Pure FX Blog

6 December 2017

5 Reasons The Pound Could Rise Versus The US Dollar in December 2017

The pound to US dollar interbank exchange rate could exceed its current 1.3447 in December, as the UK economy "is on course to enjoy robust growth" in Q4. Image credit: Wayne Langley.

The pound to US dollar interbank exchange rate could exceed its current 1.3447 in December, as the UK economy “is on course to enjoy robust growth” in Q4. Image credit: Wayne Langley.

by Peter Lavelle

Welcome to Pure FX’s latest update of the pound to US dollar interbank exchange rate.

Sterling may rise versus the greenback in December 2017!

The pound to US dollar interbank exchange rate has reached 1.3447 today, just -1.5 cents below its highest since June 24th 2016.

What’s more, looking ahead, the pound could continue to climb against the US dollar this month. Here are 5 reasons why:

1. Sterling may rise, because the UK economy is “on course to enjoy robust growth in the fourth quarter,” according to Chris Williamson, chief business economist at IHS Markit, yesterday.

2. The pound could strengthen, because UK retail sales grew by +0.6% in November, said the British Retail Consortium (BRC) yesterday, easily beating October’s -1.0% fall.

3. The US dollar may fall, because special prosecutor Robert Mueller has subpoenaed Deutsche Bank for President Donald Trump’s financial records, to check Mr. Trump’s Russia connections.

4. The greenback could lose out, because “the rate of growth has lessened in [America’s] non-manufacturing sector” in October, said ISM economist Anthony Nieves yesterday.

5. The buck may decline, because the US trade deficit expanded to -$48.7 billion in October, a 9-month high, which may weigh on America’s economic growth in Q4.

With all this in mind, the pound to US dollar interbank exchange rate could rise in December 2017!

Get a free pound to US dollar exchange rate quote

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You’ll get a pound to US dollar exchange rate guaranteed to beat your high street bank.

Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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