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New Bank of England Interest Rate Meeting to move Sterling

The New Bank of England Meeting takes place this Thursday alongside the Quarterly Inflation Report. There is a very strong likelihood we will see some movement on sterling exchange rates and I would personally expect it to be a positive one. The pound has benefited from uncertainty elsewhere and strong improvements in the UK economy. Despite some slightly worse than expected Retail Sales figures last month all the recent economic data has been positive and I would expect will lead one or possibly two members of the Bank of England’s team to vote for an interest rate rise.

Interest rate decisions by the Bank of England are important because the raising and lowering of interest rates by a central bank changes the strength of that currency. Investors will move money into said currency when interest rates are higher to benefit from the greater returns plus the expectation that that currency will strengthen longer term. Investors will also move funds ahead of any decision if they believe such an outcome is on the horizon, even if that is likely to be years away.

For now interest rates remain on hold at 0.5%. But the Bank of England did make clear one of the reasons they have not looked at raising in 2015 is the uncertainty of the Eurozone and Greece. With this event still a problem but clearly now a contained one, confidence in the future has increased. It seems reasonable in my humble opinion to expect therefore some positive movements for the pound on Thursday this week.

If you are looking to buy or sell pounds, this week is potentially a very important one with the UK Interest rate decision and Quarterly Inflation Report. If you would like to get a better understanding of what is driving your exchange rate plus discuss all of your options, then please speak to me Jonathan Watson by emailing jmw@currencies.co.uk 

Do you want to get the most for your money when exchanging currency? Contact us today!!

Here at Pound Sterling Forecast we pride ourselves on keeping you up to date with the latest market movements but in case you didn’t know we all work for an award winning currency brokerage too.

Feel free to get in touch with us today by filling in our rate quote form and get yourself a free, no obligation quote on your currency.

For the sake of less than a minute filling in a form it may save you hundreds or even thousands of Pounds – Especially if you have used a broker for years or have an online platform you buy from (essentially a robot that will not negotiate your rate like we will), you should always compare with us as we would be confident that we will save you money.

We look forward to hearing from you soon.

Will Pound Sterling go up against the Euro? (Tom Holian)

Pound Sterling exchange rates had an interesting day on Friday as Eurozone inflation showed better than expected growth.

This caused the Euro to strengthen against the Pound but the positive movement for single currency was short lived and Sterling ended the week on a high.

As we enter next week it appears to be Wednesday that is likely to have the biggest effect on Sterling Euro exchange rates with the release of  Eurozone retail sales.

The previous data release was 2.4% so anything else could cause volatility for rates.

On Monday the US releases manufacturing data and this will have a a future impact on the Fed’s decision as and when they may raise interest rates.

Indeed, last week although the Fed kept rates on hold if the data in the US continues to be positive this could mean a September rate rise which could result in Dollar strength.

Typically when we see Dollar strength this often results in Euro weakness so I think we could see even better opportunities to buy Euros with Sterling during next week.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Sterling Continues to Benefit From Eurozone Uncertainty (Matthew Vassallo)

Sterling continues to benefit from the uncertainty surrounding the Eurozone, in particular the on-going economic downfall in Greece. Despite a deal being put in place we are already hearing rumours that Greece will not be able to meet its next repayment deadline in August, which if true is likely to throw the markets back into chaos again.

I do feel a general lack of confidence in the Eurozone is now so deep rooted that the EUR is suffering as a result. Its slightly ironic as GBP/EUR levels continue to trade near a 7 year high, not because the Pound is believed to be impenetrable but because investors cannot have any long-term faith in the EUR, whilst the Eurozone continues to be dragged down by individual member states. I do feel Sterling is over-valued against the EUR, possibly by as much as six or seven cents but until the markets can be confident that the Eurozone is once again moving forward together as a single entity, then the EUR will not be able to make any great strides against the Pound.

