Tag Archives: australian

Sterling continues to fall following Theresa May’s comments (Daniel Johnson)

Sterling has a rough start to the week

Following Theresa May’s comments this weekend, where she hinted toward a hard Brexit sterling has fallen heavily with GBP/EUR sitting in the 1.14s and GBP/USD in the 1.21s.  She stated during a Sky News interview that she would consider giving up free trade for control over immigration.

I think more important however will be the ruling in regards to the supreme court judgement on whether parliament will get to vote on the triggering of article 50. If parliament do get the vote it is probable there will be a soft brexit, with temporary trade deals in place while negotiations take place. This eventuality should cause the pound to rise.

If parliament do not get the vote a hard brexit becomes the probable outcome and this could result in trade negotiations being troublesome and elongated. Sir Ivan Rogers, the UK ambassador to the EU recently resigned  due to what he considers to be unrealistic estimations on how long brexit will take. The current target for a full exit from the EU is two years, Sir Ivan thinks it will be nearer ten.

I would expect the the supreme court ruling to come through between the 12th-17th January, keep your eyes on developments on the case as this could have major implications on the value of the pound.

UK data releases that could effect Sterling short term

Tomorrow will see the release of UK manufacturing data where I would expect to see an improvement which could cause some respite for the pound. GDP figures are also released on Wednesday and I would again expect a slight improvement. Please be aware however that any news from the supreme court judgement is likely to outweigh these data releases.

If you have a currency requirement I will happily assist. If you let me know the details of your trade I will provide a comparison against your current provider and also formulate a trading strategy to suit your individual needs. You can trade in safety knowing you are dealing with a broker from Foreign Currency Direct PLC, a company trading for over sixteen years with the highest credit rating and one which is also registered with the FCA. Please do get in touch by e-mailing me at dcj@currencies.co.uk. Thank you for reading our blogs.

Sterling spikes as Theresa May reassures business and brings confidence to the Pound (Daniel Wright)

The Pound has had a fantastic start to the week, gaining ground against every major currency but the South African Rand over the course of trading today.

As I write this we have seen Sterling exchange rates breach 1.17 against the Euro, hanging around the 1.25 mark against the Dollar and closing in on 1.70 against the Australian Dollar.

Days like this really do show just why it is key to keep in contact with an experienced and proactive currency broker, I have informed lots of clients today about the spike and many of them have taken advantage which has made their currency purchase a lot cheaper.

We deal with overseas property purchases/sales, business transactions, wage payments and much more so if you are in the position that you may need to carry out a currency exchange for any of these reasons then feel free to contact me (Daniel Wright) directly on djw@currencies.co.uk and I will be happy to get in touch personally.

Later this week we will have Chancellor Philip Hammond and his Autumn Statement. Investors and speculators alike will be watching this with baited breath, waiting on hints for how the economy is due to be tackled throughout the ‘brexit’ process and how he plans top approach certain matters.

We still have the small matter of the high court decision regarding Article 50 so this may lead to some exceedingly volatile times coming up which is why it is essential to have someone on your side.

All of the writers here work for one of the top foreign exchange companies in the U.K and can help anyone around the world with their currency exchanges.

We pride ourselves on achieving our clients market leading rates of exchange but on top of this we like to think our level of service is second to none. We now have over 90,000 satisfied clients and have helped thousands of readers of this blog save money over their bank or current broker over the past 7 years.

Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk if you feel I can be of assistance to you and I will be more than happy to contact you personally to discuss the various options available  to you in simple terms.

Trump victory and how it has impacted Sterling exchange rates today (Daniel Wright)

Following on from the announcement this morning that Donald Trump had won the U.S Presidential election Sterling exchange rates have had a fantastic afternoon, with the pound up against every major currency. Sterling climbed to 1.14 against the Euro, 1.25 against the Dollar, 1.72 against the New Zealand Dollar, 1.65 on the Australian Dollar, 1.22 on the Swiss Franc and 1.69 against the Canadian Dollar.

Initially we saw a fairly large sell off for the riskier currencies (Australian Dollar, New Zealand Dollar and South African Rand) however as of writing this they had started to claw back quite a bit of ground. Stocks and shares had a similar reaction, initially dropping off quite harshly and then slowly creeping back up as the day has gone on.

It appears the markets in general are waiting to see what Trump says next and how he plans to move forward with the economy before the next move. The general thinking is that a trade deal for the U.K may now not be “at the back of the queue” as Trump would favour the U.K getting a deal a little more than Obama may have.

I personally feel that focus will now move on to Brexit once again so be aware that the media will now be looking to fill their pages up with new material as the Trump/Clinton battle has cooled off.

