• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / US Dollar / Large swings on Cable exchange rates

Large swings on Cable exchange rates

August 15, 2017 by Lewis Edmonds

Large swings on Cable exchange rates

Today was a good day for any clients currently holding on to USD to buy foreign currency. Analysts’ eyes were firmly focused on today’s US retail sales figures. June consumer spending figures dropped by 0.2%, however today’s figures helped to put minds at rest that the US economy wasn’t slowing down. In fact, retail sales showed a healthy increase of 0.6% from the previous month. This is welcome news as investors try to figure out the FED’s next move.

A strong retail sales figure today has helped turn attention away from the weak inflation data that dampened the idea of an interest rate hike anytime soon, and helped to give USD a welcomed boost. I personally think the US will start to look at raising interest rates around December time if the positive data surrounding retail sales continues to show economic growth.

How is the UK economy effecting cable rates?

This came after the pound took a hit in early morning trading following a stagnant inflation reading. A weaker pound following Brexit has meant that inflation has been steadily rising ever since, however there have been recent reports that this fallout from Brexit has been fully passed on to the consumer, and that inflation will now start to stagnate. This is damaging for the pound because it means that an interest rate cut for the UK is off the cards for the foreseeable.

Not only is economic data disappointing for the UK, but the Brexit negotiations are a complete wildcard, in that no one knows what is around the corner which is causing doubts in investors’ mind and ultimately proving Sterling negative.

All in all, today has seen the Pound fall by 0.76% against the US Dollar, which highlights the current volatility in the Market. Tomorrow, average earnings and unemployment data is released for the UK and if this signals a further strain on households living standards, I would be surprised for GBP/USD to test the 1.27 barrier.

Filed Under: US Dollar Tagged With: Brexit, Federal Reserve Bank of America, Pound Sterling weakness, US interest rate, USDGBP

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Lewis Edmonds

When he is not offering insights into the what is happening on the currency markets Lewis manages key relationships for an authorised payment institution in the UK.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy