Tag Archives: currency
Another week passes and the pound continues to struggle against its counterparts. GBPUSD floats at a 30 year low and GBPEUR at a 3 year low. Looking ahead its difficult to see how the pound could improve against the major currencies. We have had a few post ‘Brexit’ economic data releases and they have shown a major decline, one to note is Purchasing Managers Index (PMI).
In addition the Bank of England have cut interest rates to 0.25% in line with current market conditions and made the decision to buy Government bonds in the form of Quantitative Easing. Furthermore the Governor Mark Carney has stated a future cut to 0% could occur if the UK economy continues to struggle.
It seems like its going to be a testing period for people purchasing a foreign currency HOWEVER if you are selling a foreign currency to buy pounds you are in a fantastic position compared to 3 months ago. For example if you trade €200,000 into sterling today compared to before the EU referendum, you will now receive an extra £20,000!!!
Its a quiet day on the markets today for the UK with limited economic data releases. The Eurozone will release their latest GDP numbers at 10am and the US are set to release their retail sales numbers at 1.30. I expect the pound could lose value against the euro today however make gains against the dollar as the retail sales figures are set to show a decline.
My area of expertise is property purchases and sales. Therefore if you need to purchase a foreign currency or you are about to complete on a sale, today is the day to get in touch to discuss your options and how we can save you as much money as possible. Feel free to email me the currency pair you are trading (GBPUSD, GBPEUR, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair email@example.com. Alternatively please fill in the form below and I will be in touch within 20 minutes.
Make sure you get the most on your foreign exchange – Take a few moments to get a free, no obligation comparison with us (Daniel Wright)
Over the past 6 years we have helped countless readers get a better rate of exchange than they are being offered elsewhere for their business transactions, property purchases/sales, car purchases, overseas weddings, wages or just simply their living expenses.
During the current economic climate it is important to make sure that you are getting the most out of your money and with currency exchange it really is no different.
We have seen an increase in clients contacting us that have been using the same broker for many years assuming that they are still getting a fantastic rate of exchange. Whilst that may be true with some, many actually found that when they compared with us we could actually get them much better and that their rate had slowly got worse year on year much the same as if they did not change their car insurance or electricity supplier.
We also have a lot of property buyers or sellers who come to us that have been referred a broker by their estate agent…. This also more often than not means that you will not be getting the most for your money and the agent generally is pushing you to use their broker because most will get paid a commission for passing over their client. If a brokerage has to pay out a commission then they cannot afford to give the client the very top rate so you end up losing out.
If you are in any of these positions it is important to realise that here at Pound Sterling Forecast we also can help with currency exchanges too, and generally at better rates than elsewhere. We all work for a huge independent brokerage based in the U.K and have been helping clients all over the world for 17 years now.
It is well worth taking two minutes out of your day to email me (Daniel Wright) directly on firstname.lastname@example.org for an honest opinion and to see if we can actually get you a better deal. even saving half a percent on a £200,000 exchange makes it £1000 cheaper for you so it is well worth getting in touch. You can also fill in the form below.
Tonight we have a fairly important night for all banks in Europe as the latest banking stress tests are released.
What I find a little concerning is that the results of these stress tests are not being released until outside of trading hours at 9pm, this may be because this is when they are ready or more like that we may hear some fairly interesting news from them.
It is very rare that an economic data release from Europe comes out late on a Friday night and I feel that the reason they are doing this may be that they have some bad news to bring to the market and they do not want investors and speculators to react on it straight away.
By releasing data late at night on a Friday this gives ample time for statements to be released afterwards to settle the markets and two days for investors and speculators to calm down before the market sees large knee jerk reactions.
It is fairly common knowledge that banks in a number of areas are in quite a lot of trouble, most notably the Italian banks at present. Should the stress tests back this theory up then the Euro may find trouble and be down on Monday morning.
If you are in the position where you have a large Euro transaction to carry out then it may be prudent to keep an eye on the rates when the Asian markets open on Sunday night.
To be honest, these results may impact global attitude to risk so all major currencies may see volatility so it is key that you are on the ball and ready to react as your currency exchange may become thousands of Pounds cheaper or more expensive very quickly.
Here at Pound Sterling Forecast we do not only write up to date and important market information for you but we all work for one of the largest currency brokerages in the U.K so can also help you with your currency transfer. If you have a transaction to carry out involving buying or selling the Pound then feel free to get in touch with me (Daniel Wright) the owner and creator of this site and I will be more than happy to contact you personally to discuss your requirements. You can email me directly on email@example.com and I look forward to speaking with you.
Since the UK public decided a ‘Brexit’ is the way forward for Britain GBPEUR and GBPUSD exchange rate have fallen 15 and 21 cents respectively. In figures this means a 200,000 euro and US dollar purchase is now approximately £20,000 and £22,000 more expensive and in my opinion it could get worse.
The golden question my clients are asking ‘is how could the pounds value fall?’ The UK’s interest rate decision next Thursday will give a clear indication into how the Bank of England plan to act, in order to combat a plummeting pound and an unstable market place. Governor of the Bank of England Mark Carney has eluded to a cut by 0.25% as early as next week.
However I believe this will be a premature move and actually he will put it off for at least another month. Nevertheless I expect further sterling weakness next Thursday.