There is a chance now that Sterling may fall back into fashion, and with Sterling exchange rates so low the Pound is cheap to buy so I would not be surprised to see this trend continue, but do beware that further Brexit news may dampen this.

For the rest of the week I feel we will more than likely see some volatility depending on what we hear from Trump, but there are a few other releases of note for the markets to digest.

We have the RBNZ interest rate decision over in New Zealand this evening and expectations are for a cut from 2% down to 1.75% which may weaken the New Zealand Dollar a little more. Most important may be the press conference after it and if there are any indications of further cuts.

More likely than not the markets will be hinging off of Trumps every word in the coming days and weeks, and with the U.S being a number of hours ahead of the U.K we may see large swings overnight.

If you are in the position where you may need to carry out a currency exchange involving buying or selling the Pound then it would be sensible to get in contact with me. I have worked at one of the largest currency brokerages in the U.K for the past 10 years and can assist you with sending money overseas or bringing money back. We do not only offer market leading rates of exchange but also an exceptional level of customer service too. Feel free to contact me (Daniel Wright) if you feel I may be able to assist you. Even if you already use a broker it is still worth spending two minutes emailing me as I would be surprised if I could not save you money.

You can email me directly on djw@currencies.co.uk and I will get back to you straight from our trading floor.

Finally some positive movements for the Pound! I know a lot of our regular readers have been hoping for this…

 

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.

Flat start to the week for Sterling exchange rates but what can we expect as the week evolves? (Daniel Wright)

A fairly flat day for the pound against most major currencies so far today, with Sterling trading in a very thin range against Euro, Dollar, Australian Dollar and New Zealand Dollar exchange rates.

We have had very little economic data out of note today however there are a number of other releases that are worth noting as the week moves on.

Tomorrow we have two key speeches from both the Governor of the Bank of England (Mark Carney) at 15:30pm and Head of the European Central Bank (Mario Draghi) an hour later at 16:30pm. Both of these may lead to a volatile afternoon for Sterling and Euro exchange rates.

Many speculators and investors will be watching every word during both of these speeches for any hints to future changes in economic policy and the market will no doubt move around extremely quickly should any hint to new changes arise.

If you have an exchange to carry out and you would like to be kept up to date with the action then feel free to contact me (Daniel Wright) by emailing me personally on djw@currencies.co.uk and I will be happy to get in touch with you.

Late on Tuesday night we have a flurry of inflation data which will be interesting for anyone with the need to buy or sell Australian Dollars, especially with the market rate for GBP/AUD hanging around the pivotal point of 1.60. Expectations are for Australian inflation figures to remain fairly static however any result that differs from this may lead to a sharp movement overnight. There are ways to take advantage of overnight movements in your favour, most notably a limit order where you request that if a certain rate of exchange becomes achievable at any point 24 hours a day then your currency will be bought out automatically for you. This contract type is free to use with us and can be extremely handy.

The Dollar and New Zealand Dollar take centre stage on Wednesday with lots of data out from the States over the course of Wednesday afternoon and then import, export and trade balance data out for New Zealand later in the evening at 22:45pm – Again a limit order may be worth considering overnight if you are close to your target rate and do not wish to miss out should a spike occur.

Thursday will be important for Sterling exchange rates as we have GDP (Gross Domestic Product) or growth figures out at 09:30am and then later in the day Durable Goods and Jobless Claims data out for the States which will impact U.S Dollar exchange rates.

We round the week off with lots of data our from all over Europe which will impact Euro exchange rates and then U.S GDP (Growth) figures to wrap up the week which can have an impact on all major currencies as it has an effect on global attitude to risk.

On top of everything we have the U.S election which will no doubt keep the Dollar on its toes so we have a lot for the market to digest throughout the week.

if you have a currency exchange to carry out either now or in the coming weeks and months then it is well worth getting in touch with me personally. I can help you not only ensure you get a market leading rate of exchange but also that you get an extremely high and award winning level of customer service too. You are welcome to email me (Daniel Wright) directly on djw@currencies.co.uk which will take you merely two minutes to do and may save you thousands of Pounds in the future. I look forward to assisting you.

Will the pound now fall lower?

Will the pound now fall lower is a big concern on financial markets and the most likely answer is that yes it will more than likely fall lower. Pretty much every major bank out there is now predicting a rate on GBPEUR between 1.08 and 0.95 in the coming months. Whilst GBPUSD predictions range from sub 1.20 to parity. Having witnessed the falls of the last two weeks it is quite difficult to rule out anything and even last night we saw further moves lower on sterling rates following a fairly flat Monday and Tuesday. So how can buyers and sellers of the pound manage such crazy times? Thankfully there are some options to help manage your exposure to such volatility.

