Tag Archives: currency
Mark Carney and the Bank of England have raised UK growth forecasts helping sterling to gain against a number of currencies. At the same time they have underlined interest rates will be on hold for a long period of time which limits just how much higher we can expect sterling to rise in the coming weeks and months.
If you have a sterling transfer to consider in the coming weeks and months making some plans now at these levels may be a sensible move.
In other news the new Federal Reserve Chairmen Janet Yellen underlined Quantitative Easing in the US is likely to continue until there are significant improvements in the jobs market. And overnight Chinese economic data was much stronger than expected presenting what I believe is a very good opportunity for anyone selling Australian dollars or South African Rand to buy GBP.
I am available to assist in the planning and execution of any international money transfers you need to make (including bringing funds back to the UK or Europe). Unfortunately no one can tell you exactly what will happen on exchange rates but having won awards for our service and rates, we are extremely well placed to offer expertise in managing your currency exposure.
For a breakdown of strategies and options on your particular exchange please call me Jonathan in UK office hours on 01494 787 478 or if you prefer email a quick outline of your position to email@example.com
Last night the Federal Reserve tapered by another $10bn as expected so the Dollar has fought back against the Pound and the Euro. However the big news has been the commodity currencies, where sterling has gained considerably. The fear for many countries is now that the tap of cheap money from the US is being switched off, their economies could suffer. South Africa followed India and Turkey in a surprise interest rate hike yesterday to try and stop the massive slide in the ZAR. However the currency is still near a decade low and currently just under 19! If you are buying Rand then it is a great opportunity on a very volatile currency.
Rates for NZD are also very good as the RBNZ didn’t hike interest rates (there was an outside chance they would hike) so we have seen Kiwi weakness as a result. Rates up over 2 have been pretty difficult of late as it seems to be a resistance point so again I would be tempted to buy now in the short term. The Aussie rate decision comes out on Tuesday and there is unlikely to be a change there but the accompanying statement could cause a lot of movement. We do have Chinese Manufacturing PMI over the weekend which will affect demand for Aussie raw materials, and Japanese monetary policy could be determined by tonight’s inflation figures- any sign of a further weakening could cause a lot of regional volatility for both the Aussie and the Kiwi as a result.
In all I cant see sterling gaining huge ground under its own steam after Carney dampened down interest rate expectations in the UK, so the current weakness for the 3 big southern hemisphere currencies could be a great opportunity to buy. If you do need to transfer currency to New Zealand, Australia, or South Africa then please do not hesitate to contact me on firstname.lastname@example.org or call 0044 1494 725 353 and ask for Colm
As predicted this morning it turns out Retail Sales were better than expected at 2.6% versus the 0.4% expectation. I would not have foreseen such a large improvement but this is obviously welcome for the UK economy although not the best news if you are selling a currency to buy GBP today.
I did hear back from the ONS (who were very fast and efficient I may add) who were not able to comment on which companies they sample for the Retail Sales figures for confidentiality issues. What they did say is that ‘if they have a UK registered address then they could potentially be included in the sample’.
The true impact of more shopping online with overseas businesses and the impact on the UK high street and Retail figures remains to be seen from this particular data therefore. It may be that one of the better retailers like John Lewis was included whilst poor performers like M&S were not. In any event it is a sample of companies and we have to go with what we have. It is certainly what other investors and economists will be using!
Looking ahead Q4 2013 GDP figures Tuesday 28th January is now very interesting. Will these Retail figures be reflected in the GDP data? With Retail accounting for 60-70% of the UK economy you could soon be looking at further improvements for the pound. As I have been saying for many weeks if you have a foreign currency to sell for sterling moving sooner really may be the best option.
For the latest news and more information on what is moving the market, as well as how to get the best rates of exchange please contact us or me directly using email@example.com or call 01494 787 478 and ask to speak with me Jonathan.
Enjoy the weekend
Having seen a few friends already break their new year resolutions this weekend I can smugly say that so far I am still going strong with mine.
One is to complete the Dryathon (no drinking in January) for the second year running and the other is to save money on whatever I can.
Everyone likes to save money and I think it is high time I listen a little more to the money saving expert Martin Lewis (his blog is number 2 and this one is number 4 of the top U.K finance blogs) and make sure I ask myself before paying for something if I really am getting the best price.
There is a fortune to be saved by shopping around and this by no means changes when exchanging foreign currency!
If you have a currency transfer to make in the near future then you need to make sure you get two quotes to ensure you are getting the most for your money as a tiny improvement on the rate can make a big difference in the amount of currency you purchase. On overseas property purchases you can actually save enough to furnish the property or even pay for numerous flights to your new dream home overseas by using a currency broker over using your bank.
On the flip side if you already have a currency broker it makes no harm to get a rate comparison now and again just to make 100% sure you can’t do any better.
The company I work for has won best exchange rate awards in both the Sunday Times and Daily Telegraph and we also pride ourselves on fantastic customer service. We are FCA (Previously the FSA) regulated and authorised as a payments institute which also makes us exceedingly secure to deal with.
If you want to follow my lead and start saving a little extra cash then why not start it right here. We have over 50,000 visits a month and generally do our very best to provide you with great market knowledge on what has happened to the Pound, why it has happened and what may happen in the future.
If you find our information useful then it may be prudent to get in touch to let us help you with your currency transfer either imminently or that is due to be carried out in the future.
Should you wish to have me call you personally to discuss the various options available to you then feel free to email me directly with a brief description of what you are looking to do and a contact number, I will be more than happy to help. You can email me on firstname.lastname@example.org and I will get back to you shortly.
A busy week ahead for the Pound, week overview will follow here tomorrow.
Thanks for reading!
The pound has faltered against the euro due to some not so positive GBP data for Consumer Credit and spending. This has underlined the recent trend of GBP weakness as a result of the US slowdown. Longer term if the economic data improves we should see the pound make some gains but Q4 has been made much more cloudy following the US shutdown.
Will the pound make a comeback?
Sterling does look reasonably well placed to now make a comeback but it is important to look at the bigger picture with the UK. Let us look at the positives, namely an economy that is growing and will soon (if the growth continues) be paying off their debt. However this is against as backdrop of debt significantly rising and a global economy that (thanks to the US) is a little more uncertain than it was a few weeks ago.
We will not know the full effects of the US shutdown on the UK economy until next month when we get the first data for October. This is not expected to be GBP positive and could cause GBP weakness.Last week’s positive GDP data did very little to spark interest in sterling and a big move higher seems highly unlikely in the absence of some truly exceptional (and unexpected) economic data.
When to buy or sell?
If you considering buying or selling the pound for a foreign currency a small movement on exchange rates can make a huge difference to the amount of currency you receive. If you are selling Euros now versus the start of the month, on a €250,000 exchange you would be over £6000 better off.
Daily movements can be as much as a couple of cents and keeping up to speed with the latest trends can save you a fortune. If you are weighing up an exchange this site has helped thousands of people through information. For information on the best way to move funds into or out of the UK at the very best exchange rates please contact me Jonathan on email@example.com