Tag Archives: pound
Sterling continues to lose value as financial markets go into turmoil. Since markets opened this morning the Pound is already 1.5 cents down against the Euro and looks set to continue sliding. Stock-markets in London opened 3% down already, with value evaporating rapidly.
Panic concerning the Chinese economy has caused a mass sell-off of shares, as investors are nervous that their assets will continue to be devalued. This atmosphere on the markets has completely changed the outlook for raised interest rates in the UK and US economy. Raising rates when it will be difficult for banks to make returns on a weakening global market would be self-destructive behaviour. Furthermore, low rates are considered a buffer against negative external market forces on a domestic economy, encouraging people to spend and keep the economy running from the inside.
Much of the recent run of Sterling and USD strength has been based around this accepted fact that they will be the first nations to raise rates in the Western World since the financial crash. This spanner in the works has likely added another 6 months/1 year to the timeline. Sterling’s value has deflated, and the Euro has benefited from investors moving away from Sterling and the USD searching for short-term returns.
I would strongly suggest those with Euros to buy over the next month to get in contact immediately for a free quote on their transfer. We will likely see 1.35 on the markets by the end of trading this morning, and this situation in China is not a short-term phenomenon. Call me on 01494 787 478 and ask Joshua – quote this article to receive a free quote on your transfer and tailored advice for your own situation. email@example.com
Pound Sterling exchange rates rise along with inflation figures – Rate hike edging closer? (Daniel Wright)
Sterling exchange rates have had a good day against all major currencies during trading today following following news that inflation year on year was now sat at 0.1% which was slightly higher than market expectations of inflation remaining at 0%.
This has now led to money in the city being piled on interest rate hikes for the U.K potentially being a little sooner than had been thought 24 hours ago. We would indeed need to see average earnings and unemployment figures for the U.K show an improvement over the coming months for this to really become a reality but should this happen then Sterling may be in for a good run of form.
i think the key in a situation such as this is to hedge your bets and protect yourself from any adverse market movements, as regular readers will be more than aware when Sterling does tend to look buoyant, more often than not something seems to come out to knock it straight back down again.
If you have a pending currency exchange to carry out then I would suggest splitting your requirement into chunks rather than leaving the full sum exposed. A lot of people do fall into the trap that they have (as an example £200,000) to exchange so they need to time booking it out perfectly. By splitting into two lots of £100k or even four tranches of £50k and doing it over a period of weeks or months, depending on how long you have to wait you can eliminate some of the risk whilst still leaving a healthy sum to take advantage of it all with.
If you need to carry out a currency exchange for a personal property transaction or a corporate exchange for your company then I can help you both in terms of getting not only the very top level of exchange rates but a smooth and efficient level of service too. Feel free to email me (Daniel Wright) on firstname.lastname@example.org letting me know exactly what your requirement is and I will be more than happy to contact you personally.
Commodity currencies have been extremely volatile since the devaluation of the Yuan over three consecutive days of trading last week. The lowered value of the Yuan points to decreased confidence in an economy which represents one sixth of the world’s population. As a result this is lowering forecasts for future global demand for commodities, which has hit currencies like the CAD, and AUD hardest. For more information and examples on how these currencies are expected to perform over the next few months and predictions on how they will weather the storm click here.
Sterling exchange rate news against Euro, Dollar, Australian Dollar, New Zealand Dollar and Canadian Dollar (Daniel Wright)
The Pound has been fairly range bound against the Euro of late however still remains over 10% up against the single currency since the turn of the year. A difference of over €15,000 per £100,000!!
Unemployment figures due out tomorrow morning at 09:30am will be key for the performance of the Pound during trading tomorrow. Figures are expected to remain at 5.6% and any change to this may cause a volatile start to the day.
Unemployment and average earnings figures are one of the key factors that will impact the Bank of England’s decision on when to raise interest rates so this data is extremely important.
