Tag Archives: euro

Sterling tentatively up but US Dollar steals spotlight away from buying Euro exchange rate gains (Joshua Privett)

The very politicized landscape for 2017 has struck the currency markets once more, with Sterling gaining strength following very encouraging economic performance news, but still losing out heavily to improvements on the US Dollar and Australian Dollar today.

I’m sure many of the readers here would have seen the news coming out in the last 24 hours about the alleged ties between Trump and Russia. Rather than Russia seeming to be the outside actor influencing the election, there is now talk of the Trump campaign team and Russia actively working together.

What does this have to do with exchange rates?

The value of the US Dollar is heavily linked to the Australian Dollar, and today was the confirmation hearing for the US Secretary of State. With all of this news, markets were worried he would flounder and create an issue for his confirmation hearing. Quite the opposite. He confirmed the party line and seemed to allude to a continuation of previous foreign policy under Obama (i.e. critical of Russia), and market confidence in the Dollar soared, taking the Australian Dollar with it.

So US Dollar and Australian Dollar sellers were gifted some tempting exchange rates from this sudden situation found in the US and the way it was dealt with.

The positive news today for the Pound, however, is still suggestive of further improvements for Sterling in the medium-term. The Supreme Court could be released any day from tomorrow now that they are back in session, and the anticipated result should improve Sterling’s buying power against its major currency pairings.

As in November, when the initial ruling from the Judicial Court stated that Parliament must be consulted to trigger Article 50, rates for buying Euros and Dollars soared.

However, as we edge closer to Article 50 being triggered, this is causing heightened anxiety surrounding the Pound. The sudden drop in the Pound on Monday in reaction to Theresa May’s very vague and hardly shocking comments in an interview on Sunday.

So with the risk of May and other European leaders having to make more and more comments on the aims of the negotiations as we edge closer to March, it can be argued that the clear result of the Supreme Court decision could bring a ‘sweet spot’ on buying Euro and Australian Dollar rates in particular before we edge further into this period of heightened political risk to the value of the Pound.

To ensure you make the most of this particular opportunity, a premium will be put on being able to move quickly over the next few weeks. There are a number of options through a currency exchange specialist which makes sure you are never ‘last to the party’ when more tempting buying opportunities arise, as they are rarely available for long.

You can contact me overnight whilst markets are quiet on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximizing your currency return and protecting it from any sudden pitfalls, which can occur in this marketplace with little warning.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Sterling remains under pressure despite positive data release, is this a sign of things to come? (Joseph Wright)

The Pound has come under pressure today despite the UK economy posting some better than expected figures in an important sector of the UK economy.

After beginning the day negatively the Pound received a slight boost this morning as Services PMI data came out better than analysts had expected. The data showed that sentiment within the services sector is positive, which is important for the UK economy as the services sector amounts to more than two-thirds of the countries economic output.

In normal market conditions it wouldn’t be unusual to see the Pound spike upward off this news, and although it attempted to the currency is currency down against all major currency pairs with the exception of the US Dollar, which has dropped in value today also across the board.

Those concerned with the value of the Pound should pay close attention to the outcome of the Supreme Courts decision on whether or not the government needs parliamentary approval before beginning the Brexit process.

This topic appears to be the biggest mover of currency pairs involving the Pound and the Euro could also feel the effects of the decision. The outcome is scheduled to be released between the 12-17th of this month and I expect expectations of the decision to effect Sterling’s value between now and then.

Other than this, economic data could also weigh on Sterling’s value especially if it disappoints considering what happened today. Feel free to get in touch if you wish to discuss any upcoming news releases and how they could effect your upcoming currency exchange requirement.

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 touch 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 on 01494 787 478, just ask reception for Joe. 

 

When shall I Trade? (Daniel Johnson)

GBP/EUR

I feel long term we will see Sterling rally against the Euro, I feel it is chronically undervalued at present. The only reason the pound is below 1.20 is due to the electorate’s decision to leave the EU. The key factor in the pound’s value is trade negotiations, which currently leaves the nations economy in uncertainty. The High Court Judgement as to whether the government will vote on the triggering of Article 50 is due to complete in early January and this will determine whether there is a hard or soft Brexit. A hard Brexit would weaken the pound substantially. If you have to buy Euros short term and wish to eliminate any risk from your trade it may be wise take advantage of current levels.

Medium to long term as trade negotiations become more apparent Sterling should gain strength. The Euro also has some serious underlying problems which could rear their head. Political uncertainty  caused by the emergence of right wing groups could cause weakness. Also we have Italian Banks bad loans in excess of €360bn, A debt crisis in Greece and shockingly low inflation. Any of these factors could severely weaken the Euro.