Eurozone data yesterday in the form of Consumer & Business Confidence was positive but this did little to help the single currency, with GBP/EUR rates moving back towards 1.43 on the exchange. We have a further key data out for the Eurozone today, with the latest inflation data and unemployment rate likely to cause additional volatility on GBP/EUR rates.

GBP/AUD rates have moved back towards a six and a half year high, with on-going concerns surrounding the Chinese economy hurting the AUD. Due to Australia’s trade links with China, any slowdown in this sector is always going to have a negative knock-on effect and with the Reserve Bank of Australia (RBA) committed to devaluing the AUD in order to boost exports, I cannot see any major turnaround for the AUD in the short-term.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Sterling Euro Rates on the rise owing to strong UK GDP and Greek uncertainty (Tom Holian)

Sterling Euro exchange rates have once again gone in an upwards direction owing to some better than expected UK GDP figures and Greek PM Alexis Tsipras suggesting that a ‘Grexit’ could still be on the cards.

Personally, I don’t think a Grexit will occur anytime soon and it is scare tactics more than anything else. However, whilst this uncertainty continues this is leading to Euro weakness.

Last night in the US the Federal Reserve met to discuss their latest interest rate decision.

As expected there was no change to the interest rates but the rumours are increasing of a rate hike possibly as early as September.

Typically when we see Dollar strength this results in Euro weakness and this is being reflected in the Sterling vs Euro exchange rates this morning.

It appears as though the Fed as well as the Bank of England are considering putting up their interest rates over the next few months but for me if one is to do it first I predict the Federal Reserve.

The biggest release of the week for anyone with a GBPEUR requirement will be Inflation and Unemployment data for the Eurozone tomorrow.

If the data is positive particularly for inflation this could prove to some extent that the QE introduced earlier this year is working.

However, if the results are not good we could see Sterling Euro exchange rates end the week on a high.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

What can you do on pound sterling exchange rates this week?

Sterling is performing well as UK GDP pointed to further improvements in the UK economy and we get back to pre-crisis levels. The unbalanced recovery is a concern and it appears unlikely the pound will just keep rising!

With the uncertainty surrounding Greece now removed from the market attention has shifted to wider concerns on interest rates and economic recovery. Personally I cannot see the UK raising interest rates any time soon but the pound appears likely to reach to the data as it has done in the last week.

I think it is really important to understand your options when buying currency with us so here is the information!

1 – Store currency safely in a client account. You don’t need a foreign bank account to buy foreign exchange with us! You can buy Euros and we can keep them here until you need them sending out perfect for business or overseas property investors who don’t yet have a foreign bank account. You can split payments too. eg buy 200k euros and send out 20k euros for deposit leaving remainder here until a foreign bank is open or you need sending out. This means you can buy whilst rates are good not just when you need the currency or have opened a foreign bank account.

2 – We can offer a forward contract to fix today’s rates for up to one year in advance useful for business and anyone buying a large volume of currency. You pay a deposit and choose how far forward. Eg you could fix 300k euros for 3 months and draw it down after 8 weeks if you needed them earlier. Again you don’t need a foreign bank account open to buy with us and can buy or lock in to a price whilst rates are good.

3 – Limit Order’s target a rate you wish to buy currency at in the future. eg 1.60 on GBPUSD. You give us a firm order and we place it into the market. Once the rate is achievable we buy at your desired rate.

If you need to buy or sell the pound understanding all of your options and what is going on in the market is the best way to minimise your exposure. For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk. Just email a quick outline of your position and your situation and I can hopefully offer some useful information to help you get a better deal.

I look forward to hearing from you!

 

When should I buy? (Daniel Johnosn)

Sterling gained strength over most major currencies following a rise in GDP in the second quarter. GDP came in at 0.7% compared to Q1 at 0.4%. Out put is very close to the the levels seen just prior to credit crisis of 2008. The BOE meeting next week could show some change in voting patterns for a rate hike. However, it is not all good new as the strength of Sterling is hitting our Exports. The confederation of British Industry (CBI) has signaled the weakest outlook for exporters in four years. due to this it wouldn’t be wise to rise interest rates for at least six months.

