Tag Archives: GBPUSD exhange rates
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 email@example.com
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 firstname.lastname@example.org 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.
Oh brilliant in the midst of one of the UK’s worst political crisis ever the Tories are seeking to open another old wound – Grammar Schools. As a product of a Grammar School I would not be in any way against them, but surely a key priority right now is the Brexit plans? 7 and a half weeks since the vote is probably too early to start expecting a solution to an issue that will surely take years to deliver but will someone please provide some direction and leadership in this affair? Personally I would be advocating a so-called hard Brexit, wouldn’t it be a shame if the UK ended up like Norway? With a basically worse version of what we already have! Personally I would favour a reformed Free Movement of People principle but still seek access to the Single Market. Surely the politicians can see this? Some say it would lead France and Italy to seek Frexit or Italexit – (did I just coin a phrase?!) but can’t the EU leaders see they need to change tact to keep the EU together? Politics is an important factor on sterling exchange rates and any big developments here will have a big impact on the pound. Whilst having a new PM is great and I do support Theresa May in as much as I believe she is one of the best candidates to lead the UK at this time, the likelihood of further political uncertainty from the Brexit is very high. It will probably get worse before it gets better!
The big economic news this week is the NIESR (National Institute of Economic and Social Research) has an estimate on GDP (Gross Domestic Product) tomorrow. The NIESR estimate is a rolling 3 month estimate that reviews the last 3 calendar months which will include July’s data. Since we won’t get any views on July’s GDP from the official supplier of GDP data – the ONS (Office National Statistics) until October, tomorrow’s news is key to understanding the impact of post Brexit vote Britain on UK GDP, the holy grail of economics. We also have a raft of other data including Trade Balance data plus Industrial and Manufacturing data tomorrow but as this data is for June it won’t provide as much insight on the economy as the NIESR data. With the PMI survey’s showing big falls and all the fresh data showing less hiring, less growth and less confidence you would have to say it will probably get worse before it gets better.
There isn’t much else to celebrate this week economically for the pound and with the Bank of England confirming another rate cut is likely in the next month it seems likely the pound will fall further. We have a statement from the Reserve Bank of Australia Governor Stevens speech on Tuesday night, then the New Zealand Interest Rate decision Wednesday night and Eurozone GDP on Friday. So there you have it folks a fairly busy week, I think the UK GDP is the highlight and something I will be closely watching. Have you ever wondered if there was a better way of doing something? if it would be possible to get a slightly better exchange rate than you are currently achieving? Or wished you could talk to someone knowledgeable who treats you like a human being and explain the foreign exchange market clearly and concisely? My name is Jonathan Watson and I am the author of this post and have worked as a foreign exchange broker for close to ten years helping literally thousands of clients both private and business to make informed choices at the very best exchange rates. I have been quoted in national newspapers and even appeared on the BBC discussing the EU Referendum earlier this year. If you have a transfer to consider I would be most interested to hear from you and offer further information to help you get a better deal, please email email@example.com or call 01494 787 478 and ask to speak to me Jonathan Watson. Please note I can only help with bank to bank transfers from £10,000 to the multi millions and do not deal in holiday cash. You can also fill in the form below.
After a day of relative stability for buying Euro and Dollar rates before the close of play on Friday, they were sudden falls on the final part of the afternoon which created a concerning picture for some.
The devestating and tragic attacks in Nice understandably hit buying Euro rates the heaviest, with a full Cent drop in the value of the Euro early Friday morning until it was confirmed that the threat had been contained and the terrorist killed.
In total the Pound has had a net gain of around 3% for buying Euro and Dollar rates since the beginning of last week. The stability came from the sudden announcement of a new Prime Minister and Government to deal with the Brexit and the current shocks from the referendum reverberating through the economy.
Yet, with no new news, the Pound still struggled late Friday afternoon. This is down to speculative trading more than anything else.
On Friday afternoons you tend to see the phenomenon of profit-taking on currency markets. Speculators at high street institutions who move hundreds of millions each day are the true market movers, and many wish to consolidate their profits to end the week.
Whilst the Pound has recovered somewhat, it is only a week since the heavy slides of last week were last recorded. The Dollar seems to still be the currency of choice which is why we saw its value saw as the week ended, with serious capital flowing into the USD.
Yet this is not necessarily the end to the Pound’s strengthening trend. Junior Ministers were appointed in the UK over the weekend. The likes of Australia have called immediately for trade deals with the UK, the positive news to counteract the recent negative tirade hasn’t ended.
USD and Euro sellers are still seeing some fantastic opportunities, and may be wise to move sooner rather than later to secure those gains.
