Daily Archives: May 22, 2012
Are you holding Euros or any other currency and are concerned about the current direction of Eurozone events?
Are you holding Euros or any other currency and are concerned
about the current direction of Eurozone events?
With Greece looking likely to have to leave the Euro we have a range of
options to help safeguard anyone with funds in Europe. It may be of interest to
utilise a forward contract or our Segregated Euro holding account so the funds
are easily accessible if you need to move quickly. Whether in Greece or not
please speak to me to find out more about all of your options in these current
circumstances, even if you do not need to exchange soon. Being aware of all
your options at an early stage may well save you money in the long run.
As always if planning any currency exchanges we are a firm of specialist currency brokers who can assist with not only the very best exchange rates, but also
assistance with the actual mechanics, planning and strategy for your currency transfers.
CONTRACT OPTIONS – As well as
providing all the information you need and the very best exchange rates, we
also have a range of contract options that can help limit your currency
exposure.
Spot - We trade on the ‘spot’. Settlement is due with a
few working days and the money can be sent immediately.
Forward - We book todays rates forward
for up to two years. A small deposit is required. This guarantees your rate for
the duration and means you do not get caught out if the market moves against
you. Very popular for property and commercial transactions.
Limit – You choose a higher level
you would like to trade at and we enter an automatic order which we trade at
once achieved. Guarantees you get your desired rate.
Stop – The same as a Limit but you
choose a lower level you would not like to get worse than. Can be used in
conjunction with a Limit and you can move them around or cancel them as long as
they have not filled.
If
you would like to find out more about other currency rates and all of your
options, please feel free to get in touch directly…
(+44) 1494 787 478
Markets are awaiting key UK economic data which could be key for how the pound performs over the rest of the month.
Trading was fairly flat for the pound yesterday on a day of very little economic data to note. The markets may have still been taking in the news of the G8 summit where the leaders tried to show a united front over Greece by pledging to keep it in the Eurozone.
However David Cameron came out yesterday and stated that the forthcoming elections in Greece would, in effect, be a referendum on the euro and said failure to provide
clarity, could prove disastrous for the world economy.
If you are a seller of Sterling and need to purchase any major currency, Cameron’s words could be disastrous for your plans. As the UK has so many ties with Europe, a failure for
politicians and central banks to come up with a resolution could be extremely harmful to the pound going forward over the course of this year.
At present the pound has been trading at some of the best levels for months against the southern hemisphere currencies, Scandinavian currencies and even the Canadian Dollar, Israeli Shekel, Indian Rupee and Thai Bhat. This week however there is a raft of economic data that could hinder the pound, so be cautious as the gains may not continue.
Quantitative Easing Fears Persist
Over the course of this week there is a lot of data to come out that could have a big effect on sterling. Today seems to be the busiest day where we have no fewer than 5 different data releases that span from House prices and mortgage approvals to inflation figures. Tomorrow we have the eagerly awaited Bank of England minutes and on Thursday the revised GDP figures for Q1 will be released along with retail figures.
The markets will be watching these releases very closely as they will give us clues to whether the Bank of England (BoE) policymakers opt for further rounds of monetary stimulus (QE) to boost growth. I feel that if we see a dip in Inflation and retail figures the pound will weaken because the markets will believe that the BoE may look at boosting the economy through QE at the next meeting in June.
Recently sterling’s gains have been partly down to all members of the BoE voting against QE. Last week though Adam Posen a member of the BoE stated that he felt he was too quick in dropping his call for extra stimulus. So should the minutes show that Posen and any of his colleagues voted for QE we could see a weakening in sterling against a range of currencies.
If this happens I would not be surprised to see the pound down at around 1.55/1.56 against the USD while levelling out against the Euro in the near term between 1.22/1.23.
If you have an upcoming currency conversion to make please feel free to conatct me at bma@currencies.co.uk with your requirements going forward and I can talk you through the options that are available to you. If you wish you are more than welcome to call me directly from the number on the side of this page. Just ask for Ben Amrany and we can have an informal chat about the market and how we may be able to minimise your risk to currency fluctuations.
Ben Amrany
