Tag Archives: GBPUSD exhange rates
In recent weeks Mario Draghi’s (President of the European Central Bank) dovish tone has been significantly weakening the Euro. Repeatedly he has indicated the quantitative easing program could be extended and increased in December.
Further to this Janet Yellen (Head of the Federal Reserve) comments last week suggest that the US could hike interest rates in December. However economic data will dictate whether or not this materializes.
It’s clear the market has already priced in the extension of the Q.E programme and also a US interest rate hike in December. For the reason there has been a mass sell off of Euros to buy Dollars to make profit.
In one month, the Dollar has made 4 cents against the Euro and the Pound has made over 8 cents!
Those looking to purchase Euros and Dollars with the Pound should seriously consider their positions and look to trade before the announcements. My reasoning for this GBP/EUR is close to the best buying levels since the start of the UK recession and if the ECB and FED don’t do what they say (very likely), we could see rates drop back into the 1.30s.
As for buying Dollars, I don’t believe the FED will hike in December. However I believe they will indicate further that a US hike will occur early in 2016 possible quarter one, and progressively cable exchange rates will tick down week by week.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on email@example.com.
A two-minute comparison could save you thousands!
Since the beginning of the week the pound has made gains against the dollar and euro.
The week started on the back foot when the UK released their latest Consumer Price Index MoM numbers (inflation) for September. The figure disappointed clients with sterling as inflation entered into deflation (-0.1%).
Throughout Wednesday the pound gained momentum off the back of unemployment dropping to 5.4%.
Next week is quiet for economic data coming from the UK. A data release to note is Public Sector Net Borrowing on Wednesday, which captures the amount of new debt held by the UK.
If you have an upcoming currency transfer I would recommend emailing me directly with the currency pair you are looking to trade (GBP/EUR, GBP/USD, GBP/AUD) and your individual requirement (buying a property abroad, paying a company invoice) and I will personally respond to you with a forecast and the buying process. firstname.lastname@example.org Dayle Littlejohn.
The release of non-farm payroll data in the US economy is one of the few market events every month which has the potential to affect almost all currency pairings.
The overestimation for the report was staggering. It was expected that more than 200,000 jobs would be added to the US economy in September, instead it fell short by more than 70,000 jobs.
As USD/EUR is the most traded currency pair in the world, whenever you lose confidence in one, the other benefits massively. This is what has happened this afternoon. GBP/EUR has now bested the lows of May and it is now the best time to sell Euros since February.
However, we have repeatedly seen these short-term gains eaten up. Those looking to sell must remember that very little of these favourable movements are to do with positive data coming from the European economy. As such these rates are artificial and were never meant to be a permanent feature on the markets. We come down to these lows only to see them evapourate immediately, this is a proven trend on numerous occasions since August.
As such I still strongly recommend that anyone with Euros to sell to call me on 01494 787 478 and ask the reception for Joshua for a free quote on your transfer to avoid missing out on these opportunities. I can offer a rate beating guarantee here to increase your chances of transferring at the absolute peak.
Similarly those with USD to buy, with the interest hike in the US looming (guaranteed by the head of the FED a few weeks ago), we may be seeing the best buying levels for the Dollar before the end of 2016 now. email@example.com
The Chinese impact on sterling exchange rates has been fairly pronounced with exceptional volatility on the stock market and also the pound. Essentially the worries in China have stoked fears that the UK will not be raising interest rates any time soon, perhaps for years! This has weakened sterling as investors seek alternative investments with their money. The volatility in the market is truly exceptional as everyone awaits China’s next move which could very easily tip the scales one way or the other. I expect the pound is going to continue to suffer and that anyone who needs to buy a foreign currency with the pound should move sooner rather than later.
What happens next will be largely determined by the Chinese who are key to making an impact on financial markets. If you wish to buy or sell the pound please get in touch with us to learn more about the latest forecast. Economic data has been quite positive for the pound in the last month increasing expectations the UK would raise interest rates. However the latest Chinese developments have really upset this balance presenting an amazing opportunity to buy the more risky currencies such as the Rand, AUD and NZD.
We are currency specialists here to assist in the planning and execution of your currency transfers. If you wish for a quote please fill in the form and we will be in touch immediately to work with you to help you get the best deal. Please contact me Jonathan on firstname.lastname@example.org to learn more.
Sterling is performing well as UK GDP pointed to further improvements in the UK economy and we get back to pre-crisis levels. The unbalanced recovery is a concern and it appears unlikely the pound will just keep rising!
With the uncertainty surrounding Greece now removed from the market attention has shifted to wider concerns on interest rates and economic recovery. Personally I cannot see the UK raising interest rates any time soon but the pound appears likely to reach to the data as it has done in the last week.
I think it is really important to understand your options when buying currency with us so here is the information!
1 – Store currency safely in a client account. You don’t need a foreign bank account to buy foreign exchange with us! You can buy Euros and we can keep them here until you need them sending out perfect for business or overseas property investors who don’t yet have a foreign bank account. You can split payments too. eg buy 200k euros and send out 20k euros for deposit leaving remainder here until a foreign bank is open or you need sending out. This means you can buy whilst rates are good not just when you need the currency or have opened a foreign bank account.
2 – We can offer a forward contract to fix today’s rates for up to one year in advance useful for business and anyone buying a large volume of currency. You pay a deposit and choose how far forward. Eg you could fix 300k euros for 3 months and draw it down after 8 weeks if you needed them earlier. Again you don’t need a foreign bank account open to buy with us and can buy or lock in to a price whilst rates are good.
3 – Limit Order’s target a rate you wish to buy currency at in the future. eg 1.60 on GBPUSD. You give us a firm order and we place it into the market. Once the rate is achievable we buy at your desired rate.
If you need to buy or sell the pound understanding all of your options and what is going on in the market is the best way to minimise your exposure. For more information at no cost or obligation please speak to me Jonathan on email@example.com. Just email a quick outline of your position and your situation and I can hopefully offer some useful information to help you get a better deal.
I look forward to hearing from you!
Well it didn’t take more than a week for the economic reality of the UK and sterling to be realised. The euphoria from the Conservative victory has passed as the Bank of England and Mark Carney revised down UK growth forecasts for next year. The prospects of raising interest rates in the UK look to be set out further and further as economic growth falls along with inflation. With the UK economy confirmed to have only grown 0.3% in the first quarter of this year in the week leading up to the election expectations for sterling to carry on rising look very much misplaced.
Markets unfortunately have very short memories and often overreact to an initial move in one direction with a small kick back as investors take profits. This was definitely seen today as GBPEUR went from 1.4030 this morning to 1.3846 this afternoon. Not good news for all of those Euro buyers hanging on for 1.40!
Economic reality has today set in for sterling and anyone buying a foreign currency who was pleased with positive GBP movers following the unexpected election result, might want to cash in now before it drops further in the future.
For a detailed analysis of your situation and just what to expect when buying or selling the pound please contact me Jonathan on firstname.lastname@example.org