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What will happen to Sterling exchange rates this week? The Great British Brokerage – Don’t settle for second best….(Daniel Wright)
The Pound has yet again had a torrid start to the week and appears to be finding that it has very few supporters out there at present.
Sterling exchange rates have dropped off against every major currency and with very little economic data out this week until Friday it is hard to see where the catalyst for the fight back will come from.
The markets are kicking the Pound whilst it is down and you can see why… if you were a big investor due to put money into a business, would you proceed with that investment not knowing what the actual plans for the business were over the next few years? More than likely not unless you have a high appetite for risk.
With this in mind big investors and speculators are at present leaving the U.K and indeed the Pound alone, settling for safer options. In the world of supply and demand, the demand for Sterling has dropped off and so therefore the value of the Pound has followed suit.
There are plenty of reasons why other currencies may start to weaken off but none seem to be impacting matters as much as the referendum has hit the Pound. You have lots of problems politically and with the European economy, the U.S election is about to get into full swing and both Australia and New Zealand are suffering a little due to their currency being too strong.
As we move into October anyone looking to buy foreign currency with the Pound will need to hope for economic data to continue to be solid post referendum and this will give the Pound a chance of coming back a little, although I hate to write negative posts about Sterling performance unless this data is good then the Pound may suffer as we approach the Christmas period.
If you have a large currency exchange to carry out involving buying or selling the Pound then you need not worry as I can help you every step of the way. The brokerage I work for is one of the longest standing and one of the few privately owned currency brokerages left in the U.K.
We can cater for clients all over the world and have access to the very top rates of exchange due to our large buying power and we also try to ensure that we keep clients fully up to date with market movements, along with explaining to them in simple terms the various options that they have in front of them.
If you feel that I (Daniel Wright) may be of use to you then you are more than welcome to contact me personally. You can email me on firstname.lastname@example.org and I will be more than happy to get in touch as soon as I can.
Today has been the first day since last Friday where the net result for the day is actually in the green for anyone considering buying Euros, US Dollars or Australian Dollars. Whilst the gains are not enough to send anyone jumping around the room, it is a signal to markets that the narrative surrounding the Pound has changed.
Part of this is that there has been some positive news today from the UK itself, with confirmation that car manufacturing numbers have reached a record high post-Brexit producing a diamond from what has been a rough week for Sterling across the board.
So the cheap Pound is boosting exports, but this is struggling to challenge the dominant narrative surrounding the Pound which has been interest rates. But again, we are seeing some respite in this area for Euro and Dollar buyers.
The reason for the slide on the Pound which this website has extensively covered was due to the heavy hints last Thursday that there may be a further interest rate cut in the UK before the turn of the year. Coupled with the profit taking activities by speculators on Friday afternoons, the effect this had on the Pound was severe with 2 cent losses on GBP/EUR, GBP/USD and GBP/AUD last Friday.
The pressure was also piled on Sterling as the USA were on the verge of actually raising rates yesterday evening, yet shied away at the last moment. Indirectly, this would have made the Pound seem like a less attractive commodity by comparison if the Dollar had raised interest rates. The avoidance of this means the Pound won’t be losing value in this area due to decreased demand.
Tomorrow the main attraction for currency markets will be business confidence figures in the Eurozone for their service and manufacturing sectors, which are set to slow a slight decrease from previous months due to some of the recent slowdowns recorded in Eurozone’s powerhouse economy – Germany. This should creating tempting opportunities on GBP/EUR to compliment the 0.7 cent rise seen today.
However, Friday profit taking should come around the corner once more for anyone with an upcoming currency requirement, whether buying Euros or Dollars.
As the above paragraph alluded to, on Fridays high street traders who have been speculating heavily on the currency markets all week must allocate their profits in a stable currency whilst they are away from their desks. This protects their gains whilst markets are still operating from 6-11pm on Friday and 2-6am on Monday before they return. The Pound has been anything but stable in recent weeks, so we are seeing demand for it plummet during this period, and therefore its value by association.
So based on the current expectations Euro buyers in particular could see some improved opportunities during the first part of tomorrow, yet Euro and Dollar buyers alike will likely suffer.
If you have a GBP/EUR, GBP/USD, or GBP/AUD requirement in the short to medium term I strongly recommend contacting me this evening or tomorrow morning on email@example.com whilst markets are quieter to discuss the options open to you to ensure any tempting peaks which emerge tomorrow are reached, and that your currency purchase is safeguarded from any particularly adverse movements.
