Tag Archives: Sterling strength

Sterling remains under pressure despite positive data release, is this a sign of things to come? (Joseph Wright)

The Pound has come under pressure today despite the UK economy posting some better than expected figures in an important sector of the UK economy.

After beginning the day negatively the Pound received a slight boost this morning as Services PMI data came out better than analysts had expected. The data showed that sentiment within the services sector is positive, which is important for the UK economy as the services sector amounts to more than two-thirds of the countries economic output.

In normal market conditions it wouldn’t be unusual to see the Pound spike upward off this news, and although it attempted to the currency is currency down against all major currency pairs with the exception of the US Dollar, which has dropped in value today also across the board.

Those concerned with the value of the Pound should pay close attention to the outcome of the Supreme Courts decision on whether or not the government needs parliamentary approval before beginning the Brexit process.

This topic appears to be the biggest mover of currency pairs involving the Pound and the Euro could also feel the effects of the decision. The outcome is scheduled to be released between the 12-17th of this month and I expect expectations of the decision to effect Sterling’s value between now and then.

Other than this, economic data could also weigh on Sterling’s value especially if it disappoints considering what happened today. Feel free to get in touch if you wish to discuss any upcoming news releases and how they could effect your upcoming currency exchange requirement.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also call in to speak with me on 01494 787 478, just ask reception for Joe. 

 

Sterling gains on positive UK trade data, will the bullish trend continue? (Joseph Wright)

The latest set of UK economic data surprised investors today and as a result, the Pound has received a welcome boost across the board.

After a very good November the Pound fell off it’s highs against both the Euro and the US Dollar earlier this week, but the currency is regaining some of it’s lost value and approaching those highs once again which the GBP/EUR pair approaching 1.20 once again.

The Pound has recovered particularly well versus the Euro after the European Central Bank (ECB) announced yesterday that it will be extending its bond purchasing program as a form of quantitative easing.

The Pound gained off the back of this news mostly due to Euro weakness but today those gains have been boosted further. UK Trade is looking a lot healthier after data released today showed October’s visible trade balance dropped to -£9.7bn when many had expected to see it drop from -£13.8bn down to -£11.8bn.

This reduction is of course good news for the UK, and trade balance figures are often discussed in financial media after earlier this year it was announced that the pound had the highest deficit within the developed world.

Now that GBP/USD is trading above 1.25 and GBP/EUR is closing in on 1.20 once again it appears that the Pound is looking healthy around these levels after gaining a lot of ground in a short period of time.

If you’re planning on taking advantage of the recent gains by Sterling by converting the currency into another major currency, feel free to get in contact to discuss  exchange rates and timings.

You can contact me directly jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

The ‘Trump Train’ market surge fades but Sterling manages to hold on to it’s gains, but for how long? (Joseph Wright)

The Pound has surged across the board through November for a number of reasons, with the main catalysts being the likely delay to invoking Article 50 and beginning the Brexit process, and Trumps election victory in the US boosting sentiment surrounding the UK economy.

Those planning on converting Pounds into another foreign currency have been dealt a good hand this month, as the Pound has gained clawed back quite alot of it’s losses since the Brexit vote.

This month alone the Pound has gained 5 cents vs the US Dollar and 7 cents vs the Euro. In monetary terms a £200,000 GBP to EUR currency exchange is now gaining an additional €15,000+ in the space of 30 days which just highlights the importance of timing large currency conversions.

As a specialist currency brokerage we’re here to monitor the currency markets on behalf of our clients, and in volatile trading conditions like we’ve seen this month our service can really save clients large amounts of money due to the assistance with timings and reacting to market movements.

There will be manufacturing and construction figures released later this week which could affect GBP exchange rates depending on their outcome, and if you are planning a currency exchange between the Pound and another major currency and would like to plan around these events, do get in touch regarding timings and exchange rates.

The Pound has so far held onto it’s gains made this month, but currencies do tend to fall quicker than they climb and if some ‘Hard Brexit’ related news is released there is a chance the Pound could lose some or even all of it’s recent gains.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. 

You can also call in and ask reception to speak with me (Joe) on 01494 787 478. 

Will the pound rise higher or fall before the end of 2016?

The pound has entered a fresh period of buoyancy finding favour against all currencies in November. October was a month of tremendous uncertainty but sterling has now recovered and this is presenting some very good news opportunities to buy a foreign currency. December is already looking extremely interesting with some very important events in the Eurozone and the United States which you can read more about in my post from this morning here. Otherwise let us have a look at some of the key decisions which will shape sterling exchange rates for the end of 2016.

