Tag Archives: GBPUSD exhange rates
Buying Euro and Dollar rates took a further slide this afternoon as markets were gearing up for Mark Carney’s appearance in front of the House Treasury Committee.
Mark Carney is the Governor of the Bank of England, and given the recent shock to the UK economy, this currently hypersensitive market was approaching the news release with baited breath.
The bread and butter of what markets were hoping for was some kind of indication as to what the highly anticipated growth figures for markets on Thursday may reveal.
In the run up to the event a nervous market revealed itself, with falls recorded on GBP/EUR, GBP/USD, and most noticeably on GBP/AUD.
It seems that most investors in commercial markets were keen to relieve themselves of any risk ahead of the event itself so sold Sterling off in droves to protect themselves. Unfortunately, with Sterling’s value lowering through decreased demand, this hurt anyone with a private Euro or Dollar purchase.
As my Sunday post detailed this week was fraught with risk for anyone buying a foreign currency and we are already seeing this manifest on the exchange rates.
Thursday is the first look at UK growth figures since the recession, and whilst Carney gave little away in his speech today, we have learned a valuable lesson that markets are risking little this week. It’s likely in the run up to the news on Thursday we will be seeing similar drops on Sterling as markets avoid gambling on what will be an important data release for the UK economy.
My opinion has not changed and as such I strongly recommend that anyone with a buying Euro, US Dollar, or Australian Dollar requirement should contact me on firstname.lastname@example.org to discuss a strategy on how to protect your upcoming transfer from any adverse movements and maximise your currency return with what is available in this current marketplace.
I have never had an issue beating the rates of exchange on offer elsewhere, and as such a brief conversation could save you thousands on an upcoming transfer.
You can also contact me on the form below whilst markets are quiet overnight and I will respond to you as soon as I am able.
Buying Euro and Dollar rates of exchange enjoyed a week where politics took a back seat for short while in governing the currency markets.
The Pound recovered against most of its counterparts gradually throughout the week following the flash crash, and by over four cents against the Euro as just one example.
With the major political announcement of a deadline for Article 50 by March having taken place, and with secretive pre-negotiations beginning behind closed doors, barring any surprises, it seems that normality has returned to the markets to some extent with the influence of politics on the value of the Pound falling away.
This weekends news that there is already bickering between the UK and Europe as to which language the negotiations would take place in, French or English? A clear indication to the currency markets that little news of any importance will reach their ears in the short term.
Pre-Brexit vote buying Euro and Dollar rates were mainly governed by news of economic performance released regularly throughout each month both within the UK and in the likes of Europe, the USA and Australia, with the value of each currency swinging based on the positive or negative nature of the news.
The data releases to watch out for next week:
On Monday we have business confidence figures for the powerhouse of the European economy, Germany, to begin the week. Given expectations for improvement here now that the German Government have agreed to bail out Deutche Bank if need be, the Euro should gain back some of the lost ground against the Pound over the past five business days.
Following this, an event which will effect all major pairing with Sterling – GBP/EUR, GBP/USD and GBP/AUD, will be the first look at growth figures for the UK economy in the first full quarter since the Brexit.
The importance of this news cannot be understated. Recessions are gauged on growth for two consecutive quarters being negative. If the UK’s growth in this period stagnates the Pound could face heavy losses akin to the flash crash a few weeks ago.
Current expectations are for growth to fall to 0.3% from 0.7%, but we will not know the truth until Thursday morning.
Given the recent gains, and with a week seemingly without much concrete information to suggest a rise in the value of the Pound, particularly against the Euro, foreign currency buyers may be wise to move sooner rather than later to avoid the risk laden in the marketplace next week.
You can reach me directly over the weekend whilst markets are closed on email@example.com to discuss the options open to you to safeguard your transfer from any potential pitfalls, as well as the make the most of what is available in this current marketplace.
I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency transfer later in the year and wish to avoid the risk of gambling on what levels are available then.
Sterling buyers using Euros or Dollars can also get in contact, and I will discuss the options open to you to ensure that any peaks you are aiming for can be secured should they become available in the timeframe you have to complete your transfer.
You can also reach me using the form below, and I will contact you as soon as I am able to.
Boris Johnson hitting the headlines on Sunday isn’t expected to muddle the chatter on currency markets next week, with buying Euro and Dollar rates set to benefit from a focus on economics over politics.
There is a host of data sets coming out from both within the UK and outside of it, with the positive or negative nature of the information set to sway the value of the currency attached to that particular economy.
Whilst Boris Johnson’s comments are inflammatory they will not be deemed by markets to alter the current course of the Brexit. This has been the major guage used on how recent political news has affected the value of the Pound.
