Tag Archives: best exchange rates

Why is the Pound losing value at the moment, and will it continue? (Joseph Wright)

Brexit jitters are continuing to weigh on the Pounds value, with the currency losing a substantial amount of value over the past week across the board of major currency pairs.

Currency markets were already weary of the Pounds future price movements as we await the outcome of the Supreme Courts impending decision on whether or no the UK Government requires parliamentary approval before beginning the Brexit.

These fears were exacerbated over the past weekend as a much talked about interview offered the marketplace an insight into the UK PM’s plans for the Brexit. UK Prime Minister, Theresa May alluded to prioritising the control of immigration, as opposed to focusing on retaining the UK’s access to the single market.

Moreover, May commented that the UK cannot keep ‘bits’ of EU membership and this comment has fueled the fire of bearishness towards the Pound at the moment.

It’s for these reasons that we’ve seen the Pound soften over the week, and the sell-off accelerated this afternoon after May announced that she will be giving another major speech on her Brexit plans on Tuesday of next week.

I personally think that the Supreme Court decision will have been announced by then, so there’s a possibility we could see a lot of volatility between GBP exchange rates between now and then.

Until then, I think that anyone with a currency exchange requirement involving the Pound should pay close attention to the Supreme Court decision. The likelihood is that if the Government is successful in their appeal we can expect to see the Pound fall further, as the Government plans on invoking Article 50 at the end of March and there polices generally lean towards a ‘Hard Brexit’.

On the other hand if they’re unsuccessful the general consensus is that the Pound could get a lift. Feel free to get in touch if you wish to be kept up to date with the outcome of the Supreme Court’s decision, as of yet we have no definitive time as to when this announcement will be made.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well 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 speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joe.

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.

Will sterling rise or fall on the Supreme Court decision?

The pound is fairly stable and range bound at present as markets keenly await the next direction of the Brexit. We are all eagerly awaiting the next bits of news over the Supreme Court decision and it is this which will determine the more immediate direction on the currency pairing. If you have a transfer to consider involving sterling understanding what is happening and being ready to react is the best way to capitalise on this news. At the moment we do not know when the decision will be released and this is keeping the market nervously on its toes.

Essentially upholding the previous High Court decision should see the pound rally but I think the gains will be limited. My personal expectation is for this to lead to sterling gaining up to 2% against its counterparts. If the decision goes for the government sterling will fall because I believe markets have very much priced in ‘good news’ that the previous decision would be upheld. If it falls in this scenario sterling could lose up to 4% as it becomes apparent a hard Brexit is more likely again. Sterling might retest the kind of levels we saw back in October last year.

GBPEUR Focus

After the Supreme Court decision attention will still remain on the Brexit and any good news for sterling will be shortlived in my opinion. There will still be many unanswered questions and as the resignation of Sir Ivan rogers, the UK’s Ambassador to the EU shows there is scope for further political casualties. Attention towards the end of the quarter will focus on the likelihood of Theresa May triggering Article 50 plus the Dutch and French elections. I expect GBPEUR could trade between 1.12 – 1.23 depending on the various outcomes here. If you wish to trade at these levels and wish to be kept informed of developments please email me on jmw@currencies.co.uk

GBPUSD Focus

The big news on the US dollar is the likelihood of further interest rate rises. A strong jobs report has given rise to expectation we could see further interest rate hikes soon and GBPUSD has dipped. I expect GBPUSD to trade between 1.14 and 1.25 in the coming weeks. As you can see I feel the US dollar will be strengthening.

If you have a currency transfer involving sterling and wish to optimise your position with some expert insight and information please contact me Jonathan on jmw@currencies.co.uk. I work as a currency specialist and have appeared on BBC News discussing Brexit and the impact on the currency markets. I would be very happy to hear from you and answer any questions and help you with your situation.

Thank you for reading, I hope to hear from you soon.

Sterling remains under pressure despite positive data release, is this a sign of things to come? (Joseph Wright)

The Pound has come under pressure today despite the UK economy posting some better than expected figures in an important sector of the UK economy.

