confirmed the unemployment rate in the U.S. had increased from 4.7 per cent to 4.8 per cent, shortly after the Non-Farm Payroll figures were released.

 

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.

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The pound is still rising and breaks back above $1.26

Today has seen the pound add to the gains it made against the dollar during Tuesdays trading session, with the GBP/USD climbing back above $1.26 to hit an intraday high of $1.2659.

Do you want the best GBP/USD exchange rate? Click here.

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.

Click here to complete the contact form.