GBP/USD

Following the FED’s decision to hike rates and forward planning indicating there could be as many as three more. I think the US dollar has further ground to gain on Sterling. The Dow is finishing at record highs and economic data is very strong. If I had to buy Dollars I would be moving quickly.

If  you have a currency requirement it is wise to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board we can keeo you up to date with what is happening in the market to help you make an informed decision. If you would would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading.

 

Italian referendum this weekend to be key for exchange rates early next week (Daniel Wright)

So another referendum is due to happen this weekend, this time over in Italy. Unlike the recent one in the U.K this is not a vote to leave the EU but a vote on constitutional reform.

This is extremely key as it may result in another heavy bout of uncertainty for Italy should the vote got the wrong way for Prime Minister Matteo Renzi, who has already warned that should the vote go against him and stop him from making certain changes that he feels he need to make then he would be looking to step down.

We already have various economic issues for Italy, most notably the banks who appear to be struggling and walking a bit of a tightrope, so should we then see huge political uncertainty added to Italian woes then the Euro may have a bad start to next week and you may potentially see GBP/EUR exchange rates go above 1.20 again in trading early next week.

Considering exchange rates against the Euro were lingering around the 1.10 mark merely a few weeks ago, anyone looking to buy Euros must be looking at the markets with a small smirk on their face as their pending purchase has got a lot cheaper recently.

Sunday night/Monday morning will be the next point of interest for anyone with a Euro interest and with so many other large decisions pending within Europe over the next few months I firmly believe the next 12 months are going to be extremely testing for the Euro.

We cannot forget there is also an election in Austria this weekend too with the far right party holding a great chance of success, causing more issues politically within the area.

All of these referendums and elections will impact all major currencies as we will see alterations in global attitude to risk, so the perceived ‘riskier’ currencies such as the AUD, NZD and ZAR may lose strength and those that are perceived as safer havens may gain ground if results cause uncertainty.

If you have any currency to exchange, no matter where you are based then we can help you out here. Should you wish to have a friendly, proactive and experienced broker on your side then we always welcome new clients to get in touch. I have personally been assisting clients moving money overseas and bringing money back for nearly 10 years so you can be confident that your transaction will be dealt with smoothly, securely and at the best rate of exchange.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk should you be in this position and I will be more than happy to contact you personally. 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.

Autumn Budget – Expect volatility on the market (Daniel Johnson)

The Autumn Statement

Tomorrow the Chancellor, Philip Hammond will deliver the autumn Budget. He will outline spending and taxes post-Brexit vote. We will also see forecasts relating to unemployment, growth and inflation. This will give an indication as to policy moving forward.

Inflation will be particularly interesting as the fall in Sterling has caused import prices to rocket which will soon hit the consumer. This is not good news for the UK economy as wage growth will not keep up. Some economists are predicting we could be as high as 2.7% by the end of Q1.

George Osbourne’s pledge to balance the books by the end of his tenure has been scuppered by the referendum vote and the government face a black hole of around £25bn. I would expect there to be a rise in borrowing of £5bn upwards.

Expect  drop in growth forecasts and the pound to be hit due to this. If you have currency requirement involving selling Sterling it may be wise to take advantage of current highs.

If you have a currency requirement I would be happy to assist. If you wold like no obligation help, feel free to contact me personally at dcj@currencies.co.uk. I can provide you with an individual trading strategy if you provide me with the currency pair you are trading, your time scale and a ball park figure of the size of your trade. I work for Foreign Currency Direct PLC, one of the top brokerages in the Country and it enables us to provide the most competitive rates of exchange. We are registered with the FCA and have been in business for over 16yrs giving clients peace of mind when dealing with their transfers.  Thank you for reading my blog and I look forward to helping you with your currency requirements.

Sterling spikes as Theresa May reassures business and brings confidence to the Pound (Daniel Wright)

The Pound has had a fantastic start to the week, gaining ground against every major currency but the South African Rand over the course of trading today.

As I write this we have seen Sterling exchange rates breach 1.17 against the Euro, hanging around the 1.25 mark against the Dollar and closing in on 1.70 against the Australian Dollar.

Days like this really do show just why it is key to keep in contact with an experienced and proactive currency broker, I have informed lots of clients today about the spike and many of them have taken advantage which has made their currency purchase a lot cheaper.

We deal with overseas property purchases/sales, business transactions, wage payments and much more so if you are in the position that you may need to carry out a currency exchange for any of these reasons then feel free to contact me (Daniel Wright) directly on djw@currencies.co.uk and I will be happy to get in touch personally.

