Tag Archives: GBPUSD exhange rates

Buying Euro and Dollar rates see some support today after a nervous week (Joshua Privett)

Today has been the first day since last Friday where the net result for the day is actually in the green for anyone considering buying Euros, US Dollars or Australian Dollars. Whilst the gains are not enough to send anyone jumping around the room, it is a signal to markets that the narrative surrounding the Pound has changed.

Part of this is that there has been some positive news today from the UK itself, with confirmation that car manufacturing numbers have reached a record high post-Brexit producing a diamond from what has been a rough week for Sterling across the board.

So the cheap Pound is boosting exports, but this is struggling to challenge the dominant narrative surrounding the Pound which has been interest rates. But again, we are seeing some respite in this area for Euro and Dollar buyers.

The reason for the slide on the Pound which this website has extensively covered was due to the heavy hints last Thursday that there may be a further interest rate cut in the UK before the turn of the year. Coupled with the profit taking activities by speculators on Friday afternoons, the effect this had on the Pound was severe with 2 cent losses on GBP/EUR, GBP/USD and GBP/AUD last Friday.

The pressure was also piled on Sterling as the USA were on the verge of actually raising rates yesterday evening, yet shied away at the last moment. Indirectly, this would have made the Pound seem like a less attractive commodity by comparison if the Dollar had raised interest rates. The avoidance of this means the Pound won’t be losing value in this area due to decreased demand.

Tomorrow the main attraction for currency markets will be business confidence figures in the Eurozone for their service and manufacturing sectors, which are set to slow a slight decrease from previous months due to some of the recent slowdowns recorded in Eurozone’s powerhouse economy – Germany. This should creating tempting opportunities on GBP/EUR to compliment the 0.7 cent rise seen today.

However, Friday profit taking should come around the corner once more for anyone with an upcoming currency requirement, whether buying Euros or Dollars.

As the above paragraph alluded to, on Fridays high street traders who have been speculating heavily on the currency markets all week must allocate their profits in a stable currency whilst they are away from their desks. This protects their gains whilst markets are still operating from 6-11pm on Friday and 2-6am on Monday before they return. The Pound has been anything but stable in recent weeks, so we are seeing demand for it plummet during this period, and therefore its value by association.

So based on the current expectations Euro buyers in particular could see some improved opportunities during the first part of tomorrow, yet Euro and Dollar buyers alike will likely suffer.

If you have a GBP/EUR, GBP/USD, or GBP/AUD requirement in the short to medium term I strongly recommend contacting me this evening or tomorrow morning on jjp@currencies.co.uk whilst markets are quieter to discuss the options open to you to ensure any tempting peaks which emerge tomorrow are reached, and that your currency purchase is safeguarded from any particularly adverse movements.

With the expected volatility tomorrow a well timed transfer could save you thousands on an upcoming purchase, and I will highlight that I have never had an issue beating the rates of exchange offered elsewhere in the past.

Euro or Dollar buyers can also fix the rate of exchange ahead of an upcoming transfer, essentially pre-booking your currency, to avoid seeing the budget of any future purchase being eaten into.

Euro and Dollar sellers alike can also get in contact to discuss the potential to secure any highs reached to buy the Pounds during the final hours of the week, as you can secure a desired level should it become available even for a few moments outside of UK trading hours. You can fill out the form below and I respond as soon as I am able to.

 

Sterling exchange rates drop once again as hopes of a ‘soft brexit’ fade, so where will the Pound go from here? (Joseph Wright)

The Pound is facing increasing pressure at the moment as the impact of the UK’s upcoming exit from the EU is unsettling financial markets.

Sterling exchange rates dropped substantially as soon as it was announced that the UK electorate had voted to leave the EU, with the GBP to USD exchange rate dropping to a 31 year low, and the GBP to EUR exchange rate dropping to a 3 year low along with many other major currency pairs.

There was a slight rebound as a number of particularly positive business surveys within key UK industries showed that a weaker Pound had actually boosted economic output within the UK in it’s new post-brexit-vote environment. That rebound has now been reversed as we edge closer to those 52 week lows, and I think it’s worth noting that cable (GBP/USD) has now dropped back below the key psychological level of 1.30 which may trigger further falls for the pair.

Now that it’s common knowledge that UK Prime Minister Theresa May will likely invoke Article 50 towards the beginning of next year, hopes of a prolonged ‘soft exit’ have dwindled and this is being reflected within currency markets as the Pound weakens pretty much on a daily basis at the moment.

