Tag Archives: exchange

Scottish referendum still holding Sterling back – Pound exchange rates remain volatile ahead of key vote (Daniel Wright)

The Pound has had a shaky few weeks against most major currencies mainly due down to the current saga surrounding the Scottish referendum and what we may see following it.

We currently have a huge amount of uncertainty both surrounding the U.K economy and indeed politically as long as we are still unsure about which way this decision will swing. Personally I still feel we will see a no vote and this may well bring certainty back to the market along with strength back to the Pound.

For those people looking to sell foreign currency to buy Sterling this does really bring a huge temptation to take advantage of current levels and to look at securing a level fairly soon, of course there is the option of taking the gamble and seeing if either the result is Yes for Scotland which may bring further Sterling weakness or indeed if the no vote does weaken away the Pound further.

The problem with a situation like this is that it is not very easy to predict at all therefore you just don’t know exactly what may happen, the reason a yes vote could seriously knock Sterling is because it will throw up all sorts of complications with fiscal policies, we won’t even know if Scotland will take the Pound or be allowed to and political uncertainty will be rife.

This morning the Pound has taken another bashing as it is emerging that the Yes vote may have taken a further lead therefore Sterling has dropped a little further.

If you are concerned about what the next week or so may bring and you wish to maximise your rate of exchange then it is key that you have an experienced currency broker on your side. I can assist clients with requirements ranging from £1000 to multi-million pound transactions and always welcome new enquiries. The company I work for has also won numerous awards for both our rate of exchange and customer service. All you need to do is email me (Daniel Wright) directly on  djw@currencies.co.uk with a description of what you are looking to do and a contact number and I will be more than happy to get in touch personally.

 

Sterling falls as the Pound falls out of fashion due to Scottish referendum polls easing closer – Weakness for Sterling exchange rates (Daniel Wright)

A quick update from me to let you know that Sterling has been falling for the past 24 hours, following news from the polls over in Scotland that the referendum is currently a lot closer than had been thought. The reason this has led to the Pound dropping is because it has now cast a grey cloud over the U.K both in terms of economic and political uncertainty – Both factors that can have quite an impact on the strength of a particular currency.

With the referendum due on the 18th September we may we be set for an extremely volatile few weeks for Sterling so it is imperative that if you have the requirement to either buy or sell foreign currency in the coming weeks or indeed months then you should let me know exactly what your need will be. We have many tools here designed to assist you with getting the most out of your money ranging from being your eyes and ears on the market and informing you of movements either in your favour or against you, to forward contracts, limits orders and stop losses.

GBPEUR

Sterling is actually trading almost 10% higher now against the Euro than it had been last summer (see graph) so if you are in the process of buying a property in Europe even with the drop exchange rates are still extremely favourable. We have a couple of key economic data releases still to come out this week with the Bank of England interest rate decision tomorrow at 12:00pm, the European Central Bank interest rate decision at 12:45pm and the ECB press conference from 13:30pm onwards. The ECB press conference can actually lead to an extremely volatile period for the Euro, and the main focus will be on whether or not they do decide to take any action with QE (Quantitative Easing).

Even the mere mention of it may weaken the Euro slightly but of course beware that if they rule it out in the short term then the Euro may strengthen further. Finally on Friday at 13:30pm we have Non-Farm Payroll data over in America. This release can have an effect on all major currencies as it can change global attitude to risk so no matter what your need it is well worth having an eye on the market on Friday afternoon.

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.

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Flat week for Sterling so far with little economic data out – What does the rest of the week hold? (Daniel Wright)

The Pound has had a fairly slow start to the week against all major currencies, as we have seen very little in the way of economic data released leading towards the end of the month.

We do have a few points of note later on in the week mainly concerning Europe, Canada and America.

Swiss employment figures are however due at 08:15am tomorrow morning which is one point of note for anyone following the Swiss Franc.

Shortly after that we have German unemployment figures at 08:55am which although is a fairly important release however it appears no change in unemployment rates is expected but any differential to the expectation of 6.7% could lead to a volatile morning for the Euro.

later on in the day at 13:30pm we do have U.S GDP (Gross Domestic Product) figures which will show growth over in the states during a specific period and can actual lead to market volatility for all major currencies as it may have an effect on global attitude to risk.

Friday we round the week off for the Euro with European inflation and employment  figures with year on year inflation expected to come out at 0.8%   and unemployment to remain at 11.5% (much worse than that of the U.K and US).