Looking further ahead (medium term), early September the Conservative party will vote to decide the next Prime Minister. Once we have some certainty all eyes will turn to the PM and if they will start the ball rolling with Article50.
If the bookies favorite Theresa May is elected I feel their could be further negotiations with EU leaders before any decision is made in regards to Article50. Either way the volatility surrounding Article50 and the UKs future path will put further pressure on sterling and therefore further falls are expected.
The currency company I work for enables me to buy and sell pounds at rates better than other brokerages and high street banks. If you are buying or selling pounds this year feel free to send me the currency pair you are trading (GBPUSD, GBPEUR, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn
The pound has actually made some very small gains today but the outlook remains grim in my opinion. Despite the markets bouncing off the bottom today I do not think there is going to be a huge amount to be cheerful about and the rally of this morning quickly halted. The UK has no Prime Minister, the EU say there will be no special deal for the UK and business confidence and investment is down. There is a harsh choice for the next PM will it be abandoning free movement of people or retaining access to the single markets. According to the EU we cannot have both! If you are considering a currency exchange (£10,000 over only bank to bank exchanges please) please email me Jonathan on email@example.com to keep up with the latest news on how the pound is performing.
How much lower will GBPUSD drop?
The problem on this pair is the US Election is not far away which is bound to lead to uncertainty on the exchange rate. The prospect of a Trump Presidency has in my mind not been properly factored into the dollar. The Brexit vote also makes a US Interest rate hike less likely which I feel is not being reflected on the pair. I expect this rate to trade between 1.30 – 1.40 until August before moving back to 1.40-1.50 August to September. From there the picture is less clear but a move back above 1.50 could not be ruled out. If you have any USD transfers to consider the USD is almost at a 30 year high against the pound. To understand the latest movements please email me Jonathan on firstname.lastname@example.org
Will GBPEUR hit 1.25?
For Euro buyers this is the question I am being asked most. Well I think Greek concerns and worries may resurface in the next few months and a top of 1.25 is possible, the negative impact of Brexit is also hurting the Euro. But I think sterling will be the main loser and would call lows in the 1.10-1.15 range up to September. From there much will depend on how Brexit negotiations but I think the pound will remain weak until we have certainty. If you have any Euro transfers on amounts above £10,000 (eg property sale of business transfer) please email me Jonathan Watson on email@example.com for more information on securing the best GBPEUR and EURGBP exchange rates.
Brexit may well not prove to be too bad in the long run but it is clear to me the impact on sterling exchange rates still has much further to run, we still know very little about what to expect next. Any signs of an interest rate cut or further Quantitative Easing could easily send the pound lower and I would be most worried about this prospect towards the end of this year or early next.
Sterling is at multi year lows against GBPAUD, GBPCAD, GBPNZD, GBPCHF and GBPZAR.. Make sure you don’t miss out..
This aware winning blog has enabled tens of thousands of people globally to save money on their currency exchanges through helpful, friendly knowledgeable information from experienced currency brokers. As one of the Chief contributors here I would be delighted to hear from any of you wish for information at this important historic time for the pounds. An email will only take you a minute and the savings on offer could be thousands, what have you to lose. If you have a currency exchange to consider and would like to learn the latest exchange rate forecast please email me Jonathan Watson on firstname.lastname@example.org.
Exchange rates have slipped dramatically in the last few months as investors fears over the EU Referendum increase. Just what can we expect in the coming 3 weeks ahead of this historic occasion? Well I think it is likely that exchange rates will continue to fall in the coming 3 weeks as we get nearer to the Referendum and the pound is likely to retest the lows that have already been seen this year. The market will have to take account of the possibility of the UK leaving the EU and this will need to be reflected in the price of the currency as we approach the Referendum date. The polls are going to be the main drivers on the exchange rate as we get closer to the event I expect the ranges for pound sterling exchange rates to fluctuate in the recent bands that we have become so used to.
I predict GBPEUR to trade between 1.18 (Leave) and 1.40 (Remain) whilst GBPUSD should trade between 1.33 (Leave) to 1.52 (Remain). GBPAUD will I believe perform in a range of 1.82 (Leave) – 2.12 (Remain). There is likely to be big swings in the coming weeks as we the polls suggest different outcomes. Only last week Remain were leading by 60% according to some, now Leave are in the running at 52% majority.
Making predictions based on these polls is quite frankly very dangerous. The largest polls are only ever sample a few thousand candidates which means they are simply not very representative. The reason the polls got the UK General Election so badly wrong last year was the fact the polls weren’t polling enough of society to really get a true gauge on voters intentions. With this vote being more uncertain than the General Election the scope for big unexpected swings is massive.
The best way to manage the uncertainty is to keep up to date with the latest movements and utilise some of the expertise we have at our disposal including the Limit Order. This allows you to automatically purchase currency once the exchange rate hits a level you have pre determined. A forward contract allows you to fix a level up to 18 month in advance of needing to make a payment removing the risk of future exchange rate fluctuations impacting the value of your currency purchase.
In the words of a great motivational speaker ‘the best way to predict the future is to create it’, leaving everything in the lap of the gods is not normally a sensible strategy when dealing with the currency markets. If you would like to learn more about your options and the process please contact me Jonathan Watson on email@example.com.