An update from Kathie Cravens, our International Trade Specialist:
The US Dollar weakened sharply overnight after the ISM non-manufacturing PMI showed a drop to 51.4 in August, down from July’s 55.5, its weakest figure since 2010. Disappointing jobs and manufacturing data leading up to this have suggested that US economic growth is likely to remain modest in the third quarter of 2016. This has consequently fueled speculation that the Fed might refrain from raising interest rates in 2016. The Pound strengthened to a new two-month high versus the Dollar and finished the trading session above the 1.3400 levels, up 0.9% on the day.
Source: Institute of Export
What does this mean for exporters?
As the GBP strengthens, this is a good time to market U.S. products to the United Kingdom.