Tag Archives: drop
Bank of England minutes most important for the Pound – released tomorrow morning… Will Mervyn King do Sterling a favour for once?? Doubtful!
Well what can I say…. I go away for a long weekend and the Pound has slipped away again against the Euro….. The single currency appears to not know how to lay down and give up, and investors out there somewhere are still more than happy to back it.
Tomorrow morning is the next key data due for the U.K and indeed the Pound – further doom and gloom from the U.K could knock the Pound even further against the Euro.
The Pound is indeed still gaining ground against the perceived ‘riskier currencies’ such as the AUD, NZD and ZAR as investors risk appetite declines accross the world, as mentioned before when risk appetite is generally low then the more exotic currencies can tend to weaken…. great news for those of you looking to emigrate further afield!
Personally I feel the Pound will creep up a little further against the AUD, NZD and ZAR in the near term, until some major issues accross Europe at least have reasonably solid solutions in place to resolve them.
Tomorrow will be key for those with Euro requirements be it buying or selling as we could easily see a shift of quite some force surrounding the Bank of England’s release. It would not surprise me to see the Pound struggle again against the Euro and a spanner to be thrown into the works, it is easy when you have a currency transaction to carry out to stare upwards and just hope that rates follw suit, the problem is the currency markets can quite easily nip in your back pocket and steal your wallet whilst you are looking at the sky, and there is no guarantee that they will give it back and rates will return.
If you have a currency requirement imminently or in the coming months then do feel free to contact me directly djw@currencies.co.uk and I will be confident that you receive a much better rate of exchange than using your bank or another broker by using me – So far this year through this site alone 231 people have got in touch and used me personally, joining our growing list of over 40,000 clients here at Foreign Currency Direct.
GBP – USD Performance over the past month as we saw lowest point sice 20th October today…. Is this the start of another drop due to investors risk worries?!
As you can see from the graph above the wave of 1.60+ against the Dollar may have gone for the time being… I had though that two weeks ago this would happen as investors just do not know where to turn next… The issue is that the longer uncertainty remains and the longer poor economic data releases are coming out accross the world the more investors are cowering back to the $ and this in turn is giving it strength as demand increases.
In the lead up to Christmas it would not surprise me to see rates drop ever so slightly further so if you have an upcoming Dollar transaction to carry out it may be worth considering your options, if you are Selling Dollars it might be prudent just to keep a close eye on things in the coming weeks, I could indeed also do this for you if you are generally quite busy day to day, I can then highlight any peaks or spikes in your favour and you then have the option to book out if you so wish.
Feel free to get in touch directly djw@currencies.co.uk for information on just how I can help with both personal and corporate transactions.
Retail Sales much worse than expected
The grey cloud hanging over the head of the U.K being retail sales from the horrible weather in December has finally opened the heavens and rained down on the Pound.
Retail Sales did come out much worse than expected (against my own predictions) however my thoughts that it wouldn’t knock the Pound follwing release were correct so at least I got the currency movements side of things right.
Markets move on rumour as well as fact so many may have already assumed this would happen and the market may have moved accordingly in advance of this, hence the fact we have not witnessed a huge drop immediately after this release.
Should you have an upcoming transaction to do feel free to contact me directly by filling in the enquiry form on the right hand side and I will happily explain the various options available to you inclusive of how I can achieve you a much better rate of exchange than the high street banks.
