After the dramatic fall in the value of the dollar once Donald Trump was elected the next President of the United States, investors on all markets are continuing to place bets on the American Currency.
The Pound fell lower as investors continues to funnel money behind the dollar. The reasons being that there are predictions Trump’s policies on trade and the Federal reserve will be beneficial to invest into in the long term. Experts predict a rise in interest rates and an immediate boost to the dollar.
The news may come as a surprise after a similar response expected after the pound’s sudden drop following Brexit. While FTSE has failed to reverse the decline five months ago, the exchange rates to the dollar are getting worse. The dollar is currently around $1.25 on most markets with providers of the currency differing around those odds.
Goldman Sachs has released their forecasts for next year which alarmingly show a continued decline for the pound before the end of 2017. According to the Telegraph, they have predicted the pound will fall to a value of $1.14 within a year.
The Euro continues its losing streak
Markets don’t look too good for the Euro either with its decline in value continuing. Figures show that the average value has now fallen to €1.17 compared to the pound. With both the Euro and the Pound continuing to plummet in value, the Dollar has had its best fortnightly performance since 1988.
That sharp increase is not set to continue at the same rate. However it’ll be up to Trump to determine whether the Dollar increases in value. If he delivers on some of his agenda on trade and deficits, the currency could still move in a positive direction.
For the best rates on the American dollar and other currencies, be sure to check the latest deals on our website.