Tag Archives: exchange

Will sterling keep up this current trajectory?

Tomorrow is UK Retail Sales and Friday is the latest UK GDP (Gross Domestic Product) data. Both of these releases could easily spark volatility in the market underlining the importance of keeping up to date with the market. In the last few weeks sterling exchange rates have crept up notably against the Euro but we are at multi year highs against pretty much everything! Can sterling keep on this trajectory?

Well early indications seem to think so with recent poor borrowing economic data being ignored in anticipation of an interest rate at hike at some point in the future. As is so often the case with exchange rate it isn’t just which currency is the best, it is that others are very unpopular! Take the Euro for example, we may still see some QE (Quantitative Easing) in the future. This form of ‘printing money’ is very bad for the currency as by increasing the money supply it effectively dilutes the strength of the currency. The UK used QE many years ago and this is one of the reasons the pound dipped to almost parity with the Euro, imagine the detrimental effect QE in the Eurozone would have on GBPEUR rates!

If you have any need to buy large volumes of foreign exchange getting the best exchange rate is central to making the most of your money. The authors of this blog and I are extremely confident we can undercut other sources like banks and other currency brokers on exchange rates, plus also offer practical assistance in the timing and management of your payments. For a quick rundown of your situation and a comparison why not make contact? We can then have a quick chat at no cost or obligation and you can decide for yourself what is better! After all if you were entirely happy with your current situation you probably wouldn’t have read this far!

Jonathan Watson, jmw@currencies.co.uk

Sterling exchange rates may be in for a volatile few days to end off the week? (Daniel Wright)

Important Economic data still to come out this week

Following a very quiet start to the week for the Pound here are a few key pieces of economic data due out over the coming few days that may affect the value of Sterling against these major currencies.

The two key days for me may be the Bank of England meeting minutes tomorrow morning at 09:30am followed by BOE Governor Mark Carney speaking in the early afternoon and U.K GDP (Gross Domestic Product) data due on Friday, also at 09:30am.

We are currently still very close to a two year high against the Euro and a nearly at a six year high against the Dollar so trading levels are still extremely attractive for anyone looking to buy either of these two currencies.

Last night we had Governor of the RBA Glenn Stevens speak and he has now once again spoken and confirmed that he is happy with the current monetary policy in Australia, seemingly changing his view that the AUD is too strong and giving the Australian Dollar some early morning strength.

Today – Reasonably quiet for economic data today with the main focus being on U.S inflation data which is due out at 13:30pm this afternoon. As with most U.S data this can have an effect on all major currencies as it does affect global attitude to risk.

Wednesday – Inflation data also starts the day off tomorrow with Australian having their turn this time. Australian inflation data is due out at 02:30am so could be an overnight market mover so if you have a requirement to buy or sell Australian Dollars in the near future it may be prudent to place a limit order or stop loss to either take advantage of a short spike or protect yourself from adverse market movement. Contact me for more details on how these options work.

Tomorrow morning does has the potential to be a big market mover although it has not been led to too much market volatility over the last few months. We have the Bank of England minutes out for the U.K which are from the last interest rate decision. The key will be if any members of the Bank of England have started voting in favour of an interest rate hike, for a long time now the vote has been all nine members of the monetary policy committee in favour of no change but with all the talk of interest rate changes coming closer will anyone have changed their mind?

In early afternoon Governor of the Bank of England Mark Carney speaks at 12:24pm so be very aware that investors will be hanging off of his every word so Wednesday for me has real potential to be the most volatile of the week.

For those tracking the New Zealand Dollar we have the RBNZ Interest rate decision out at 22:00pm and a small hike in interest rates is expected, if this happens be cautious of a little NZD strength overnight, if they do not hike as expected then we could see the Pound gain a little back. Again a stop loss or limit order overnight may be a sensible approach.

Thursday  Thursday morning is fairly busy once again with a flurry of services and manufacturing data out for Europe throughout the morning from 8:00am until 9:00am followed by U.K Retail Sales data at 09:30am. Expectations are for a small rise in Retail Sales but as you are all aware these releases don’t always come out as expected.

