Tag Archives: pound
Sterling exchange rates slipped yesterday on softer construction data. Although still experiencing expansion it slipped from 64.6 to 62.6 in January and house building grew at its slowest pace in four months. The real test will be the impact these figures might have on GDP data, and this could well give a slight correction to the pound. Looking at data today we have UK PMI data for February for the services sector. This is also expected to show a small decline month on month and does pose a small risk for the pound this morning, this is scheduled for release at 09:30.
Looking at the Euro – EU GDP data is released this morning at 10:00. Figures will be the final revision of Q4 2013 and expected to show an increase from 0.1% to 0.3%, something that could lend support to the Euro this morning. Retail sales are also due for release with an improvement from a negative 1.6% to a positive 0.8%
Across the pond cable rates (GBP/USD) have settled around the 1.67 level. Today we have the FED beige book which will give a report on the current US situation including business sentiment and overall economic growth. A positive report could lend support to the greenback in anticipation of Fridays important jobs data. Friday will see non-farm payroll figures at 13:30 and with a positive reading expected (although forecasted figures are often way off the mark) look for the dollar to have a strong end to the weak.
Finally looking towards the Australian Dollar. This morning’s GDP data came in better than expected and has seen the Aussie push back into the 1.85 territory. I still feel any strength for the Aussie should be seen as an opportunity for those selling AUD as I still believe the currency is set to have a tough time throughout the course of the year. Yes this morning’s figures were positive but the RBA governor stated that the dollar is still high by historical standards suggesting the central bank is still not comfortable with the position of the AUD. Anyone buying AUD I believe will find more value in the coming weeks.
Should you have an upcoming bank to bank money exchange to arrange and you would like to discuss the current market trends and the timing of your transfer then please get in touch. As a specialist foreign exchange broker we have multiple contracts to help our clients maximize their exchange. To find out more information on the full currency service we provide please email Mike at firstname.lastname@example.org
Australia leave interest rates on hold – Tension still apparent in Ukraine – A little construction data for the U.K to set the scene for the day for Sterling (Daniel Wright)
Last night Australia left their interest rates on hold at 2.5% which was expected and this has led to the Australian Dollar holding fairly steady in trading overnight and this morning.
Personally I feel any Australian Dollar movement in the coming days will be based on two factors – GDP (Gross Domestic Product) figures tonight and the ongoing situation between Russia and the Ukraine. Should things really start to get bad over there then global attitude to risk will no doubt be affected and this could lead to investors and speculators starting to drop the ‘riskier’ currencies like a stone which may lead to Australian Dollar weakness.
This morning we have the release of Construction data for the U.K which could be the first good indication as to how much the dire weather conditions have actually impacted on the economy.
The rest of the trading day is looking fairly quiet so depending on what we see from this release, this may set the scene for the rest of the day for the Pound assuming no major surprises crop up… which you can never rule out with all that is going on globally right now.
As mentioned in my post yesterday the week really starts to hot up tomorrow so if you are looking to carry out a currency transaction involving wither buying or selling the Pound then it may be prudent to contact me directly as I can help you both with timing your transfer and getting a better rate than your bank or current broker when you do decide to book out your currency.
To get in touch with me (Daniel Wright) directly then feel free to email me on email@example.com with a description of what you are looking to do and I will be more than happy to assist you personally.
Good morning to all of our regular readers, we have a fairly busy week ahead for Sterling as we enter into March. on top of this, the current situation in the Ukraine is starting to impact on global attitude to risk which is starting to weaken currencies such as the Australian Dollar, New Zealand Dollar and South African Rand.
This morning saw mortgage approvals data out for the U.K and we had the best figures we have seen since November 2007 which has given the Pound a minor boost to start off the week. Sterling could well remain supported throughout the day as there is little else out for the U.K today however do be aware of head of the ECB (European Central Bank) Mario Draghi speaking at 14:00pm and some economic data for the States throughout the afternoons trading.
Overnight tonight we have the Australian interest rate decision and statement which could lead to a volatile evening for Australian Dollar exchange rates. The rest of Tuesday is again fairly quiet on the economic data front so unless any surprises crop up i would expect a fairly flat trading day however followers of the AUD should once again be wary that GDP (Gross Domestic Product) or growth figures are released overnight too.
Wednesday is when the week really starts to hot up, starting off with a flurry of data for Europe including growth figures and PMI at around 10:00am along with the inflation report hearings for the U.K at exactly the same time. Later on in the afternoon has the potential to be of interest for those looking buy or sell Canadian Dollars as we have the Canadian Interest rate decision at 15:00pm – Although no change in rates is expected all eyes will be on this release and the statement that comes with it. To round the afternoon off we have manufacturing data out for the States, also at 15:00pm and the Federal Reserve beige book out at 19:00pm which could lead to a little USD volatility.