Canada release their GDP figures later on in the afternoon at 13:30pm and one thing to be fairly wary of is month end flows which we do tend to see fairly often on the last day of the month. This can cause volatility for all major currencies in any direction so Friday is a good day to ensure you have someone watching the market for you.

If you do not currently use a currency broker or you feel you could be getting a little more out of the broker you currently use in terms of exchange rate and service then it may be prudent to contact me directly.

I pride myself on keeping clients fully up to date with market movements and our exchange rates have won numerous awards so I would be surprised if I couldn’t save you money too.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to give you a call to explain the service and quote you if you wish.

Can we save you money and beat your current quote for currency exchange? Why not try us out, I would be surprised if I cannot beat any bank or brokerage rate which means more money in your pocket (Daniel Wright)

I have had thousands of clients contact me through this site over the past five years and almost every single one has ended up making a saving using the company I work for over their current provider.

When it comes to an online platform for example, generally I would steer clear of using those as although they are fairly convenient, you have nobody working on the rate for you therefore tend to find you aren’t getting the best exchange rate you can.

Also, if you have been using a broker for many years then in my experience, like with anything in life it pays dividends to get a comparison once in a while even if you are fairly comfortable as it is highly unlikely that your exchange rate will be as sharp as it possibly can be.

The beauty of our service is that we are not tied to a particular margin therefore it means that there should be no reason why I can’t make sure I save you enough money to make sure it is worth your while using us, if I can’t then I will be totally honest and tell you to carry on with your current provider – For two minutes of your time getting in touch there really is nothing to lose.

I have clients ranging from small companies buying stock from China to larger companies millions of  Pounds overseas regularly along with private clients sending regular payments over for mortgage payments to premier league footballers buying a villa in Spain.

Feel free to email  me (Daniel Wright) today on djw@currencies.co.uk with a brief explanation of your needs and a contact number and I will contact you straight away to let you know what I can offer and how the service works. We have won numerous national awards for our exchange rates and level of customer service so if you have found the information on this site of use so far it would be well worth you getting in touch.

Pound Sterling Forecast – Economic data out the first few days this week and how it may move exchange rates (Daniel Wright)

A very slow start to the week for Sterling today with very little economic data or news for the markets to move off.

This will more than likely be the calm before the storm this week though as there is plenty of data for investors and speculators alike to get their teeth into which will no doubt cause quite a lot of volatility for most major currencies.

Tonight - Overnight we see the RBA (Reserve Bank of Australia) meeting minutes and the RBNZ (Reserve Bank of New Zealand) inflation expectations, out at 02:30am and 04:00am respecively. RBA Governor Stevens has seemingly turned a corner lately with his comments on the strength of the Australian Dollar and appears to be a little happier with the way things are going, leading to the Australian Dollar gaining some strength back against the Pound and knocking the GBP/AUD rate back below 1.80. Stevens is also due to speak on 00:30 Tuesday night as well.

Tomorrow – Tomorrow morning we see a key inflation release from the U.K which could easily lead to a bumpy ride for Sterling followers during the course of tomorrow morning. Inflation had beejn at 1.9% which is just about below the Government target of 2% so any minor alterations to this, especailly to the upside could give the Pound a morning boost, as one way to lower would be to raise interest rates, so a figure of 2% or above may lead to a little speculation of a rate hike coming a little closer. Of course, comments from the Governor of the Bank of England last week may well cut this potential out.

Later in the day it is the turn of the States for their inflation data, interstingly also expected to come out at 1.9% so if you have an interest in the Dollar be sure to keep a watchful eye on the market shortly after 13:30pm – Or why not email me on djw@currencies.co.uk and I can monitor things on your behalf.

Wednesday – Wednesday morning we have the Bank of  England minutes from the last BOE interest rate decision. No major expectations from this one however it does really have the potential to throw up a surprise or two and news that any of the 9 members of the Bank of England now are voting in favour of an interest rate hike may give also Sterling a shift up in the right direction.

Later in the evening we have the FOMC (Federal Open Market Commitee) minutes, again very similar to the BOE minutes seen a little earlier on this will show how the Fed voted in terms of rate movements and what they discussed at the last interest rate decision, last time around we saw one memebr of the Fed vote in favour of a rate hike which did give the Dollar a little boost.

