Tag Archives: AUD

Sterling exchange rates still looking shaky as we await news on Supreme Court – On the plus side a trade deal with New Zealand may be agreed (Daniel Wright)

As most of our regular readers will be more than aware, Sterling exchange rates have had a pretty torrid time this week, with the pound dropping to its lowest point on a trade weighted basis since October.

We have seen Sterling almost drop below 1.20 on against USD, 1.13 against EUR, 1.60 against AUD, 1.70 against NZD, 1.20 against CHF and it is sat below 1.60 against the Canadian Dollar as I write this!

The uncertainty caused by comments from Prime Minister Theresa May over the weekend and during the week are still causing investors and speculators to remain shaky over the Pound, and economic data has not done anything to provide a backup like it has been over the past few weeks.

The key talking point now is just what will the Supreme Court decide to do? As previously mentioned this decision matters a huge amount not only because it will show us what the next steps will have to be for article 50 being invoked, but it will also more than likely lead to lots of MP’s having their say afterwards and every single comment has the potential to move the market considerably.

On Tuesday we also have Prime Minister Theresa May speaking about Brexit, which makes me wonder whether or not she is expecting to have a result from the Supreme Court before then, if we do then Sterling is set for an extremely busy week.

One positive for the Pound today was news that we appear to have all but agreed a trade deal with New Zealand, and it appears that this is ready to go as soon as possible after Brexit. A number of major economies are stepping forward and happy to do business with the U.K which is no great surprise to me.

More and more good news like this that comes out during this long winded process should only lead to the Pound getting stronger, we just need to get over the potential banana skin of the Supreme Court and Article 50 being invoked first.

If you are in the position where you need to carry out a large currency exchange either imminently or in the coming weeks and months then it is extremely important to have an experienced and proactive broker on your side. Most brokers out there will only try and convince you to buy or sell your currency as soon as possible but we are here to help you try and make the right decision for you.

Should you feel that I could be of assistance then I deal with both business clients and private individuals that need large currency transfers and would be more than happy to help you too. I created this site over 7 years ago and have helped thousands of clients that have contacted me save money over their bank or current broker.

All you need to do to make a simple enquiry is to email me (Daniel Wright) the creator of this site on djw@currencies.co.uk with a brief overview of what you need to do and I will be more than happy to contact you personally.

Sterling strength expected later in the week, Euro and Dollar sellers should be looking to act soon (Joshua Privett)

It’s been a fairly uneventful beginning to the year on the currency markets, with Sterling exchange rates against the Euro and the US Dollar moving heavily each day, yet by close of business we’ve tended to find ourselves back where we started.

GBP/EUR has reamined around the 1.16/17 mark, GBP/USD has held quite firmly at 1.23, and GBP/AUD around the 1.68-1.70 range.

This exchange rate behaviour is indicative of a market awaiting some very important news.

I hate to flog a dead horse for our regular readers by continuing to address the upcoming Supreme Court decision and the implications this will have for the Pound, but it is incredibly pertinent to anyone planning to buy or sell Sterling for a foreign currency. Not just over the next few weeks as we await the verdict, but over the next few months in the run up to the triggering of Article 50.

For those who are not aware, the Supreme Court is currently ruling an appeal of November’s Judicial Court decision to allow Parliament to vote on the enactment of Article 50 – the formal process to leave the EU.

As in November, financial markets should react well to the decision to involve Parliament in the Brexit process. The Pound’s value increases with investors gaining confidence that Parliament’s involvement will mean the Brexit process will be delayed to some degree due to cumbersome Parliamentary procedures, and that this increases the likelihood of a softer exit from the EU.

You can also argue that Parliament’s involvement means that the aims of the negotiations and how well they will progress will be much more public. This permits greater confidence to invest in the Pound as investors and financial institutions will have a greater understanding of what trajectory the UK economy, and therefore the Pound, will be taking in the medium-term.

The expectation is that the Supreme Court will uphold the initial conclusion of the Judicial court a few months ago. Based on November’s currency movements, this will likely cause 1-2 cent improvements on GBP/EUR, similar gains on GBP/USD, and likely larger positive spikes on GBP/AUD due to the volatile nature of the currency pairing.