After beginning the day negatively the Pound received a slight boost this morning as Services PMI data came out better than analysts had expected. The data showed that sentiment within the services sector is positive, which is important for the UK economy as the services sector amounts to more than two-thirds of the countries economic output.

In normal market conditions it wouldn’t be unusual to see the Pound spike upward off this news, and although it attempted to the currency is currency down against all major currency pairs with the exception of the US Dollar, which has dropped in value today also across the board.

Those concerned with the value of the Pound should pay close attention to the outcome of the Supreme Courts decision on whether or not the government needs parliamentary approval before beginning the Brexit process.

This topic appears to be the biggest mover of currency pairs involving the Pound and the Euro could also feel the effects of the decision. The outcome is scheduled to be released between the 12-17th of this month and I expect expectations of the decision to effect Sterling’s value between now and then.

Other than this, economic data could also weigh on Sterling’s value especially if it disappoints considering what happened today. Feel free to get in touch if you wish to discuss any upcoming news releases and how they could effect your upcoming currency exchange requirement.

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 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 to speak with me on 01494 787 478, just ask reception for Joe. 

 

Where Next for Sterling Exchange Rates? (Matthew Vassallo)

The Pound made gains against its EUR counterpart during the first day of 2017 trading, following positive UK Manufacturing data released yesterday morning.

The figure came in well above market expectation and this immediately gave Sterling a boost, although it still struggled to make any significant impact against the USD.

GBP/EUR rates spiked by over a cent, with the pair hitting 1.1792 at this morning’s high. This has once again presented those clients holding Sterling with an opportunity and considering the recent volatility on the pair and the fact Sterling is struggling to sustain these improvements, I would be very tempted to take advantage if I had a short-term GBP/EUR requirement.

We are still no closer to understanding how we will facilitate our exit from the EU, when Article 50 is triggered (assuming the timeline remains the same) in March. This market uncertainty has been a huge weight around the UK economies shoulders and as such the Pound has struggled to make sustainable improvement against the major currencies.

With the debate continuing to rumble on as to whether we are going to see a soft or hard Brexit, the market and investors are continually having to second guess the likely outcome. This means that any improvements for the Pound have been relatively short-lived and this was one of the main reasons I felt clients who were holding Sterling positions should be looking to take advantage of any short-term spikes.

The UK economy remains extremely fragile and whilst any information released by UK Prime Minister Theresa May regarding how we will facilitate our Brexit, is likely to help remove some of this uncertainty, so far we are yet to hear any real plan or long-term vision.

Looking ahead and we have UK Construction data out this morning followed by Services figures on Thursday, so expect further movement for Sterling over the coming days.

If you have an upcoming Sterling currency exchange to make, we have a team of experienced brokers who can help guide you through this turbulent market and provide you with the best exchange rates under any market conditions. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to call us on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk

When shall I Trade? (Daniel Johnson)

GBP/EUR

I feel long term we will see Sterling rally against the Euro, I feel it is chronically undervalued at present. The only reason the pound is below 1.20 is due to the electorate’s decision to leave the EU. The key factor in the pound’s value is trade negotiations, which currently leaves the nations economy in uncertainty. The High Court Judgement as to whether the government will vote on the triggering of Article 50 is due to complete in early January and this will determine whether there is a hard or soft Brexit. A hard Brexit would weaken the pound substantially. If you have to buy Euros short term and wish to eliminate any risk from your trade it may be wise take advantage of current levels.

Medium to long term as trade negotiations become more apparent Sterling should gain strength. The Euro also has some serious underlying problems which could rear their head. Political uncertainty  caused by the emergence of right wing groups could cause weakness. Also we have Italian Banks bad loans in excess of €360bn, A debt crisis in Greece and shockingly low inflation. Any of these factors could severely weaken the Euro.

