Tag Archives: currency

Economic data due out tomorrow that may impact Sterling exchange rates (Daniel Wright)

Another fairly quiet day on the markets today for those with an interest in buying or selling Sterling, however tomorrow I would expect to see a little more volatility.

The last working day of the month can lead to sharp movements without warning as we see month end flows…. basically companies and funds netting off positions in advance of a new month. Quite often on the last working day of the month Sterling can become quite volatile against all major currencies as we see this happen , so it is important if you have a fairly imminent transfer to make that you keep in close contact with a proactive broker.

Here at Pound Sterling Forecast we do not only give you up to date market information but we can help you with exchanges too. We can get the very top levels of exchange on the markets due to our vast buying power and we pride ourselves on helping our clients with the timing of when they exchange their currency. If you would like me (Daniel Wright) the creator of this site and a Director at Currencies.co.uk to help you with a transaction or merely to give you a quote then feel free to email me personally on djw@currencies.co.uk and I will be more than happy to get straight in touch.

Economic data of note tomorrow is European inflation data, out at 10:00am (expectations are for a jump to 0.4%) which may give the Euro a little boost if matching that figure. I wouldn’t be surprised to see it fall short and to offer an opportunity to purchase Euros at a slightly better rate.

Later in the day we have U.S Growth figures – These are due out at 13:30pm and expectations for this is a level of 0.8%. This release can impact all major currencies as they may alter global attitude to risk.

For those with a Canadian Dollar interest we have growth figures for Canada at exactly the same time so be aware we may see a little volatility shortly after this period.

If you are looking to exchange any currency in the near future then it is well worth getting in touch with me. You can call me during U.K office hours on 01494 787 478 (Please ask for Daniel Wright) or you are welcome to email me with a description of what you need to do on Djw@currencies.co.uk and I will be more than happy to put together a game plan together with you.

 

Sterling is in for another tough week!

Sterling losses we have been predicting manifested this morning with GBPEUR touching 1.3250 in early morning trading. Sterling to Euro buyers are the main losers in this one horse race as confidence returns in the Eurozone. Anyone holding sterling has taken a hit lately except for GBPAUD and GBPNZD buyers as worries in China feed through into these currencies weakening them. If you need to buy or sell the pound understanding what has driven the rate to these fresh lows is a good idea because if you are still looking at the market with 2015 goggles on you are likely to be misled.

The week ahead is not looking good for the pound

Thursday we have the Bank of England Interest Rate decision which I expect to cause GBP weakness. I predict that Ian McCafferty, one of the members of the MPC who has been calling for an interest rate hike will backtrack on this vote leaving the pound even weaker than it is today. If you are buying a foreign currency with sterling the transfer might be much more expensive towards the end of the week. If you are buying the pound this release might help you to get a better deal! For more information on the markets and all of your options please feel free to speak to me Jonathan by calling 01494 787 478 in UK business hours or email jmw@currencies.co.uk. I am very confident I can offer you a better rate than other sources, if you are reading this and would like to learn more please contact me, what have you to lose?

Brexit Fears

The UK is this year or next likely to have a referendum on membership of the European Union. Some calls and reports suggest this could be as early as this summer! European Union membership is a very important feature of the UK’s attractive proposition to global investors. The uncertainty of the UK leaving this key position of global influence could have major ramifications for the future. If you are buying a foreign currency with sterling in the future the Brexit fears are something you should be taking seriously. There is a chance the UK will of course stay in the EU but the uncertainty in the future is leading to GBP losses. So think sensibly about what might happen. Even though you personally might believe that the UK will remain part of the EU, if you are buying a foreign currency with sterling in the next 6 month there is a very strong likelihood sterling will drop in that time frame.

How to mitigate risk

To mitigate the risk of buying currency you have the options to buy a forward contract. For a small deposit (loosely 10%) you can fix a rate on the total amount you need to buy fixing the settlement date (the other 90%) for the balance up to one year in advance. This is perfect for private clients buying property and businesses trying to manage their currency exposure as well. By fixing the rate now you will know exactly what you will be getting in advance allowing you to plan and manage your finances.

