Tag Archives: currency

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. 

 

Why should you contact us here at Pound Sterling Forecast? (Daniel Wright)

Over the past seven years we have had many clients contact us to see if we can assist them both with the timing of their currency exchange, but also with saving money over their bank or other currency brokerages.

All of the writers here work for one of the largest brokerages in the U.K and between us we have over 70 years experience of helping people send money overseas or bring money back for property purchases, property sales, business transactions or any other reason that involves a currency exchange.

We do not deal with holiday money or cash transactions unfortunately but we do pride ourselves on the very highest level of customer service along with seriously good rates of exchange.

Most of our traders have been doing this longer than our competitors have existed, so by contacting us here at Pound Sterling Forecast you can have the peace of mind that not only will you get a great rate, but your transaction will be handled smoothly and efficiently by a team that know exactly what they are doing.

We love providing our regular readers with up to date and important market information on this site and welcome all new enquiries with a personal response as soon as we possibly can.

Looking at the economic calendar we are fairly thin on the ground for data over the next few days as the month ends but do be wary as you can see fairly large swings for currencies as you near the end of the month as larger corporations net off positions and we start to see month end flows.

If you would like to be kept fully up to date with market movements or you would like to save money on any pending currency exchange you have then feel free to get in touch with me (Daniel Wright) personally on djw@currencies.co.uk and I will be more than happy to give you a call or reply to you email and answer any questions or queries that you may have. I look forward to speaking with you.

 

Sterling exchange rates boosted after the Autumn Budget, will the Pound continue to strengthen? (Joseph Wright)

The current levels for converting Pounds into other major currencies are surprisingly attractive when we consider the outlook for the Pound just a few weeks ago.

I think that people planning on converting their Pounds into another major currency, for a property purchase for example, have been dealt a fortunate hand as the Pound hit a 2-month high yesterday on a trade weighted basis, whereas just a few weeks ago the pound was trading at over 5 year lows against the Euro and at over 30 year lows against the US Dollar.

The Pound to Euro exchange rate is now trading closer to 1.20 than 1.10 after gaining 7 cents off the back of Donald Trump’s election victory. The UK economy, and therefore the Pound, has been boosted by the ‘Trump train’ after his warm words about the relationship between the UK and US in his campaign. Barack Obama had previously said the UK would be at the back of the queue on business deals whereas Trump said the opposite, and Trump also has a number of interests in the UK.

The gains for the Pound against the Euro specifically are extensive, making a €200,000 purchase £10,650 cheaper.

The Pound was boosted further yesterday afternoon after the Autumn Budget sprung no surprises. I do think that those planning on converting Pound into another major currency should watch the rates and news as the Pound could come crashing down quicker than it’s risen as is usually the case.

If you are planning a currency conversion involving the Pound, 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 and ask reception to speak with me (Joe) on 01494 787 478.

Sterling exchange rates receive another boost, but will the Pound hold onto its recent gains? (Joseph Wright)

Sterling is the best performing currency in the G10 so far this week, after it was boosted yesterday off the back of some Brexit positive news from the UK’s Prime Minister Theresa May.

Whilst addressing the CBI conference (a gathering of the leading names from the world of business, politics and media) May gave a number of hints that the government will be looking to create new opportunities through ‘new and dynamic’ trade deals. She implied that she would be looking for a transitional deal for business after the Brexit which suggests that she’s open to the UK retaining access to the single market for as long as possible.

Readers hoping for a stronger Pound should continue to pay close attention to comments by leading figures within the UK surrounding the Brexit.

The Brexit is the biggest driver of currency movement involving the Pound, with any talk of the UK retaining access to the single market, the Brexit initiation process being delayed or extensions to the 2 year separation process being met well by the markets.

The Pound is at it’s highest level vs the Euro in 2 months after gaining around 6 cents in a short period of time, mostly due to the High Courts recent ruling, Trumps election victory and May’s comments yesterday at the CBI conference.

There are a number of major financial institutions that despite Sterling’s recent gains, are still expecting the Pound to decline to levels not seen for 5 years during 2017.

HSBC remains particularly bearish regarding Sterling’s projected value next year, and DNB Markets have specifically given the GBP/EUR pair a 12 month price target of 1.0869 which is almost 10 cents weaker than its current level.

If you would like to be kept up to date with the latest Sterling news, and would like to discuss the timing of an upcoming currency exchange you’re planning on making involving the Pound, feel free to get in touch with me (Joe) directly on jxw@currencies.co.uk for a free overview. 

We’re here to help you make a well informed decision on when to make your currency transfer, and to help you benefit from highly competitive exchange rates as we’re 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 for Joe on 01494 787 478. 

Will Sterling lose its recent gains or continue to climb? (Joseph Wright)

After performing well against the major currencies for the past week or so, the Pound has dropped sharply this morning wiping away much of the currencies recent gains.

After trading close to 1.17 against the Euro for the first time in months, the GBP/EUR pair have tested the late 1.14’s within the past 20 minutes and cable (GBPUSD) has also lost a cent this morning.

