Monthly Archives: March 2012
Pound does strengthen this week following my post on Monday Strength against AUD NZD USD ZAR CAD and stable against Euro
Sterling has indeed crept up over the course of the week against the majority of majors as I had mentioned in my earlier post this week http://www.poundsterlingforecast.com/2012/03/25/u-s-gdp-figures-this-week-may-lead-to-sterling-spike/ - Once again staying reasonably stable against the Euro in what is now a considerably boring currency pair to be keeping an eye on.
This morning we saw a flurry of announcements from the Bank of England inclusive of credit conditions and money supply which
Later this afternoon the U.S is the main talking point, we see U.S GDP figures that could lead to quite a bit of volatility for most majors and also some unemployment figures for the States later on in the afternoon. Head of the Federal Reserve Ben Bernanke speaks at 16:45pm which as always may throw absolutely anything into the mix, however he spoke earlier in the week and I wouldn’t imagine any major changes from there.
Overnight, Consumer Confidence figures are released for the U.K at 00:01pm and with the pending petrol strikes and the added tax on pasties in the U.K i’m sure the general consumer isn’t in the best frame of mind at the moment, so we may see a little weakness overnight for the Pound.
If you have a pending currency transfer to carry out then I will be more than happy to help you both in terms of getting a better rate and a much better service, please feel free to contact me directly djw@currencies.co.uk with a contact number and I shall be happy to give you a call.
Will the UK enter recession?
UK GDP figures released this morning underlined previous expectations that the UK could be heading back into a recession. This morning’s revision for the last quarter 2011 was revised downward to -0.3%, against the expected and previous -0.2%. This has caused the pound to lose slightly in early morning trading against most currencies expect the Aussie which is still suffering from a sell off following poor data from China.
Despite some very encouraging signs of late we have warned that the pound looked rather fragile and this morning’s release has provided a good opportunity for anyone selling a foreign currency to buy sterling. For anyone looking a bit further ahead the real question is will the UK enter recession? This morning’s data certainly makes it more likely but I think on balance we will not see a technical recession. This is because despite the poor Retail Sales for February, economic data has generally been positive for this quarter. The key date for anyone is 25th April, when the first revision for Q1 2012 is released.
If you are selling a foreign currency to buy sterling I believe you are currently looking at a great opportunity. With sterling moving to a 13 month high against a basket of currencies recently, there is a key trend being formed which I cannot see changing anytime soon. If looking at sterling historically it has always been significantly stronger against most currencies. Against the Aussie and Kiwi we used to enjoy levels of 1-2.5 at times! The pound has weakened signficantly since then due to the economic crisis but it does appear that slowly this tide is turning and it may be that the very worst for the UK is over, even if we do briefly dip into recession for the next quarter.
We offer a highly personal specialist service for private clients and businesses with a currency transfer to undertake. We can book rates forward for up to two years as well as insert stops and limits into the market to ensure your transfer does not become too expensive.
We can significantly undercut the banks and I personally have never had any trouble making sure anyone who I speak to gets the absolute best deal, above that offered by banks and other brokers. If you wish you to just double check what you are doing or have a free no obligation chat regarding your transfer, please feel free to email me on jmw@currencies.co.uk and I will get back to you as soon as I can. Our service is designed to make sure your transfer isn’t unnecessarily made more costly and that you are aware of all your options.
I look forward to your questions, comments or enquiries!
Sterling exchange rate update & buying USD forecast.
Sterling exchange rates spiked today against the USD hitting 1.60 for the first time in 5 months while also witnessing good gains against the Aussie Dollar (AUD 1.5244) & Kiwi Dollar (NZD 1.9473)Against the Euro we seem to be range bound between 1.1940 & 1.20.
Investor sentiment is what is driving the currency markets at the moment. A slowdown in global economic growth hit the pound against the USD last week due to fears about the world’s second largest economy China. While the pound was weakening against the USD it did gain against the AUD & NZD. This was because investors moved from the riskier currencies (AUD & NZD) and into the safe haven of the USD.