Buying foreign currency can be very daunting but it needn’t be. We are here to offer specialist and comprehensive information on financial markets to help you make an informed decision on when to make your trade. For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk. I am very confident I can offer you a better deal than other companies and the banks, if you find our information useful I am sure our exchange rates will also impress you.

Will the pound drop further?

‘The best way to predict the future is to study the past’ said Robert Kiyosaki. So let us look at the past and see why things have happened. And then let us ask ourselves if these situations have been resolved and if therefore they are likely to become features on sterling developments again. My name is Jonathan Watson and I would be happy to hear from you to provide some feedback on your foreign exchange transfer. Please email me on jmw@currencies.co.uk 

The pound has been dumped today because…

China

George Osborne has stated today worries about the global economy are having and will have a marked impact on the UK economy. The UK is very sensitive to developments in the global economy as the UK’s largest sector, Services relies so heavily on overseas business. If China is experiencing stock market wobbles and their economy is slowing down this will hurt the UK. The question is will this continue or not? I think most would agree this will occur and therefore this will continue to hurt sterling and dent confidence in the future.

Brexit

The UK might be about to leave the European Union. This could lead to monumental shifts in UK law and business, this will have an impact on the UK economy and our relationship with the rest of the world. Even if the vote is to stay in and stick with the status quo, investors holding sterling will be very concerned about this predicament and the potential outcome. Will this continue to impact GBP? You bet! We haven’t even really started to hear the arguments yet, this story will be big and sterling will react accordingly. Remember the Scottish referendum and the UK election? If not then please email me and I can fill you in on the battles some clients had with wild swings on sterling rates.

Bad Data means No UK Interest rate hike in 2016

The UK data of late has been poor! We are therefore witnessing an unwinding of safe haven positions from last year. Let me explain… The UK and the pound are viewed favourably by investors because the UK has a strong government and a solid currency that investors like to hold as part of their portfolio. Part of this reasoning was a belief the UK was raising interest rates in the future because the UK economy was improving in the future. With a rising interest rate investors feel more confident to hold that currency as the interest rate hikes means they will earn more on their investment in that currency. Think if you had two choices between two bank accounts, one with a higher interest rate. Which would you choose? Naturally the higher interest rate. The same happens on currency, investors will choose the currency with a higher interest rate or the one they believe will raise interest rates in the future.

Therefore (congratulations on reading this far and not giving up, I know the intricacies of the FX market are not too easily digestable – please don’t give up!) the UK is less likely to raise interest rates because of the poor data this year. As a result the pound is being sold… will this continue in the future? Well so long as the data declines yes. If however the data shows improvements the pound will rise but with the factors above seemingly pointing to a one way street for GBP sentiments, I wouldn’t be banking on this too much if I have a foreign currency to buy with the pound.

The US is raising their interest rate!

The US raised their interest rate in December and are widely expected to again this year. Investors who are holding sterling for the reasons above are therefore switching to USD because they believe over the long term the USD will be more beneficial to hold in the longer term.

What should I do then?

The foreign exchange market is like the weather, you cannot accurately predict it. It is a reflection of investor sentiment on the respective currencies. As demand increases so does the value of said currency, as demand falls, the currency weakens. As a specialist currency broker with many years of experience handling private and business clients foreign exchange exposure I am well placed to offer market insight and hopefully allow you to make an informed decision on what will suit you and your situation. there are various options too to buy currency including fixing a currency purchase on a forward contract (pay 10% now, the rest up to 1 year later) and the Limit Order which is an automatic order at a certain point guaranteeing your rate even if hit for only a second.

My name is Jonathan Watson and I would be happy to hear from you to provide some feedback on how to manage your foreign exchange transfer. Please email me on jmw@currencies.co.uk or call 01494 787 478 in UK business hours and ask to speak to me Jonathan.

I cannot tell you exactly what to do. But I can offer you an educated insightful outlook on your deal plus an exchange rate which I am positive will save you money over other currency brokers and your banks.

Thank you for reading, I hope it has been useful and I hope to hear from you very soon!

Pound drops off – Beware of thinner trading levels during the festive period (Daniel Wright)

Sterling has had a fairly negative day against most major currencies during trading today even though there was very little for the markets to feed off in terms of economic data.

