Pound to US dollar exchange rate have gained traction this week. At the low on Monday GBP/USD traded at 1.1950 and peaked just over 1.23 this morning. The pound has been given a boost as it appears to be increasingly unlikely we will leave on the 31st of October with a no-deal.
This week has been a busy week in parliament and it hasn’t exactly gone the way PM Boris Johnson had planned. Today, MP’s in the House of Lord’s will continue to debate the labour backed bill to block a no-deal on the 31st October. All stages of the bill are expected to be completed by 17:00 today.
What else can we expect today?
We are expecting the ruling from the Royal Courts of Justice as to whether PM Boris Johnson can go ahead and shut parliament. This ruling has been brought forward by businesswoman Gina Miller and former PM John Major.
In Mr Johnson’s speech yesterday he called for mid-October election. Many MP’s oppose this suggesting it should be delayed until an extension of Brexit has been agreed. The House of Commons rejected the PM’s plan for a snap election on Wednesday, but MP’s will have another chance to vote for this on Monday.
Pound to US dollar
As much of the focus this week has been so heavily sterling based it is important to not disregard data from other major currencies. In this instance I will focus on the US dollar. Today sees the release of non-farm payroll figures. These are key US jobs figures and are often used as a barometer for the health of the worlds largest economy.
We are expecting 158k as the official figure, but often the actual level is significantly different to the forecast. As a result, and depending on the release, you can see significant shifts for GBP/USD and USD/EUR. The release is at 13:30.
Protecting yourself against adverse rate movements
There are so many possibilities in the next few months, rates could move either way, by large margins. If you need to convert currency then this volatility could cost you thousands if rates move against you.
We offer various ways to protect against adverse rate movements. A ‘Forward Contract’ allows you to freeze the current rate for up to 12 months, removing your exposure to the market. A ‘Stop Loss’ order secures your currency if the rate drops below a certain level, giving you a worst case scenario. A ‘Limit Order’ secures your currency at a higher rate should you be targeting a particular level. We also offer free rate alerts, and exceptional rates of exchange for both private and corporate clients.