People planning to use their credit cards during winter trips to America are likely to have their spending power increased by financial market trends, new analysis indicates.
A report from FairFX.com, a prepaid card provider, suggested that currency traders are currently "backing sterling" over the US dollar and expect the pound to extend its recent gains.
The dollar has been under pressure since last week due to the Federal Reserve's decision to keep interest rates at near zero and the release of worse-than-expected unemployment figures.
Sterling rose from just over $1.66 against the dollar to over $1.685 yesterday (November 9th), before falling to $1.67 today.
A consistently strengthening pound will prove to be good news for Britons planning to use credit cards abroad to make sterling-denominated payments.
Rishi Patel, head of FX Trading at FairFX.com said: "Traders are currently backing the Australian dollar, euro and sterling over the US dollar.
"The US dollar is trading lower across the board [and] sterling is also holding its ground against the euro."
Mr Patel added that another reason behind the pound's recent strength is the decision of the Bank of England (BoE) last week to extend its quantitative easing programme by £25bn, rather than the £50bn that had been expected by many analysts.
The surprise move has signalled to some investors that the BoE policymakers are more confident about the UK's economic prospects than had been initially thought.
A report from FairFX.com, a prepaid card provider, suggested that currency traders are currently "backing sterling" over the US dollar and expect the pound to extend its recent gains.
The dollar has been under pressure since last week due to the Federal Reserve's decision to keep interest rates at near zero and the release of worse-than-expected unemployment figures.
Sterling rose from just over $1.66 against the dollar to over $1.685 yesterday (November 9th), before falling to $1.67 today.
A consistently strengthening pound will prove to be good news for Britons planning to use credit cards abroad to make sterling-denominated payments.
Rishi Patel, head of FX Trading at FairFX.com said: "Traders are currently backing the Australian dollar, euro and sterling over the US dollar.
"The US dollar is trading lower across the board [and] sterling is also holding its ground against the euro."
Mr Patel added that another reason behind the pound's recent strength is the decision of the Bank of England (BoE) last week to extend its quantitative easing programme by £25bn, rather than the £50bn that had been expected by many analysts.
The surprise move has signalled to some investors that the BoE policymakers are more confident about the UK's economic prospects than had been initially thought.
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