If you have a currency transfer to carry out and you want to achieve the very best rates of exchange either for your company or a personal transaction, along with highly valuable market knowledge then why not contact me (Daniel Wright) by email on djw@currencies.co.uk with a brief description of what you are looking to do and a contact number and I will be more than happy to assist you personally.

Even if you currently use another broker you may be surprised at how much you can save by getting in touch as a small improvement on an exchange rate can make a big difference to you.

I look forward to hearing from you.

 

 

Pound Sterling Forecast – Australian Interest rate decision tonight and a flurry of U.K data tomorrow and Wednesday (Daniel Wright)

An interesting night overnight for those following Australian Dollar exchange rates as we have the Australian interest rate decision along with the rate statement shortly after.

RBA Governor Stevens seems to be constantly changing his mind about the strength of the Australian Dollar being negative for the economy or not so this release could quite easily cause quite a bit of overnight movement depending on what he now says, it is doubtful we will have any change in interest rates but the statement for future policy may be key.

Tomorrow morning there is plenty of European services data throughout early morning trading, followed by Markit Services data for the U.K at 09:30am. For anyone with an interest in New Zealand Dollars employment figures for New Zealand are also out at 23:45pm.

Wednesday morning brings an important start to the day for the U.K with Industrial and Manufacturing production data coming out at 09:30am which will be a key indicator as to how the economy performed throughout July and can lead to quite a bit of market movement.

Later in the day we have the NIESR (National Institute of Social and Economic Research) GDP Estimate. This can also be quite a large market mover as the NIESR are usually fairly close with their predictions.

We also have interest rate decisions on Thursday for both the Bank of England and European Central Bank, we will cover this further later in the week.

If you are looking to carry out a currency transfer either during the week or in the coming months then it would be well worth you getting in touch with me directly.

The brokerage I work for offers award winning rates of exchange and great level of customer service, you would deal with me personally from start to finish too so I will be happy to keep you up to date with the very latest market movements. You can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of what you are looking to do and a contact number and I will be more than happy to help you.

Have sterling gains stalled? Three big reasons to think twice…

There is no shortage of the positive things for the pound at present. It is the only major currency genuinely on course to raise interest rates and the British economy is predicted to be one of the fastest growing in the next few months. Unemployment is falling and the economy is growing, the green shoots have for some finally sprouted…

A quick look up ahead however shows that the path to a stronger pound isn’t quite as clear as some forecasters seem to believe. There are three key elements to look out for.

 - Political Uncertainty - 

Usually ahead of an election a currency weakens. The Scottish Referendum in September still has many unanswered questions and it would be foolish to discount late swing votes. Markets can be fearful creatures and if sentiments turn negative the pound may lose value. Next year is the General Election which could provide plenty of opportunities for GBP weakness. Even though the Bank of England is independent from the Government will rising interest rates be an election topic? Already portrayed as the ‘mean’ party, the Tories may struggle to maintain their economic plan under a new coalition and Labour’s economic plans look very anti – business…

There is also the prospect of the UK leaving the EU, again it is the uncertainty these events present which could undermine GBP gains…

- Rising Interest Rates may derail the economy -

Rising Interest rates could do more harm than good! Property prices are principally rising in the South East, mainly London and this is skewing the market. Other areas of the country are actually seeing prices fall or remain stagnant. Rising Interest rates may serve to undermine recovery in the housing market across the housing market making it more difficult for purchasers to get a mortgage and reducing the disposable income (that is spent in the wider economy helping for example Retail sales) those with mortgages have.

Many commentators have pointed out we are in a new ‘low interest rate’ economy globally. There are drawbacks to this but perhaps the UK needs to be stronger on its feet before interest rates rise.

- A strong pound can be bad for exports and growth prospects -

There have been some of the UK’s biggest companies this week highlighting the detrimental effect the strong pound is having on their profits. Rising interest rates may serve to strengthen the pound further making UK manufacturing and service less competitive in the global economy.

All in all the pound is at multi year highs against many currencies. Assuming rates will remain where they are is a foolish assumption and anyone considering moving larger volumes of currency should note the difference even 1 cent can make on a big volume of money.

If you need to buy or sell a foreign currency we can offer assistance  understanding the market and getting the best rates on your deals. We are a group of specialist currency brokers writing this blog for your help. Please feel free to contact me Jonathan directly to learn more.

jmw@currencies.co.uk

 

 

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.

 

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