Pure FX Blog

10 October 2017

5 Reasons The US Dollar Could Exceed Its 5-Week High Versus The Pound

The US dollar to pound interbank exchange rate could exceed its 5-week high of 0.7614, as US unemployment fell -0.2% to 4.2% in September. Image credit: Wayne Langley.

The US dollar to pound interbank exchange rate could exceed its 5-week high of 0.7614, as US unemployment fell -0.2% to 4.2% in September. Image credit: Wayne Langley.

by Peter Lavelle

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

The greenback could continue to climb against sterling!

The US dollar to pound interbank exchange rate has hit 0.7614 today, close to its highest in 5 weeks, or since September 6th.

What’s more, looking ahead, the buck may jump higher versus the pound. Here are 5 reasons why:

1. The US dollar may rise, because there’s a 98% chance that the US Federal Reserve will lift interest rates above their current 1.00-1.25% by December, says CME Group.

2. The greenback could climb, because US average hourly earnings rose +0.5% in September, said the US Department of Labour on Friday, the most since December 2016.

3. The buck may strengthen, because US unemployment fell -0.2% in September to 4.2%, said the US Department of Labour last Friday, the lowest in 16 years.

4. The US dollar could jump, because US manufacturing activity hit a 13-year high last month, while US services activity hit a 12-year high, pointing to a robust US economy, says ISM.

5. The greenback may pick up, because there are a record 6.2 million job openings in the USA at present, according to JOLT, telling us that the US labour market is very strong.

With all this in mind, the US dollar to pound interbank exchange rate could rise above this 5-week high!

Get a free US dollar to pound exchange rate quote

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You’ll get a US dollar to pound 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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