Later this week we will have Chancellor Philip Hammond and his Autumn Statement. Investors and speculators alike will be watching this with baited breath, waiting on hints for how the economy is due to be tackled throughout the ‘brexit’ process and how he plans top approach certain matters.

We still have the small matter of the high court decision regarding Article 50 so this may lead to some exceedingly volatile times coming up which is why it is essential to have someone on your side.

All of the writers here work for one of the top foreign exchange companies in the U.K and can help anyone around the world with their currency exchanges.

We pride ourselves on achieving our clients market leading rates of exchange but on top of this we like to think our level of service is second to none. We now have over 90,000 satisfied clients and have helped thousands of readers of this blog save money over their bank or current broker over the past 7 years.

Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk if you feel I can be of assistance to you and I will be more than happy to contact you personally to discuss the various options available  to you in simple terms.

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 the pound keep rising?

This week has seen sterling make some of the most impressive gains in recent history and has gone from being one of the world’s worst performing currencies in October to so far the world’s best performing currency in November. Will this twist for the pound be as quickly reversed as it occurred or are we now looking at the start of a new chapter in the value of sterling? Nothing should be taken for granted on exchange rates and the moves this week serve as a reminder to any clients who think they can second guess the market and are assuming they know what will happen longer term.

Unexpected events can often happen on exchange rates and this week the election of Donald Trump proved that we should always expect the unexpected. Trump’s election has sent ripple through financial markets and tipped the balance of countries seeking control over their economies and borders (now the US and the UK) versus those in favour of open borders and more monetary integration (the Eurozone). With attention now turning to political concerns in the Eurozone the Euro has lost ground and sterling has been seriously buoyed as investors seize on the pound’s low value and await further improvements longer term.

This month there is still plenty of data and events to move financial markets including the Autumn Statement. I think sterling will now enter a period of consolidation and will not just keep rising in this market. There are too many negatives for the UK to overcome and I do feel anyone buying a foreign currency with the pound should be cautiously optimistic.

For more information at no cost or obligation please speak to me Jonathan Watson chief analyst and associate director by emailing jmw@currencies.co.uk or filling in the form below.

 

Trump victory and how it has impacted Sterling exchange rates today (Daniel Wright)

Following on from the announcement this morning that Donald Trump had won the U.S Presidential election Sterling exchange rates have had a fantastic afternoon, with the pound up against every major currency. Sterling climbed to 1.14 against the Euro, 1.25 against the Dollar, 1.72 against the New Zealand Dollar, 1.65 on the Australian Dollar, 1.22 on the Swiss Franc and 1.69 against the Canadian Dollar.

Initially we saw a fairly large sell off for the riskier currencies (Australian Dollar, New Zealand Dollar and South African Rand) however as of writing this they had started to claw back quite a bit of ground. Stocks and shares had a similar reaction, initially dropping off quite harshly and then slowly creeping back up as the day has gone on.

It appears the markets in general are waiting to see what Trump says next and how he plans to move forward with the economy before the next move. The general thinking is that a trade deal for the U.K may now not be “at the back of the queue” as Trump would favour the U.K getting a deal a little more than Obama may have.

I personally feel that focus will now move on to Brexit once again so be aware that the media will now be looking to fill their pages up with new material as the Trump/Clinton battle has cooled off.

There is a chance now that Sterling may fall back into fashion, and with Sterling exchange rates so low the Pound is cheap to buy so I would not be surprised to see this trend continue, but do beware that further Brexit news may dampen this.

For the rest of the week I feel we will more than likely see some volatility depending on what we hear from Trump, but there are a few other releases of note for the markets to digest.

We have the RBNZ interest rate decision over in New Zealand this evening and expectations are for a cut from 2% down to 1.75% which may weaken the New Zealand Dollar a little more. Most important may be the press conference after it and if there are any indications of further cuts.

More likely than not the markets will be hinging off of Trumps every word in the coming days and weeks, and with the U.S being a number of hours ahead of the U.K we may see large swings overnight.

If you are in the position where you may need to carry out a currency exchange involving buying or selling the Pound then it would be sensible to get in contact with me. I have worked at one of the largest currency brokerages in the U.K for the past 10 years and can assist you with sending money overseas or bringing money back. We do not only offer market leading rates of exchange but also an exceptional level of customer service too. Feel free to contact me (Daniel Wright) if you feel I may be able to assist you. Even if you already use a broker it is still worth spending two minutes emailing me as I would be surprised if I could not save you money.

You can email me directly on djw@currencies.co.uk and I will get back to you straight from our trading floor.

Finally some positive movements for the Pound! I know a lot of our regular readers have been hoping for this…