Tag Archives: currency transfer

Sterling Euro rates hit lowest point since November (Tom Holian)

Sterling Euro exchange rates have continued to tumble during the week with GBPEUR rates now at their lowest point to buy Euros since early November 2016.

The Pound has also fallen against all major currencies with big losses seen vs the US Dollar and the Australian Dollar.

The Pound has struggled as it appears, at least for the moment, that we could be facing a hard Brexit which means we may not necessarily remain in the single market which has sent shockwaves through the currency markets and therefore Sterling has fallen.

Personal debt per household has continued to rise and this means that with inflation also set to rise it may be difficult for the Bank of England to increase interest rates in the future as this could cause further problems and this has resulted in weakness for the Pound.

Indeed, Bank of England member Andy Haldane went on to say ‘interest rates are still very low, and are expected to remain so for the foreseeable future.’

On the continent the Eurozone’s leading economy Germany has announced strong economic data in the form of GDP which came out at 1.9% for 2016 which was better than expected.

As the Eurozone’s strongest economy this has led to the Euro strengthening against the Pound creating some excellent opportunities to sell Euros to buy Sterling.

Next week Prime Minister Theresa May is set to address the nation on Tuesday and hopefully we will have the announcement of the recent Supreme Court judgement coming soon.

However, MPs have been explicit in that they want Theresa May to clarify her position with regards the single market before any Brexit talks can begin.

With the continued uncertainty surrounding Brexit I feel there are further problems ahead for the Pound vs the Euro as well as other major currencies so if you need to send money abroad in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

A tough week for sterling (Dayle Littlejohn)

UK Prime Minister told Sky last week that she didnt want to keep bots of the EU which confirmed she plans to remove the UK from the single market. The pound has been in a steep decline since. The PM has blamed the press for the pounds demise however I believe if she continues with her tone exchange rates will fall.

She is set to hold another press conference Tuesday, with the agenda simply Brexit. Many leading economists and CEOs of businesses within the UK have warned the PM that she needs to give clear direction in the upcoming weeks.  HSBC leading officials have gone one step further and warned the PM that her actions could push the bank to move their headquarters to Paris, which means many jobs would be lost for the UK.

As for UK economic data since the turn of the year, figures have been strong however the pound has declined. It just shows that politics/ Brexit is outweighing economic data releases.

If you have a foreign currency to buy this month I would recommend getting in touch to discuss your options as I expect the pound will fall in value once more after the PMs press conference Tuesday.

When buying or selling the pound you also need to understand the factors that will be impacting the other currency. Feel free to email me the currency pair you are converting (GBPUSD, GBPAUD, GBPCHF etc) the reason for your conversion (company invoice, buying a property) and I will email you with my forecast for the currency pair and the process of using our company drl@currencies.co.uk.

For the readers reference the company I work for on a daily basis save clients money on currency transfers. If you are planning a transfer and are using your bank or another brokerage, I would reccomend getting in touch for a forecast and at the same time compare of exchange rates. This is free of charge and will take you a few minutes.

 

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.

When is the Supreme Court case in the UK and how will this affect the pound?

The pending UK Supreme Court case in the UK is critical to the short term movements on sterling exchange rates and clients with a requirement to buy or sell the pound should be making plans around this. Expectations for the initial reaction to the decision are reasonably clear but once the decision is made we will then be faced with a whole new set of questions over the next direction for the Brexit vote. Markets have loosely priced in the expectation the previous decision will be upheld but there are no guarantees!

If the previous decision is upheld then the pound should rise. GBPEUR could hit 1.17-1.18, GBPUSD upper end would be 1.25, GBPAUD 1.70 and GBPNZD towards 1.80. The pound could easily fall up to 4% if the court case does not go the way markets have been predicting. There is a very strong chance we could be looking at rates on GBPEUR retesting 1.10-1.12 territory whilst on GBPUSD we could slip below 1.20. GBPAUD may drop below 1.60 and GBPNZD below 1.70.

The biggest problem is knowing when this case will be decided. With the Supreme Court reopening tomorrow from their recess period the news could come as early as tomorrow. I expect it will be between tomorrow and next week which gives clients looking to buy or sell sterling a small window of opportunity to plan in.

In order to maximise such an opportunity the best strategy in such a market is number one to be prepared and number two to understand your options. My order book is currently very high with ‘Limit’ and ‘Stop / Loss’ orders. A ‘Limit’ order allows you trade at a higher level whilst a ‘Stop / Loss’ order allows you to protect your rate should the market fall. In such an uncertain and potentially volatile market I feel the best way forward is to use a combination of the above tools to help limit your exposure and trade on any improvements.