I can provide a live, competive quote for your exchange, and can describe the process of bringing funds back to the UK at more competitive rates than those offered by the high street banking world.
Simply email me on firstname.lastname@example.org, and I can also assist Euro and Dollar buyers to create a strategy for your transfer to maximise your currency return.
Sterling gains modestly for a second day, but will next weeks interest rate decision push the Pound down to new lows? (Joseph Wright)
It’s now a full second week since the UK’s ‘Brexit’ vote shocked the world, particularly the financial world, and GBP exchange rates are struggling to rebound although looking at GBP exchange rates at the time of writing, we are seeing very modest gains for the Pound, offering Pound sellers some rest-bite after seeing the value of the currency drop on almost a daily basis for 2 weeks.
Sterling appears to be surrounded by uncertainty as people struggle to define whether the current levels are favourable or not when we consider the bigger picture, and whilst the Pound has dropped down to it’s lowest levels against the US Dollar since 1985, into the late 1.20’s, some analysts are expecting Sterling to continue to decline from it’s current levels, meaning that although the Pound has lost so much value we may be looking at some of the most attractive levels available for Sterling sellers between now and the end of the year (or next year if some analysts predictions are correct).
I think anyone with a GBP/EUR currency exchange to make imminently or in future should be aware of some of the predictions of major analysts, in order to gain a realistic price target moving forward.
JP Morgan’s FX strategist John Normand has outlined a price target of 1.1236 for GBP/EUR by March 2017, which is a further 5 cents below the current level of 1.1725.
Should analysts such as Mr Normand be correct, it may be an idea for anyone looking to convert Sterling into Euros to consider making that conversion sooner as opposed to later as there’s a chance the rate could become less favourable, and for those looking to convert GBP into other currencies, using the GBP/EUR exchange rate as a benchmark wouldn’t be a bad idea as if the Pound is predicted to fall against the Euro, and the fallout from the ‘Brexit’ is affecting the Euro negatively as well, it may be that other major currencies perform even better than the Euro when compared with the Pound.
Those with an upcoming currency requirement involving the Pound may wish to get in contact with me (Joe) regarding strategies and how best to time the trade, or trades should you be open to the approach of a staggered entry. Our specialist currency exchange brokerage doesn’t offer financial advice but we do assist our clients with the timing of their trades based on price targets and historical data such as annual and daily highs and lows.
If you would like to discuss your currency exchange with me, and would like to consider taking advantage of award winning exchange rates from one of the UK’s leading regulated currency brokerages, feel free to email me directly ideally with a telephone number email@example.com with an outline of your requirement. You can also call me directly on 01494 787 478, just ask one of the reception team for Joe.
The Pound reached new lows on Friday for buying Euro rates, and the Dollar is testing some of the more extreme lows reach the Friday before-hand on the result of the Referendum.
Whilst the result of the Referendum marks a change in policy years down the line, the implications in financial markets have been felt acutely already. With the Pound experiencing its record falls, the future of the houseing market being questioned, and stock markets showing an utter lack of stability, the Bank of England have been forced to intervene.
In a speech on Thursday, Mark Carney, the Governor of the BoE, heavily hinted that a new round of quantitative easing and an interest rate cut may be necessary to protect the economy during this tumultuous time. Both of these policies are guaranteed to translate into Pound weakness, causing buying rates on Euros and Dollars.
QE is essentially a sophisticated form of printing money. Money is pumped into financial markets through bond purchases in order to stimulate growth. Simply put, the Pound loses value due to the increased supply in circulation, which is why markets immediately began to price in this devaluation of the Pound.
Interest rate cuts are more self-explanatory. The are a confirmation of poor economic performance to come, and demand for the Pound will be lower if investors can get greater returns elsewhere (a reason why the Australian Dollar has strengthened so heavily this past week of trading).
The interest rate decision and monetary policy statement comes out on July 14th. Markets, however, do tend to move ahead of events, which is why buying Euro and Dollar rates took a heavy hit before trading wound to a halt on Friday afternoon for the weekend.
Whilst there is a delayed fuse on this shift in monetary policy, the lack of certainty around the trajectory of a Brexit until a new leader is chosen will mean that the Pound will struggle to find traction on the currency markets.
I strongly recommend that anyone with a Euro or Dollar buying requirement should reach out to me on firstname.lastname@example.org to discuss the options open to you through a currency exchange specialist to limit your exposure to a volatile arena and make the most of what this market has to offer.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for a future purchase in order to avoid the uncertainty around a Brexit affecting your buying opportunities further down the line – effecively pre-booking your currency.