The Supreme Court decision is one of the biggest factors for the pound in my opinion since it highlights the path to Brexit. The decision as to whether or not the UK will have to seek parliamentary approval to trigger Article 50 is of major consequence to the pound. If the Supreme Court rule Parliament does then we will surely see sterling rise since it makes the ‘hard’ Brexit Theresa May is apparently pursuing less likely. Parliamentary approval will undoubtedly hinge on severe watering down of the terms and even raises the possibility Brexit may not happen. The court decision may not be known until January but the story will be big news for December and early January.

If you are planning a currency exchange involving sterling I would be making plans around this information, it looks likely the vote will be upheld so sterling could rise further. If you need to buy or sell the pound then making some plans sooner rather than later is best to avoid the uncertainty this event presents to financial markets. For more information on this event and how to take advantage please speak to me Jonathan by calling 01494 787 478 or emailing jmw@currencies.co.uk

Sterling exchange rates boosted after the Autumn Budget, will the Pound continue to strengthen? (Joseph Wright)

The current levels for converting Pounds into other major currencies are surprisingly attractive when we consider the outlook for the Pound just a few weeks ago.

I think that people planning on converting their Pounds into another major currency, for a property purchase for example, have been dealt a fortunate hand as the Pound hit a 2-month high yesterday on a trade weighted basis, whereas just a few weeks ago the pound was trading at over 5 year lows against the Euro and at over 30 year lows against the US Dollar.

The Pound to Euro exchange rate is now trading closer to 1.20 than 1.10 after gaining 7 cents off the back of Donald Trump’s election victory. The UK economy, and therefore the Pound, has been boosted by the ‘Trump train’ after his warm words about the relationship between the UK and US in his campaign. Barack Obama had previously said the UK would be at the back of the queue on business deals whereas Trump said the opposite, and Trump also has a number of interests in the UK.

The gains for the Pound against the Euro specifically are extensive, making a €200,000 purchase £10,650 cheaper.

The Pound was boosted further yesterday afternoon after the Autumn Budget sprung no surprises. I do think that those planning on converting Pound into another major currency should watch the rates and news as the Pound could come crashing down quicker than it’s risen as is usually the case.

If you are planning a currency conversion involving the Pound, it’s worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

You can also call in and ask reception to speak with me (Joe) on 01494 787 478.

Sterling exchange rates receive another boost, but will the Pound hold onto its recent gains? (Joseph Wright)

Sterling is the best performing currency in the G10 so far this week, after it was boosted yesterday off the back of some Brexit positive news from the UK’s Prime Minister Theresa May.

Whilst addressing the CBI conference (a gathering of the leading names from the world of business, politics and media) May gave a number of hints that the government will be looking to create new opportunities through ‘new and dynamic’ trade deals. She implied that she would be looking for a transitional deal for business after the Brexit which suggests that she’s open to the UK retaining access to the single market for as long as possible.

Readers hoping for a stronger Pound should continue to pay close attention to comments by leading figures within the UK surrounding the Brexit.

The Brexit is the biggest driver of currency movement involving the Pound, with any talk of the UK retaining access to the single market, the Brexit initiation process being delayed or extensions to the 2 year separation process being met well by the markets.

The Pound is at it’s highest level vs the Euro in 2 months after gaining around 6 cents in a short period of time, mostly due to the High Courts recent ruling, Trumps election victory and May’s comments yesterday at the CBI conference.

There are a number of major financial institutions that despite Sterling’s recent gains, are still expecting the Pound to decline to levels not seen for 5 years during 2017.

HSBC remains particularly bearish regarding Sterling’s projected value next year, and DNB Markets have specifically given the GBP/EUR pair a 12 month price target of 1.0869 which is almost 10 cents weaker than its current level.

If you would like to be kept up to date with the latest Sterling news, and would like to discuss the timing of an upcoming currency exchange you’re planning on making involving the Pound, feel free to get in touch with me (Joe) directly on jxw@currencies.co.uk for a free overview. 

We’re here to help you make a well informed decision on when to make your currency transfer, and to help you benefit from highly competitive exchange rates as we’re one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in and ask reception for Joe on 01494 787 478. 

Will Sterling lose its recent gains or continue to climb? (Joseph Wright)

After performing well against the major currencies for the past week or so, the Pound has dropped sharply this morning wiping away much of the currencies recent gains.

After trading close to 1.17 against the Euro for the first time in months, the GBP/EUR pair have tested the late 1.14’s within the past 20 minutes and cable (GBPUSD) has also lost a cent this morning.

Sterling has recently gained a lot of value after Donald Trump’s successful presidential campaign in the US. The property tycoon has commercial ties within the UK, was pro-brexit and his mother was Scottish. His success in the presidential election has so far boded very well for the Pound as the currency recently has one of it’s best week’s against the US Dollar since October 2009, and the High Courts decision to rule in favour on whether parliament must be consulted before invoking Article 50 has also boosted the Pounds value.

