Welcome to Convert Dollars to Pounds.  Are you looking to transfer your US Dollars into Great British Pounds?  Maybe you are retuning from a trip to the States, are emigrating to the UK, have business requirements in the UK, or something else?

By the end of Friday’s trading session, sterling gained 0.8 percent to reach $1.5641 versus the United States dollar. The Aussie also gained to $1.0560. Despite the higher levels reached by the greenback, Friday’s trading session saw an unexpected drop. United States unemployment reports showed a gain of 163,000 jobs. Although this is higher than the expected 100,000 jobs, it still leaves the unemployment at a higher level of 8.3 percent. Compounding this issue, the Federal Reserve Bank announced last week that it was not undertaking any new policy measures until at least September. The negative economic data from the United States has given investors hope that the September policy meeting will bring about another round of quantitative easing.

Euro Gains

Versus the United States dollar, the euro rose 1.6 percent to reach a level of $1.2377 on Friday night. At its lowest, the euro was at $1.2167 during the Asian trading session. Comments by the European Central Bank fueled a drop in the already weak euro. The ECB decided last week that it would not be buying government bonds in the near future.

After the announcement by the ECB, the United States dollar rose 0.6 percent against the yen. By the end of trading, it was at 78.59 yen. This is a slight reversal of the trend in recent weeks. Previously, investors had turned to the yen as a safe haven currency. During early morning trading on Friday, the yen reached 78.06 versus the dollar. If the yen keeps appreciating, the Bank of Japan may take action in order to protect their export market. Intervention is expected to happen if the dollar drops below 78 yen.

Canadian Dollar at Parity

Friday ’s trading session also marked the first time since May that the Canadian dollar was at parity with the greenback. The loonie sustained its fourth week of gains against the United States dollar. This gain was fueled by the rise in employment numbers within Canada. During last week’s trading session, the loonie gained 0.2 percent to reach C1.0013 versus the greenback. Currently, one loonie will buy 0.9987 United States dollars.

In response to the rise of the loonie, many future traders are betting that the Canadian dollar will soon decline. Futures or a future contract is an agreement by investors to purchase currency or assets at a set price in the future.

Canada added a total of 9,000 jobs in July which is a marked increase from the 7,200 added jobs in the month of June. The overall jobless rate remained at 7.2 percent in the nation.

Meanwhile, Canadian ten-year government bonds dropped two basis points to reach 1.77 percent.  The Canadian dollar was also trading at C$1.2197 on Thursday against the euro.

India Adds Foreign Exchange Reserves

During the week ending on July 27, India’s central bank developed $1.31 billion to $288.64 billion more in foreign reserves.  The data shows that Indian reserves grew by $589 million to $287.34 billion in the preceding week. Despite the growth in foreign reserve, India’s holdings in gold reserve remained at $25.76 billion.

Asian Currencies Ease

On Friday, many emerging markets in Asia eased up on the gains they made during the previous week. With the statement by the ECB, investors were increasingly risk averse throughout the trading session.

Despite the high value of the yen, some firms in Japan are still posting high profits. Japan’s All Nippon Airways showed a net profit of 668 million yen during its first fiscal quarter. During the previous year, ANA had been operating at a loss following the tsunami and decreased travel demand. By cutting costs and boosting international travel, Japan’s second-biggest airline managed to post increased profits. Compared to this time last year, sales at All Nippon Airways are up 20 percent.

Syria’s Inflation Jumps

With the public unrest in Syria, one-third of small businesses have shut down. This has caused a drastic rise in unemployment and a decline in the growth rate. The nation is presently suffering from a 22.5 percent inflation rate for the first quarter of 2012. In 2011, this rate was at just 4.6 percent. Some estimates also show the unemployment rate in Syria is at a high of 25 percent.

Most market analysts believe that the gross domestic product for the second-quarter will come in at about 1.5 percent. During the first quarter of the year, the United States showed an expansion of 1.9 percent. With all of the financial uncertainty in the markets, exports and manufacturing data has contracted slightly as world demand drops.

If the GDP report shows a growth lower than 1.5 percent, the Federal Reserve may be forced to take action. Earlier this month, Federal Reserve Chairman Ben Bernanke hinted that the Fed would be willing to take action if the economy deteriorated any further. With the weak economy in Europe and the United States, many investors are speculating on the possibility of future quantitative easing measures. If the Fed adopts a new monetary policy, it would be the third round of quantitative easing measures.

The dollar is currently holding steady against the yen. On Monday, the greenback hit a seven-week low of 77.94 yen. During Friday morning trading, the dollar was stable at 78.27 yen. Meanwhile, the euro rose one percent against Japan’s currency following Draghi’s statement. The last trade for the euro was at 96.09 yen. On Tuesday, Europe’s currency had reached a 12-year low of 94.12 yen. Analysts see resistance at 96.97 yen.

The GDP report for the United States could indicate future fiscal easing measures by the Federal Reserve Bank. On Tuesday and Wednesday, the Federal Reserve Chairman Ben Bernanke gave a testimony before the United States Congress. Although he did not announce any new monetary measures, his testimony hinted at the possibility of future fiscal easing if the economy continues to contract. If the second-quarter gross domestic product is low, Bernanke may choose to adopt new fiscal easing measures. Any new monetary policies could cause the value of the dollar to decrease relative to world currencies.

If the GDP shows at least a two percent growth, the likelihood of the Fed enacting new policies would be significantly decreased. The United States economy is currently seen as one of the strongest among the advanced economies.

Venezuela to Allow Foreign Currency

The latest move by Venezuela toward a more open market was announced on Friday. To make the system simpler, the South American country is now allowing foreign currency bank accounts. Since 2003, the nation has maintained strict controls on the currency exiting or entering the nation. United States dollars in particular have been closely watched by the government of Venezuela. The move to open up the marketplace is geared at getting more foreign investors into the Venezuelan marketplace.  Anyone in the nation can use their foreign issued ATM card or bank account to withdraw Venezuelan bolivars. Foreigners will still have to pay the official exchange rate that is set by the government.

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