US Dollar Rallies Against GBP - Investor Implications - Read more…
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GBP moving lower against USD
Over the last month the currency markets have seen confidence come back into the Dollar. The result has driven the GBP:USD rate down from 1.64420 to today’s 1.54107.
“There is no doubt the market is now very Dollar positive and we would expect the Dollar to continue to rally into 2009″
“Our feeling is that the trend has been set and we forsee a continued strengthening of the Dollar against Sterling. The light at the end of the tunnel for the US grows brighter!”
-Mark O’Sullivan, Head of Trading, Currencies Direct
The current trading levels of GBP:USD are proving to be unsustainable due to the recovery of US markets, falling commodity prices and a projected UK economic slowdown
The message to investors is clear - NOW is the time to invest in the USA before the strengthening dollar makes prices less affordable!
In addition those who get in NOW will be holding assets in the USA and will be well placed to benefit from the improving dollar rate and therefore lock in a profit long before the property market starts its recovery.
Similar trends were seen in the 5 year trading cycle between GBP:EUR. After the peak there was a slight recovery before the level dropped steadily from 1.5 to 1.25. For consumers this meant increased property prices, with some people unable to complete and pulling out of the purchase, in some instances losing their entire investment. It now seems, based on market movements that the USD may be heading the same way.
Should you wish to discuss the implications of the currency markets on your property purchase please contact the specialists at Currencies Direct on +44 (0)207 847 9400 and quote reference A03781.