To be honest there is not a huge amount out during the course of the week which would generally lead to a quieter and range bound market but due to much thinner levels of trading and lots of positions being closed off for the year this is and will not be the case for the next week or so.

Late December can be a tough time for anyone looking to buy or sell foreign currency for their business or to deal with a property purchase or sale as the markets can swing quite rapidly without warning which of course can end up costing a large sum of money.

Large funds or companies may well net off their positions to end the year and even smaller tranches of money moving around can have a much bigger impact on exchange rates as the levels of trading are just so much thinner than usual.

One of the reasons for today’s movements may be down to London fixes – This is where benchmark rates and gold prices are decided (usually at 4pm London time) and can have an impact on exchange rates shortly before and after the time it is agreed. More information on this can be found by clicking here if you are interested.

If you are looking to buy or sell foreign currency in the coming days, weeks or months then it is well worth having not just any broker on your side, but a proactive one. We help clients exchange anything from £1000 to multi million Pound transactions all around the world day in day out and not only offer rates better than elsewhere but we also keep our clients well aware of any opportunities that come their way should we see a big shift in their favour or against them.

If you feel that we may be beneficial to you then feel free to contact me (Daniel Wright) the creator of this site by emailing djw@currencies.co.uk or calling me during office hours on 01494 787 478 and I will be more than happy to discuss how I can assist you personally.

 

Inflation Figures do little to Help the Euro. (Daniel Johnson)

Consumer Price Index figures came in this morning for the Eurozone and they caused little movement for GBP/EUR. They came in as anticipated still worryingly low bordering at the point of deflation. Mario Draghi has already indicated that he is willing to increase Quantitative Easing (QE) in order to stimulate growth and lengthen the amount of time it is in place. This will only push his hand further. This will not create ant great shakes however as this has already been factored into the market.

If I was a Euro buyer I would be seriously tempted to move sooner rather than later, GBP/EUR is still very close to the 8yr high of 1.4407 and I think hanging on for a few extra Euros could prove costly. Lets not forget that Sterling has plummeted against the majority of major currency pairings this week.

If you have a currency requirement I would be happy to help. I can guarantee to beat any competitors exchange rate and can also time your trade to trade to maximize return. Please do not hesitate to get in touch I will take pleasure in replying personally. I can be contacted on 01494 787 478 or you can e-mail me on dcj@currencies.co.uk .

Pound Sterling Forecast – Get the most for your money on your currency exchange (Daniel Wright)

We have tens of thousands of clients reading this site each month and I hope that you all find it of use!

For those of you that visit on a regular basis that are not aware – We can actually carry out currency exchanges for you too.

All the writers of this website all work for an award winning foreign exchange brokerage based in the U.K and pride ourselves not only on getting our clients fantastic rates of exchange but also ensuring that they receive the highest level of customer service.

Whether you have  bills to pay overseas, you are in the process of buying or selling a property, your business has the need to exchange currency or any other reason you may find that you need to send money abroad or bring it back then it is well worth contacting us directly.

We have had thousands upon thousands of clients contact us through this site over the years that have saved money over their current currency provider. This includes those that planned to use the bank and even people that have shopped around brokers before and used a broker for years..  It is extremely rare that we would not be able to get you a better price no matter your needs.

To take a look at our site and make an enquiry with one of our experienced and friendly brokers click here or feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be happy to call you personally.

 

Do you find this site of use? If so then it makes sense to contact us to assist you with your currency exchange!

Here at Pound Sterling Forecast we have now spent over 5 years keeping readers fully up to date with market movements by giving timely, up to date and non biased market views and opinions.

All the writers on this site work for a currency brokerage with a turnover of half a billion pounds a year that has won numerous awards both for rates of exchange and customer service so we thought we would make you aware in case you didn’t know.

I have personally had nearly 5000 new clients get in touch with me through the site over the years and for anyone exchanging over £10,000 there has not been one that we have not been able to make a saving for, so if you are in the process of buying a property overseas, emigrating, buying a car or your company carries out large currency exchanges then it would be well worth you contacting me personally even if you feel you are currently getting a good deal through another broker as more often than not you can still do a lot better.