The verdict is expected between the 12-17th of January, so if you are a Euro or Dollar seller, it may be wise to move ahead of this coming Thursday to avoid being caught up in any sudden and unannounced spikes in Sterling value when we are told the decision.

Furthermore, on Wednesday data sets for manufacturing and industrial sectors of the UK economy, and a first look at growth for the final quarter of last year, will be released in the morning for markets to react to.

The manufacturing sector has enjoyed a resurgence following the sudden devaluation of the Pound in June, and growth in the UK economy has shown on mutliple occasions since the June vote to Leave the EU to be resiliant to the economic shocks this had entailed.

So, in short, very good news is expected to be provided to Euro, US Dollar and Australian Dollar buyers in the short-term. Two major events are expected to make your transfers more profitable, which is why anyone looking to conduct a Sterling purchase, even over the next few months, should look to how you can secure these still historically favourable exchange rates before Wednesday.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on jjp@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current exchange rates can be fixed in place for anyone wanting to prebook their currency transfer later in the year at current exchange rates.

Italian referendum this weekend to be key for exchange rates early next week (Daniel Wright)

So another referendum is due to happen this weekend, this time over in Italy. Unlike the recent one in the U.K this is not a vote to leave the EU but a vote on constitutional reform.

This is extremely key as it may result in another heavy bout of uncertainty for Italy should the vote got the wrong way for Prime Minister Matteo Renzi, who has already warned that should the vote go against him and stop him from making certain changes that he feels he need to make then he would be looking to step down.

We already have various economic issues for Italy, most notably the banks who appear to be struggling and walking a bit of a tightrope, so should we then see huge political uncertainty added to Italian woes then the Euro may have a bad start to next week and you may potentially see GBP/EUR exchange rates go above 1.20 again in trading early next week.

Considering exchange rates against the Euro were lingering around the 1.10 mark merely a few weeks ago, anyone looking to buy Euros must be looking at the markets with a small smirk on their face as their pending purchase has got a lot cheaper recently.

Sunday night/Monday morning will be the next point of interest for anyone with a Euro interest and with so many other large decisions pending within Europe over the next few months I firmly believe the next 12 months are going to be extremely testing for the Euro.

We cannot forget there is also an election in Austria this weekend too with the far right party holding a great chance of success, causing more issues politically within the area.

All of these referendums and elections will impact all major currencies as we will see alterations in global attitude to risk, so the perceived ‘riskier’ currencies such as the AUD, NZD and ZAR may lose strength and those that are perceived as safer havens may gain ground if results cause uncertainty.

If you have any currency to exchange, no matter where you are based then we can help you out here. Should you wish to have a friendly, proactive and experienced broker on your side then we always welcome new clients to get in touch. I have personally been assisting clients moving money overseas and bringing money back for nearly 10 years so you can be confident that your transaction will be dealt with smoothly, securely and at the best rate of exchange.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk should you be in this position and I will be more than happy to contact you personally. I look forward to speaking with you.

Sterling hits a two-day high after positive ‘Brexit’ comments, but is this just a short term opportunity? (Joseph Wright)

After facing an increasing amount of pressure throughout October, the Pound is under less downward pressure this afternoon after some positive comments from a Brexit minister.

At the time of writing Sterling is up against every major currency pair, and the reason behind the positive move is down to comments from junior Brexit minister David Jones, who suggested that any UK-EU treaty would be debated by parliament which is Sterling positive news as parliament is generally considered to be favouring a ‘Soft Brexit’.

By ‘Soft Brexit’ financial markets are referring to a long drawn out period of negotiations between the UK and EU whereby the UK retains access to the single market.

Those planning on making a currency conversion involving the Pound and another major currency, will need to be aware of how talk of a ‘Hard Brexit’ can negatively impact the Pound’s value. Earlier in the month a number of key public European figures such as Francois Hollande and Donald Tusk outlined their own ‘Hard Brexit” stance, and their comments sent the Pound downward.

