Monthly Archives: February 2012
The ECB offers cheap loans again which strengthens sterling exchange rates against the Euro
Sterling exchange rates have strengthened against the Euro this afternoon by 0.70% spiking up to 1.1898. This is a gain of over a cent from Monday’s low.
Just as it was looking like the pound was heading in the wrong direction and all the signs were that the pound could hit below 1.17 the European Central Bank (ECB) unexpectedly provided a further €530 billion of low interest loans to 800 banks across Europe. The last time the ECB did this was in December and the Euro weakened at that time too. The cheap loans mean that European banks are flooded with cheap money and are able to invest in bonds in other countries. The cheap loans were oversubscribed and it has helped sterling exchange rates bounce back.
This move goes to show that, you can continuously follow the markets and wait for all the data releases under the sun to hit the market but the unexpected can move the rates of exchange when we least expect it. Trying to gauge the currency markets can be very difficult. We watch the markets all day long for clients and this move has increased the buying volumes for the Euro. There are now some excellent buying opportunities on Euro rates of exchanges. When there is a quick movement in the market we can help a client save thousands of pounds over the high street bank.
Please do contact me at bma@currencies.co.uk and challenge us here at Foreign Currency Direct/Pound Sterling Forecast to beat
the rates of your banks or current broker. We promise you that you will not be disappointed. We will also offer you our expert opinion on when we feel is a good time to execute a trade. If you let me know what your situation is I can go over the options that are available to you.
Pound Sterling climbs against USD as investors prepare to take on risk once more AUD, NZD, ZAR benefit!
The Pound has once again made gains against the USD over the start of this week as all seems relatively quiet on the European front (not for long though i’m sure) and global attitude towards risk appears to be increasing off the back of this.
In turn, this means that investors tend to pull funds out of their perceived ‘safer currencies’ such as the USD (gold is also priced in Dollars) decreasing the demand for this currency and also making it cheaper to buy.
We have also seen the ‘riskier currencies’ such as the South African Rand, Australian Dollar and New Zealand Dollar make gains from this as demand for them increases.
My view is that more European troubles are sure to come to front page news again it is just a case of when…. As and when this does happen we should see things turn around again… Those looking to sell Dollars or Sell AED Dirhams (pegged to the Dollar) will have a selling opportunity and those buying AUD, NZD or ZAR will have a great buying opportunity (compared to recent times anyway) however the European Central bank would all be great poker players as they are all very good at keeping their cards close to their chest so we may have a little wait on our hands first.
If you have a currency transfer to make be it buying or selling then feel free to contact me directly djw@currencies.co.uk for a direct comparison against your currenct bank or broker and I will do everything I can to beat it by enough to make it worth you using me instead as there is always room for improvement in my experience.
Sterling GBP – Japanese Yen JPY
A currency we don’t touch on too often – JPY which has indeed been extremely volatile of late, making excellent gainst against the Euro, U.S Dollar and Pound yesterdayas we heard the Bank of Japan intended in extend its asset purchasing programme, these gains appear to be short lived however as already this morning we are almost back to square one again. Much like the Swiss Franc I feel this currency is going to be jittery until we see any movement from central banks regarding potential devaluation.
It is key that you have an efficient broker on your side if you have an upcomnig transfer to carry out, why not try our new currency audit service to check just how well you did on your last currency transaction, just fill in the form on the right hand side of this page or email me directly djw@currencies.co.uk
New feature from us here at poundsterlingforecast.com – Currency Rate audit and comparison
Good afternoon,
Today brings the launch of another new service from us here at www.poundsterlingforecast.com – The currency audit and comparison service. We are calling this the PSF currency challenge (Challenge us to beat your rate!)
Even if you have used the same company for years it is always worth checking you are still receiving the very best rates of exchange and the very highest level of service on your transfers. Due to the heightened level of enquiries through the site over the past few months and the large volume of new clients we have saved money we have decided to open this out to everyone. We all work for a specialist foreign exchange brokerage that has won awards both for exchange rates and customer service, so if you are one of the 27,000 unique visitors we have to this site every month and you find our information both informative and interesting then why not get in touch by filling in the red form on the right hand side of this page. We look forward to speaking with you.
GBP/EUR outlook for the early part of the week.