The UK Prime Minister, Theresa May has appealed the High Court’s ruling and I think whether or not she’s successful will have a large bearing on how the Pound performs, as the Pound is likely to fall once again if Theresa May is successful just like it did when she initially outlined her plans of invoking Article 50 at the beginning of next year.

There’s a chance that the Pound could drop back to levels seen prior to the High Court Ruling and Trumps victory, and if so then now is the time to take advantage of what’s left of the Pounds recent gains.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk  and I will be more than happy to contact you personally to discuss the various options we have available to you.

Will the pound keep rising?

This week has seen sterling make some of the most impressive gains in recent history and has gone from being one of the world’s worst performing currencies in October to so far the world’s best performing currency in November. Will this twist for the pound be as quickly reversed as it occurred or are we now looking at the start of a new chapter in the value of sterling? Nothing should be taken for granted on exchange rates and the moves this week serve as a reminder to any clients who think they can second guess the market and are assuming they know what will happen longer term.

Unexpected events can often happen on exchange rates and this week the election of Donald Trump proved that we should always expect the unexpected. Trump’s election has sent ripple through financial markets and tipped the balance of countries seeking control over their economies and borders (now the US and the UK) versus those in favour of open borders and more monetary integration (the Eurozone). With attention now turning to political concerns in the Eurozone the Euro has lost ground and sterling has been seriously buoyed as investors seize on the pound’s low value and await further improvements longer term.

This month there is still plenty of data and events to move financial markets including the Autumn Statement. I think sterling will now enter a period of consolidation and will not just keep rising in this market. There are too many negatives for the UK to overcome and I do feel anyone buying a foreign currency with the pound should be cautiously optimistic.

For more information at no cost or obligation please speak to me Jonathan Watson chief analyst and associate director by emailing jmw@currencies.co.uk or filling in the form below.

 

Will last week’s High Court decision be a turning point of the Pound? (Joseph Wright)

Last week was the best week the Pound has had vs the US Dollar since October of 2009, as worries over the proposed ‘Hard Brexit’ eased.

Fears eased as England’s High Court ruled last Thursday that the Government needs parliamentary approval before starting the Brexit process, and the Pound has boosted across the board off the back this news after having a particularly difficult October.

The Pound had been generally declining against all major currency pairs since UK Prime Minister, Theresa May announced plans to invoke Article 50 at the end of March next year, which was considered a ‘Hard Brexit’ approach. Through October the currency lost around 5% vs most other major currency pairs so the High Court’s decision last week has of course been welcomed by those hoping to see Sterling strengthen.

Those hoping to see the Pound continue to climb, and it’s worth noting that the currency has held onto its gains from last week, will be hoping for further positive news surrounding the UK economy and a potential ‘Soft Brexit’. I think there will be movement within Sterling exchange rates when the outcome of the governments appeal against the High Court’s decision last week is announced, and if the government are unsuccessful I expect to see the pound rally once again.

On the other hand if the government is successful in the appeal, we can expect to see the Pound decline so those with a currency requirement involving the Pound would be wise to get in contact, as if there’s a big swing in exchange rates we’re able to make our clients aware very quickly.

Overnight the outcome of the US election is likely to be announced, and I think that a Clinton victory is likely to push the Pound downward as the US Dollar is likely to rally.

If you are planning to use GBP to buy or sell a foreign currency, it’s worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Sterling is on track for its worst month since June, will the decline continue? (Joseph Wright)

Despite a relatively bullish day for the Pound, particularly by its own recent standards, the currency is on track for it’s weakest month since the month of the Brexit vote back in June.

The reason behind today’s bullish Pound is a meeting between the Governor of the Bank of England, Mark Carney has had a meeting with Theresa May (UK Prime Minister) regarding his future, and the general feel around it so far is positive as just prior to their meetup, May announced that the Governor has her full support.

There were rumours in the city last week that Carney would shortly be announcing his planned departure in 2018 but as it stands that doesn’t seem to be the case. I think that if he decides to extend his stay until 2021 and complete a full 8-year term we could see the Pound spike upward once again but certainly not back up to the levels we saw at the beginning of October.

This uncertainty surrounding the key figure of the Bank of England has not come at a good time for the Pound’s value, after we’ve already seen the currency lose almost another 5% through October after Theresa May outlined the end of March as the time to invoke Article 50.

This week is set to be a busy one in terms of economic news releases, with Thursday expected to be the busiest day for Sterling exchange rates as it’s the day of the BoE’s next Interest Rate Decision. Mark Carney will also be speaking that day so feel free to get in touch to discuss any planned currency exchanges in more detail as planning around these events could be key.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk  and I will be more than happy to contact you personally to discuss the various options we have available to you.