The Pound to US Dollar exchange rate has risen on the back of rising Inflation data in the UK. With the US Dollar on the back foot anyway following the hurricanes which have battered the US coastline, the GBP/USD exchange rate has risen to close to a one year high. Expectations for the pair could now be for a move even higher as Inflation expectations continue to trigger Sterling spikes and economic uncertainty weighs on the US Dollar.
The big driver on the US Dollar has been the prospect of further interest rate hikes in the coming weeks and months, a strong and rising interest rate for the United States is the major course of strength for the US Dollar. If you have a transfer to make in the future then making some plans in advance is sensible particularly if selling US Dollars since the market looks poised for further volatility.
Longer term the US Dollar should retain much of its strength but with the market concerned about just how effective Donald Trump will be, I would be concerned about just where the market will go longer term. I think the 1.35 level could now be in sight as the fallout and cost of Hurricane Irma and Harvey become apparent. Donald Trump has failed to live up to the high expectations previously set and this will I believe continue further. The US economy will be struggling at the hands of the weather issues weighing on the likelihood of a US interest rate rise.
Longer term the Pound should still remain under pressure however so all is not lost for those converting US Dollars to Pounds. It does appear that more immediately if you are selling US Dollars moving sooner than later is sensible to avoid the current trend continuing further.