The reason for the climb in GBP/USD rates was due to employment data released last week. The jobs data released on Friday showed that significantly more jobs than expected had been created, which would usually be positive and therefore strengthen the Dollar, pulling exchange rates lower. However when you look closer you see that actually wage growth in the USA was very low indeed, which means the FED are unlikely to raise interest rates again any time soon. As such the USD weakened, pushing GBP/USD to a 2 week high, and back above the $1.40 mark.
Moving forwards, I think that the EU referendum will come back into focus, meaning any further gains for this currency pair could be limited.
Best exchange rates for US Dollars
Sterling/Dollar is our second most popular currency pair, after Sterling/Euro. The majority of my clients that buy US Dollars are business's that import their goods from China, and these goods are normally paid for in USD.
If your company imports goods from China then you could save a significant amount by getting better rates of exchange, and managing your exposure to the currency markets by using a variety of contract types such as Forwards, Stops and Limits.
If you would like to discuss how I can help with USD requirements or simply get a quote to compare with your bank, follow the link below.
Looking for the best GBP/USD exchange rates? Click here.