With the expected volatility tomorrow a well timed transfer could save you thousands on an upcoming purchase, and I will highlight that I have never had an issue beating the rates of exchange offered elsewhere in the past.
Euro or Dollar buyers can also fix the rate of exchange ahead of an upcoming transfer, essentially pre-booking your currency, to avoid seeing the budget of any future purchase being eaten into.
Euro and Dollar sellers alike can also get in contact to discuss the potential to secure any highs reached to buy the Pounds during the final hours of the week, as you can secure a desired level should it become available even for a few moments outside of UK trading hours. You can fill out the form below and I respond as soon as I am able to.
Like clockwork Euro and Dollar buyers have been hit repeatedly on Friday afternoons, with the actions of currency speculators drilling at the foundations of the Pound as we enter the weekend period. However, this time the fall was much more serious.
Traders at high street institutions search for a stable currency with which to allocate their profits for the weekend. For obvious reasons, since the Leave vote the Pound hasn’t been high on this list of safe currencies which are expected to hold their value until traders return to their desks on Monday.
So we regularly see the Pound lose its value in this period as its demand falls flat, but those with a Euro and Dollar buying requirement would have been shocked on Friday to suddenly be looking at GBP/EUR rates at 1.16 and GBP/USD below 1.30 when only the day before both were close to 6 week highs.
The reason for this exaggerated fall was a more agitated marker than normal. Thursday’s indications from the Bank of England that another interest cut in the UK was likely in the next 3 months meant the commonplace, and largely gentle, Friday sell-off of the Pound evolved into a flood of investors seeking to relieve themselves of Sterling, and quick.
Normally, on Monday we see a recovery in Sterling’s value against the likes of the Euro and various Dollars. When traders return to their desk the readily available and cheap Sterling suddenly presents a tempting opportunity. Which hopefully will provide some sollace to Euro and Dollar buyers who will have to see 1.16 and 1.29 on their screens all weekend whilst markets are closed.
Monday should show a small improvement for anyone with a GBP/EUR, GBP/USD or GBP/AUD requirement in that case.
Following this, on Tuesday we have data from German producers which should reflect the marginal slowing of the German economy as shown in its other data sets seen this month. There is a strong potential here to garner further respite for Euro buyers if the Eurozone’s powerhouse economy continues to come into question.
However, Wednesday should present alarm bells for anyone using Sterling to purchase a foreign currency. Public sector borrowing figures will be released showing how much the UK borrowed during August. With the step-up in emergency financial stimulus from the Bank of England, and the sudden need to form new departments and hire new staff to implement a Brexit this is expected to skyrocket £11bn higher than what was produced in July.
The confirmation of news such as this would be enough to cause a similar panic sell to what was seen on Friday.
So it seems that Euro buyers have the greatest opportunity to gain at the beginning of the week, whilst US and Australian Dollar buyers may see only marginal improvements, before all three major currency are expected gain signficant expense on Wednesday with the weakening of the Pound. The important question at the moment is not really whether this will happen, but how severe will it be?
If you are planning a Euro or Dollar purchase over the next few months then this announcement from the Bank of England has changed the landscape of your purchase. We are currently still 2.5 cents higher on GBP/EUR and GBP/USD than we were in the middle of August, with the potential for some recouperation of Friday’s losses over the next few days. Should any opportunities emerge during this period, it may be wise to secure them for an imminent purchase, or one a few months down the line in order to safeguard your budget.
There are a number of ways to ensure that any desired levels you are aiming for during this period are seized immediately.
With a saturated market it is important not to be ‘last to the party’ given that any rush to buy Euros or Dollars will make them a more expensive prospect through higher demand.
To discuss how to maximise the potential available over the next few days you can contact me over the weekend whilst markets are closed on firstname.lastname@example.org and I will reply to you as soon as I am able to.
I have automatic purchase orders, and rate alerts at my disposal to help my customers secure attractive exchange rates, and I have never had an issue beating the rates of exchange on offer elsewhere. If you are not a regular reader, I will also mention that you can fix rates of exchange for a pre-determined period of time as they are that day if you are planning a purchase for later in the year.
Euro or Dollar sellers can also get in contact to discuss how best to secure the likely opportunities on offer later in the month. You can also fill out the form below and I will contact you as soon as I am able to.
We now have well over 150,000 readers a month and many of them have actually contacted us over the years asking for help with their exchange.