Sterling has recently gained a lot of value after Donald Trump’s successful presidential campaign in the US. The property tycoon has commercial ties within the UK, was pro-brexit and his mother was Scottish. His success in the presidential election has so far boded very well for the Pound as the currency recently has one of it’s best week’s against the US Dollar since October 2009, and the High Courts decision to rule in favour on whether parliament must be consulted before invoking Article 50 has also boosted the Pounds value.

The UK Prime Minister, Theresa May has appealed the High Court’s ruling and I think whether or not she’s successful will have a large bearing on how the Pound performs, as the Pound is likely to fall once again if Theresa May is successful just like it did when she initially outlined her plans of invoking Article 50 at the beginning of next year.

There’s a chance that the Pound could drop back to levels seen prior to the High Court Ruling and Trumps victory, and if so then now is the time to take advantage of what’s left of the Pounds recent gains.

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.

Will last week’s High Court decision be a turning point of the Pound? (Joseph Wright)

Last week was the best week the Pound has had vs the US Dollar since October of 2009, as worries over the proposed ‘Hard Brexit’ eased.

Fears eased as England’s High Court ruled last Thursday that the Government needs parliamentary approval before starting the Brexit process, and the Pound has boosted across the board off the back this news after having a particularly difficult October.

The Pound had been generally declining against all major currency pairs since UK Prime Minister, Theresa May announced plans to invoke Article 50 at the end of March next year, which was considered a ‘Hard Brexit’ approach. Through October the currency lost around 5% vs most other major currency pairs so the High Court’s decision last week has of course been welcomed by those hoping to see Sterling strengthen.

Those hoping to see the Pound continue to climb, and it’s worth noting that the currency has held onto its gains from last week, will be hoping for further positive news surrounding the UK economy and a potential ‘Soft Brexit’. I think there will be movement within Sterling exchange rates when the outcome of the governments appeal against the High Court’s decision last week is announced, and if the government are unsuccessful I expect to see the pound rally once again.

On the other hand if the government is successful in the appeal, we can expect to see the Pound decline so those with a currency requirement involving the Pound would be wise to get in contact, as if there’s a big swing in exchange rates we’re able to make our clients aware very quickly.

Overnight the outcome of the US election is likely to be announced, and I think that a Clinton victory is likely to push the Pound downward as the US Dollar is likely to rally.

If you are planning to use GBP to buy or sell a foreign 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.

Sterling is on track for its worst month since June, will the decline continue? (Joseph Wright)

Despite a relatively bullish day for the Pound, particularly by its own recent standards, the currency is on track for it’s weakest month since the month of the Brexit vote back in June.

The reason behind today’s bullish Pound is a meeting between the Governor of the Bank of England, Mark Carney has had a meeting with Theresa May (UK Prime Minister) regarding his future, and the general feel around it so far is positive as just prior to their meetup, May announced that the Governor has her full support.

There were rumours in the city last week that Carney would shortly be announcing his planned departure in 2018 but as it stands that doesn’t seem to be the case. I think that if he decides to extend his stay until 2021 and complete a full 8-year term we could see the Pound spike upward once again but certainly not back up to the levels we saw at the beginning of October.

This uncertainty surrounding the key figure of the Bank of England has not come at a good time for the Pound’s value, after we’ve already seen the currency lose almost another 5% through October after Theresa May outlined the end of March as the time to invoke Article 50.

This week is set to be a busy one in terms of economic news releases, with Thursday expected to be the busiest day for Sterling exchange rates as it’s the day of the BoE’s next Interest Rate Decision. Mark Carney will also be speaking that day so feel free to get in touch to discuss any planned currency exchanges in more detail as planning around these events could be key.

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 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.

Sterling exchange rate forecasts lowered once again, is now the time to act? (Joseph Wright)

I recently outlined forecasts for the GBP/EUR pair of 1.0922 – 1.1000 from Credit Suisse, and unfortunately now for those hoping for a Sterling recovery, the same bank has lowered their forecast to 1.0526, and this is based on a 3 month period.

The bank has also offered a price target for the GBP/USD pair of 1.1700, so I guess the bottom line is that they’re currently expecting further Sterling downside.

Despite these prominent predication the Pound has actually held it’s ground over the past couple of days after falling on almost a daily basis for almost 2 weeks after Theresa May publicly confirmed suspicions that the invocation of Article 50 will go ahead in March of next year.

The Pound fell because many had hopes for a ‘Soft Brexit’, but those hopes have now all but faded after May’s decision to begin the UK’s separation of the EU earlier than many had hoped.

The reason for the Pound staging a fightback has been some better than expected inflation figures from the UK which came out earlier this week. The figure came out much better than expected at 1% which puts the UK on track to reach it’s 2% target, but I do think inflation could get out of hand if the Pound continues to fall at such a fast rate.

Those planning a currency conversion which involves exchanging the Pound for another currency may wish to consider making that conversion sooner as opposed to later, because if the forecast from Credit Suisse as well from an increasing number of banks are to become true, the Pound has a further 6% or so to fall which equates to large amounts of money on the larger currency conversions.

If you would like to discuss timings and exchange rates, 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 get in touch by telephone on 01494 787 478, just ask reception for Joe.