If you are using the bank then it is essential that you get in touch as it is very rare a banks exchange rate is anywhere near what we can offer as a company.

You can email me (Daniel Wright) the creator of this site personally on djw@currencies.co.uk  or fill in the enquiry form on the right hand side of this page with a brief description of what you need to do along with a contact number and I will personally call you to discuss your requirements and let you know how I can assist you.

 

Sterling Breaks 1.37 When should I buy Euros?(Daniel Johnson)

Sterling has strengthened over the Euro today due to positive  UK unemployment data and a rise in average earnings. To add more to Euro woes there was below par figures out for CPI in the Eurozone. We have seen GBP/EUR hit 1.3755 in the last few minutes. If I had a Euro requirement short to medium term I would be looking to move at anything above 1.3740 before GBP hits resistance.

I do have several large GBP/EUR trades going through in the coming days that potentially I could tag new clients on to and achieve a very competitive rate. Please do get in touch if this is something of interest.

I am currently offering a free rate alert service, just drop a line or e-mail with your currency requirements including your time scale and the levels you are hoping to obtain and I will notify you of  any significant movement.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

 

 

What can you do on pound sterling exchange rates this week?

Sterling is performing well as UK GDP pointed to further improvements in the UK economy and we get back to pre-crisis levels. The unbalanced recovery is a concern and it appears unlikely the pound will just keep rising!

With the uncertainty surrounding Greece now removed from the market attention has shifted to wider concerns on interest rates and economic recovery. Personally I cannot see the UK raising interest rates any time soon but the pound appears likely to reach to the data as it has done in the last week.

I think it is really important to understand your options when buying currency with us so here is the information!

1 – Store currency safely in a client account. You don’t need a foreign bank account to buy foreign exchange with us! You can buy Euros and we can keep them here until you need them sending out perfect for business or overseas property investors who don’t yet have a foreign bank account. You can split payments too. eg buy 200k euros and send out 20k euros for deposit leaving remainder here until a foreign bank is open or you need sending out. This means you can buy whilst rates are good not just when you need the currency or have opened a foreign bank account.

2 – We can offer a forward contract to fix today’s rates for up to one year in advance useful for business and anyone buying a large volume of currency. You pay a deposit and choose how far forward. Eg you could fix 300k euros for 3 months and draw it down after 8 weeks if you needed them earlier. Again you don’t need a foreign bank account open to buy with us and can buy or lock in to a price whilst rates are good.

3 – Limit Order’s target a rate you wish to buy currency at in the future. eg 1.60 on GBPUSD. You give us a firm order and we place it into the market. Once the rate is achievable we buy at your desired rate.

If you need to buy or sell the pound understanding all of your options and what is going on in the market is the best way to minimise your exposure. For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk. Just email a quick outline of your position and your situation and I can hopefully offer some useful information to help you get a better deal.

I look forward to hearing from you!

 

Strong GDP Figures surprise markets and boost Sterling (Joshua Privett)

Even though yesterday was a relatively quiet day for data releases, significant weakening for Sterling was recorded. Rounding off a general trend away from the fresh 8 year highs reached last week for GBP/EUR rates at 1.44, poor retail sales figures released in the UK economy caused rates to drop to the low 1.40’s. It was expected that due to the contraction recorded in the retail sector, normally a fantastic performer for the UK economy, that GDP figures will dissapoint markets further on the British economy. As a result, this lack of confidence in the Pound caused rates dip back below the magic 1.40 marker.

However, GDP figures came in higher than expected, surprising everyone, and causing all of the losses for the Pound on Monday to be reversed. Rates suddenly catapulted up to 1.41 this morning. But it is important to note that rates were moving in the opposite direction before this little psychological stunt in the markets. GDP figures also did exceed expectations at the start of the month, they simply did not come in lower than the 0.7% previously predicted.

Without strong data to change the current course of GBP/EUR rates following the agreekment, I fully expect rates to continue journeying downwards. Those looking to purchase Euros should call 01494 787 478 and ask for Joshua to receive a free quote on your transfer. Alternatively, email me on jjp@currencies.co.uk to discuss how to maximise the value of your Sterling while the market is moving against you.