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What’s in store for the foreign exchange rate in 2013

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Alright, folks, I’ve decided to open up Adventurous Andrea to guest posts and will be featuring more guest writers as time goes on. I love hearing other’s adventure, travel, informational, and life stories, and figured you do too! Because of my upcoming travels to Europe, a topic I’ve been researching more and more is exchange rates. When Peter shared some of his content with me, I was intrigued and figured I’d offer some of his knowledge to you. Without further adieu, I give you…

What’s in store for the foreign exchange rate in 2013

08.04.2013
by Peter Lavelle

Are you planning to move to Europe, like Andrea? If so, find out here what’s in store for the foreign exchange rate in 2013!

So far in 2013, the US dollar has been king of the hill where the foreign exchange rate is concerned.

On March 12th for instance, the greenback hit its highest against the UK pound since June 2010, or almost 3 years.

And on the 27th of March, the buck touched its strongest against the euro since November 21st last year, or close to 6 months.

How come? Well, it’s because, while the economies of Europe are still stuck in the mud, the US has been entering top gear.

For instance, the US has created close to 215,000 jobs each month since last November, which is no slow going.

Moreover, there’s an excellent chance the foreign exchange rate will reach fresh heights before the year is out.

First, this is because, if the US keeps creating jobs at this pace, the Federal Reserve will decide the economy no longer needs support, and stop printing money. That will quickly lift the buck.

Second, Europe is in recession, and looks set to stay there. That will put continued pressure on the UK pound and euro.

Given that, not only is it a good time to exchange currencies, but the foreign exchange rate could continue to pick up this year!

About the Author

Peter is an economist at foreign exchange broker Pure FX.

If you’d like a personalised forecast for the foreign exchange rate, pay him a visit! He’d be delighted to tell you what he thinks will happen next to the US dollar.

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