Tag Archives: high
Sterling still close to four year high against the Euro yet dropping against most majors – What is next for the Pound?
The pound has made great progress against the Euro of late edging closer to a four year high and leaving a smile on the face of those looking to purchase a property overseas in the near future. If you are in this position you are probably currently wondering whether or not the charge will continue or whether this is the best we will get for some time.
To be honest, anyone that says they know the answer to this must by lying as there is so much going on behind closed doors at present that it is really hard to tell just how deep these underlying problems are not just for the PIIGS of Europe but also for the U.K – Our banks are taking a bashing again and there may well be compensation claims a plenty further down the line due to the latest scandal… Just think how many Billions were lost on PPI claims, this surely cannot help. The further Europe finds itself in trouble the more likely the Pound will continue to struggle against most other major currencies as we are so exposed to these European problems and personally I don’t think we are officially out ofhot water until the BOE start mentioning interest rate hikes again which is an awful long time away.
In short, if you are in the process of buying a property abroad or may be looking to buy one in the near future it may be sensible to secure the currency required for the property on a forward contract whilst rates are indeed favourable. A forward contract is where you can fix a rate for anything up to two years in advance for just a small deposit, meaning there are no nasty surprises that can pop up when you come to paying off your balance, it also means that you can budget accordingly and get on with the other important matters with the purchase.
If you feel a forward contract is of interest or you do have a currency transaction to carry out and you want to achieve the very best rate of exchange along with a great level of service then feel free to contact me directly djw@currencies.co.uk and I shall be more than happy to help you.
Sterling Euro hits 22 month high once again!
Following better than expected mortgage approval data and not too terrible PMI (Purchasing Managers Index) data we have seen Sterling have yet another gravity defying start in early morning trading.
The Pound is up against pretty much all majors, not by a huge amount but it is still up. Personally I feel that the sudden confidence in Sterling is due to it now being the best of a bad bunch…. Surely any investor with their head screwed on would be wary of the Euro at present and with the potential of QE3 hanging over the head of the Dollar the Pound surely steps forward… Even if we are technically in a recession at present.
The question really is how long will this last??? We have seen Sterling have a few decent spurts like this over the past few years, yet only ended up disappointed with it fizzling out thanks to poor negative movements from the Bank of England who seemingly get twitchy when the Pound gets too strong.
The sensible option in this market is to use a Stop Loss order… This is where you set yourself a worst case scenario in the market e.g 1.22 – If rates should start to drop[ away and that level become your trading level even for a second then your currency is automatically purchased for you, however the order (as long as it is not filled) can be moved at any time so if rates are creeping up you can always ‘chase the market’ up and keep increasing your bottom figure.
The good thing with this is that you know what your worst case scenario is for example the minimum your Euro purchase will cost, the bad part is if the market should jump down to the point your currency is bought and then fly back up again then you have secured your currency and the deal is done. For the less riskier client though this is ideal as you do get to see how the market pans out without losing too much if the market should drop away.
If you want more information on this then feel free to contact me directly djw@currencies.co.uk
Sterling hits a 32 month high on a trade weighted basis against the major currencies
If you need to make a transfer into a foreign currency then now may be the ideal time to seriously consider your options. The Pound is the highest it has been against a basket of major currencies for over 32 months and with the fact that the U.K is technically in a recession you just cannot be too sure that these gains can continue.?!
Sterling Euro
With Spain notably in quite a lot of trouble and plenty of political problems within Europe you would imagine that the Euro is still in for a rocky period. Indeed all the signs are there that the Europeans will struggle in the coming few weeks and pressure will mount. There is no smoke without fire and I’m sure there is a lot more to come out from behind closed doors in the coming few weeks however do be wary.. Rates against the Euro at points today have been the best in 22 months and it is usually those that are greedy and hold out for that little extra that get their fingers burnt.
Sterling Dollar
TheDollar has also weakened of late following negative comments from the Federal Reserve in their latest press conference. Interest rates are set to stay low until 2014 and there is still the potential for further Quantitative Easing which may weaken
the Dollar. Beware though, in times of uncertainty globally (which we would see if European problems kick off) investors tend to run to the Dollar as a safe haven and the Dollar generally strengthens. Gold is also a safer haven and priced in Dollars so this may also increase demand for Dollars making the Dollar gain back ground.
Sterling Australian Dollar and New Zealand Dollar
A potential interest rate cut in the near future may weaken the Australian Dollar once more (an interest rate cut is generally seen as negative for the currency concerned). The Australian and New Zealand
Dollar have both had a tougher time lately as in times of uncertainty investors tend to avoid these ‘riskier’ currencies. Couple that with China slowing down ever so slightly and we may have a little more weakness to come.
Are you getting the best rates of exchange and level of service at present? Do you even compare?
If the answer to any of the above heading is no then I can help you… Even if you just want a quick comparison to ensure that you aren’t losing money on your currency transfers I am happy to give you that. Feel free to email me directly djw@currencies.co.uk having spent years working on the currency markets I can help you both in terms of getting great rates and with timely market updates to help you decide just when to book your currency as even the smallest movement in your favour can make quite a big difference in what quite simply are extremely volatile times.
