GBP/USD exchange rate falls around a cent.

The pound has lost ground this afternoon, with the GBP/USD cross falling around a cent after the latest Bank of England (BoE) interest rate decision and inflation report.

 

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The currency pair opened today's session around $1.2950 but shortly after the announcement from the UK's central bank sterling/dollar hit an intraday low of $1.2852.

GBP/USD graph

Why did the pound weaken?

As expected Governor Mark Carney and the Monetary Policy Committee kept interest rates on hold at 0.25%.

However, Mr Carney remained cautious by stating we could see a squeeze on consumer spending over the course of 2017 because of inflation rising and wages falling.

He said, this year will be "a challenging time for UK households" and that "wages will not keep up with rising prices".

Those comments won't have helped the pound, but it was the fact the Bank of England cut its economic growth forecast for 2017 from 2% to 1.9% that dented the pounds value.

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If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you 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 you maximise your return or protect you against adverse market movements.

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GBP/USD exchange rate pushes back towards $1.30

The GBP/USD cross has risen overnight with the currency pair within touching distance of $1.30 this morning.

The move is not down to sterling strength but dollar weakness, after President Donald Trump shocked Washington and the markets by firing FBI director James Comey.

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Mr Comey, who had been leading the FBI's investigation into Russia's alleged involvement into last year's presidential election has been relieved of his duties with immediate effect.

The surprise announcement from Trump has already caused Democrats to accuse the President of having political motives and fuelled speculation of a possible cover-up.

GBP/USD graph

Could GBP/USD break $1.30 today?

We could easily see the GBP/USD cross edge higher over the course of today. In my opinion the dollar could weaken further once the U.S. markets open in a few hours' time. The announcement happened late last night so may not be fully priced into the value of the U.S. dollar.

The GBP/USD cross has come close to breaking the $1.30 barrier on a few occasions over the last week, but uncertainty over the UK's exit from the European Union has always limited the gains.

However, the unexpected news from the States could be the catalyst for the currency pair to climb above $1.30 for the first time since the 27th September.

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If you have an upcoming requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, contact us today for a free consultation.

As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.

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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GBP/USD exchange rate update

The GBP/USD cross has fallen slightly over the course of today, with the currency pair now trading just above $1.29.

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The exchange rate has dropped after the dollar regained some of the ground it lost following Emmanuel Macrons victory in the French elections on Sunday.

As you can see from the graph below the pound has lost around half a cent, but as things stand it is still an excellent time to purchase dollars.

GBP/USD graph

As I mentioned in my post yesterday the GBP/USD cross hit a fresh seven month high on Sunday evening, and even though the pound has edged lower today, exchange rates are still around 6.5% higher than they were in March.

What could happen over the next few days?

We have no major data announcements coming out of the UK today or tomorrow, so any movement for the GBP/USD cross is likely to stem from U.S.

In my opinion I think we will continue to see GBP/USD bounce between $1.29 and $1.2975 until the Bank of England's inflation report and interest rate decision on Thursday.

If the Bank of England hint at a rate hike, then we could see GBP/USD break $1.30. However, we could easily see the central bank cut their growth forecasts, which would see the pound give up some of the gains we have seen over the past few weeks.

 

Are you looking to buy or sell dollars?

If you have an upcoming requirement to buy dollars and want to ensure you are making the most from your transfer, contact us today for a free consultation.

As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.

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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Will the GBP/USD exchange rate climb above $1.30

Following Emmanuel Macron's victory in yesterday's French elections, the European markets have received a welcome boost, with the GBP/USD cross coming close to hitting $1.30.

 

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As you can see from the graph below the GBP/USD cross has been climbing steadily since the middle of March, with the currency pair rising over seven per cent, hitting a fresh seven month high of $1.2990 yesterday evening.

GBP/USD graph

The rise we have seen over the past few weeks makes excellent reading for those of you looking at purchasing dollars. If we look at the move in monetary terms, converting £250,000 into U.S. dollars this morning will now achieve you around $21,200 more compared to the same transfer on the 14th March.

 

But will the GBP/USD exchange rate climb even higher?

As I mentioned last week we are now in an excellent position for the GBP/USD cross to break $1.30. The UK economy is still performing well and with the Conservatives taking victory in last week's local elections, the pound is certainly in a better place than it was two months ago.

Attention will now turn to the Bank of England and their meeting on Thursday. After last week's positive Manufacturing, Construction and Services PMI readings, investors will hoping the Monetary Policy Committee (MPC) maintain their hawkish stance.