GBP/USD

Following the FED’s decision to hike rates and forward planning indicating there could be as many as three more. I think the US dollar has further ground to gain on Sterling. The Dow is finishing at record highs and economic data is very strong. If I had to buy Dollars I would be moving quickly.

If  you have a currency requirement it is wise to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board we can keeo you up to date with what is happening in the market to help you make an informed decision. If you would would like me to assist with your trade I will be happy to help you personally. If you inform me of the 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 country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading.

 

Will this week’s data releases help push the Pound even higher? (Joseph Wright)

Sterling has managed to hold on to the gains it made through November as the currency continues to trade at a 3 month high against the Euro, and also a 2 month high when paired with the US Dollar.

The recent boost within the Pounds value has been welcomed by those planning on exchanging Pounds for another foreign currency, as at the beginning of last month Sterling was trading around it’s lowest levels against the Euro by almost 5 years, and at it’s lowest levels against the Dollar in around 30 years.

The recent upward movement for the Pound has made large currency exchanges involving the Pound considerably cheaper, and I think that Pound sellers have a key decision to make when it comes to their transfer. For example the Pound could continue to strengthen and consolidate above 1.20, that level could also act as a ceiling and we could see the Pound struggle to breach that level before falling back into the mid to low teens.

One approach would be to book at least part of your currency transfer around the current levels, as this approach allows clients to take advantage of the current 3 month highs whilst leaving themselves open to booking the next part at a more advantageous level, should that favourable movement occur.

There are a couple of factors which could impact the Pound over the following weeks. The Supreme Court hearing came to an end on Friday of last week, and although the result isn’t expected to be released until the end of January, expectations are for the High Courts ruling to remain in place. Despite this consensus I think that if the Government is successful with their appeal, we can expect to see the Pound fall as the Brexit process will be more straightforward and therefore, likely to happen sooner.

There are some key data releases this week and later this morning which could affect the Pounds value, and readers of this blog can feel free to get in touch regarding the times and details of these potential market movers.

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 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 provide me with a telephone number to contact you on, or you can call in on 01494 787 478 and ask for reception to speak with Joe.

Sterling exchange rates enter December in good health, but will the Pound continue to climb? (Joseph Wright)

The Pound is entering the new month in a much stronger position than it entered November, after the currency gained an impressive 4.5% against the Euro through last month as well as performing well against a number of other major currencies.

Yesterday afternoon the Pound spiked upward against the Euro, as did the US Dollar, after both UK GILT (bonds issued by the UK government) and US government issued bond yields both increased in anticipating of further quantitative easing from the European Central Bank, (ECB) and also expectations of an aggressive fiscal plan by the US President elect Donald Trump.

Whilst complicated the result was Sterling strength across the board.

People planning on converting Pounds into another major currency such as the US Dollar, the Euro or the Australian Dollar for example have been presented with a much more attractive opportunity than this time last month, due to the Pounds unexpected gains off the back of the unexpected election of Trump.

Personally, I think the Pound may gain further on the Euro as we enter December and the Italian Referendum this weekend may be the catalyst. If the Italian Prime Minister (Matteo Renzi) is unsuccessful in his plan to change the Italian constitution in order to reform the banking system in Italy, I think we could see further Euro weakness as soon as next week. Feel free to get in touch if you wish to be kept updated on this topic.

Those in the process of buying property abroad or moving large amounts of money internationally have the chance to save thousands if we compare the Pounds value now compared with just a month ago, and with the help of a specialist currency exchange brokerage like ourselves we can help clients get even more for their money as our rates can improve on the banks offerings by between 1-4%.

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 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 to speak with me over the phone on 01494 787 478, just ask reception for Joe if I don’t answer myself. 

 

Sterling riding high, but will the Pound’s rally continue? (Daniel Johnson)

Pound Sterling Forecast

Since Philip Hammond’s Autumn statement we have seen the Pound rally against the majority of major currencies.  Hammond delivered a realistic , non dramatic statement but made it clear he will be attempting to make Britain resilient to any problems that come from a possible exit from the EU.

