For those that have US dollars to exchange the recent decline in value for the pound will be good news. US dollar exchange rates are now trading at their highest levels against the pound since April 2017. We have seen a move of 6.2% since the beginning of may. What now for Pound Vs US dollar exchange rates?
Brexit rhetoric weakens the pound
As my colleague Alastair mentioned in his post yesterday, the pound fell following comments made by Boris Johnson and Jeremy Hunt. The Tory leadership candidates hardening position with regards to the Irish backstop caused fresh concerns regarding a ‘no deal’. Ex-attorney general Dominic Grieve warned that a government seeking a no deal would collapse. Could we therefore see a general election? This is a real possibility and a Jeremy Corbyn lead government could cause even more negativity for the pound.
We will find out who will win the fight for Number 10 on the 23rd July. I would expect plenty more volatility for the pound in the run up to this.
Can we expect a recovery if the Fed cuts rates?
One potential respite for the pound could come when the Federal Reserve meet at the end of the month. Most analysts expect the Fed to cut interest rates. This has widely been priced in and yet the dollar is still very strong. Therefore anyone looking to see the GBP/USD rate recover may be disappointed. I firmly believe the pound has further to fall.
Looking for the best exchange rates?
If you need to get the best rates of exchange for the Pound Vs US dollar, then we can help explain what is moving the market, so that you can make an informed choice on when to fix a rate. We can also provide you with a free no obligation quote. We often show savings of thousands of Pounds for our clients, so to find out how much you could save. If you would like a quote please email email@example.com