Thursday we have interest rate decisions for both the U.K and Europe at 12:00 and 12:45pm respectively so watch out for any surprises cropping up during this period, more important for Sterling/Euro exchange rates on Thursday will be the speech and press conference by head of the European Central Bank at 13:30pm which can create some short, sharp buying and selling opportunities… if you are looking to buy or sell Euros this week and you would like to be made aware of an opportunity that arises then feel free to email me directly with a brief description of what you are looking to do on firstname.lastname@example.org and I will be happy to get in touch with you personally.
Friday focus turns to Switzerland, Canada and the States with a flurry of Swiss data out early in the morning, Canadian unemployment figures out early afternoon and the more often than not volatile data rel;ease of Non Farm Payrolls for the States at 13:30pm.
Non Farm payrolls and have an effect on all major currencies as not only can predictions be way out but it also affects global attitude to risk so watch out for this at the end of the week.
I personally work for a currency exchange brokerage which has won numerous awards for our rates of exchange and customer service, we are regulated by the FCA (formerly FSA) and we pride ourselves on getting better rates than not only the banks but our competition too. If you find my website of interest then feel free to email me directly with any requirements you have and i will not just price match but will make sure you get a saving if I can achieve it for you, I have helped thousands of clients save money over their current broker over the past few years and I look forward to helping you too – All you need to do is email me (Daniel Wright) on email@example.com and I will contact you personally.
Sterling has had a solid day to end the week against the Australian Dollar and US dollar but posted heavy losses against the Euro. The pounds losses against the Euro cam about following better than forecast inflation figures. Since reaching a one year high of 1.2270 in January, the pound has since struggled to keep consistent momentum against the single currency remaining range bound between 1.20-1.22 throughout the course of February. Again this pattern has continued with levels testing 1.22 this morning before falling below 1.21.
Recently deflation has been a major concern for Europe. This is decrease in the general price level of goods and services and is viewed as real concern in a modern economy because it increases the real value of debt, and may aggravate recessions and lead to a deflationary spiral. This has been putting pressure on the Euro, however with this morning figures showing inflation levels had not fallen at the pace many had expected has taken some of the pressure off Draghi and the ECB. If the figures had been weaker it may have left Draghi with little option but to cut interest rates, however this scenario is now less likely and hence the stronger showing for the Euro.
Looking at the USD, todays GDP release was as expected falling from 2% to 1.3% month on month. This along with Janet Yellen’s speech yesterday has pushed cable (GBP/USD) though 1.67 and just a cent below a four year high. Long term I believe the dollar will find support and would look for a push back towards 1.60. It will take a little time for Yellen to impose herself and a continuation of the FED’s approach on QE should lend support to the greenback long term. For anyone buying US dollars the current market is showing some value.
Should you have an upcoming bank to bank money exchange to arrange and you would like assistance with your transfer then please get in touch. When making your decision about the timing of your transfer it is best to get as much information as possible. To find out more about the currency service we provide and the various contracts we can offer then please get in touch on 01494 787478. Alternatively email me with a brief overview of your particular requirement and I will happily get in touch to run through your options and to discuss the current market trends. Email Mike at firstname.lastname@example.org
Sterling exchange rates at fantastic levels for buying foreign currency – Will these rates last? (Daniel Wright)
GBP-EUR rates closing in on 12 month high once again
GBP-USD rates near to a 4 and a half year high
GBP-CAD rates near 5 year high
GBP-AUD Near 4 year high
Great time to buy!
Sterling exchange rates are currently at great buying levels compared to what we saw available throughout the course of 2013 as shown above!
We have an exciting year ahead with plenty going on in the market and as always I shall endeavor to keep you all full up to date with all the action.
This week has been fairly quiet on the economic data front, and exchange rates have been fairly flat.
Next week brings the start of March and what this means is that we will start to see the releases of economic data from February. One thing to really bear in mind is that throughout most of February parts of the U.K were almost at a standstill – With terrible flooding virtually shutting down entire towns and villages, not to mention seriously affecting transport links.
In my opinion this must have really weighed heavily on the economy and it could start to show in the coming weeks. Of course the U.K has been on the charge of late in terms of economic data so a slight halt in progress could easily push Sterling down a little again.
Of course you never really know just what is coming next for the Pound as many of you will be well aware, but this is certainly a potential point to take on board if you are looking to buy foreign currency in the coming weeks.
If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.
This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.
I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange. All you need to do is email me directly on email@example.com with a brief description of what you are looking to do and I will be more than happy to assist you.
Sterling has remained relatively flat against the Euro and US dollar posting small gains of 0.25% and 0.15% respectively but posted some bigger losses against the AUD, NZD and ZAR. Looking at the rest of the week I have outlined some of the key data sets to look out for:
- German GDP figures tomorrow at 07:00 – expected to show an improvement month on month shifting from 0.3% to 0.4% something that could lead to Euro strength tomorrow morning.
- US consumer confidence tomorrow at 15:00 – forecast to show a small fall.
- UK GDP figures Wednesday at 09:30 – forecast to show a fall month on month from 0.8% to 0.7%. May have been priced into the market already but I would still expect the pound to fall should the figures be as expected.