The pound has hit new buoyancy levels against the majors, but I am not convinced Sterling will continue to rise in value. We have the Supreme Court Judgement which will determine whether the government will get the final say on the triggering of Article 50 which will officially start the process of Britain exiting the EU.  Scotland also may get involved, the argument that Scotland will be impacted by the decision bears credibility.

If the decision is that the government will have their say then the possibility of a soft Brexit becomes more likely, this should strengthen the Pound, but will elongate the exit process and Theresa May’s target of leaving the EU by the end of March could well be pushed back. If you are looking to sell the Pound you may wish to consider moving before this event.

Pound to US Dollar exchange rates in detail

The key upcoming event for the US is the interest rate decision on 14th December. Janet Yellen the head of the Federal Reserve indicated at the end of last year that there would be several rate hikes in 2016, but none have yet to materialise. Although the FED is meant to act as a separate entity to the government, the political uncertainty created around who would win the presidency may have been a factor in keeping rates on hold.

Trump has been highly critical of Yellen’s unwillingness to hike rates and has gone as far to threaten her with a more bullish replacement. This could well force Yellen’s hand on December 14th and there is a high probability of a rise in interest rates. If you are buying US Dollars it may be wise to move before the interest rate decision. Keep an eye on Non-Farm Payrolls on Friday as this event is notorious for it’s unpredictability and ability to move markets.

Pound to Euro exchange rates in detail

With current levels close to 1.18, a near two month high it is tempting to perform your trade if you are selling Sterling with the Supreme Court judgement and the European Central Bank’s interest rate decision early in December. Many econimists are predicting that Mario Draghi the Head of the ECB will let slip his plans for future Quantitative Easing (QE). QE is essentially pumping moneyinto an economy to stimulate growth. The ECB is currently injecting €80bn a month into the Eurozone. The current program is due to end in March, but with little change of inflation I would be surprised to see QE not continue. There is also the possibility of an increase in monthly increments. If news does filter through on 8th December this could be what the gambling Sterling seller could have been waiting for.

If you have a currency trade it is crucial to be in touch with an experienced broker. The timing of your trade is vital, If you have an experienced broker on board they can keep you up to date with what is happening in the market to help you make an informed decision. I will be happy to help you personally. If you inform me of  the currency pair you are trading, volume and time scale and I will provide a free individual trading strategy. I work for one of the top brokerages in the country and as such I am in a position to better almost every competitors rate of exchange. You would  be looking at saving anything up to 4% 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.

Daniel Johnson

Executive Dealer – Foreign Currency Direct PLC

The ‘Trump Train’ market surge fades but Sterling manages to hold on to it’s gains, but for how long? (Joseph Wright)

The Pound has surged across the board through November for a number of reasons, with the main catalysts being the likely delay to invoking Article 50 and beginning the Brexit process, and Trumps election victory in the US boosting sentiment surrounding the UK economy.

Those planning on converting Pounds into another foreign currency have been dealt a good hand this month, as the Pound has gained clawed back quite alot of it’s losses since the Brexit vote.

This month alone the Pound has gained 5 cents vs the US Dollar and 7 cents vs the Euro. In monetary terms a £200,000 GBP to EUR currency exchange is now gaining an additional €15,000+ in the space of 30 days which just highlights the importance of timing large currency conversions.

As a specialist currency brokerage we’re here to monitor the currency markets on behalf of our clients, and in volatile trading conditions like we’ve seen this month our service can really save clients large amounts of money due to the assistance with timings and reacting to market movements.

There will be manufacturing and construction figures released later this week which could affect GBP exchange rates depending on their outcome, and if you are planning a currency exchange between the Pound and another major currency and would like to plan around these events, do get in touch regarding timings and exchange rates.

The Pound has so far held onto it’s gains made this month, but currencies do tend to fall quicker than they climb and if some ‘Hard Brexit’ related news is released there is a chance the Pound could lose some or even all of it’s recent gains.

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 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 and ask reception to speak with me (Joe) on 01494 787 478.