Sterling has fallen against all currencies as the Brexit worries start to deepen. The options have gently been narrowed as to the UK’s position outside of the EU and as we get further clarity the rates are reacting. We now know that the UK will seek to invoke Article 50 by March 2017 which means there is a 2 year period within which to strike a new deal with the EU. By setting the UK on a path to a more ‘hard’ Brexit financial markets are concerned over the shape of the negotiations ahead and what it will mean for the UK economy. Access to the Single Market will allegedly cost the UK economy £66bn per year and slash 10% off GDP (Gross Domestic Product). These are the Treasury forecasts which were so vociferously knocked down as reflecting ‘Project Fear’. Will they materialise?

Current economic data suggests that the UK economy is doing rather well which is making digesting everything happening rather difficult. Last week excellent news in the Manufacturing sector and signs the UK economy grew 0.4% in the 3rd Quarter did little to halt the pace of sterling’s decline. It does seem the pound is destined to fall further and remain volatile as we have a number of important milestones to overcome including the latest Bank of England Interest Rate decision, US and Eurozone Interest Rate decisions and the Chancellors Autumn Statement.

With politics and statements from politicians both in the UK and EU helping form some of the latest trends on sterling exchange rates it is important to be aware of the latest news and up to date with fresh developments. Utilising tools to help manage your transfer rate can be very effective too. For example a Stop / Loss order guarantees you won’t get a ‘worse than’ rate if markets drop. A ‘Limit’ order helps to target a higher level if rates rise. You the client choose your desired ‘best’ or ‘worst’ rate and we monitor the levels automatically. These deals guarantee your currency purchase at the desired rate even if only hit for a second.

Will the pound now fall lower is a very valid questions as sterling rates seem bound to err on the volatile side and with the levels entering potentially dangerous lows for UK firms buying goods and services from overseas as well as overseas property investors, now is the time to be making plans. On the flipside those businesses and individuals getting paid in a foreign currency or those selling an overseas property would do well to manage their positions too. Understanding everything ahead driving the rate and making some plans is the only way to help in such uncertain times, I can help you formulate a plan suggesting target rates and events to help narrow down your purchase window.

For specialist information and guidance on market developments please speak to the author by emailing jmw@currencies.co.uk or calling 01494 787 478 in UK business hours and asking to speak to Jonathan Watson. Alternatively please fill in the form below and Jonathan will contact you as soon as possible.

As we enter fresh ranges what can we expect next for the pound?

Sterling has broken fresh ground lately as we learn new information on the political outlook for the UK. It is becoming clear the UK will shun access to the single market and this will have big repercussions in the future, more of this later. What this means is that anyone holding sterling waiting on big improvements could find themselves caught out by holding on hoping rates will magically move back in their favour. Any big investors holding the pound waiting for further news have received that latest news and this turning point in the direction of Brexit will have big longer term consequences for anyone buying or selling the pound.

Any doubt that the UK is leaving the EU is now removed with Article 50 the legal mechanism to leave the EU said to be invoked by March 2017. This has caused a big slide in the value of the pound as it removes any uncertainty the UK might stay in the EU or do some ‘back alley’ deal to renegotiate. Theresa May’s speech indicates the direction is to what is being termed a ‘hard’ Brexit rather than a ‘soft’ one. It is this aspect which is the real trigger for sterling losses since the pursuit of a life outside of the single market is not being seen as positive for the UK.

The single market is the jewel in the crown of the EU. The idea is there are no tariffs or trade restrictions on goods between EU countries. The economics behind free trade are that economies become more efficient as countries adapt to the most prosperous business rather than propping up inefficient businesses with subsidies or tariffs on imports. By harmonising rules and regulations on packaging, labelling and other legal requirements on goods and services the idea is that cross border trade is made easier.

The negative impact of leaving this arrangement will be massive as the UK is seen as a gateway to Europe both geographically and politically. Many important businesses have headquarters in the UK to allow access to the single market. By seeking to leave the single market Mrs May has triggered further worries for the future of the UK and this is being reflected in the price of the pound.

There is much more to come and of course the rate won’t just move downward in a straight line, the much better than expected economic data for the UK is welcomed although it is doing little to support sterling. What if we see some bad news on the economy? This month there are key releases on Unemployment and GDP which reflect the period following the vote and will be pored over by investors eager to find clues as to what shape and direction sterling will take next.