Friday Once again 09:30am is the key for those following Sterling exchange rates as we have GDP (Gross Domestic Product) data out for the U.K at this time. GDP measures the amount the economy has grown or shrunk within a specific period of time. This can be one of the most important releases of the month an again expectations are for a minor increase year on year but no revision to quarter 2.

All in all a fairly busy few days, so if you have a currency transfer to carry out involving any major currency it is well worth making me aware of it or giving me a call so I can notify you of any large market movements or so that you can secure these fantastic exchange rates so that the market does not have a chance to drop back away again if data is not too great.

If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.

This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.

I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange. You can email me directly on djw@currencies.co.uk and I will be more than happy to assist you.

 

 

Pound Sterling exchange rates creep up following solid manufacturing figures (Daniel Wright)

The Pound had a good morning against most major currencies following slightly better than expected Manufacturing data released by the U.K.

Expectations had been for a minor drop in PMI Manufacturing data but we actually saw a small increase which in turn gave Sterling a small boost.

We also saw European unemployment figures show a minor improvement at 11.6% instead of the projected 11.7% which potentially held back further gains against the Euro (although this is still not great).

Tomorrow morning we will see growth figures for Europe as a whole so that is the next big Euro based data release to look out for. Most heads however will be turned towards the ECB (European Central Bank) interest rate decision and press conference released on Thursday at 12:45pm and 13:30pm respectively.

For anyone with an interest outside the Euro beware that Non Farm Payroll data in the States is also released on Thursday at 13:30pm (A day earlier due to independence day).

Non-Farm Payroll data is essentially the number of people in Non-agricultural employment over in the States and is a key indication as to how their economy is performing.

This release can cause quite a lot of volatility because predictions are made in advance and these can be wildly out. The market moves on rumours and predictions as well as fact, and should the figure come out quite a way from initial predictions the market does correct itself rather swiftly.The reason this effects the AUD, NZD and ZAR and pretty much most majors is because as I am sure you can imagine it will affect attitude to risk and will lead to rapid movements of large amounts of money globally.

If you have an upcoming transfer to carry out and want to get the best exchange rates along with great customer service and knowledge of the markets then email me directly on djw@currencies.co.uk  I welcome all enquiries for bank to bank transfers however i’m afraid I cannot help with cash transactions or speculation.

 

Sterling exchange rates remain steady in a quiet week for economic data (Daniel Wright)

The Pound has had a fairly quiet day on the markets against most major currencies following the pattern of the week so far.

With minimal economic data out of note this week most heads will now turn to Governor of the Bank of England Mark Carney speaking tomorrow morning at 10:30am. Carney spoke on Tuesday morning and his general message was that wage inflation was still a slight concern but it does still look like everything is heading in the right direction. The slight hint of concern along with comments from his colleagues at the Bank of England has led to a minor dip for Sterling but I am still well and truly a believer that the pound is indeed still in fashion with speculators and investors alike and it would be a surprise to see much more of a dip in the coming days unless Carney throws up a surprise.

We also have the U.K Financial stability report out at 10:30am too so do be aware that this could have an affect on the value of Sterling just before Mark Carney even starts to talk.

If you are looking to buy or sell currency involving the Pound either for a property purchase/ sale or for your business then it is well worth contacting me directly. The company I work for not only has won many awards for our rates of exchange but also for our high level of customer service.

Please do feel free to get in touch with me (Daniel Wright) for a no obligation discussion about your requirements and i will be more than happy to contact you personally. You can email me on djw@currencies.co.uk with a brief description of your requirement and a contact number and I will be more than happy to get in touch.

Can you really afford to ignore the current exchange rate? 1.2521 on GBPEUR, 1.6955 on GBPUSD and 1.8164 on GBPAUD.