Those with an upcoming currency exchange requirement which involves converting pounds into another major currency, may wish to consider moving on that sooner rather than later as many economists have predicted parity for GBP/EUR, our clients are still comfortably in excess of 10 cents from this level so moving now may be a wise decision come later in the year/next year.

Today’s major news release will be the most recent Fed Reserve Bank Interest Rate decision, and although no change is expected a move by the Fed is likely to create volatile trading conditions which we would usually trade around with our clients, as sensitive news releases such as this one can widen exchange rates and our sole purpose is to obtain great rates for our clients.

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.

Buying Euro and Dollar rates collapse from mass Pound panic sell-off (Joshua Privett)

Like clockwork Euro and Dollar buyers have been hit repeatedly on Friday afternoons, with the actions of currency speculators drilling at the foundations of the Pound as we enter the weekend period. However, this time the fall was much more serious.

Traders at high street institutions search for a stable currency with which to allocate their profits for the weekend. For obvious reasons, since the Leave vote the Pound hasn’t been high on this list of safe currencies which are expected to hold their value until traders return to their desks on Monday.

So we regularly see the Pound lose its value in this period as its demand falls flat, but those with a Euro and Dollar buying requirement would have been shocked on Friday to suddenly be looking at GBP/EUR rates at 1.16 and GBP/USD below 1.30 when only the day before both were close to 6 week highs.

The reason for this exaggerated fall was a more agitated marker than normal. Thursday’s indications from the Bank of England that another interest cut in the UK was likely in the next 3 months meant the commonplace, and largely gentle, Friday sell-off of the Pound evolved into a flood of investors seeking to relieve themselves of Sterling, and quick.

Normally, on Monday we see a recovery in Sterling’s value against the likes of the Euro and various Dollars. When traders return to their desk the readily available and cheap Sterling suddenly presents a tempting opportunity. Which hopefully will provide some sollace to Euro and Dollar buyers who will have to see 1.16 and 1.29 on their screens all weekend whilst markets are closed.

 

Monday should show a small improvement for anyone with a GBP/EUR, GBP/USD or GBP/AUD requirement in that case.

Following this, on Tuesday we have data from German producers which should reflect the marginal slowing of the German economy as shown in its other data sets seen this month. There is a strong potential here to garner further respite for Euro buyers if the Eurozone’s powerhouse economy continues to come into question.

However, Wednesday should present alarm bells for anyone using Sterling to purchase a foreign currency. Public sector borrowing figures will be released showing how much the UK borrowed during August. With the step-up in emergency financial stimulus from the Bank of England, and the sudden need to form new departments and hire new staff to implement a Brexit this is expected to skyrocket £11bn higher than what was produced in July.

The confirmation of news such as this would be enough to cause a similar panic sell to what was seen on Friday.

So it seems that Euro buyers have the greatest opportunity to gain at the beginning of the week, whilst US and Australian Dollar buyers may see only marginal improvements, before all three major currency are expected gain signficant expense on Wednesday with the weakening of the Pound. The important question at the moment is not really whether this will happen, but how severe will it be?

If you are planning a Euro or Dollar purchase over the next few months then this announcement from the Bank of England has changed the landscape of your purchase. We are currently still 2.5 cents higher on GBP/EUR and GBP/USD than we were in the middle of August, with the potential for some recouperation of Friday’s losses over the next few days. Should any opportunities emerge during this period, it may be wise to secure them for an imminent purchase, or one a few months down the line in order to safeguard your budget.

There are a number of ways to ensure that any desired levels you are aiming for during this period are seized immediately.

With a saturated market it is important not to be ‘last to the party’ given that any rush to buy Euros or Dollars will make them a more expensive prospect through higher demand.

To discuss how to maximise the potential available over the next few days you can contact me over the weekend whilst markets are closed on jjp@currencies.co.uk and I will reply to you as soon as I am able to.

I have automatic purchase orders, and rate alerts at my disposal to help my customers secure attractive exchange rates, and I have never had an issue beating the rates of exchange on offer elsewhere. If you are not a regular reader, I will also mention that you can fix rates of exchange for a pre-determined period of time as they are that day if you are planning a purchase for later in the year.

Euro or Dollar sellers can also get in contact to discuss how best to secure the likely opportunities on offer later in the month. You can also fill out the form below and I will contact you as soon as I am able to.

 

Exchanging Euros for Pounds hit it’s best level since August today, will the Pound continue to decline? (Joseph Wright)

Sterling fell pretty much across the board during today’s trading session, as the currency is coming under increasing pressure after posting some worse than expected economic figures recently.