If you are considering a transfer involving buying or selling the pound then making some plans is key to managing your exposure. We have just entered fresh new ranges on GBPEUR, GBPUSD, GBPAUD and are touching all time lows on other pairs like GBPNZD. Leaving too much to chance and hope is always the big risk on the currency markets. The true effects of the Brexit so far may not have even really begun…

The author Jonathan Watson is Chief Analyst and Associate Director of one of the UK’s leading FX Brokerages for private clients andjmw business buying and selling currency. With nearly 10 years experience managing client risk on the currency markets he can help with any insight you require to assist in the planning and execution of your currency transfers.  For more information please feel free to contact Jonathan directly on jmw@currencies.co.uk, call 01494 787 478 or fill in the form below.

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.

Is the brand Britain feel good factor rubbing off on the Pound? Sterling exchange rates on the up (Daniel Wright)

So it appears that the doom and gloom merchants may well have got it slightly wrong regarding how a leave vote would impact the economy… Certainly so far anyway.

The Pound completed a hat trick of solid data this morning when the U.K services sector showed a much stronger than expected figure for July.

All in all, despite the initial drop off and the current uncertainty still holding Sterling back we are seeing the Pound start to gather momentum and investors and speculators are starting to get a little more confidence around it.

We do have a fairly busy week ahead of us for other economies around the globe so maybe it is time for others to take their turn in the headlines and the Pound to start fighting back.

Tonight we have the RBA (Reserve Bank of Australia) interest rate decision and rate statement which may give us a fairly volatile evening for AUD exchange rates. There is no imminent cut expected, but should we see a surprise cut or a nod to a cut in the near future the Pound could push higher against the Australian Dollar.

On Wednesday we have the inflation report hearings from Bank of England Governor Mark Carney, followed by a speech from MPC member Cunliffe so keep a keen eye on the markets mid morning on Wednesday in case any alterations to future predictions are made.

Thursday may well be the most important day of the week, especially for those with a Euro requirement. We have the ECB (European Central Bank) Interest rate decision and press conference and there is a chance we may see further addictions and changes to fiscal policy, this may include adding to QE (Quantitative Easing) which in turn would more than likely weaken the Euro off.

The press conference after it at 13:30pm can throw up quite a lot of volatility too as head of the ECB Mario Draghi answers questions and queries from the press. The rates can move off of his every word so ensure you are ready for action on Thursday should you need to buy or sell Euros. We have known to see swings of over 4 cents during the press conference which is a difference of £6000 on a €200,000 purchase.

If you are looking to buy or sell any major currency and you would like assistance both in terms of getting a top exchange rate along with a supremely smooth and personal service then I can help you. Not only do we write about what is going on in the market but we all work for one of the longest standing and top brokers in the country. We can help people from all over the world and deal with bank to bank exchanges from £2000 upwards with no higher limit.

If you feel that you would appreciate my personal assistance then feel free to email me (Daniel Wright) the creator of this site on djw@currencies.co.uk or fill in the form below and I will get in touch as soon as I can.

How much lower could the pound fall?

Sterling is much weaker following the Brexit, at present around 10% versus both the Euro and US dollar. At times it has been around 13% lower than the pre-Brexit highs. So just what is next and could the pound fall lower? We will very soon have an answer and any clients considering buying or selling the pound should not be feeling too complacent at the moment. Next week is the Bank of England Interest Rate decision where there is a very high chance the Bank of England will look to cut interest rates or even discuss a new Quantitative Easing program. The last time the BoE launched a QE program and had cut interest rates GBPEUR exchange rates dropped to almost parity at 1.02!

I am not suggesting that this is the kind of fall we will see next week but i am suggesting the potential for events next week to cause some big swings from the status quo. The outlook for the pound is one of great uncertainty and despite there being some good news around, we haven’t yet even begun to fully understand what the Brexit vote has done to the economy. It will take many months before we know exactly what is happening but the initial flash readings of business sentiment have so far not suggested it is good news all over.

Brexit is not in itself a bad thing and I am not taking a view on the Brexit here. What I am doing is highlighting the impact on the economy, financial markets and business need certainty to conduct their operations and at the moment it is something we are lacking. If you are considering a currency transfer involving buying or selling the pound we are not here to just provide information but can also help with the planning and execution of any transactions you will need to make. If you need to transfer more than £10,000 worth of currency (including bringing large volumes back to the UK or to buy pounds with) I am very sure we can get you a better deal than your bank or current provider.

We aim to proactively manage our client requirements so we don’t just help them save money on the exchange rate by beating the competition, we also offer strategy on the best times to consider entering the market. If you have a transfer to consider please call me Jonathan on 01494 787 478 or get in touch via email on jmw@currencies.co.uk and I am sure I can offer some useful information and a rate which will save you money.