The pound has been boosted further by an unexpected turn of events. At the time of writing we are 1.2521 on GBPEUR, 1.6955 on GBPUSD and 1.8164 on GBPAUD. This just goes to show how nothing should ever be taken for granted on exchange rates and how quickly events can turn. You might not be able to predict the future (nor can we), but we aim to ensure clients are prepared for eventualities with expert market commentary and analysis plus an award winning exchange rate.

At home…

Tomorrow is vital for sterling with the latest Bank of England Minutes. Following Mark Carney’s recent comments, could we expect to see an outside chance of a vote for an interest rate hike? Thursday we have Retail Sales figures and Friday PSNB (Public Sector Net Borrowing) data. All in all the pound should remain supported but last month Retail figures and the PSNB data all knocked confidence slightly by coming in lower than expected. Depending on the data tomorrow from the Bank of England it may be that a worsening situation in Iraq alters sentiments towards the end of the week and sterling may lose ground.

I believe the current excellent rates quoted above should not be readily dismissed in the hope of much higher levels. It may be that there is more to lose than gain from holding on and it is often the greedy who get their fingers burnt… For a quick overview of your transaction and assistance moving funds internationally please contact me Jonathan on jmw@currencies.co.uk

Abroad…

Further afield we have the Federal Reserve in the US clarifying their position on a further extension of the ‘taper’. The significantly improved Labour market reports for the US indicate to me that we will see a further $10bn withdrawal and this has probably been priced into GBPUSD and EURUSD already. In the Eurozone there is little to move the market and I expect the Euro to remain on the backfoot as markets still digest the recent ECB moves to cut interest rates.

The Best Exchange Rates?

This website purports to get you the best exchange rates but what does this mean, how exactly do we do this? Let me explain in a nutshell! We…

- Undercut the banks and other sources. Given a fair shot we buy currency live in the market which gives us scope to negotiate a rate more favourable than banks and other sources.

- Proactively manage your FX exposure by offering a range of tools and options to limit risk. We can offer forecasts specific to your exchange to help you better understand the market and which way things could be headed.

 - Focus on customer service. As well as provide the best rates we ensure all payments go through smoothly, promptly and offer useful information on how to navigate international banks.

GBPEUR is 11 cents higher than its low point of 2013, GBPUSD is 20 cents higher than the low point of 2013 and GBPAUD is 35 cents higher than the low point of 2013. The pound is trading at some truly excellent levels and it is all on the back of speculation of when the Bank of England will raise interest rates. The market will often do whatever is necessary to prove everyone wrong. 2 years ago GBPEUR hit 1.2860 before crashing to 1.14 8 months later. Can you really afford to ignore the current exchange rate?

For some support and assistance with your international money exchanges please contact the author Jonathan directly on jmw@currencies.co.uk, I look forward to hearing from you and assisting with information and facilitating your exchanges.

Jonathan

 

Sterling hits the big time!

Sterling has hit the big time this year as it shakes off the worst of the last few years and sets sights on the future. The UK’s economic position has improved massively of late and is arguably now one of the worlds leading economies again. Especially when compared to other leading economies and currencies like for example the US and Euro.

There are risks up ahead of course, notably the Scottish Referendum and any further deterioration in the Eurozone economy. On balance we would have to expect sterling to remain well supported and should it manage to avoid the more obvious risks ahead of next year, we could see further strength in the new year as it becomes more apparent the UK’s recovery is underway and the prospect of raising interest rates looms.

Should you have any currency transfers please don’t hesitate to contact us for a forecast on just where the rates could be once your transaction is settled. Getting the best rates through the multiple sources we trade through, we are very well placed to help you maximise any transfers.

 

For more information please contact me Jonathan on jmw@currencies.co.uk

Has the pound reached a peak against its peers?

Unexpected pressure has surfaced recently with mortgage approvals falling and government borrowing increasing. It is no good to see improvements in the economy if coalition plans to reduce the budget deficit are scuppered with increased borrowing!