Today though we saw a reversal in the trend for the USD as the Federal Reserve Chairman Ben Bernanke had a conference yesterday and the markets believed that the FED will instigate further monetary easing (QE) Our regular readers will be all too aware that when this has been mentioned in the UK the pound has weakened quite significantly. The comments did knock the Dollar off its perch but I do not expect the rates to hover around 1.60 for long. If you need to buy USD then I personally feel that now is a great time being at a 5 month high. Email me at bma@currencies.co.uk to find out our best rate!!! I also feel that this is a good time if you have Euros to buy USD. The rates were down at 1.3050 a few days ago and are today trading at a high of 1.3385.
So as investors move large amounts of funds around the globe this seriously effects the rates and that is what makes it so hard to predict. I will stick my neck out on the line and i feel that within 2 weeks the pound will be back down at 1.57 against the USD. If you have a transfer to make challenge me to beat your current brokers rate of exchange. I assure you that you will not be dissapointed. Email me with your enquiry and contact number at bma@currencies.co.uk
Pound closes in on 1.60 against the USD – How much longer will the stuttering against the Euro continue?
Sterling had a great day against the USD in trading yesterday and stayed fairly stable against the majority of majors.
We are around a five month high against the USD, however be aware we are now possibly going to find ourselves in limbo much like we have been against the Euro over the past few weeks stuck hovering just below and just above the 1.20 barrier. GBP-USD is now just below 1.60 and I fear we could see a similar pattern forming until we get a nudge one way or the other by means of an important data release.
Earlier this month 800 Eurozone banks brought €530bn from the ECB in the “largest investment of its kind”. On the same day Mario Drahgi the head of the ECB said the Eurozone had avoided a “major, major credit crisis” since this announcement the Euro zone has shown signs of stabilising and the Euro has strengthened by roughly 1% against the GBP.
The GBP/EUR exchange rate is one to watch as Europe continues to show positive signs of stabilising, in recent years the Euro has bounced back faster and stronger than expected against the GBP.
- November 2008 rate 1.21, 1 month later GBP fell 15.7% to
1.02 - June 2010 rate 1.2251, 1month later GBP fell 4.3% to 1.1721
- August 2010 rate 1.2250 3 months later GBP fell 8.7% to
1.1184 - Jan 2011 rate 1.2069 4 months later GBP fell 8.3% to 1.1057
The GBP hit an 18month high of 1.2157 high at the start the year and has remained above the 12month average for more than 2months. Ask yourself how much this type of movement would affect your business or upcoming property purchase? If you have a currency transfer to carry out in the coming weeks or months either for yourself or your company then please do feel free to email me directly djw@currencies.co.uk with a brief explanation and a contact number and I will be happy to get in touch to assist you with both an explanation of the options available to you and my thoughts ahead of what is sure to be an extremely volatile market.
Is the Pound about to make a major comeback? Sterling at best levels in 13 months…
What could have been a very negative week has actually passed off
pretty uneventfully; in fact the pound has performed rather well. This may
actually be more a case of things being not as bad as expected rather than
genuinely ‘good’, but it is good to have slightly more positive tones
surrounding the pound. Well good if you are buying a foreign currency with
sterling. For those who are holding a foreign currency waiting for the right
time to pounce and buy pounds I foresee more challenging times ahead.
In the last few years the pound has
had a terrible run of form due to the financial crisis. With anaemic growth and
record lows on interest rates…
(if you are unsure about the impact of interest rates on a
currency’s strength please view my post here on our sister site http://www.eurorateforecast.com/2012/03/22/when-will-the-euro-strengthen-against-the-pound/)
….the UK and the pound have not
exactly set investors hearts on fire. But this may now be changing…
In the midst of the debt crisis in both America and Europe the UK
is being seen in a better light because of the coalition’s efforts to tackle the
UK’s own debt crisis. The government is largely on track to meet its own
targets and this has given the markets confidence. Yes Unemployment is still
high and there are worries ahead but it would appear to me that the UK is
standing itself in good stead for the future. Surprisingly enough the pound
gained in value towards the end of the budget and on a trade weighted basis,
the pound is the strongest it has been against a basket of currencies in 13
months. This could be the perfect time to book a forward contract to protect
your exchange rate. If you would like information about all your options please speak to me direct on jmw@currencies.co.uk - I always prioritise enquiries from this site! Let us look at the facts:
GBPEUR – Still
close to 18 month high buying Euros
GBPUSD – Nudging
closer to the 1.60 levels. Historically speaking (the last ten years) the
1.5-1.6 range is where the pound has always sat against the dollar.
GBPAUD – Currently
at the best levels we have had all year!
GBPNZD – Nudging
closer to the best rates we’ve had all year
GBPZAR – Having
reached a 6 month high against the pound, the South African Rand has weakened
and coupled with a strong pound is back 4.5% from these 6 month lows, in a
matter of weeks.
If you don’t see your currency here we can still help. Check with me on jmw@currencies.co.uk
Whilst there are certainly some challenges ahead it may be that
the worst for the UK is over. GDP figures released next week will be key to
highlighting to what extent, if any we are in recession – although we won’t
know officially until 22nd April 2012.
If you are selling a currency to buy the pound you are probably
seeing rates move against you as the pound continues to finds favour. Even with
the challenges ahead I cannot see the pound taking a major hit, particularly
when events in China are causing the Aussie, Kiwi and Rand to weaken. The
possibility of a European banking crisis appears to be under wraps for the time
being, but its presence is still concerning investors, hence the pound’s favour
as one of the more stable currencies.
If you have any currency transactions to undertake and would like
to find out more about how we can:
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Book today’s levels forward for two years
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receipts for tax and proof of payment
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that can help make you aware of trends so you can maximise your trade, as well
as make sure your transfer does not become too expensive
Please feel free to make an enquiry on the right
hand side of the page or email me personally on jmw@currrncies.co.uk
We work for the UK’s largest independent
currency brokerage and offer a highly personal service to help guide you through the
transfer from start to finish. Whether you are totally new to the service of a
currency broker or already dealing with someone else, it is worth double
checking what you are doing and getting a second opinion. We have saved a lot of people a lot of money, and all because they made an enquiry here.
Thank you
The Budget and the effect it may have on the Pound
Once again the headlines are all about how much the British public will be poorer than ever over the coming year or tw, but as the Pound goes although I don’t feel it will rapidly strenghen in the coming weeks I do feel that the Pound will gather strength towards the back end of the year should things go to plan.
Of course this is by no means set in stone as all of you will know, predictions can go out of the window within a few days should we see a shock announcement to the markets globally(and there are indeed plenty of those around these days!)
People will no doubt be hit in certain matters with the budget and may gain through others, but the positive thing I am taking from it is that it does appear to support growth in the economy which in essence can only be good for those of you waiting for the Pound to strengthen before you shift your savings overseas to buy that dream second home.
I constantly speak with clients who have now emigrated to New Zealand or Australia and have spent the last year or two dripping over the proceeds of a house sale until the rates they saw when they were applying for their visas a few years ago come back.
Hopefully with the slowdown in China and numerous other factors we may see improvement for people in this positon soon…By no means do I think we will be back at 2 to the AUD or 3 to the NZD but I would not be surprised to see an improvement.
If you have transfers to make involving either buying or selling the Pound I can help you when it comes to getting the best exchange rates both in terms of having a knowledgable input and getting you the highest rate when you do decide to book your currency. Please feel free to email me if you would like me to help and you find my site useful. djw@currencies.co.uk
Have you found the site useful? After two years of being live I have assisted hundreds of new clients that have contacted me through this site.
I have been dealing with private and corporate clients with the need to transfer currency for years now, and without showing off know the market and the process like the back of my hand.
Whether it be buying a dream home in France, buying tractor parts from Poland or sending home wages from Switzerland I can personally help.
