Daily Archives: May 9, 2012
Sterling continues to strengthen against the Euro and riskier currencies but declines against the safe havens like the USD & CHF
It has been a very mixed day for sterling exchange rates against a host of major currencies. While sterling has been strengthening to fresh highs against the riskier currencies (THREE AND A HALF YEAR HIGH AGAINST THE EURO, 2.0567 AGAINST THE KIWI DOLLAR, 1.6049 AGAINST THE AUSSIE DOLLAR, 12.9315 AGAINST THE RAND) it has weakened against some of the safer haven currencies(1.6066 AGAINST THE US DOLLAR, 1.4895 AGAINST THE SWISS FRANC)
Now for the pound, economic data seems to be making very little difference to how the exchange rate performs. Late last night retail sales data showed a decline over the course of the year. This had little effect on the excellent gains the pound has recently made. Most clients that have an imminent exchange are though capitalising on the improvement for sterling especially as we have another big announcement by the Bank of England tomorrow. We are not expecting much out of the interest rate decision but we must always be wary of the dreaded QE scenario. If more than 50% of the members do vote in favour of QE then sterling could weaken slightly. You may not want to take this risk with the excellent rates compared to a month ago and you are more than welcome to contact me at bma@currencies.co.uk before the decision so we can help you make a saving over your high street bank or any other broker that you may have used in the past. Just ask for Ben and I will make sure that I answer your enquiry as quickly as possible.
Looking forward there is always the chance that sterling could continue its trend of rising against the Euro and the southern hemisphere currencies but I feel it will be fairly range bound against the USD and CAD. If you need to SELL any major currency to buy sterling I would be very cautious and fairly worried. The way the pound has performed if the trend continues your losses really could add up. If you are sitting on Euros for instance hoping that the market will reverse and drop back below 1.20 I think it is extremely unlikely and you may be prudent to move sooner rather than later as the losses may continue.
If you would like to speak with me regarding any currency pair we can look at the options that are available to you to help you maximise your exchange. The authors on this site work for one of the largest currency brokers in the UK. We have been trading for over 12 years and have assisted thousands of clients make significant savings. If you have never used a broker and would like more information on the personal service that we provide please do feel free to email me. If you have used a broker in the past then challenge us to help beat their rate so you make an even bigger saving over the high street banks. You can contact me (Ben Amrany) at bma@currencies.co.uk and we can then look at the currency pair in question to help you decide when is a good time to convert your funds.
Ben Amrany
Sterling hits a 3 and a half year high against Euro, has broken 1.60 against AUD broken 2.05 against the NZD and is still high against the USD – Time to buy at least some of your currency?
If you need to make a transfer into a foreign currency then now may be the ideal time to seriously consider your options. The Pound is the highest it has been against a basket of major currencies for over 35 months. If you have a larger sum to do it may be prudent to hedge your bets and look at securing half of your currency whilst rates are at such great levels.
Sterling Euro
We now have not only Economic problems but also political problems throughout Europe which will no doubt cause big issues in the coming weeks and months. Of course part of the reason that we will have seen rates move up so much of late is the markets reacting in advance so I would be surprised to see the markets completely rocket in the right direction, there may be a little further to go but it would be prudent to at least partly take advantage of this 3 and a half year high.
Sterling Dollar
Fairly range bound of late and I think this pairing has been in the background with Europe and the ‘riskier currencies playing a much bigger part in the play. Most analysts are predicting the Dollar to strengthen back as it is seen as a safer haven in times of low global confidence and I’m sure we will see plenty of that in the near term.
Sterling Australian Dollar, New Zealand Dollar and South African Rand
Many that have moved overseas in the past year or so will be watching these currency pairs with a smile on their face, and those selling to bring back into Sterling may wish to seriously consider their options in case this trend continues.
Personally it is a coin toss – Further rate cuts in Australia may lead to further weakness for the AUD however some of this move may be in anticipation of that. European problems will weigh these currencies down and I’m fairly sure there are more of those to come. The one thing to remember though is not to get greedy. Those who contacted me initially saying they would love to get 1.60 should look at putting in a limit order at
that level.
If you have an upcoming transfer to make be it large or small, private or corporate then feel free to get in touch with me directly and I will be happy to help you not only get a better rate than you are currently receiving from your bank but a much better level of service too. I can be reached on djw@currencies.co.uk