Good morning readers,
Well last week produced a big decline for sterling exchange rates against the Euro. We saw the pound fall to a low of 1.1750 on the back of events over in Greece and the release of the Bank of England’s minutes. We have been saying for a long time how QE can have a negative effect on sterling and the minutes showed exactly why. All 9 members of the MPC voted in favour of QE and the minutes showed that some members wanted to initiate QE even more vigorously hence the market’s reaction and the pound fell.
This week should be a little more stable for the pound but there are some analysts out there that feel the pound could fall back down near to the 1.15 level. Over the last week I have had many clients who have been holding out for 1.20+ re asses and traded below 1.18. Their time had just run out and they had to make their conversion for business invoices and property purchases. There were occasions when they could have got 1.20 but the greed factor caught them out. If you would like to inform me of your specific requirement we can look at when would be a good time for you to make your currency conversion. Just email at bma@currencies.co.uk You will get our opinion on timing and achieve a better rate of exchange than your high street bank.
With data very thin on the ground today look out for tomorrow’s German inflation and consumer confidence data while in the UK the first major release is mortgage approvals on Wednesday. There are other releases through the course of the week that could have an effect on all major currencies and we will keep you updated with these as the week progresses.
Please remember that if you have a transfer to make in any major currency challenge us to make you a saving on your exchange. We will do everything we can to help you time your conversion just right and make you a significant saving when you actually make your conversion. Please email me at bma@currencies.co.uk and we see if we are a suitable provider for your foreign exchange.
The best time to buy the pound? PSF predictions save clients money once again…
Anyone looking at buying sterling is looking at some of the best rates ever with all currencies. Even with the announcement this week that further QE may be possible it looks like the pound is going to at the very least hold its own in the months to come. All the data we have had released has shown improvements including in Manufacturing, Retail Sales and Construction. This should mean we avoid recession and can start to look to the future with confidence.
We won’t actually know if the UK is in recession or not until the 25th April. This is when we will learn of Q1 2012 GDP numbers – a technical recession is two quarters of negative growth. The latest revision for Q4 2011 this morning confirmed we had a -0.2% contraction at the end of last year and is without doubt a cause for concern. But taking into consideration events in Eurozone the Bank of England is I feel with further QE taking the right steps to keep the UK ticking over whilst protecting us from the nightmare scenario of a Eurozone meltdown. Investors seem to feel this too and the pound has found some support today.
I therefore think that if you are holding certain currencies and waiting for the right time to buy sterling you are looking at an excellent opportunity. The Aussie Dollar is at close to an all time high against the pound and with the possibility of an interest rate cut there soon I would be very tempted to lock in the massive recent gains. This is true too for the Kiwi Dollar and the South African Rand. I also feel following the Greek bailout and danger still up ahead for the Eurozone, this is an excellent time to sell the Euro. Indeed a client who contacted me yesterday via this site to check whether he was getting the best deal selling his Euros found himself £4000 better off this morning by listening to me. Whilst I offered a better rate than the competition yesterday because he contacted me direct, I suggested that rather than trading there and then, he should wait to see what today brought because I believed it would be better for him. As expected the market did drop in early morning trading and we tied everything up nicely this morning at the 2 month high selling Euros. I hope he tells all his friends who are selling their villas!
We can not only help you get the best deals but offer our opinions and information on when is the best time to trade. If you want to just double check you are doing the right thing and getting a good deal, our highly personal award winning service and rates could well save you money. I have not had any trouble beating the competition to win the business of clients of this site. Feel free to speak to me on jmw@currencies.co.uk
I look forward to hearing from you
Pound weakens following Bank of England minutes – Once again the Pound fails to stick around at 1.20
Good morning all, sorry about the lack of posting in the last few days, I spent Tuesday at the brit awards and yesterday feeling like I had been hit by a train!
Yesterday whilst I was on anual leave the Bank of England minutes were realeased and indeed led to major Sterling weakness pretty much against all majors and once again stinging those that have 1.20 stuck in their mind as the only rate they are willing to buy Euros at. This is the 8th time Sterling has risen above 1.20 for a minor amount of time and then bombed so next time please bear this in mind, like I have said on the site many times before the people one step ahead out there aim for slightly less than everyone else (1.19) as to get through 1.20 and stay above there the movement has to be so strong that it breaks through the millions of orders at 1.20.
Of course this has been fantastic news for those selling foreign currency, personally I cannot see the Pound staying low for a major amount of time, indeed I feel it will be fairly range bound, however now at a lower level than we have seen.
If you have a transfer to carry out be it buying or selling the Pound then do feel free to contact me directly djw@currencies.co.uk and I will be more than happy to make sure you get a better rate than your bank or current broker, we can potentially save you thousands depending on the amount you are doing – I worked for a company that has been around for 11 years now, has over 40,000 clients and has won awards from the Sunday Times and Daily Telegraph for exchange rates and a National Business award for customer service. If you find the site useful then you have nothing to lose, drop me a line and I will be more than happy to help you too.
Sterling Exchange Rates – What The Week Ahead May Bring.
This week ahead is set to be very volatile for sterling against a host of currencies. There are numerous data releases that will have an impact on the pound and a host of other majors. If you require making a conversion on your funds this week then you should keep a close eye on the following data releases and contact me so i can explain how you can benefit from our excellent rates of exchanges. Just drop me an email at bma@currencies.co.uk
Tuesday - For sterling the first major data release will be tomorrow morning in the name of public sector net borrowing. This release captures the amount of new debt held by the UK government. We are expecting levels to come out worse than last month’s release so sterling exchange rates could take a hit tomorrow morning.
Wednesday morning will bring the biggest data release for the UK with the Bank of England’s Minutes. This really will be key as it will indicate how many members of the MPC voted for QE and by how much. If their is any indication that some members wanted more than the £50 billion then it may bring some sterling weakness as further stimulus could be on the cards in the future.
The last major release will be on Friday with revised Q4 GDP figures. This is as big a release as they come. It is expected to show a contraction in growth for the UK economy and if Q1 for 2012 comes out the same then the UK will officially be in a recession. because we are expecting a contraction this Friday the losses may not be so sever for the pound but you may be wise to act well before this release.
For the pound against a host of other currencies you may be interested in the following releases.
Germany and the EU – With a host of data from PMI to GDP rates will be extremely volatile this week. The real key mover will be events in Greece. If they cut their budget which is pretty much expected and receive the agreement for their bailout then expect to see some good Euro strength. This will be key for clients looking at selling back their Euros. Be ready to act quickly though if there is a spike in the market as it may not be around for long!!!
For the US it is a pretty quiet week compared to normal. They have presidents day today so no releases and then over the rest of the week there is some home sales and jobless claims. I expect that the USD will have a range bound from 1.56-1.59 this week. if you see a movement above the 1.59 capitalise on the gain.
Australia – RBA minutes released early hours of Tuesday morning. Same as in the UK and if no indication of further rate cuts down under expect the Aussie to continue its rise of all time highs against the pound.
If you would like to discuss any major data release with us so you can find out how it may affect your currency transfer please feel free to contact me at bma@currencies.co.uk
To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.
Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used
someone else for years – Just like buying car insurance you need to always shop around. You can also email me directly bma@currencies.co.uk with any questions or queries.
German President Resigns! What does this mean for the Euro?
Well, just when Friday was looking kind of quiet, Germany have lost their president… This suggests to me that as we have been saying for a very long time on here there is much, much more to this European crisis than is being let out of the bag.
I think the Euro Zone is in complete crisis and it is going to take heroic economic performance to resolve it, political instability does effect a currency and this indeed will not help the Euro and investor confidence.
UK Retail Sales at 09.30 am could take the edge of sterling rates whilst this afternoon sees US and CAD Inflation Data
Happy Friday Readers! Despite a pretty rough week for sterling we are still very close to a 17 month high for buying euros. Today at 09.30 however we have the important UK retail sales data release which is predicted to show a contraction in UK consumer spending habits. I expect this will actually cause the pound to lose some ground in early morning trading..
Months of uncertainty over the US economy is turning to confidence as recent US data has showed unemployment decreasing. New Home sales yesterday showed a recovery and benefit claims also dropped. The US is seen as a barometer of the global economy and signs the US recovery is underway helped lift confidence late afternoon. The US dollar weakened as investors looked to other assets creating some excellent opportunities, close to the best since November. At 13.30 today we have US Inflation Data which could be a big market mover. If you are buying dollars be aware that the market may take an unexpected twist late on.
Staying in North America also at 13.30 we have Canadian Inflation Data. The Loonie has been making gains on a weaker pound and if we see signs Canadian Inflation is rising, you may see the CAD strengthen in afternoon trading.
If you are making any kind of currency transfer it is well worth your while getting in touch with us before you make any final decisions. This site has helped thousands of people save thousands of pounds on their currency exchanges. Speak to me direct on jmw@currencies.co.uk to learn more.
