Pound vs US dollar: US dollar at a 6 month high

Pound Vs US Dollar

Pound Vs US dollar exchange rates have reached their lowest levels this year ahead of the key US jobs data non-farm payrolls. Sterling is under continuous pressure with on-going Brexit woes and the fight for Number 10.

Sterling exchange rates started the week poorly when on Tuesday the pound was hit by poor construction data. The Markit/CIPS UK Construction purchasing managers’ index (PMI) recorded a reading of 43.1 for June, down from 48.6 in May. Economists were expecting a figure of 49.2. A reading above 50 shows growth, below that figure represents contraction.

This put the pound on the back foot to begin the trading week and we have continued to see sterling losses pushing GBP/USD close to 1.25.

What can we expect from non-farm payrolls?

This afternoons key US jobs data, non-farm payrolls, is scrutinised as it is a key barometer for assessing the health of the US economy. This data represents the number of new jobs created during the previous month, in all non-agricultural business.

This afternoons release, scheduled for 13:30, is expected to show an increase of 160k up from 75k last month. Often the released figure is significantly different to the forecasted. It can therefore create some significant market volatility as a result. Should the data be released as expected then I would predict the US dollar to see further gains against the pound this afternoon.

Protect yourself against the Pound falling further

If you need to convert Pounds to US Dollars, then one way of avoiding any further weakness in exchange rates is to freeze the rate now with a Forward Contract. We can guarantee today’s rates for up to 2 years. The rates we would offer you are likely to be considerably higher than your bank or existing broker. You could save thousands of Pounds. For a free no obligation quote, or to discuss our services in more detail please email michael@currencyforecasts.co.uk

%d bloggers like this: