Money Transfer to USA Update: Best Pound Dollar Exchange Rate Since 2008 Approaching As Sterling Soars

April 9, 2014 - Written by James Fuller

STORY LINK Money Transfer to USA Update: Best Pound Dollar Exchange Rate Since 2008 Approaching As Sterling Soars

The Pound Sterling (currency:GBP) enjoyed a stellar session yesterday, sending the Pound Dollar exchange rate shooting up to 1.6755 GBP/USD just after the New York opening bell yesterday afternoon. The pair had been languishing just above the 1.6600 at the time London’s equities session got underway, but highly positive UK industrial and manufacturing production data saw the GBP USD exchange rate soar.

Positive projections regarding the level of UK economic growth during the afternoon session also favoured GBP USD, with the closely-monitored NIESR UK GDP Estimate bringing an upward revision to 0.9% for February’s figure. March’s GDP forecast also came in at 0.9%, raising hopes that the British economy is now powering forward once more. A report from the International Monetary Fund, also published yesterday afternoon, predicted that economic activity in the UK will increase by almost 3.0% during 2014.

Meanwhile, looking at the other side of the coin, the forward shift for GBP USD was also partly driven by a pronounced bout of selling pressure on the US Dollar, as evidenced by a forward move of around 0.5% on the day for the euro US Dollar exchange rate (EUR/USD). After Friday’s disappointing domestic labour market numbers, the Greenback has proved to be susceptible to speculative downbets during this week’s session and yesterday’s move looks to be another instance of this.

The GBP USD exchange rate was hovering just below 17th February’s 4 ½ year high of 1.6823 during the middle part of last night’s New York trading day. The next level of significance heading higher comes at the pair’s 5 ½ year peak of 1.7042 GBP/USD. Consecutive closes above this level would sound a strong positive indicator for GBP USD. Such a move would make it an ideal time to action a money transfer to the States for UK investors purchasing property on the other side of the Atlantic. Watch this space.

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