Yesterday the Inflation figure (the consumer price index released by the Office for National Statistics) demonstrated that inflation isn’t growing at the pace expected by economists and financial analysts, and the Pound immediately weakened in the aftermath of the news release, and once again today the currency has been on the decline.

The falls are understandable as the Pound has been propped up by some very positive recent business surveys which saw the Pound climb between 4-5 cents against both the US Dollar and the Euro as well as other major currency pairs, but it’s the hard data like yesterdays figure which is bringing Sterling sellers back down to earth as the recent gains have been almost wiped out over the past couple of days.

Those with a currency requirement involving converting Pounds into another major currency, may wish to consider making that exchange sooner as opposed to later as if the current trend continues we may see all of the Pounds recent gains wiped out. The trend for GBP/EUR is currently negative and over the past couple of days we’ve witnessed the Pound trading at it’s lowest level against the Euro since August.

On the other hand, any of our clients, or potential clients looking to convert Euros/US Dollars/Aussie Dollars etc into Pounds are looking at levels close to between a 3 to 30 year high. Our brokerage offers improved rates of exchange than the high street banks do so get in touch if you would like to find out how you can make some extra money on a currency exchange you’re planning. It’s free and takes just a couple of minutes although it could end up saving you thousands of Pounds.

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.

Buying Euro and Dollar rates see gradual decline in an odd day for the Pound (Joshua Privett)

The big market movers today came out between 8-10 am BST with buying Euro and Dollar rates barely flinching. However, following from 11am, the Pound began to slowly sink in the GBP/EUR and GBP/USD pairings but has begun to stabilise which why I am writing this article now.

The focal point for markets this morning was inflation data being released for the Eurozone and the UK. Whilst the inflation levels for the UK came in slightly lower than expected, it was still a vast improvement from August’s figures and leaps and bounds ahead of what inflation was showing in the Eurozone. To put it in context inflation rates for the UK in a single month were what the Eurozone are expected to accumulate over the entire year.

Yet the Pound still managed to depreciate against some currencies, mainly Euros and US Dollars. To explain this bizarre day we need to take a short-term view at what markets will be looking ahead to before the weekend.

Firstly, and most importantly, tomorrow is being touted as a bit of a wildcard for the Pound. The release of employment and wage data for the UK economy is one of the only ‘blind’ pieces of data the UK will be producing this month. I say blind because markets do not have much of an indication as to what the data may yield, when normally previous results are quite suggestive.

We are still very much in uncharted waters following the leave vote, and because any job cuts will take a few months to show up with notice periods being filled, the news coming out in the morning tomorrow is expected to show us the first look at how the leave vote has impacted the jobs market.

This is probably why the Pound’s recent rally has been eaten into today, as speculators are moving their funds into other currencies to avoid the risk surrounding the event. I expect rates to recover to some degree tomorrow once markets get an opportunity to see the results. With the storm passing the consensus will likely be to buy up the cheap excess Pounds in a frenzy, unless the results are truly dire. When demand immediately rises we will see a parallel increase in its value.

Following this, as my article on this website over the weekend covered, Thursday is expected to see the UK’s ability to weather the storm of the leave vote to be showered with praise by Mark Carney, the Governor of the Bank of England, during the monetary policy statement and subsequent interest rate decision. Again this is suggestive at further confidence returning to the Pound.

With expectations for an immediate opportunity for Sterling buyers tomorrow, Euro and Dollar sellers may be wise to take advantage of the likely short-term (and essentially artificial) opportunities created by these abnormal trading patterns.

Euro and Dollar buyers however, I recommend to get in contact with me on jjp@currencies.co.uk to discuss the options open to you to make sure any tempting levels which you are aiming over the next few days and potentially weeks for are seized and that you are protected from any adverse movements which may occur during this volatile period.

During Carney’s Q+A session on Thursday, the two hour period will cover all aspects of the UK economy, with the positive or negative nature of each changing the Pound’s value by association. The rates as such will be more volatile than normal, so if you wish to take advantage of any spikes, there are a number of options available through my service to ensure these aren’t missed – even if they are available for only a few moments.

I have never had an issue beating the rates of exchange offered elsewhere, and given than the average difference on Pound buying rates each day is around 1% between the high and the low, a well-timed transfer could save you thousands on an upcoming currency exchange. You can also fill out the form below and I will contact you as soon as I am available.

Buying Euro and Dollar rates set for further improvements this week (Joshua Privett)

Euro and Dollar buyers are already seeing some improvements this morning after some concerning dives at the back end of last week.

 

After a slow day today with little news to swing, GBP/EUR, GBP/USD or GBP/AUD either way, markets already seem to be looking ahead to later in the week and Tuesday will be when the ball really begins to roll for the week.