Pound Hits 20 month high against Euro! Also spikes against Dollar, AUD,NZD, CAD,ZAR, JPY, CHF and many more!
The Pound saw yet further gains today against the Euro and indeed a basket of major currencies.
This is a breath of fresh air for those in the process of purchasing a foreign property or that have had to put up with poor exchange rates over the past few years.
If you are in the middle of a purchase overseas or rates at present are well over what your company has budgeted for the year then there is the option of booking out your rate on a forward contract… This is where you can lock in to a rate of exchange for anything up to two years for just a small deposit, you can then send the balance to us at any time on or before the date we have agreed at no extra cost and we will provide the Euros for you at the original agreed rate.
Of course if the rate continues to climb you do miss out but there is nothing better than having the peace of mind that you know exactly how much that property will cost and that you won’t get any nasty surprises when you come to pay your balance.
I have been saying the Pound will climb on this site for an awful long time now and those that have sat tight and ridden the wave with me will have truely benefited.
If you have a transfer either large or small (we do not deal in cash) and you would like me on your side then email me directly djw@currencies.co.uk and I will be happy to help you, you could also join our mailing list for free by filling in the form in the top right hand corner of this site… Or if you really want to hear news ‘straight from the horses mouth’ give me a call on the number just above that form.
Pound hits highest point in the year against the Euro
I must say sorry for the lack of updates this week but quite frankly the phones on the trading floor have been extremely busy, all of my clients that have been waiting for 1.20! Have been put on red alert as a chance to buy at that level may be just around the corner!
In my opinion this is a key time to place a limit order, these orders are free and can be cancelled or amended at any time should you change your mind unless the order has been achieved.
Essentially a limit order is a tool for those that might not be available on the phone all day as if your rate becomes achievable your currency is bought out automatically for you and you just need to forward over your payment according to a normal contract.
Contact me directly today if you want to place a limit order or indeed save money over your bank or current broker… I’m more than happy to undercut your current prices to win your business, just email me on djw@currencies.co.uk with a contact number, let me know what rate you have been offered and I will save you money…. A nice way for me to give something back to my regular readers at Christmas!
Pound Sterling has a rocky 24 hours – Hit 1 year high against ZAR (South African Rand) Mervyn King talks it back down this morning
The Pound once again followed the trend of once again looking like we were going to push onwards and upwards and then as soon as we look like we will move on to the next level something comes back to bite us and send Sterling back down again.
Yesterday following the release of inflation data and the mention once again of interest rate hikes in the U.K in the near term, Sterling rallied and shot up against most major currencies inclusive of touching near a year high against the South African Rand.
This morning however, once again proving that if you are looking to book something out you need to be on the ball and in the position to do so rapidly, Mervyn King of the Bank of England has spoken and been up to his usual tricks of talking the markets straight back down…. Sterling has now lost anywhere from 0.36% to 0.8% at the time of writing this against most major currencies.
If you have a transfer to make, here at www.poundsterlingforecast.com we can watch the markets for you or assist you in placing a stop or limit order, should you be happy with rates as they stand but not need to transfer funds for some time, there is the option of locking into a rate with a forward contract.
Contact us directly by filling in the form on the right hand side of this page and one of the team will be in touch to discuss the options available to you.
Sterling reaches 19 month high against Euro rate forecast for this week for Pound against all majors
Sterling reached a 19 month high against the Euro last week, This has presented those looking to buy Euros with an exceptional opportunity compared to levels we have seen recently – If buying a property abroad or making business transactions this could save you a fortune!
The long term view is for further gains and I would anticipate to be above the 1.25 levels by the end of the year due to the severe debt crisis plaguing European Governments.
But the issue of debt also affects the UK shores and the short term outlook as we announce our own Austerity measures via the emergency budget on the 22nd June, could spell a temporary dip for the Pound.
Also worth noting is a report out today from the OBR (Office of Budget Responsibility), anticipated to scale down predicted growth figures.
There are a number of different data releases due out this week not just for the U.K but various other economies that will have an effect on the cost of you buying these particular foreign currencies.
These are as follows:
Tommorow - Reserve Bank of Australia meeting minutes, this will give an overview as to how they came to their latest interest rate decision and give indications as to how they may deal with their economy going forward. We also see the Bank of Japan interest rate decision (no change in rates is expected).
For the U.K we see CPI (Consumer Price Index) data out which is a measure of inflation and could lead to market volatility.
Wednesday - Wednesday is key for the U.K with key unemployent figures being released at 09:30am – any change to expected figures could lead to major market movements.
Thursday - This will be another busy day with releases of note being Retail sales for the U.K in the morning, the Swiss announce their interest rate decision and in the afternoon we see the U.S take their turn to announce CPI.
Friday – A quiet day expected on the markets however as regular traders will know there are always surprises popping up so if you have a transfer to make ensure you are in close contact with a currency specialist who can keep you up to date with market movements.
If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.