If you have a transaction to consider and wish for some assistance with the timing and planning of any exchanges please feel free to contact me Jonathan by emailing jmw@currencies.co.uk with an overview of your position and preferably a phone number so I can quickly contact you.

Thank you for reading this post and I look forward to answering any questions on the markets or the services we can provide.

Jonathan Watson

 

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 Outlook for 2017 (Tom Holian)

Sterling exchange rates have started the year poorly having fallen against both the Euro and the US Dollar.

Since rallying just before Christmas the Pound has been on the back foot as uncertainty continues surrounding the issue of Brexit and the ‘will we won’t we’ impact of leaving the single market.

At the moment Prime Minister Theresa May is suggesting that if we are not able to have full control of our borders then she will look to leave the single market and this is one of the main reasons for Sterling’s recent demise against both the US Dollar and even more so against the Euro.

This week the Pound has continued to struggle even though both construction and services data have come out better than expected.

However, the fears continue to mount owing to the uncertainty caused by the Brexit vote which will affect how the Bank of England may react in the future.

Next Wednesday the UK will announce both Industrial and Manufacturing data which have in recent times caused big movements for Sterling exchange rates particularly vs the Euro.

Any signs of negative data could cause Sterling to fall and I think with the political uncertainty continuing this will clearly weigh heavily on the Pound over the next few weeks.

With the Supreme Court judgment due to come out later this month until we have some form of resolution I think the Pound could fall lower against both the Euro and the US Dollar.

If you’re in the process of needing to send money to Europe and buy Euros then it may be worth be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the industry since 2003 I am confident that not only can I save you money on exchange rates when buying or selling currency but I can also help you with the timing of your transfer.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

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. 

 

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.

 

US Interest Rates up by 0.25% (Daniel Johnson)

Last night saw the US interest rate decision. Janet Yellen the Head of the Federal Reserve indicated at the end of last year there would be as many as four rate hikes during 2016. None of which materialised, she has been branded with a very  cautious reputation. Although the FED is meant to act as a separate entity, I can’t help but think the FED’s caution was due to the uncertainty surrounding the presidential election.

Trump has been very vocal about his wish to raise rates and has gone as far as to threaten Yellen’s position. Rates went up by 0.25% as anticipated so there was little movement on the GBP/EUR. Yellen stated after the hike that there would be up to three hikes this year, this can be taken with a pinch of salt as with most forward guidance.

Many investors left the Euro for US dollar due to safety and of course an increase in return. The dollar rallied against the Euro, but as mentioned earlier there was no great shakes on GBP/EUR.

With all the uncertainty surrounding Brexit trade negotiations and 1.20 seeming to be a resistance barrier if I was buying Euros I would be tempted to take advantage of current levels.

The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she 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 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.

 

 

Could Sterling increase against the Euro if the US Federal Reserve raise interest rates? (Tom Holian)

Sterling Euro exchange rates have been trying to hit 1.20 recently and on one occasion following the news of the Italian referendum the Pound broke past the resistance level of 1.20 but the positive movement was rather short lived.

The Pound has been making strong gains vs the single currency since early October when the High Court challenge to Brexit was initially put in place.

With the US Federal Reserve due to meet tonight to discuss interest rates there is a 95% expectation that the central bank will increase interest rates.

The impact this may have on the foreign exchange markets could result in US Dollar strength which typically results in Euro weakness and this could provide clients buying Euros with Sterling the opportunity to possibly see GBPEUR rates break past 1.20 again.

UK inflation yesterday morning came out better than expected at 1.4% which was the highest level since October 2014 and this helped the Pound to make gains vs the Euro.

Tomorrow the Bank of England are due to meet and although there will be no chance of any change in interest rates any positive comments made by Bank of England governor Mark Carney could see Sterling go in an upwards direction.

I predicted last weekend that the Pound would have a strong week and so far my prediction has been accurate and I think the Fed’s decision tonight could see Sterling make gains against the Euro.

If you’re concerned about what is happening between Sterling and the Euro and need to buy or sell property in the Eurozone in the next few weeks or months it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I save you money when buying currency compared to using your own bank but also help you with the timing of your transfer.

If you have a currency transfer to make and would like further information about the contracts available or would like a free quote then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@curencies.co.uk