German inflation data should crack the already thinning armour on the Euro’s value, as the Eurozone’s powerhouse economy continues to flounder in this key area when measuring a currency’s value.

This should be complimented by the polar opposite in the UK with own inflation data which, after close to 15 months of consecutively underwhelming data, has had a sudden turnaround since the Brexit in June. It seems a healthy mixture of a cheaper Pound, increased summer consumer activity, alongside the gradual rise in oil prices is putting the UK back on course for its yearly target of 2% inflation.

On Thursday, we shall also have the Bank of England interest rate decision and subsequent monetary policy statement. In August Euro and Dollar buyers will remember how this triggered a 2.5% loss on Sterling’s value in the space of three business days when the Bank cut interest rates.

Yet now the outlook for the UK economy is more cheerful. Business confidence surveys have seen the largest single-month improvement in over 25 years, and Mark Carney, the Governor of the Bank of England, was echoing these sentiments and praising the effects of the BOE’s recent economic intervention at a deposition to Parliament last week.

Should he echo those noises in the press conference, this increased confidence from the man at the helm of the UK economy should recoup some of the recent losses on GBP/EUR, GBP/USD and GBP/AUD since the Referendum.

However, there is a wildcard. UK unemployment data will be released on Wednesday which will be our first look at this area since the Leave vote (as notice periods have to be filled if there have been any job cuts or hiring freezes). Whilst forecasts are for job losses and a rise in those claiming unemployment benefits, the expectation is for a relatively small impact. But we have been surprised in this area before. There were a number of articles of job cuts at major financial institutions following the Brexit, and the wildcard is how many of these, and people in other sectors, managed to land on their feet immediately?

 

Just due to the sheer volume of information set to come out this week, anyone with a Euro or Dollar buying requirement should contact me today on my direct line – 01494 787 478 – to discuss the options open to you to make sure any opportunities which emerge over the week are seized before any market snap-backs, and to ensure you are protected as you ride this marked sentiment against any adverse movements. If I am on the phone one the reception team will answer and try to put you through if I will be available within a few moments

I have never had an issue beating the rates of exchange offered elsewhere by other currency exchange brokerages, and particularly high street banks. As such, with assistance in timing your transfer a brief conversation could save you a significant percentage on your upcoming Euro or Dollar purchase.

Euro and Dollar sellers can also get in contact to hear a live quote immediately, given that the outlook for this week seems largely detrimental for anyone considering moving a foreign currency into Sterling. You can also email me on jjp@currencies.co.uk or fill out the form below.

Sterling loses momentum as manufacturing data disappoints (Joseph Wright)

Despite the Pound rallying over the past week or so we’ve seen it’s bullish run come to an end today, as the currency has softened by at least half a percent versus both the Euro and the US Dollar.

Economic news out of the UK recently has mostly been coming out considerably better than analysts expectations, and that’s left Sterling sellers with the opportunity to make their conversions at considerably better rates of exchange than would have been available just a couple of weeks ago. Those hoping to capitalise on these improvements may be wise to consider making that move sooner as opposed to later, because as we’ve seen today I’m expecting financial markets to react quickly and negatively to weak economic data out of the UK at the moment due to market sentiments towards Brexit.

Today’s economic update, released by the Office of National Statistics showed that Manufacturing Production contracted by a considerable 0.9% in July, which was disappointing for those hoping the Pound would continue to climb as previous to today’s news release the last set of Manufacturing data we saw (Manufacturing Purchasing Managers Index) was particularly positive.

Moving forward, I expect to see the Pound come under further pressure as despite the recent Services PMI figure posting the biggest gain record (on Monday), we still haven’t seen the Pound test the psychological level of 1.20, and I think after the Pounds recent gains there is likely to be profit taking from market speculators which may drive Sterling’s value down once again.

If you have an upcoming currency exchange to make and would like to discuss it, feel free to get in contact with me (Joseph) on jxw@currencies.co.uk and I’ll be happy to discuss timings with you as well as being able to offer award winning exchange rates. If you would like a quote just email me with an outline of your plans and I’ll be back in touch with you as soon as possible. 

 

 

Could we have another Referendum?

Well well politicians are a right bunch aren’t they. Just as the UK economy was recovering following the worst financial crisis in living memory we have had the politicians calling this Referendum which has of course knocked confidence and no leaves us with plenty of uncertainty up ahead. It is far to early to be calling Brexit good or bad since we just don’t know what it is at present. For now the UK economy is ticking along nicely, it is growing, people have jobs and they are confident to be spending their hard earned cash as it has been a lovely summer. As I have repeatedly said however we cannot (unfortunately) rely on the weather to support the economy, still with the Olympic glory still fresh in everyone’s minds let us keep positive.

