We received 50% more currency enquiries in the first week of November compared to the first week of October in 2023.
Why?
Well, according to Privalgo’s currency experts, unpredictable US economic data caused significant movements in the value of the dollar against other major currencies.
What’s been moving markets?
Early November saw US nonfarm payrolls underperform against market expectations. By coming in lower than expected, the data hinted at weakness in the US economy.
It got analysts thinking that a poor jobs market and easing inflation could inspire the Federal Reserve to stop raising interest rates to protect economic growth.
Additionally, the data adds more weight to some economists’ argument that the US could enter recession in 2024.
Such sentiment pushed investors away from the US currency, lowering its value significantly.
What does this mean for businesses?
In a matter of hours, the dollar began to drop in value. For global businesses that send and receive dollar payments, this created a series of problems. One example is reduced purchasing power.
Businesses had to pay more to purchase goods and services using dollars. They may not have been able to make transactions as planned, causing cashflow headaches.
As a result, 50% more businesses and individuals contacted us to discuss currency management.
While we can’t predict the future, we can manage its risks and help you capitalise on potential opportunities.
Protect your bottom line from currency market movements
Protect your profit margins against currency volatility with forward contracts. Fix a rate of exchange while prices are favourable, and we’ll carry out your transaction at a later date.
Capture maximum value when you exchange currencies with market orders. Set a target rate and we’ll carry out your transaction automatically if the market reaches your price.
With key inflation data flooding the headlines, and central bank interest rate decisions on the horizon, the final months of 2023 look set for volatility.
Fill out the form below and let’s discuss how our currency management strategies can protect your business’s bottom line from significant market movements.
