Tag Archives: GBPUSD exhange rates

Factors impacting GBP/EUR & GBP/USD exchange rates (Dayle Littlejohn)

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 drl@currencies.co.uk.

A two-minute comparison could save you thousands!

Sterling shrugs of Bank of England comments

Sterling has risen against most currencies this week despite comments from the Bank of England that interest rates could be on hold well into 2017. The fact is the UK is from an investors point of view a very attractive country to be investing in with some very solid long term growth prospects and increased chances of an interest rate rise at some point in the future. Contract this to other options like for example the Euro. The Eurozone are still riddled with fears over further QE (Quantitative Easing) which will only serve to weaken the Euro currency longer term. Do you remember when the GBPEUR rate went to almost 1 GBP = 1 Euro? The pound was exceptionally weak at this time because the Bank of England unleashed a major round of QE which greatly unsettled the pound. Well those movements are now being replicated on the Euro with the Euro struggling to find any traction against most currencies, one of the beneficiaries of this Eurozone uncertainty is sterling. If you are buying or selling Euros for sterling we have seen almost ten cents movement in 3 weeks! If you need to make a trade why not email me for assistance? Please use jmw@currencies.co.uk

It isn’t just events across the Channel boosting the pound, events across the pond in the US are also bolstering sterling’s appeal. The US Federal Reserve are discussing raising their base interest rate by the close of 2015 at their December meeting. This prospect is strengthening the dollar and leading investors to back sterling too on the understanding if the US hike then it is more probable the UK will also follow suit. Again despite the Bank of England explaining this is unlikely investors still feel sterling is worth the punt at this stage.

Event this week to take note of!

If you need to buy or sell sterling there is some key data this week you should be prepared for. Wednesday is the release of the latest Unemployment data for the UK. With the Bank of England linking raising rates in part to improvements in averages earning, this is a key indicator to impact sterling exchange rates. This week it is important to take note of key information from the Eurozone and the US as these events will affect sentiment towards the USD and Euro which will lead into movement on the pound. I might be making this all sound complicated but trust me it is all very easy once you know! Friday is a big day with Eurozone GDP (Gross Domestic Product) and then US Retail Sales. I would expect both releases to have an impact on the market and would be more than happy to explain to you how and what to expect if you contact me.

Movement on exchange rates can make a big difference on the amount of currency you receive. For more information on what could move your rate and details on how to get the best exchange rates please speak to me Jonathan on jmw@currencies.co.uk

Sterling rates poised for slight bump with Governor Carney speech (Joshua Privett)

Bank of England Governor Mark Carney announced late on Monday that he would be speaking at an event this morning. Sterling gained marginally yesterday as a result, with markets expecting him to echo positive comments put forward by his colleague Kristin Forbes last Friday.

Forbes said that rates would rise sooner rather than later, countering the dovish tones from other members of the Monetary Policy Committee since the events in China began to destabilize the global market-place in August. This reinstalled some of the lost confidence in Sterling. However, the dominant rhetoric is still a hesitant one at the prospect of raising rates, so the improvement was slight.

This may move GBP/EUR and GBP/USD slightly higher today if Carney reaffirms this point of view, or remain stable if he makes no mention of interest rates at all.

Central Bank heads can be very fickle about dodging important questions. Infamously last month when markets were expecting Mario Draghi, the head of the European Central Bank, to address difficult questions on the future of the Eurozone’s Quantitative program, he instead talked about art history for an hour…

So it seems it would be worth anyone looking to squeeze a bit more out of the current marketplace to wait until this afternoon following the completion of his speech, as some tempting buying opportunities may emerge. With little likelihood of Carney causing damage to Sterling’s value during his speech the gamble seems worthwhile.

Anyone with Euros or Dollars to purchase can contact me on 01494 787 478 and ask to reception for Joshua to discuss a strategy for your transfer and to receive a competitive quote. I recommend doing so before the speech so that we can discuss the options available to you to ride any positive moves in your favour. Even if your requirements are not until later in the year, if any rates catch your eye after this recent Sterling slide, these rates can be pegged until you require your currency at a later date. jjp@currencies.co.uk

Sterling makes gains against the dollar and euro (Dayle Littlejohn)

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. drl@currencies.co.uk Dayle Littlejohn. 

*BREAKING NEWS* Massive movement on GBP/EUR and GBP/USD (Joshua Privett)

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. jjp@currencies.co.uk

Chinese impact on the pound! Will sterling keep falling now?

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 jmw@currencies.co.uk to learn more.

After Black Monday – what can we expect on Tuesday?

Sterling rates were in as much chaos yesterday as the financial markets. GBP/EUR had fallen 2.71%, whilst GBP/AUD had increased 4.1% – a difference of 9 cents on the rates in a single day of trading.

Black Monday, the mass sell of of stocks as markets reeled from a suddenly obvious slowdown in China (a massive contributor to global growth), caused a huge amount of capital that was previously held as securities being released; which either had to go into alternative investment or remain liquid in a currency of their choice.

Most of this capital fled into safe-haven currencies such as Sterling and the USD. Yet, strangely, the lion-share ended up in the Euro which is not traditionally considered a safe-haven.

The great lengths the European Union, European Central Bank, and particularly the German Parliament have gone to recently to bolster the stability of the Euro -financially and politically- have made it more attractive to investors as a currency to move to when taking cover from an explosive stock-market. Another cherry on top is that the Euro is still historically incredibly cheap.

So I think we can expect Sterling to make gains today against commodity currencies such as the CAD, AUD and NZD, albeit unlikely to the same degree. But GBP/EUR may fall again as well. Chinese stocks fell another 4% already and UK markets have only just opened.

We are currently in an incredibly precarious position on the currency markets. It is the best time to sell Euros since May when Sterling weakened on the expectation of a hung-parliament. I strongly recommend that anyone with a currency requirement call in to 01494 787 478 and ask for Joshua. We will know more as the day goes on and I can keep you up-to date once we establish initial contact, and give you tailored advice on your situation. I am happy to supply a free quote and guarantee to beat any rates offered by banks and competing brokerages. jjp@currencies.co.uk


What can you do on pound sterling exchange rates this week?

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 jmw@currencies.co.uk. 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!


What can you expect for sterling exchange rates this week?

The last few weeks have seen sterling rise on the back of a feel good factor owing to the Conservative election victory and renewed uncertainty in the Eurozone and US. The pound has not really stuggled regarding the bad news of ‘good’ deflation and some impressive Retail Sales figures have helped sterling to rise above 1.40 against the Euro.

This week UK GDP (Gross Domestic Product) data looks like the main driver for sterling. It is worth pointing out the recent growth data looking at Q1 showed a 0.3% rise in the UK economy which was below recent expectations. It seems reasonable therefore to warn anyone buying a foreign currency with sterling that the rate that has risen so unexpectedly from the 8th May election result day to now, may get a reality check on Friday this week.

Friday is interesting too because the United State GDP release will be closely watched. Recent US data had been soft and so the expectations the US would raise interest rates had fallen along with the price of the dollar. However rising Inflation at the end of last week shows an interest rate rise might not be too far away, hence the resurgence of the dollar.

If you have any foreign exchange requirements pending it might be worthwhile considering the week ahead and how it may impact your exchange rate. Please email me Jonathan on jmw@currencies.co.uk to learn more.

Economic reality sets in for the pound…

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 jmw@currencies.co.uk

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