Every writer on this site works for one of the longest serving currency brokerages in the U.K and many readers aren’t aware that not only is it more likely that we can get you a much better price than your bank or the broker you have chosen to use, but we also pride ourselves on offering an extremely personal service, where you are allocated your own broker here that will help you along every step of the way.
We have a huge turnover, so our buying power is generally greater than others which we pass on to our clients and we do not just try and get you to do the deal as soon as possible just so that we can move on to the next one, we take great care in giving you all the information out there to help you make the best possible decision for you personally.
There are a number of contract types we offer, these include forward contracts, stop losses and limit orders and these are all designed to help you avoid adverse movement in the markets and to take advantage of any spikes in the market for you should they occur.
Most writers on this site have been with the company for over ten years now, so our wealth of experience can be extremely valuable when you are trying to make a decision on when to buy currency for your business or property transactions.
I (Daniel Wright – The creator of the site) am currently taking on new clients, we deal with exchanges ranging from £5000 up to multi million pound exchanges for celebrities and high net worth individuals, all in the strictest of confidence.
If have been reading the information on our site for a long period of time and you feel that I may be of use to you on an imminent exchange, or indeed one later in the future then you can get in contact with directly by emailing email@example.com with a brief description of what you are looking to do so that I can prepare a summary of how we can proceed and then give you a call. Even if you are using another broker at present it would be highly unlikely that I will not be able to get you a better deal and a much more efficient level of service.
I look forward to speaking with you!
The big market movers today came out between 8-10 am BST with buying Euro and Dollar rates barely flinching. However, following from 11am, the Pound began to slowly sink in the GBP/EUR and GBP/USD pairings but has begun to stabilise which why I am writing this article now.
The focal point for markets this morning was inflation data being released for the Eurozone and the UK. Whilst the inflation levels for the UK came in slightly lower than expected, it was still a vast improvement from August’s figures and leaps and bounds ahead of what inflation was showing in the Eurozone. To put it in context inflation rates for the UK in a single month were what the Eurozone are expected to accumulate over the entire year.
Yet the Pound still managed to depreciate against some currencies, mainly Euros and US Dollars. To explain this bizarre day we need to take a short-term view at what markets will be looking ahead to before the weekend.
Firstly, and most importantly, tomorrow is being touted as a bit of a wildcard for the Pound. The release of employment and wage data for the UK economy is one of the only ‘blind’ pieces of data the UK will be producing this month. I say blind because markets do not have much of an indication as to what the data may yield, when normally previous results are quite suggestive.
We are still very much in uncharted waters following the leave vote, and because any job cuts will take a few months to show up with notice periods being filled, the news coming out in the morning tomorrow is expected to show us the first look at how the leave vote has impacted the jobs market.
This is probably why the Pound’s recent rally has been eaten into today, as speculators are moving their funds into other currencies to avoid the risk surrounding the event. I expect rates to recover to some degree tomorrow once markets get an opportunity to see the results. With the storm passing the consensus will likely be to buy up the cheap excess Pounds in a frenzy, unless the results are truly dire. When demand immediately rises we will see a parallel increase in its value.
Following this, as my article on this website over the weekend covered, Thursday is expected to see the UK’s ability to weather the storm of the leave vote to be showered with praise by Mark Carney, the Governor of the Bank of England, during the monetary policy statement and subsequent interest rate decision. Again this is suggestive at further confidence returning to the Pound.
With expectations for an immediate opportunity for Sterling buyers tomorrow, Euro and Dollar sellers may be wise to take advantage of the likely short-term (and essentially artificial) opportunities created by these abnormal trading patterns.
Euro and Dollar buyers however, I recommend to get in contact with me on firstname.lastname@example.org to discuss the options open to you to make sure any tempting levels which you are aiming over the next few days and potentially weeks for are seized and that you are protected from any adverse movements which may occur during this volatile period.
During Carney’s Q+A session on Thursday, the two hour period will cover all aspects of the UK economy, with the positive or negative nature of each changing the Pound’s value by association. The rates as such will be more volatile than normal, so if you wish to take advantage of any spikes, there are a number of options available through my service to ensure these aren’t missed – even if they are available for only a few moments.
I have never had an issue beating the rates of exchange offered elsewhere, and given than the average difference on Pound buying rates each day is around 1% between the high and the low, a well-timed transfer could save you thousands on an upcoming currency exchange. You can also fill out the form below and I will contact you as soon as I am available.