I think you would still have to favour sterling over most currencies but it may be possible that some of the more recent multi year highs on GBPEUR, GBPUSD and GBPAUD amongst others have now been reached. If you need to buy a foreign currency with sterling it should not be readily assumed rates will just keep climbing as they have done for the last couple of months…

Next week promises to be an eventful one with the start of a new month and a new round of economic data to move markets. I feel it would be a real shame to miss out on what are still some very attractive levels to trade sterling and suggest anyone with an upcoming requirement acknowledges current levels and the vast improvements from last year. Topical elections at home and abroad raise the prospect of longer term political uncertainty which can cause unfavourable currency movements. The Scottish referendum still looks like it could cause some turbulence on exchange rates and is another factor which could weigh on the pound later this year.

Recent and current Sterling strength is based largely on expectations of interest rate hikes in 2015. The scope for weakness before then is as we have seen very real and I do feel anyone with currency requirements later this year may do well to take stock of current levels. Don’t forget you can book funds out on a forward rate which for a small deposit now guarantees your price for the future. For a full overview of your position please email jmw@currencies.co.uk

Sterling hits 16 month high against the Euro – Dropped away a little this morning

The Pound has followed its good run of form against most major currencies in trading yesterday morning following exceedingly positive Retail Sales figures and reasonably positive comments from the Bank of England – Pushing us close to a 16 month high to buy Euros and into positive territory for the day against all major currencies.

We did see the rates creep back a little this morning after a little worse than expected Public Sector Net Borrowing figures for the U.K. On a positive note the GDP revision came out as expected so growth figures are still fairly solid.

With such a great run of form for Sterling it would be a shame to let this opportunity slip away, so if you are looking to buy foreign currency with the Pound either now or in the near future then it may be prudent to look at securing at least a proportion of the amount you are looking to buy, so that if it does slip back away you do not end up losing out.

To buy €100,000 now compared to just a few weeks ago is around £1500 cheaper which could pay for a lot.

Should you wish to take advantage of these exceptional rates today feel free to email me directly or call me on the number below.

If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.

This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.

I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange. You can email me on djw@currencies.co.uk

GBP Forecast remain positive, it will be events outside the UK which dictate future GBP moves…

There is an old adage that sometimes it is not a case of which currency is the stronger, but which is the least weak. That is rather than there being positive reasons for one currency to be strong, there are so many negative reasons for the others to be weak, the ‘least weak’ gains strength. A bit like with UK governments, it isn’t who is the most popular who gets power but who is the least unpopular!

The pound is benefiting due to continued worries in the US and Eurozone over their economic outlooks. The pound to me looks set to make further gains due to its economic recovery yes but the fact the US is still pumping billions of QE every month to support their economy and the Eurozone has deflation worries, are all serving to make the pound appear more attractive.

Continued impressive UK data looks set to extend the recent gains and Mario Draghi and Janet Yellen both seem on crash courses to weaken their respective currency. We don’t offer advice for speculative traders (sorry!) but many speculative traders use our site. Those that do may wish to note I told you 1,40 would be a top end on EURUSD, I know some of our sharper readers shorted EURUSD at 1.3990, I hope they remember me when they close the position! This was all based on the fact that Mario Draghi said he viewed 1.40 as too strong for the EURUSD rate…

Anyway back to the pound and the forecast. The outlook remains favourable and anyone selling sterling for a foreign currency may wish to hold on, if selling a foreign currency to buy sterling perhaps move sooner. We strive to offer the very latest information on the markets to help our clients get the best deals when transferring money from one currency to another. We deal only in bank to bank transfers and don’t offer information for speculators! If you have any overseas property interests or are a business who needs to make foreign exchange payments please contact us for the best rates and service!

Jonathan

Pound sterling forecast quoted in the Daily Mail today!

You can read the full link here. If you have any currency transactions to undertake and wish to learn the forecast please contact us. We primarily specialise in handling larger currency transactions (GBP 10k and upwards) but do hope our loyal readers and Daily Mail readers alike find our information useful!

Jonathan

jmw@currencies.co.uk

 

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