I doubt we will we see any major volatility in GBP/EUR while the Greek debacle continues. If you have a currency requirement in short to medium term it would be advisable to move on a spike in your favor. I currently offer a free of charge rate alert service, don’t hesitate to drop me an e-mail or give me a call to let me know if you would like to notify you of market movements.

We do have some very large GBP/EUR trades going through this week which potentially we can tag new clients on to and achieve a very competitive rate.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Pound makes gains following growth figures this morning (Daniel Wright)

Sterling has had a fairly solid day against most major currencies after growth figures released this morning confirming that the economy had grown a little more than expected during the second quarter of 2015.

The U.K has indeed now seen 10 consecutive quarters of economic growth and chancellor George Osbourne has also commented that the economy is indeed ‘motoring ahead’.

This is great news for those looking to buy foreign currency in the coming weeks and months but also a little worrying for anyone with currency to exchange back into Sterling at some point soon.

Tomorrow is the next big point of note for the markets as we have the Federal Reserve interest rate decision due out in America at 7pm BST and this can have an impact on all major currencies as it has an affect on global attitude to risk. Should we even see the hint of an interest rate change coming up for the States the Dollar may gain strength and markets may well move around quite a lot overnight.

There are contracts that we offer that can help protect you from adverse market movements or to take advantage of a spike in your favour without needing to be available 24 hours a day. Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to have a no obligation and confidential discussion to explain how I may be able to help you.

Strong GDP Figures surprise markets and boost Sterling (Joshua Privett)

Even though yesterday was a relatively quiet day for data releases, significant weakening for Sterling was recorded. Rounding off a general trend away from the fresh 8 year highs reached last week for GBP/EUR rates at 1.44, poor retail sales figures released in the UK economy caused rates to drop to the low 1.40’s. It was expected that due to the contraction recorded in the retail sector, normally a fantastic performer for the UK economy, that GDP figures will dissapoint markets further on the British economy. As a result, this lack of confidence in the Pound caused rates dip back below the magic 1.40 marker.

However, GDP figures came in higher than expected, surprising everyone, and causing all of the losses for the Pound on Monday to be reversed. Rates suddenly catapulted up to 1.41 this morning. But it is important to note that rates were moving in the opposite direction before this little psychological stunt in the markets. GDP figures also did exceed expectations at the start of the month, they simply did not come in lower than the 0.7% previously predicted.

Without strong data to change the current course of GBP/EUR rates following the agreekment, I fully expect rates to continue journeying downwards. Those looking to purchase Euros should call 01494 787 478 and ask for Joshua to receive a free quote on your transfer. Alternatively, email me on jjp@currencies.co.uk to discuss how to maximise the value of your Sterling while the market is moving against you.

Do you enjoy our market information? Just in case you were not aware then we can actually help you with currency exchange too! (Daniel Wright)

It has now been over 5 years that we have been consistently updated this site with market information and non biased forecasts on how we feel the Pound may perform against most major currencies in the future.

We now have over 100,000 unique visitors to the site and I thought it would make sense for me to remind you all that we can indeed assist you with currency exchange too.

All of the writers on this site including myself work for an award winning currency brokerage with a turnover of half a billion pounds worth of currency a year. So far we have had thousands of new clients contact us looking for a better deal than their bank or current broker and we have been only too happy to offer them both a better rate of exchange than than they have been offered elsewhere but also a much more efficient and proactive service.

If you transfer currency on a regular basis or you have a one off larger transaction to carry out either for your business or to buy an overseas property then it is well worth contacting us.

Feel free to fill in the form on the right hand side of this page and one of our friendly and helpful brokers will call you personally to discuss the various options available to you. We deal with transfers ranging from a few thousand pounds to multi million pound deals, we have tens of thousands of regular clients ranging from pensioners that live in France to Premier League footballers so can cater for anyone.

If you would like to speak to me (Daniel Wright) the creator of the site about a specific requirement then feel free to email me on djw@currencies.co.uk and I will be happy to get in touch.

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