Last month one member of the MPC voted to increase interest rates in the UK, and if the number increases to two or three members on Thursday, we could easily see the pounds value rise across the board.

However, with the uncertainty over how Brexit will impact the UK economy still lingering, any gains for the pound could well be limited during official negotiations.

 

Contact me today if you are looking to buy dollars.

If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for seven months, contact me today for a free consultation.

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.
 

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The pound rises against the dollar despite positve U.S. job report.

In the last few minutes (1330 BST) the U.S. have just released their latest jobs report, and despite the reading coming in higher than forecast the GBP/USD cross has started to rise to come within touching distance of its highest level for over 6 months.

For the best dollar exchange rates click here.

As you can see from the graph below the GBP/USD exchange rate climbed to reach $1.2955, and after an excellent week of economic data from the UK, the pound has now completely wiped out the gains made by the dollar following Wednesday's Federal Reserve announcement.

GBP/USD chart

Why has the dollar weakened after a positive jobs report?

The dollar is often seen as a safe-haven currency and in times of uncertainty investors will head to the U.S. for extra security.

However, if the U.S. produce a strong piece of economic data investors will sometimes sell off the dollar and head towards riskier assets (such as the pound and euro), which is exactly what we have seen since the job report.

Contact me today if you are looking to buy dollars.

If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for nearly six months, contact me today for a free consultation.

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.

Click here to complete the contact form.

The pound recovers after last night's Federal Reserve announcement.

Last night's Federal Reserve interest rate announcement and statement helped the dollar strengthen across the board, forcing the GBP/USD cross below $1.29.

For the best dollar exchange rates click here.

As markets opened this morning the pound was trading around $1.2840 against the dollar, down almost a cent from the highs we witnessed during Wednesday's session. However, another strong data release from the UK at 0930 has helped the pound recover some of the ground, with the GBP/USD cross pushing back towards the $1.29 mark.

GBP/USD graph

For the third consecutive day the UK has posted a better than expected PMI reading. Today it was the country's Services PMI figures which beat forecasts, coming in at 55.8 against the predicted 54.6 (a reading over 50 indicates growth in the sector).

Today's Services PMI reading follows Tuesday's excellent Manufacturing PMI and Wednesday's positive Construction PMI figures.

The economic data we have seen over the past three days proves the UK economy is still performing well, despite the concerns over Britain's exit from the European Union and has certainly given the pound a solid foundation as we head into the official negotiations.

 

Why did the dollar strengthen after the Federal Reserve announcements?

Unsurprisingly, the Federal Reserve kept interest rates on hold last night but it was Fed Chair Yellen's comments that helped strengthen the dollar.

The Fed were upbeat despite weak quarter one economic growth, and left another rate hike firmly on the table in June.

The U.S. central bank focused on the strength of the labor market, which investors took as a sign the Fed are still on course to raise interest rates two more times over the course of this year.

 

Contact me today if you are looking to buy dollars.

If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for nearly six months, contact me today for a free consultation.

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.

Click here to find out what exchange rate we can offer.

Pound-dollar exchange rate still above $1.29

Good afternoon,

The pound is still holding its ground against the dollar, with the GBP/USD cross coming close to its highest levels since 2nd October in the early hours of this morning.

For the best dollar exchange rates click here.

Following yesterday's excellent Manufacturing PMI reading and this morning's better than forecast Construction PMI figures, the GBP/USD cross is still trading above $1.29.

GBP/USD graph

However, the gains for Sterling have been limited and could well be short-lived as markets are beginning to focus on the difficulties of the upcoming Brexit negotiations.

Recent media reports have suggested that Britain will need to fork out around €100 billion in order to leave the EU, but Brexit minister David Davis has been quick to respond by saying the UK will not pay that amount.

Yesterday UK Prime Minister Theresa May announced she will be "a bloody difficult woman" during the official talks, after being accused of having "illusions" over any potential deal.

The recent comments have left investors erring on the side of caution and is the main reason the pound has been unable to take full advantage of the positive economic data we have seen over the past two days.

Federal Reserve

Later this evening the U.S. Federal Reserve will announce their latest interest rate decision, which will then be followed by a statement by Fed Chair Janet Yellen.

Although it is highly unlikely we will see the U.S. central bank take any action tonight, if Janet Yellen provides clues as to when the next hike will be, we could see some volatility for all dollar crosses.

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you 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 you maximise your return or protect you against adverse market movements.

For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by clicking on the link below.

Click here to complete the contact form.