I work for Foreign Currency Direct PLC and we are a specialist foreign exchange brokerage, we pride ourselves on not only the best exchange rates but also a very high level of customer service too…. If you have found my site useful over the past few years (I now get nearly 30,000 hits a month so someone must like it 
) do feel free to contact me directly djw@currencies.co.uk – I have outlined the simple process below… Even if you have a current broker there is no harm in comparing, people often find that by making a quick enquiry with me I can actually save them quite a lot of money.
Trading with me at Foreign Currency Direct is simple and easy – All you need to
do to set up a trading facility is click on the link to Foreign Currency Direct
below and fill in the online registration form which takes approximately 2-3
minutes.
Opening a trading facility incurs no costs and carries no
obligation to trade through us, it simply puts you in a position to book out a
rate should you wish to.
www.currencies.co.uk/referral.asp?F_ID=1215
(click here)
Once the registration is completed I will personally get in touch with you to
discuss your requirements.
Foreign Currency Direct have been awarded ‘best exchange rates’ for three years
running by the Sunday Times – A great credit to the company and it also goes to
show that we can save you a great deal of money at a time where everyone is
trying to tighten their budgets.
Once the facility is open and I has achieved you a rate that you are happy with
it is again a very simple process from there forward which I will outline
below:
1) You go through a brief verbal agreement over the phone in order to book out
your rate.
2) Within 5 minutes I will forward across a contract note to you which can be
emailed, posted or faxed which will contain all the details of the transaction,
our bank account details for you to transfer to and a section for you to fill
in with the details of where you would like the funds to be sent.
3) Once a rate is booked FCD generally ask for settlement within 2 working
days, and once funds are received and everything in place we send your funds
out as a ‘swift’ international transfer – they should arrive in your designated
account within 1-3 working days.
4) Upon funds being sent out we can provide an internationally
recognised proof of transfer which will detail where funds have been sent and
when they are due to be credited, extremely helpful when transferring funds
overseas!
I would be happy to help you in any circumstance so I await to hear from you.
Sterling forecast for the week ahead – Pound spikes against Euro, Dollar and Australian Dollar
| If you need to make a transfer into Euros now may be an excellent time as the pound made good gains last week and has climbed a little today! The big market mover this week I would imagine is the BOE meeting minutes released on Wednesday morning at 09:30am. The minutes will give a detailed overview of the last interest rate decision and how the members had voted regarding interest rates and further Quantitative Easing. For those buying foreign currency you need to be aware, as any mention of QE potentially being reintroduced and we could see the Pound take a tumble one again however you just don’t know what is going on behind closed doors at present, so this release presents a very interesting Wednesday morning of trading.We also have the budget due on Wednesday, again, we already know most of the details to be announced however much depends on how the markets and indeed investors view the announcement as a positive or negative thing for the U.K economy going forward.If you need to transfer funds over the next few weeks, let me know and I will keep you informed of market movements. Even if you don’t have full availability of funds, you can reserve your rate for a small deposit with a forward contract. |
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| As mentioned above the mid-market rate has crept above 1.20 again for the first time in a few weeks. Many of you will be aware that for some reason the Pound does not stay above 1.20 for too long, in all honesty the greedier among us are usually the ones that miss out, so if you have a pending transfer it may be sensible to take a serious look at the options available to you. | |
| Once again a tricky one as Sterling Dollar predictions are changing almost daily. Much depends on global confidence and when the economic problems around the world do settle down the Dollar tends to weaken, making it cheaper to buy as we have seen recently. Should the Euro Zone and in particular Greece come back to headline news then it would more than likely lead to the Dollar strengthening back again. | |
| Finally the mid market rate has battled back over the 1.50 barrier today albeit slightly and hopefully it will be there to stay, much depends on the Australian minutes overnight and of course news for the U.K on Wednesday. The recent growth forecast cuts from China won’t help the AUD and the ideal thing for AUD buyers tonight would be potential future rate cuts mentioned for Australia in the minutes tonight.
If you have a pending transfer to carry out either buying or selling the Pound then do feel free to contact me directly by email me on djw@currencies.co.uk and I will be happy to discuss the options available to you along with getting you the very best rate of exchange in todays market. |
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