Their comments added fuel to the fire after UK Prime Minister, Theresa May announced that the ‘Brexit’ initiation process will begin in March of next year.

Today’s Sterling positive comments have pushed the Pound up to a two-day high, and personally I think this has created a good opportunity for Sterling sellers as numerous financial institutions have predictions of a weaker Pound next year, with HSBC outlining GBP/EUR parity at the end of 2017 being one of the stand out predictions.

Tomorrow’s UK GDP Figures at 9.30am could further boost the Pound if the figure beats expectations, and feel free to get in touch if you wish to discuss this news event and the potential outcomes.

If you are planning a currency conversion involving the Pound and another major currency, it’s worth your time getting in contact with me on jxw@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also call in directly on 01494 787 478, just ask reception for Joe.

Sterling exchange rates drop once again as hopes of a ‘soft brexit’ fade, so where will the Pound go from here? (Joseph Wright)

The Pound is facing increasing pressure at the moment as the impact of the UK’s upcoming exit from the EU is unsettling financial markets.

Sterling exchange rates dropped substantially as soon as it was announced that the UK electorate had voted to leave the EU, with the GBP to USD exchange rate dropping to a 31 year low, and the GBP to EUR exchange rate dropping to a 3 year low along with many other major currency pairs.

There was a slight rebound as a number of particularly positive business surveys within key UK industries showed that a weaker Pound had actually boosted economic output within the UK in it’s new post-brexit-vote environment. That rebound has now been reversed as we edge closer to those 52 week lows, and I think it’s worth noting that cable (GBP/USD) has now dropped back below the key psychological level of 1.30 which may trigger further falls for the pair.

Now that it’s common knowledge that UK Prime Minister Theresa May will likely invoke Article 50 towards the beginning of next year, hopes of a prolonged ‘soft exit’ have dwindled and this is being reflected within currency markets as the Pound weakens pretty much on a daily basis at the moment.

Those with an upcoming currency exchange requirement which involves converting pounds into another major currency, may wish to consider moving on that sooner rather than later as many economists have predicted parity for GBP/EUR, our clients are still comfortably in excess of 10 cents from this level so moving now may be a wise decision come later in the year/next year.

Today’s major news release will be the most recent Fed Reserve Bank Interest Rate decision, and although no change is expected a move by the Fed is likely to create volatile trading conditions which we would usually trade around with our clients, as sensitive news releases such as this one can widen exchange rates and our sole purpose is to obtain great rates for our clients.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

Sterling continues its recovery as UK growth estimates meet expectations, but will the recovery continue? (Joseph Wright)

It’s been quite a bullish week for the Pound this week as economic data releases have impressed and Sterling has gained a good few cents vs many other major currency pairs.

Towards the end of last week the UK’s Retail Sales Figures for July were better than expected, and this week the weak Pound has resulted in the UK’s Manufacturing Output reaching a 2 year high as people overseas are keen to pick up goods at low prices. These positive sets of data, coupled with today’s Gross Domestic Product estimates coming out as expected,  have boosted sentiment towards the Pound as this has been reflected within currency markets as the Pound has gained almost 3 cents vs the US Dollar, and almost 2 cents vs the Euro.

Those that plan to convert their Sterling into a foreign currency at a higher rate will of course be hoping that the Pound continues to climb, and whilst I think it may do, there are a number of risks to holding off so it may be an idea to make at least part of that trade at current levels with the hope of averaging up in future. This is an approach many of our clients are currently taking and we’re here to help by keeping them updated with what’s going on in the marketplace.

Those who plan to purchase Pounds, by converting their Euros,US Dollars or Aussie Dollars for example, may wish to get in contact and check whether our rates are better than your current providers/banks as whilst current levels are particularly favourable, a return to risky attitudes from investors is likely to drive up Sterling’s value, especially if economic data out of the UK continues to surprisingly impress.

Major economic announcements that could sway markets next week are Thursday’s Manufacturing Data which is expected to show an improvement, and then next Friday will be Non-Farm Payroll and Unemployment Data out of the US. If you would like to discuss these and how they can affect markets, do get in touch and I’ll be happy to explain.

