Forecasts for the US dollar vary from bank to bank and from month to month. This article takes a look at the general trend in US dollar forecasts and how it might impact your home currency.
The Forecast for the US Dollar in 2018
The US dollar (USD) is bouncing back up from a recent plunge to 3-year lows. While most bank forecasts show the USD will continue to recover, the movements and speed differs widely. This is because there are a lot of influences (see “What are the key influences on the USD”).
How does the US dollar affect me?
The US economy is the biggest economy in the world. This is why events in the US significantly influences all other currencies.
Usually, when the USD goes up, your home currency gets weaker. When the USD falls, your home currency gets stronger. However, this isn’t always the case.
If you want to see what will happen to your home currency next year check out our currency posts for 2018 outlooks.
What are the key influences on the US dollar?
1. US Economy
When the US economy gets stronger the US dollar improves. Right now the US economy is growing, which means consumer spending, employment rates and house prices are all improving.
US politics currently has a big influence on the US dollar. Many believe President Donald Trump will be unable to deliver on his pre-election tax promises. Greater uncertainty from politics means investors will sell the US dollar, because there is a greater chance of it getting weaker.
3. Imports and Exports
The US is world’s largest importer and is the world’s second largest exporter (second to China). When imports are greater than exports the US dollar rises, because it signals a more prosperous economy.
How to Find the Cheapest Way to Transfer Money Overseas
Compare The Total Cost
The total cost of the transfer comes down to 2 things:
1. Transfer Fees
Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.
2. Exchange Rate Margin
There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.
Money Transfer Comparison Tool
General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.
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