Pound exchange rates reach an 11 month high against the US dollar – Market Update Swift FX
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It’s been a better week for the pound pushing to a near 11 month high against the US dollar buoyed by recent signs of recovery for the UK economy. Last week UK growth figures (GDP) confirmed we had narrowly avoided a recession and this positive sentiment has led to investor expectations for further interest rate rises in the UK.
Money markets are now pricing in at least one more interest rate rise from the Bank of England this summer and are pricing in no more tightening from the Federal Reserve in the wake of the US banking crisis – this all leads to the potential for further gains for the pound against the US dollar.
Interestingly the pound is the best performing currency in the developed market during 2023 having now rallied 5% against USD since the lows of early March. This is a pretty significant shift. To put that in perspective on a $300k money transfer the difference in the last month is £13,500 – highlighting how the importance of timing in the money markets is paramount.
Here at Swift FX we have various contract types available to our clients. One of the most common contracts used is a forward contract. This allows clients (private and corporate) to fix exchange rates for up to one year in advance for a pre-agreed deposit. Very useful if full funds aren’t available but you wish to lock in the exchange rate.
To discuss your foreign exchange needs and the various contract types we can offer get in touch with us today:
www.swiftfx.co.uk
operations@swiftfx.co.uk
+44 (0)1442 773 340