If you would like to discuss an upcoming currency requirement you’re planning, in terms of the timings and getting the best rate of exchange available, feel free to contact me on jxw@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in directly to reception and ask for Joe on 01494 787 478.

Has the pound bottomed out yet?

Yesterday’s news of the interest rate cut was not wholly unexpected but the measures including 50bn of QE and a new ‘Term Funding Scheme’ were not priced in helping contribute to GBP weakness. So is this the end or the beginning of measures by the Bank of England and where will sterling head next?

Even in yesterday’s meeting the BoE were signalling further cuts and this indicates to me sterling could have further to fall. The pound is essentially a barometer of the health of the UK and with all the business and consumer survey’s so far pointing towards a decline it seems like the data will in the short term only get worse. IHS Markit which surveys the recruitment and employment Industry has reported today a two month decline in the number of people finding a permanent job. If Unemployment is shown to be going up over the next few months then sterling will undoubtedly come under further pressure. September 15th is the next Bank of England meeting and we could easily see another interest rate cut then. If you are considering any kind of transaction buying or selling the pound and wish to be kept informed and secure a better rate of exchange why not get in touch with me Jonathan on jmw@currencies.co.uk. Any information is completely free of charge and at no obligation, please note I can only offer information for clients moving over£10,000 on a bank to bank transfer eg business and overseas property buyers and sellers.

Although it is difficult to be overly optimistic at present we do appear to have avoided the worst case scenarios so far. Sterling is still trading against the Euro in the high teens and remains above 1.30 on GBPUSD. Many of the big banks predicted Brexit would lead to GBPUSD hitting 1.20 and parity or 1 for 1 on GBPEUR. We are by no means out of the woods but the UK does now have a new PM and a base to work from in order to secure Brexit. As we learn of further Brexit news the pound could rise but with Article 50 unlikely to be invoked until 2017 there is lots of time for sterling to languish and markets to digest the situation.

Generally speaking if you are buying a foreign currency with the pound moving sooner rather than later and trading on any spikes is probably the safest bet to avoid further disappointment. If you have a transfer you are debating please contact me to learn more. This site is primarily to provide market news but we can help save you money on your currency exchanges too. I have many clients with currency accounts with some of the UK’s top currency brokerages and they always come back to me because I can undercut other company exchange rates. Any information from me is completely free of charge and at no obligation, I am sure I can make it worth a quick email. Please email me Jonathan Watson on jmw@currencies.co.uk to learn more.

RBA cut rates in Australia as expected – U.K PMI Construction out this morning – Will it follow the doom and gloom of yesterday? What will the Bank of England do? (Daniel Wright)

Overnight the RBA cut interest rates in Australia leading to a slight drop in the value of the Australian Dollar and a small buying opportunity for AUD buyers.

The cut was widely expected by the markets so we didn’t see a huge movement in rates, I feel that many investors and speculators are waiting to see what happens with the Bank Of England on Thursday at 12:00. Again, an interest rate cut is expected so I wouldn’t see this having a huge impact on exchange rates however the most important factor on Thursday will be the minutes from the meeting, if we see any nod to QE (Quantitative Easing) and what they suggest could happen next for the U.K economy.

QE is basically printing more money and is generally seen as negative for a currency, so if they do introduce more this is where the Pound may slide. Any other comments on future fiscal policy may also give the Pound an extremely volatile afternoon so keep a close eye on exchange rates this Thursday.

First thing today we have U.K PMI construction figures at 09:30am – This is also one to watch as yesterday the manufacturing figures were the worst since Feb 2013 and led to a drop in the value of Sterling. Throughout August we will continue to see the first full data sets post brexit so the Pound may be in for a tough month.

Should you be in the process of buying a property, sending money overseas for your business or exchanging currency for any other reason then it is well worth getting in contact with me (Daniel Wright) the creator of this site directly. It is rare that we cannot help clients get a better rate than they are being offered elsewhere and we also but a lot of effort into helping our clients time their purchase. You can email me on djw@currencies.co.uk with a brief description of your requirements and a contact number and I will be more than happy to deal with you personally.