On the subject of Referendums we might yet have another one! Owen Smith the prospective Labour candidate has stated he will be looking to call another Referendum before invoking Article 50, putting the new deal to the test of a public vote. Owen Smith the potential future Labour leader has made this call as part of his campaign to be the new Labour leader. So far this is not wholly likely but the prospect remains.

If you have a transfer involving the pound the uncertainty is set to continue for many months and maybe years, making some plans in such uncertain times seems to me a very sensible option. To discuss further your options and the market please contact me Jonathan Watson on the form below or email me directly on jmw@currencies.co.uk

Pound rises as expected to begin the week – will buying Euro and Dollar rates continue to improve? (Joshua Privett)

As my article on Sunday mentioned, the Pound was expected to perform well this morning and did not disappoint, with gains seen against all major currencies – in particular for buying Euros and Dollars.

Speculators on Friday afternoon have been pulling the floor from under the Pound as they scramble for a stable currency to store their profits in heading into the weekend. Of course, the Pound has bot been high on their list of stable currencies and as a consequence the severe fall on demand for Sterling sees its value plummet.

However, similarly like clockwork we’re seeing GBP/EUR and GBP/USD levels rise as markets re-open on the following Monday as the vast majority scramble to buy Pounds due to their sudden cheapness. In this period of the week rates have rarely been so predictable.

Moving forward however my article did note some potential red flag events – particularly for Euro buyers.

Firstly, news concerning business confidence figures in the Eurozone are to be released tomorrow morning. As the Eurozone has essentially vacuumed up most of the foreign investment the UK has lost in the run up to Brexit and following the Leave result in the vote, the figures are expected to be very positive for the third consecutive month. It’s hardly surprising given that credit is so cheap and their foreign investment is up 300% on the same time last year.

With a fresh bout of Euro strength expected to come tomorrow at 10am, Euro buyers may be wise to seize some of the gains made today first thing in the morning to avoid what could be a difficult week for the Pound – especially given that underwhelming UK growth figures are expected to be released this Friday.

USD buyers however may be presented with some opportunities in the short-term, as tomorrow afternoon US housing market figures are forecasted to show a contraction – a likely result of their recent rise in interest rates. Expect a cheapening of the Dollar tomorrow afternoon. But again with UK growth figures on Friday we may simply be subjected to a small window of opportunity.

With this in mind I recommend that anyone with an upcoming Euro or Dollar purchase should contact me on jjp@currencies.co.uk or by filling out the form below to discuss your currency requirement and develop a plan of action to truly maximise your return.

I have never had an issue beating the rates of exchange offered elsewhere, and I endeavor to produce a proactive service for my customers to make sure they are kept informed and up-to-date with market movements and expectations, rather than lagging behind.

As our regular readers will now full well, rates of exchange on any particular day can be fixed to allow purchasers to pre-book their currency for a later date, allowing any upcoming pitfalls to be avoided.

Will the pound continue to fall?

Sterling has been on the back foot ever since the Referendum and the big question is will this continue? Well in short I think the answer is yes! Quite frankly there is bound to be lots more bad news relating to this scenario, it has not even been two months since the Brexit vote and we are haven’t even begun to scratch the surface of what lies ahead. Markets do not like uncertainty and at present there is plenty of uncertainty as to what will happen to the UK both economically and politically. The economy is on the back foot with slides in growth, employment and business activity. All in all I would not be surprised to see the pound fall further touching fresh lows against all the major currencies. These include the US Dollar, the Euro, the Australian dollar and the New Zealand dollar. If you have a transfer involving the pound and these currencies preparing for further falls in the value of the pound seems the most sensible option.

Last week we heard news Theresa May might not invoke Article 50 until much later than planned, as explained above we are nowhere near knowing any firm details of what Brexit actually is and what it entails. It will lead to many months and years of waiting to understand exactly what is going between the relationship between the UK and its biggest trading partner. As long as this uncertainty continues business and the public will be loathe to make any big financial decisions which will lead to the slowdown in the economy and rising Unemployment.

If you have to buy the pound now is a fantastic time to be considering all of your options and making some plans on the future. The market is likely to offer better deals for buying pounds which anyone with a currency transfer to consider should be taking on board. If you wish to learn more please contact me Jonathan on jmw@currencies.co.uk. This blog has helped thousands of people to save thousands of pounds through better information and a much better exchange rate than they thought possible. To learn more please email me or fill in the form – you have nothing to lose and lots to gain!