ECB drags their feet again and buying Euro, US Dollar and AUD rates suffer as a result (Joshua Privett)
The European Central Bank once more refused to give any hints to the marketplace about any future changes in policy, which caused the biggest hurt to buying Euro rates. However, the Pound also suffered as a side-effect with buying US and Australian Dollar rates ticking south as well.
Excitement was high ahead of the press conference this afternoon with Mario Draghi, the President of the European Central Bank. 80% of economists polled by well known financial data company Bloomberg were expecting an announcement in the short-term that the current Eurozone financial stimulus package will have to be extended beyond the current March 2017 deadline, and above the €1.7 trillion threshold.
This is because after two years with this package in place, inflation in the Eurozone has remained close to zero. Given that the world is still on edge at the potential repercussions of the Brexit vote, most (myself included) had justifiably expected some reassurance from Draghi that emergency stimulus would be extended and increased to preempt any further fall-out. Like the Bank of England at the beginning of August, any financial intervention would have weakened the currency making it a cheaper prospect.
With the very vague announcement that it could be extended, onlookers were left dissapointed and in the dark. The Euro strengthened off the back of the news that further money would not be printed to fund this stimulus, which is why buying Euro rates suffered as a result.
Ahead of the event the Pound also seemed relatively attractive and was gaining whatever investment the Euro was losing in the run-up to Draghi’s Q+A session with the press this afternoon. With the surprise inaction by Draghi the marginal improvements for the Pound have been lost so rates deflated slightly even for buying Dollar rates.
Foreign currency buyers however can expect some respite next week with a few key data sets expected to imbue some further confidence in the UK’s ability to weather the storm of the Brexit.
In the short term the Pound is expected to struggle ahead of the weekend due to the weekly phenomenon of profit taking where traders store their profits in a stable currency of choice for the weekend. Since the Brexit vote understandably the Pound is not one of these, and the resulting loss of demand for Sterling is seeing it falter against most of its currency pairings, but this normally recovers by Monday morning when markets reopen.
If you have a Sterling buying requirement you have been presented with further opportunities ahead of a week where the Pound is expected to make net gains against most of its pairings. I recommend that if you are in a position to move shortly then key hours on Friday afternoon should increase the movements in your favour in addition to today’s improvement.
I offer a proactive service to keep customers informed of movements during these notoriously short windows where favourable movements are expected to ensure any opportunities are seized. You can contact me on email@example.com to discuss a plan of action for your Sterling purchase aimed at maximizing your currency return.
Furthermore if you are looking to buy Euros, US and/or Australian Dollars and want to have a conversation about how the Bank of England interest rate decision, monetary policy statement, and unemployment data may benefit your upcoming transfer next week, then fill out the form below or please feel free to email me as well and I will reply as soon as I am available.
I have never had an issue beating the rates of exchange offered elsewhere, and given that the average difference between the high and the low each day on GBP/EUR, GBP/USD, and GBP/AUD has increased since the Referendum, a well-timed transfer could save you thousands on an upcoming purchase.
Is the brand Britain feel good factor rubbing off on the Pound? Sterling exchange rates on the up (Daniel Wright)
So it appears that the doom and gloom merchants may well have got it slightly wrong regarding how a leave vote would impact the economy… Certainly so far anyway.
The Pound completed a hat trick of solid data this morning when the U.K services sector showed a much stronger than expected figure for July.
All in all, despite the initial drop off and the current uncertainty still holding Sterling back we are seeing the Pound start to gather momentum and investors and speculators are starting to get a little more confidence around it.
We do have a fairly busy week ahead of us for other economies around the globe so maybe it is time for others to take their turn in the headlines and the Pound to start fighting back.
Tonight we have the RBA (Reserve Bank of Australia) interest rate decision and rate statement which may give us a fairly volatile evening for AUD exchange rates. There is no imminent cut expected, but should we see a surprise cut or a nod to a cut in the near future the Pound could push higher against the Australian Dollar.
On Wednesday we have the inflation report hearings from Bank of England Governor Mark Carney, followed by a speech from MPC member Cunliffe so keep a keen eye on the markets mid morning on Wednesday in case any alterations to future predictions are made.
Thursday may well be the most important day of the week, especially for those with a Euro requirement. We have the ECB (European Central Bank) Interest rate decision and press conference and there is a chance we may see further addictions and changes to fiscal policy, this may include adding to QE (Quantitative Easing) which in turn would more than likely weaken the Euro off.
The press conference after it at 13:30pm can throw up quite a lot of volatility too as head of the ECB Mario Draghi answers questions and queries from the press. The rates can move off of his every word so ensure you are ready for action on Thursday should you need to buy or sell Euros. We have known to see swings of over 4 cents during the press conference which is a difference of £6000 on a €200,000 purchase.