- Euro Zone consumer confidence figures Thursday at 10:00 – expected to stay the same.
- Euro Zone Industrial confidence figures Thursday at 10:00 – expected to post a small fall putting pressure on the Euro.
- Speech from head of the FED Janet Yellen at 15:00 on Thursday. In her first month as Chairman of the FED she may well be quite reserved but look out for any clues for future US monetary policy.
- Euro Zone unemployment rate Friday at 10:00
- US GDP data Friday at 13:30 – expected to fall from 3.2% to 2.7% and could put pressure on the US dollar to finish off this week.
As you can see this week is a busy week leading up to the end of the month. Should you have an upcoming bank to bank money exchange to arrange and you would like assistance with your transfer then please get in touch. When making your decision about the timing of your transfer it is best to get as much information as possible. To find out more about the currency service we provide and the various contracts we can offer then please get in touch on 01494 787478. Alternatively email me with a brief overview of your particular requirement and I will happily get in touch to run through your options and to discuss the current market trends. Email Mike at firstname.lastname@example.org
As mentioned earlier on in the week this morning had the potential to shift Sterling exchange rates and indeed it has.
Following a fairly solid run for unemployment rates in the U.K we finally saw a little turnaround as unemployment levels crept back to 7.2% from the level of 7.1% we had got down to last month.
With unemployment levels being one of the key parameters for any future interest rate changes and the Governor saying that he would need to see unemployment levels below 7% as part of that then the fact that the unemployment figure has taken a step back to 7.2% has dropped Sterling a little.
Sterling exchange rates are still fairly high against most major currencies which is great news for those looking to send money overseas in the near future. The key thing not to do is to get too greedy in this situation, which I see people do on a daily basis. If you are looking to take a risk on further gains in your favour the sensible approach may be to book out half of your currency requirement to eliminate some of the risk.
This evening we have the FOMC minutes over in the States which could lead to a change in global attitude to risk which could affect all major currencies, most notably the USD, AUD, NZD and ZAR depending on what was discussed at the last interest rate decision in the U.S.
If you have the requirement to buy Australian Dollars, New Zealand Dollars or South African Rand then levels become fairly tempting at present, especially with all the flooding we have seen in the U.K and the potential that this could start to weigh on February’s economic data which will be released in March.
On the flip side, especially with the Australian Dollar there are many factors that could easily lead to the Australian Dollar weakening reasonably quickly. The RBA and the Government are still of the opinion that the AUD is too strong and quite interestingly I saw a program regarding China and the fact that China has borrowed 15 Trillion Dollars over the past 5 years with their rapid levels of growth and building – This is the equivalent to the debt levels of the entire U.S banking system which suggest a slowdown or even meltdown is on the cards soon for China. With China having such a big impact on the value of the Australian Dollar this would be a big worry for me if I had Australian Dollars to sell in the near future as although rates have got worse lately they have the potential to get a lot worse than they are now.
Should you be looking to exchange any foreign currency whether you are based in the U.K or not then I can help you both in terms of getting a much better rate of exchange than the bank (or even your current broker) along with a great level of customer service.
The company I work for has won awards for our exchange rates and also our customer service so for the sake of a quick email to me explaining your upcoming requirements you may save yourself thousands of Pounds. Feel free to contact me (Daniel Wright) the creator of this site on email@example.com and I will be more than happy to get back to you personally.
Sterling falls following inflation figures, with the Bank of England and FOMC minutes set to dominate tomorrow (Mike Vaughan)
Sterling exchange rates posted losses against most major currencies today following the UK’s latest inflation figures. Levels fell to 1.9% and below the Bank of England’s target level of 2%. This has made chances of the bank raising interest rates even less likely in the short to medium term and would suggest the record low levels of 0.5% will remain for some time. This has put pressure on sterling with levels reaching a low of 1.2135 against the Euro and 1.6655 against the US dollar. This could be a real opportunity for buyers of sterling as with unemployment figures and the important Bank of England minutes released at 09:30 tomorrow morning the pound could easily see a reversal.
Looking at other data of note look out for inflation figures from the US at 13:30 tomorrow followed by the FOMC minutes at 19:00 from the FED’s interest rate decision earlier this month. As with their UK counterpart the FOMC minutes will give insight as to future monetary policy from the FED and in particular any changes to policy since Janet Yellen has taken over from Ben Bernanke as the head of the Federal Reserve. For me it is likely they will continue with their stance on QE and look at reducing levels by $10bn per month. This I am sure will lend support to the US dollar in the months to come and may also create a shift for currencies such as the AUD and NZD.
As a specialist foreign exchange broker we offer multiple contracts to help our private and corporate clients maximize their fx exposure. This can include the use of forward, stop/loss and limit orders to name a few. When making a decision about the timing of your exchange these contracts can prove invaluable, particularly during times of market volatility. Should you wish to discuss the currency service we provide in more detail then please call the office on 01494 787478 or email Mike using firstname.lastname@example.org