With big announcements coming recently, the deadline for Article 50 in March 2017, and the very public spat between Theresa May, Merkel and Holland about what a future agreement between the UK and the EU may look like, it seems as if most of the curveballs which could impact the Pound in the short-term politically have come and gone.
With this in mind, we may finally see some of the positive news coming out of the UK economy begin to register on the currency markets.
We’ve already seen some promising hints to show the UK economy is weathering the storm of the Leave vote relatively well.
Despite the news about ‘marmite-gate’ and the pricing pressures forced on the UK with a weak Pound, business confidence in manufacturing, construction and the financial service sectors are recovering and in some cases surpassing what was recorded last year.
Firstly on Monday we have Eurozone inflation data which is expected to come in poorly as it has done quite consistently for a few years now. Conversely on Tuesday the UK has their own inflation data, which is expected to show a healthier reading closer the Bank of England’s 2% yearly target. Combined both of these data releases could see improvements on buying Euro rates in particular.
Furthermore, employment and wage data for the UK on Thursday morning could provide the additional support needed behind Sterling to see some improvement on GBP/EUR, GBP/USD, GBP/AUD.
With this hypersensitive market, opportunities can develop and evapourate quite quickly, and it is important not to be ‘last to the party’ in these situations as the flood of people buying a particular currency will suddenly make its price rise.
I offer a very proactive service to make sure my customers with an upcoming buying or selling Euro or Dollar requirement remain well informed currency purchasers.
I have never had an issue beating the rates of exchange on offer elsewhere, and if you are not a regular reader of this website I recommend noting that you can pre-book your currency for a future currency transfer using a small deposit.
You can contact me over the weekend whilst markets are closed on firstname.lastname@example.org or fill out the form below and I will be in contact as soon as I am able to to discuss the options open to you to safeguard your transfer and try to maximise your currency return.
Buying Euro and Dollar rates of exchange have entered Friday in a much more stable position compared to the sheer chaos caused in the early hours of last week with the flash crash in Asian markets.
That being said, the Pound is slightly down to begin the day against all major currencies, which is suggestive that speculation is still the dominant force governing the marketplace in this hypersensitive environment.
If you were not aware of the flash crash last week then your currency requirement must have only some up in the last few days. The Pound was battered by either a gigantic erroneous trade, or a severe miscalculation in automatic trading algorithms, in the early hours of Asian trading last Friday which caused a heavy deterioration on GBP/EUR, GBP/USD and GBP/AUD.
This was an artificially forced drop which the Bank of England are still investigating and markets have since recovered. However there was still a net loss, and such a crash was only possible due to the heightened anxiety surrounding the Pound since the announcement of a hard deadline from Theresa May for Article 50 by March 2017.
This anxiety has since been heightened by the likes of EU President Donald Tusk stating it’s either ‘Hard Brexit or no Brexit’ with both sides making markets nervous that no gentle exit will be able to be found.
To coincide with all of this, we are now entering another Friday and the abnormal trading patterns associated with this.
Each Friday almost like clockwork since the Referendum, the Pound has had a difficult time in the afternoon heading into the weekend due to profit-taking in the market place undercutting its value.
Whilst this was eclipsed by the added mania last week, this is still a persistent issue for Euro and Dollar buyers, likely more so with the currently panicked financial world.
Each Friday trader’s at high street institutions have to allocate their funds into a stable currency whilst they are away from their desks for the weekend in order to protect their capital. For obvious reasons the Pound is very low on this list of stable currencies which are in high demand during this period. As such the Pound is sold off during this period and its value falls off a cliff.
I strongly recommend that if you have a GBP/EUR, GBP/USD, or GBP/AUD requirement in the short-term to contact me this morning before the volatile period begins in earnest this afternoon to discuss how to protect an upcoming transfer from any adverse movements, and receive a competitive quote for your transfer.
I have never had an issue beating the rates of exchange on offer elsewhere, as such a brief conversation could save you thousands on an upcoming transfer. You can reach me directly by calling 01494 787 478 and asking the reception team for Joshua.
Euro and Dollar sellers can also get in contact to discuss the options open to you to seize any peaks which emerge in the time-frame you have to make your transfer in order to maximise your sterling return. As my argument above suggests, if I was in your position I would not be looking to move straight away.
You can also contact me via email on email@example.com or fill out the form below and I will be in contact as soon as I am able to:
Will the pound now fall lower is a big concern on financial markets and the most likely answer is that yes it will more than likely fall lower. Pretty much every major bank out there is now predicting a rate on GBPEUR between 1.08 and 0.95 in the coming months. Whilst GBPUSD predictions range from sub 1.20 to parity. Having witnessed the falls of the last two weeks it is quite difficult to rule out anything and even last night we saw further moves lower on sterling rates following a fairly flat Monday and Tuesday. So how can buyers and sellers of the pound manage such crazy times? Thankfully there are some options to help manage your exposure to such volatility.