BOE Interest Rate Decision and QE could Weaken the Pound (Daniel Charles Johnson)

Sterling Overview

With the appointment of Theresa May as new Prime Minister and a firm cabinet now in place. I would expect a gradual rally for Sterling against most major currencies. There is however the Bank of England (BOE) interest rate decision on 4th August. There is a high chance of a rate cut from the already record low of 0.5% to 0.25%. This is common knowledge so I would not expect a massive drop in the Pound’s value as it may well be factored into the market. What could damage Sterling is if Mark Carney the governor of the BOE decides to implement Quantitative Easing (QE). QE is essentially pumping money into an economy in order to stimulate growth. He has £150bn at his disposal so if there is an announcement expect the Pound to fall in value. If you have to move short to medium time it may be wise to move before this date.

GBP/AUD

If you are an Aussie Dollar seller it is difficult to justify hanging on until 4th August. There is a rate decision due down under on the 2nd August and there is the chance of a cut which will weaken the Aussie. With current levels the best since September 2014 I would be looking to take advantage of current levels. To procrastinate could prove costly.

If you are an Aussie buyer potentially you could wait for the decision on 2nd August to see if there is a cut and GBP/AUD moves in your favour and then trade after the announcement on 2nd or 3rd avoiding a potential fall on 4th August.

GBP/EUR

Mario Draghi, the Head of the European Central Bank today announced the possibility of a QE increase later in the year. This has seen GBP/EUR to move above 1.20. If you are a Euro buyer I would be looking to move before the 4th August, the highest we have been since the EU referendum is 1.21 so 1.20 doesn’t look like a bad time to bite the bullet.

Euro Sellers wait until after the interest rate decision and then get your trade done. Following Draghi’s comments the Euro is in a precarious position, especially when you throw the Greece and Italy situation into the mix.

GBP/USD

USD buyers, trade before the 4th August. Sellers wait until the decision on the 4th then trade. You are currently selling at the best levels since 1985.  It is a no brainer.

If you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is key during such a volatile  times, If you have a veteran broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to help with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog and I look forward to hearing from you.

 

When is the best time to exchange my pounds?

Today is a very important day for the pound with the Bank of England meeting to discuss their latest policy decisions. The pound is very likely to slip lower if the Bank of England announce an interest rate cut. If you are buying or selling the pound there are various outcomes to consider, most of which look to be sterling negative.

We could be looking at an Interest rate cut of 0.25%, an interest rate cut of 0.5% and some Quantitative Easing. If you are expecting the pound to rise you need the Bank to refrain from any of the above, this would see the pound sharply rise in value. This is unlikely since Mark Carney has already hinted at cutting and to not do so with damage his credibility. If you have a transfer to consider and require some assistance with the timing and planning of any pound sterling currency exchanges please feel free to contact me Jonathan on jmw@currencies.co.uk for further information.

Whatever happens the events of today and any commentary will help shape the pound for the next few weeks as there is looming uncertainty at present over just where the Bank of England Sterling stand on the economy and how they view recent events. Exchange rate continue to swing wildly with no real direction being established, just as one trend is emerging something happens to alter the forecast and the rates change again. Just this morning GBPEUR was at 1.2045 but now it is at 1.1860, this big shift lower is I believe in anticipation of what the Bank of England will announce tomorrow. GBPEUR could trade between 1.14 and 1.20 depending on what the Bank announce. GBPUSD has hit 1.33 but could easily roll back down to 1.25, my top end on GBPUSD would be 1.35.

There are so many different possibilities from what lies ahead for the pound it is impossible to cover them in one post. All I would say is that if you have a transfer to consider making some plans is vital, we are here to help with the planning and the execution of any deals. I am very confident I can undercut any rates you are receiving elsewhere, please email me on jmw@currencies.co.uk and let me know what you are looking to. Please note we specialise in bank to bank currency exchanges over £10,000 for overseas property deals and business transfers.

Jonathan Watson