Tag Archives: GBPUSD exhange rates
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 email@example.com 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 firstname.lastname@example.org. 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 email@example.com
‘Sterling loses significant ground as election uncertainty heats up’ could be a headline next week as the most uncertain election in years takes place. Sterling lost 5 cents in the weeks leading up to the election in 2010. The same was true of the Scottish Referendum. Can you really afford to take risks with so much at stake? Many people buying a foreign currency with the pound have been locking in on forward contracts lately to guarantee they won’t get a worse rate in the future.
If you are transferring currency in the coming weeks or months please don’t take the current rates of exchange for granted, it could end up very costly. The election is such a rare unique event trying to make firm predictions could be a big mistake. Having said that it seems reasonable to expect the exchange rate will drop as it has done in the past at such times.
If you need to buy or sell it might be a good idea to make some plans as major uncertainty is due. For more information on just what to expect and how to benefit from the uncertainty please contact me Jonathan on firstname.lastname@example.org
Do you know who is going to win the election in the UK? Nor do I. But I think a hung parliament is looking more and more likely, this is something anyone considering buying or selling sterling should be very aware of. The pound is likely to fall in the coming weeks as uncertainty rises as to who will take the reign of the UK public finances. This is not a time to be sitting on the fence waiting for something to happen!
Moody’s the ratings agency confirmed yesterday that they view a UK exit from the EU more damaging than any uncertainty over just how the election pans out. As a client pointed out to me recently any uncertainty in the UK parliament may pale into insignificance when compared with some of the uncertainty in the Eurozone at the moment!
Simply put no one can say exactly what will happen. But from my experience of past events (the 2010 election and the Scottish Referendum) sterling is likely to fall before the event before rising after. However with the Tories pledging a referendum on Europe and Labour pledging to increase spending neither outcome looks good from a market perspective. It may be that sterling could fall further after the election or around the result as the parties scramble to get in bed with one another over important issues.
If you are considering a sterling transfer in the future the coming weeks may present at opportunity that does not return. Making plans in advance is the only way to limit your risk and help maximise your currency exchange. We offer a specialist proactive service to help you get the most from the market when transferring money overseas. This blog is intended to highlight important events and information in the market so that you can help minimise your risk through an informed decision.
To really get the most from our service speaking to one of our team or myself is recommended. I Jonathan Watson have worked as a foreign exchange broker for the same company for 6 years and am here to assist in the planning and execution of any international money transfer you need to make. I cannot tell you exactly what to do but hope to provide useful insight and a platform for achieving the most for your money. Even if funds are not required at this stage with plenty of uncertainty around, utilising a forward contract or a stop loss or limit order might be a good idea.
I am very confident I can show you a saving on the exchange rate versus other sources and also offer a friendly, knowledgeable service above any bank or foreign exchange broker. If you wish to learn more about the pound and just what to expect plus what you can do about the uncertainty up ahead please email me on email@example.com
Other Currencies News
CAD – Unemployment data today at 13.30 has helped the current 2 month high the Loonie dollar is enjoying against sterling. In a nutshell the Canadian dollar is benefitting from an improved Oil price and overall improvements in their biggest trading partner America’s economy. The Loonie may well track further future projected improvements in the USD against sterling so anyone buying the Canadian dollar in the future might wish to make plans sooner than later.
AUD – The Reserve Bank of Australia decided not to cut their interest rate as expected helping the Aussie to strengthen against sterling. Expectations are for the RBA to make at least one more rate cut before the end of the year as they seek a weaker currency to help boost their exports.
ZAR – A general improvement in risk appetite and commodity prices has helped the Rand to rise against sterling, anyone selling Rand for the pound might want to move on any GBP weakness before the upcoming election.
No matter which currency you are buying or selling and when, please feel free to make contact to be kept up to date with the latest news and events which may alter your price. Whether a regular business buying currency or a private property investor looking at a one off international payment, I am sure I can offer you something of interest.
I look forward to hearing from you, please don’t forget to vote
Sterling has spiked against its peers as UK data shows improvements in the various sectors of the economy, notably the Manufacturing Industry and the Services Sector. Unless you are buying USD with the pound, 2015 has been pretty much plain sailing for anyone buying a foreign currency with the pound. What I wish to focus on are the numbers of clients buying the pound currently. Tomorrow and next week could be some very good opportunities to buy the pound as the Bank of England release some important information. Sterling looks set to rise over the longer term so making some plans soon is probably wise!
EUR to GBP – 2015 has been a rough ride for anyone selling a property or getting paid in the Eurozone. Quantitative Easing and the Greek election have caused the Euro to sink to a 7 year low against the pound and the forecast for Euro sellers is not very rosy. I would be seeking to trade on any dips in your favour. The General Election later in the year may help but in my opinion holding on for so long is a risky move. To learn more about the process of moving funds out of the Eurozone at the best exchange rates please contact me Jonathan on firstname.lastname@example.org
AUD to GBP – The Aussie has weakened to multi year lows against sterling too, principally on the back of the RBA (Reserve Bank of Australia) decision to cut interest rates to stimulate growth. Falling commodity prices have caused the Australian dollar to plummet and we are only a couple of cents off the historic 1 GBP for 2 AUD being reached. With the global economy slowing it would seem reasonable to expect further losses for the AUD as the RBA act to keep the Australian economy growing.
Even if you are holding on expecting rates to majorly improve for buying the pound depending on the currency you are holding it is probably sensible to make some firm plans now. We offer a specialist service to move money internationally at the very best exchange rates. Assisting in the planning and execution of said transfers we have directly helped over 4000 clients to make an informed decision about when to execute their exchange plus countless others who read the site. If you are a regular reader and wish to learn more please email me Jonathan on email@example.com
US ~Non Farm Payroll data is due tomorrow which could be a big market mover as it is the first one since the US stopped their QE programme. Today’s meeting with Mario Draghi might also be very interesting and should be a market mover, the least interesting thing is probably the UK’s Bank of England decision which is not expected to yield anything new.
How can you make a decision on when is the right time to enter the market if you don’t know what is happening? The idea of this blog is to provide information on just where rates are headed and make sure you get the best price when you do decide to enter the market. If you have a transaction that you need to consider why not get in touch with our specialist team to find out more about moving money internationally at the very best rates.
Sterling has done really well this year as the UK economy improves and investors position themselves for the UK to raise interest rates. Next year we would expect the UK elections to move the market, the increased uncertainty surrounding the political situation in the UK is bound to cause ripples on exchange rates.
When considering making a currency exchange understanding what is driving the exchange rate is vital to getting the most from the market. Please contact Jonathan on firstname.lastname@example.org for a quick overview of your position and to learn more about getting the best rates.