Sterling has fallen against all currencies as the Brexit worries start to deepen. The options have gently been narrowed as to the UK’s position outside of the EU and as we get further clarity the rates are reacting. We now know that the UK will seek to invoke Article 50 by March 2017 which means there is a 2 year period within which to strike a new deal with the EU. By setting the UK on a path to a more ‘hard’ Brexit financial markets are concerned over the shape of the negotiations ahead and what it will mean for the UK economy. Access to the Single Market will allegedly cost the UK economy £66bn per year and slash 10% off GDP (Gross Domestic Product). These are the Treasury forecasts which were so vociferously knocked down as reflecting ‘Project Fear’. Will they materialise?
Current economic data suggests that the UK economy is doing rather well which is making digesting everything happening rather difficult. Last week excellent news in the Manufacturing sector and signs the UK economy grew 0.4% in the 3rd Quarter did little to halt the pace of sterling’s decline. It does seem the pound is destined to fall further and remain volatile as we have a number of important milestones to overcome including the latest Bank of England Interest Rate decision, US and Eurozone Interest Rate decisions and the Chancellors Autumn Statement.
With politics and statements from politicians both in the UK and EU helping form some of the latest trends on sterling exchange rates it is important to be aware of the latest news and up to date with fresh developments. Utilising tools to help manage your transfer rate can be very effective too. For example a Stop / Loss order guarantees you won’t get a ‘worse than’ rate if markets drop. A ‘Limit’ order helps to target a higher level if rates rise. You the client choose your desired ‘best’ or ‘worst’ rate and we monitor the levels automatically. These deals guarantee your currency purchase at the desired rate even if only hit for a second.
Will the pound now fall lower is a very valid questions as sterling rates seem bound to err on the volatile side and with the levels entering potentially dangerous lows for UK firms buying goods and services from overseas as well as overseas property investors, now is the time to be making plans. On the flipside those businesses and individuals getting paid in a foreign currency or those selling an overseas property would do well to manage their positions too. Understanding everything ahead driving the rate and making some plans is the only way to help in such uncertain times, I can help you formulate a plan suggesting target rates and events to help narrow down your purchase window.
For specialist information and guidance on market developments please speak to the author by emailing firstname.lastname@example.org or calling 01494 787 478 in UK business hours and asking to speak to Jonathan Watson. Alternatively please fill in the form below and Jonathan will contact you as soon as possible.
Buying Euro and Dollar rates still tentatively dipping following Sunday’s revelations (Joshua Privett)
Many with an upcoming Euro or Dollar purchase or sale are watching GBP/EUR, GBP/USD and GBP/AUD with a keen eye after the curve-ball given by Theresa May on a Sunday morning political talk show.
Second guessing political outcomes seems to have caught up with investors once more as it did during the Referendum, when financial institutions lost billions betting that there would be a Remain vote.
Some investors, despite the recent hints from Boris Johnson that Article 50 will be enacted early in 2017, believed that there would be further hints of delays which would allow the Pound some respite. The sudden realization that this was not the case caused the Pound sell-off on Monday morning which has undercut Sterling’s buying power against all major currencies.
The question on everyone’s lips is whether this news will simply be a short-term sting?
The only certainty now is that this official time-frame of six months at most will continue to be a background feature in the marketplace. Companies now planning their capital allocation for the next quarter and even for the turn of 2017 will now face the question of whether investment in the UK is a priority, and whether their profits should be stored in Sterling or a more stable currency?
Whilst there is no definitive answer, the sensible option would be to act warily concerning the Pound and the UK economy for the moment until a better idea of what a ‘Brexit’ entails begins to manifest. Any fall in demand for the Pound should see buying Euro and Dollar rates begin to slide further.
My personal suggestions for any reader would depend on the time-frame you have to conduct your transfer. If you require a foreign currency within the next week, moving immediately should avoid the gradual fallout permeating the marketplace at the moment and undercutting the Pound. You can contact me on 01494 787 478, simply ask the reception team to be put through to Joshua, for a competitive quote on your transfer, or simply to discuss the options open to you to safeguard an upcoming transfer. I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on an upcoming transfer.
A longer time-frame allows you greater flexibility to see how the fresh data sets on economic performance in October allow for a reverse in the current trend for Sterling.
A point of note, if you are considering purchasing Australian Dollars in the short-term, the news coming out overnight from the Reserve Bank of Australia affirming previous statements that no further rate cuts will occur this side of 2017 means that the sting for GBP/AUD was more exaggerated than on GBP/EUR, GBP/USD.
You can also get in contact by filling out the form below, and whether you have a buying or selling Sterling requirement, we can discuss the options open to you to safeguard your transfer against any adverse movements, and make the most of any opportunities which may emerge in the time-frame you have allocated to conduct your currency exchange.