Later in the week on Friday we also have European GDP (Growth figures) and inflation which will show us how much the economy within the Eurozone has grown or shrank during a specific period of time. Expectations are for a little improvement year on year so this may give the Euro a little strength, making it more expensive to buy.
You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. Also feel free to check out my section on forward contracts below. You can email me on email@example.com or call me on 01494 787478 if you do need to carry out a transfer soon.
Sterling has also been fairly range bound against the Dollar lately as investors and speculators continue to second guess just when an interest rate hike may be coming for the States.
Every time it looks like all signs are pointing towards an imminent hike in interest rates the economic data released appears to dampen expectations due to not quite being as solid as has been expected.
Personally I feel we may see a rate hike before the end of the year but if I had Dollars to sell I would be tempted to exchange at least half of my requirement sooner rather than later as if the hike continues to be delayed then rates may creep back towards the 1.60 level once again.
U.S Retail Sales are due out on Thursday afternoon so this is a key data release to watch out for if you are in the market to buy or sell USD in the near future.
You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. You can email me on firstname.lastname@example.org or call me on 01494 787478 if you do need to carry out a transfer soon.
Sterling – Australian Dollar/New Zealand Dollar
We have seen fantastic buying opportunities for both of these currencies over the past few months as China finally starts to show the cracks of growing at such a monumental rate.
Chinese data out overnight weakened both of these currencies after they had staged a minor fight back.Governor of the RBA Glenn Stevens still appears content to see a weaker Australian Dollar and data out from New Zealand has not been particularly promising so I feel both these currencies have the potential to still drop further. If you are looking to buy either currency however then it is key to remain vigilant as both currencies have the potential to turn around their trends extremely quickly and with great force.
Sterling – Canadian Dollar
After finally breaking 2 those looking to buy Canadian Dollars are also seeing a great opportunity compared to where this currency pairing has been sat for the past few years.
With oil prices seriously adding to the grey cloud currently hovering over the Canadian economy the outlook is fairly gloomy for the Canadian Dollar as it stands.
Once again though we do need to remember that it would not take much to see the GBP/CAD rate drop back below 2 should oil prices start to gather traction again so it is imperative that you keep a close eye on this pairing if you have an exchange to carry out.
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.
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Pound Sterling exchange rate forecast – Unemployment is key for exchange rates this week (Daniel Wright)
We have a reasonably quiet week ahead for U.K economic data with in my view the most important being on Wednesday morning at 09:30am where we see the release of the U.K unemployment rate, expected to remain at 5.6%.
Unemployment and average earnings figures are one of the key components in the Bank of England’s decision as to when they may hike interest rates and with news on Thursday that still only one member had voted in favour of a rate hike those looking for Sterling strength will need to see an improvement in these figures to give the Pound a boost back in the right direction.
Later in the week we have U.S Retails sales figures (Thursday) and European GDP (Growth figures) due out on Friday which I would expect to have an impact on the value of the Dollar and Euro.
All in all a fairly quiet week on the markets but as regular followers will know, it is fairly rare that surprises do not pop up so it is important that if you have a currency transfer to carry out in the near future that you keep in close contact with a proactive and efficient currency broker.
If you would like me on your side for your future currency exchange then I would be more than happy to help you personally, I deal with clients exchanging anything from £2000 to multi million Pound transactions and will be happy to add you to my list of clients.
All you need to do is email me (Daniel Wright) on email@example.com and I will be more than happy to give you a call to explain the various options we have available to you.
Here at Pound Sterling Forecast we pride ourselves on keeping you up to date with the latest market movements but in case you didn’t know we all work for an award winning currency brokerage too.
Feel free to get in touch with us today by filling in our rate quote form and get yourself a free, no obligation quote on your currency.
For the sake of less than a minute filling in a form it may save you hundreds or even thousands of Pounds – Especially if you have used a broker for years or have an online platform you buy from (essentially a robot that will not negotiate your rate like we will), you should always compare with us as we would be confident that we will save you money.
We look forward to hearing from you soon.