Welcome to Pure FX's latest update of the US dollar to pound exchange rate. This tells you when it could be the best time to exchange US dollars to pounds, for your money transfer!
The greenback continues to climb versus sterling! The US dollar to pound exchange rate has reached 0.7855 today, extremely close to its highest in 17 months, or since June 22nd 2017.
By contrast, at the start of this year, the buck was as low as 0.7405 versus the pound, so it's since risen by +4.5 cents, or +6.07%!
To put this into context for you a $250,000 transfer to the UK at this exchange rate would be worth £196,375, or +£11,750 more than on January 1st! So if you're a Brit thinking of returning to the UK having lived in America, this may be a top time to buy GBP.
Pound Weakens, as Trump Talks Down May's Brexit Deal
The US dollar to pound exchange rate has neared this 17-month high, because US president Donald Trump has talked down UK prime minister Theresa May's Brexit deal.
Speaking on the lawn of the White House to journalists yesterday, Mr. Trump said that Mrs. May's intended UK exit "sounds like a great deal for the EU". What's more, the USA's Commander-In-Chief added that, because of the conditions of Mrs. May's Brexit deal, "[the UK] may not be able to trade with [the USA]."
This has fuelled fears that the Brexit deal is bad for the UK economy, thus dragging down the pound!
Sterling Falls, as Parliament Unlikely to Approve Brexit Deal
Moreover, the US dollar has also risen versus the pound, because it looks like the UK Parliament will vote down prime minister Theresa May's Brexit deal.
At present, opposition parties such as Labour, the SNP, Greens and Plaid Cymru, as well as 89 MPs in Mrs. May's own Conservative party, intent to vote against Mrs. May's agreement. If so, this will make it difficult for Mrs. May to reach the Parliamentary majority she needs for Brexit to be approved.
This may lead the UK to crash out of the EU without a deal, thus weighing on UK business confidence, and hurting sterling!
US Dollar Rises, as Fed's Clarida Signals Further Hikes
Furthermore, the US dollar to pound exchange rate has also jumped, because a top official of America's central bank, the Federal Reserve, has signalled that the Fed may lift interest rates higher.
Yesterday, Federal Reserve vice chair Richard Clarida said that he supports further "gradual policy normalisation", meaning that he wants to continue raising interest rates back to pre-financial crisis levels.
This has lifted hopes that the Fed could hike borrowing costs 3 times in 2019, up to 3.5%. This would point to continuing robust economic growth in the USA next year, bolstering the buck!
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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 email@example.com.