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GBP/USD climbs to hit $1.24

Arron Morris Currency Broker - GBP/USD climbs to hit $1.24Written by
Arron Morris
Senior Currency Broker
T: 01442 892 065

What a difference a couple of days can make…

After falling to an eight week low on Tuesday of $1.2111 the GBP/USD cross has continued to gain momentum, with the currency pair hitting $1.24 during the early part of today’s trading session.

Despite the Brexit bill being passed last night and the government stating they will trigger Article 50 by the end of the month, the pound has been unable to hold on the gains it made against the dollar during yesterday’s trading session.

GBP/USD exchange rate graph

Screen Shot 2017-03-17 at 16.33.03

Why has the GBP/USD cross risen?

Firstly, the dollar has been on a downward trend since the Federal Reserve announcement on Wednesday evening. Although the Fed increased their bench mark interest rate, investors have been left disappointed after Yellen & Co failed to back up expectations of more than three rate rises during 2017.

Secondly, the pound is still rising on the back of the Bank of England meeting yesterday. With MPC member Kristen Forbes voting for a rate hike, and the meeting minutes suggesting other members could soon follow suit, sterling received a much need boost following a disappointing couple of weeks.

What next?

Now the Fed decision and the Dutch elections are out of the way, attention will now turn back to the UK and Article 50.

We are now only weeks away from Theresa May starting the process of the UK leaving the EU and I am sure the next couple of weeks will bring some heightened volatility for Sterling crosses.

It is still unknown what impact the triggering of Article 50 will have on the value of the pound. Will it bring and extra level of uncertainty, or will it provide markets with some clarity?

Only time will tell but if you have an upcoming requirement and are worried about the impact Article 50 will have on your transfer, contact me today for a free, no-obligation consultation.

As a specialist in currency exchange I have a number of tools at my disposal to help you maximise the return of your transfer or protect you against adverse market movements.

For more information about how I can help or to find out what rate I can offer, complete the contact form on the right-hand side of the page or call me directly on 0044 (0) 1442 892 065

Arron Morris
Senior Currency Broker
T: 01442 892 065

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