If you are looking to buy or sell any major currency and you would like assistance both in terms of getting a top exchange rate along with a supremely smooth and personal service then I can help you. Not only do we write about what is going on in the market but we all work for one of the longest standing and top brokers in the country. We can help people from all over the world and deal with bank to bank exchanges from £2000 upwards with no higher limit.
If you feel that you would appreciate my personal assistance then feel free to email me (Daniel Wright) the creator of this site on firstname.lastname@example.org or fill in the form below and I will get in touch as soon as I can.
Pound leaps up from immediate turnaround in manufacturing fortunes, Buying Euro and Dollar rates all boosted (Joshua Privett)
The Pound has had a fantastic start to the month in complete contrast to August when Euro and Dollar buyers were made to suffer during the first few days.
The Pound is up by almost two cents against the Euro and two full cents against the US Dollar, with GBP/EUR reaching a four week high as a result. The surprise boost was a result of a very serious turnaround in business sentiment in the manufacturing sector.
The business sentiment survey which has caused today’s stir asked leaders in the industry how their companies are faring and what the projections are for the future. This was one of the few occasions over the last four years which have shown an overwhelmingly positive sentiment, and given that we are barely two months on from the shock of the Brexit vote, the sudden euphoria and strength in the Pound was entirely justified.
With growth forecasts being slashed in the UK, the surprise for markets was understandable. Which also begs the questions as to why the figure came in so positively? The answer is actually down to currency.
The very sudden drop in the Pound’s value has presented the UK as a competitive market for manufactured goods for foreign buyers. Hence the immediate joy for manufacturers that they have become a competitive option in the world market without having to lower the value of their goods. However, other sectors in the economy don’t enjoy this same improvement.
Construction sentiment out tomorrow was expected to come in even lower than the manufacturing data today was, and this month will be the first such occasion that notice periods will be over, and the cautious cuts to jobs which were highlighted on BBC news in the first few weeks following the Leave vote will finally be registering on data available to currency markets.
The news yesterday coming out of Chequers is that Theresa May will be bypassing Parliament for the implementation of the Brexit, putting some more pressure on the Pound with the dialogue of the Brexit coming back to the fore after the summer Parliament break.
Buying Euro and Dollar rates will be continuing to move heavily over this first (data heavy) two weeks in September. Whilst the outlook of overall negative, with the difference in buying levels each day on GBP/EUR and GBP/USD being larger than a cent, a well-timed transfer could still save you thousands on your currency exchange.
I strongly recommend that anyone with a buying or selling Euro or Dollar requirement over the next month should contact me on email@example.com to discuss the options open to you to ensure any peaks which emerge during your transfer timeline are seized.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone with a Euro or Dollar requirement later in the year and are worried about further drops. You can also fill out the form below and I will reply to you as soon as I am able to help you formulate a preferred strategy on how to approach the markets over the coming days and weeks.
Since the UK public voted out of the EU, a cloud of uncertainty has surrounded the UK economy and therefore sterling exchange rates. Many economists stated it was doom and gloom and that the UK would enter recession by Christmas. Some of the leading banks including HSBC exclaimed they thought GBPEUR would reach parity before the end of the year!
So far it seems as this is a slight overreaction. In fact UK retail sales and Unemployment numbers have exceeded expectation and exports are flying out of the UK because of the cheap pound. The golden question now is what next?
We have to remember the UK did cut interest rates this month and are now pumping a large amount of quantitative easing into the economy, which overtime should devalue sterling. Looking ahead there is still a chance the pound could devalue further if the Bank of England cut interest rates to 0%. In addition I still believe there will be a slowdown in the UK and therefore we will see a decline in sterling rates.
HOWEVER its important when trading sterling with a foreign currency that you analyse both currencies.
Are you buying euros for a property purchase in Europe? Are you selling US dollars to buy sterling because you get paid in dollars? Have you received inheritance in sterling however you live in Australia? Each scenario I would have a different strategy that I believe would maximise your return. Therefore its important I have a deep understanding of your requirements so I can help you!
My area of expertise is property purchases and sales. Therefore if you need to purchase a foreign currency or you are about to complete on a sale abroad, today is the day to get in touch to discuss your options and to get an understanding of how we can save you as much money as possible.
Feel free to email me on firstname.lastname@example.org or alternatively fill out the form below.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **