Tag Archives: Sterling strength
Pound strength following King Speech (Steve Eakins)
Today, which is probably the busiest day this week has already provided a few surprises. It was this morning confirmed that France has re-entered a recession creating euro weakness, UK Unemployment is improving and then currently the current Governor of the Bank of England, Mervyn King, in his last speech seems to be talking the value of the Pound up. In summary GBPEUR rates have now risen from the 2 week low at the beginning of the day towards a near 4 month high we last visited 4 weeks ago.
So what next for GBPEUR exchange rates?
Near future – EURO buyers may want to hold off till tomorrow when we have the last big data release for GBPEUR this week when the Eurozone confirms their Consumer Confidence figures for April. The expectation is for this data to show a contraction so rates may climb further for GBPEUR following this news which is released at 10 am BST. Euro sellers may want to move before hand as a result.
Medium term – Next week we have UK Production Price Index, UK Retail figures, Bank of England minutes, UK GDP figures and UK Mortgage approvals. Expectations for these releases will be more concrete on Monday so keep reading here for the latest forecasts and updates on these releases. This should help highlight potential buy and sell opportunities when it may be the best time to trade through next week.
Longer term – A lot hinders on the new Bank of England Governor Mark Carney that starts his post at the end of June. He may want to come in with an instant impact changing interest rates or the current asset buying program. It may the beginning of July when we see this and is already expected to be an interesting event that may give direction to exchange rates for the following few months.
If you are in the currency market and are interested in a more personal view on how the above events could affect you, feel free to contact us on the normal number (01494 787 478) or myself personally, Steve Eakins via email at hse@currencies.co.uk
Many Market Movers in May! Can sterling go higher?
As we approach the halfway point of the month we see the pound holding some of the gains we have witnessed in April but still very much under pressure! Unfortunately there is very little on the horizon to indicate significant further gains this month. If you are selling pounds to buy another currency holding out for further gains could be very risky, current levels should not be easily dismissed. Here are some of the key thing to note if you are buying or selling which may affect your rate.
If you would like more information on a particular subject or on events surrounding your particular transfer please speak with me directly on jmw@currencies.co.uk
Will the UK leave the EU? Expect pressure on sterling due to political uncertainty. Markets and investors want certainty in their investments. Fears of the damage a split Tory government, the rise of UKIP and a broken coalition would do to UK business weighed on sterling yesterday. Can Cameron tackle the ghost of conservative past and deal with the question of Europe? It is doubtful I have to say and this will weigh down the pound.
UK Growth Last months data was impressive and welcome but 0.3% is not anything to get too excited about. True the latest data sets have all been positive but the marginal improvements on what were dire figures still have a long way to go. Ultimately the UK’s stagnant housing market (particularly outside London) needs invigorating – Construction is the main drag in recent years. The second revision of growth figures at the end of the month could easily be a market mover.
Depending on which currency pair you are trading there will of course be many other things to move the market. Looking in my crystal ball (which has been pretty clear lately) I cannot see significant gains for GBP against the majors. Maybe a cent or two? Once again I see more danger of things dropping as the confidence of the last few weeks wears off.
If you have a transaction to consider I would be interested to speak to you explain the market and offer our services with a view to getting you the best deal. For more information please email on jmw@currencies.co.uk
I look forward to hearing from you!
Where Next for the Pound? (Matthew Vassallo)
Good news for the UK economy has been sparse of late and despite the UK avoiding a further recession, it should be noted that our economy did only grow by a mere 0.3%. This is hardly an inspiring figure and not one that is going to breed investor confidence in the long-term. Many believe that this is merely papering over increasingly large cracks in the UK economy and the only reason we have seen GBP spike, is the on-going economic uncertainty that has engulfed the entire Eurozone region and sucked investor out of the single currency.
Personally I always felt that we would avoid recession by the skin of our teeth and whilst this has proved to be the case, predicting how GBP/EUR rates will fare over the coming months is becoming an increasingly difficult task. The recent volatility we have seen on GBP/EUR looks set to continue, as investors will be pulled between Sterling and the EUR depending on the latest set of economic figures, or the next doom and gloom speech by key political figures.
Despite the on-going negativity we should see the recent spike against the EUR and the USD as a major positive for all those looking to purchase those currencies. We have seen GBP/EUR rates spike over 2 cents in the past couple of weeks and we have seen GBP/USD move all the way through 1.55, when only a couple of months ago we were trading in the low 1.50′s. When you have an economy as weak and fragile as our own any positive movement should be valued and if I were buying either of those two currencies, I would be looking closely at my options based on the current market levels.
Here at Foreign Currency Direct plc we are able to provide our clients not only with award winning rates of exchange but a bespoke service designed to give you the client, as much insight into the markets as possible. If you would like to find out the type of rates or contracts we offer, or need to be kept up to date with all the latest market movements then please call us on 0044 1494 787 478 or email me directly at mtv@currencies.co.uk.
The most important issue regarding pound sterling rates at present! How to get the best exchanges rates
The pound had been one of the worst performing currencies of 2013 until a few weeks ago when it bounced back from the very worst levels. The answer to the question of is the worst really over will be evidenced next week in the form of GDP data. Gross Domestic Product is a measure of the output or growth in the economy and is a key factor in determining the strength or weakness of sterling.
What strategy should I adopt for buying or selling the pound?
If you are selling a foreign currency to buy pounds and you are keen to take a risk it may be worth waiting until next Thursday as there is an outside chance you could see much better levels by 2 or 3 cents. If you are not keen to risk then I would tee things up a bit sooner as it is probable the pound may become more expensive. Please note if you are considering any exchanges and would like to run through your options please speak to me directly on jmw@currencies.co.uk
The consensus among commentators seems to be that the UK has avoided the triple dip recession. This would mean that it is likely the pound will strengthen next Thursday. However because this expectation is quite high, if for any reason the data is bad we could see a big fall for the pound. Markets often move ahead of the event too, so it can be argued the pound is stronger lately due to this expectation. It is also true the pound is stronger due to events in Cyprus, money has moved out of Europe and despite all the economic woes for sterling, found its way to the relative safe haven of the UK.
If you are selling pounds to buy another currency then it may be wise to see how the data comes out next Thursday. This is because the pound may strengthen by a cent or so against most currencies. It is impossible to say exactly what will happen so the best way to ensure you don’t lose out unnecessarily is to register an interest with me so I can keep an eye on the movements for you. Rates can move up to one or two cents per day and on big volumes of currency this can become very costly.
If you are weighing up whether or not to sell or buy pounds and hoping for slightly more on the rate, then the outcome of this decision next week is key. You can be made aware of all your options and run through any ideas on what you feel may happen by speaking directly with me on jmw@currencies.co.uk
The authors of site are specialist currency providers who can offer much better rates than the banks and other sources. We also offer assistance with the timing of your exchanges and providing forecasts. Ultimately no one can tell you exactly what will happen, but our expert knowledge of what drives rates and guidance on the processes involved will ensure you make an informed decision.
Please contact me Jonathan Watson personally on jmw@currencies.co.uk for more information at no cost or obligation.
I look forward to hearing from you and personally assisting you, thank you
Will the Pound’s Recent Spike Continue? (Matthew Vassallo)
The Pound has benefited this week from the on-going unrest in Cyprus, which has caused investors once again to pull their funds away from the unpredictable EUR. This move is in stark contrast to the overwhelming sentiments of the past couple of months, which has seen the EUR move from strength to strength against GBP. This move was facilitated in a large part, due to the complete lack of confidence in our own economy. The UK stands on the verge of a potential triple-dip recession and when you add our poor growth forecasts (as highlighted by yesterdays budget) and weak exports, it all combined to put Sterling under considerable pressure.
So the question many will be asking now is will the Pound’s recent spike continue? The answer in my opinion is that it is highly unlikely.
Whilst we have see GBP realign itself against both the EUR and USD over the past couple of days, there are a number of variables we have to consider. The first is of course the on-going debate in Cyprus, where talk of a ‘bank levy’ charge on all foreign and domestic imports has been met with the expected uproar. This has caused the EUR to weaken and the knock on effect was the Pound rising against the single currency. We must remember it was the lack of investor confidence that caused the EUR to lose value, rather than any real confidence in GBP.
The second thing to consider is that due to the fact the USD strengthened so quickly against GBP and by so much, some sort of realignment was always to be expected. You can also take the view that as the US economy has started to pick up, investors risk appetite has started to return and this has led to a move away from the ‘safe haven’ USD and into riskier assets, such as the ZAR. I do not expect rates to start moving back toward 1.55 anytime soon, with further spikes dependent on how economic data is viewed over the coming weeks.
In summary, the events unfolding in Cyprus make for grim viewing and at one point the public protests were on the verge of descending into full blown anarchy. I for one would not be readily accepting someone ‘stealing’ 10% of my money, which if you strip away the political jargon, was exactly what the initial proposal suggested. I do feel that we will see a resolution and Cyprus will find a way to receive the 10 billion EUR bailout fund it requires and once this happens we could well see the focus switch back onto the UK economy and the Pound will most likely be the one to suffer when this happens.
Here at Foreign Currency Direct plc we have won multiple awards for our exchange rates and service. If you have an upcoming currency transfer and would like to be kept up to date with all the latest market movements, or would like to speak to us regarding the currency options available to you then please feel free to contact me directly at mtv@currencies.co.uk or call us on 0044 1494 787 478.
Sterling continues to climb against the Euro and USD (Ben Amrany)
During yesterday’s trading there was a surprise jump for the pound against a basket of major currencies on a day of no economic data to note of for the UK. The biggest gain of the day was against the USD of over 1% and trading against the Euro was up around 0.70% by close of trading. This is a welcome boost for those of you looking at selling the pound. The trend has even continued this morning with the pound spiking at 1.1624 against the Euro and 1.5153 verses the US Dollar
This week alone if you were buying USD & Euros now, as opposed to the beginning of the week you would be achieving on a £200K purchase $5400 & €4400 more now.
Looking forward I feel that pressure will however remain on the UK economy and with a budget fast approaching next Wednesday, you may be wise to capitalise on the recent gain. Feel free to contact me on the trading floor and I will explain all the options available to you and the mechanics of trading through us. Just ask for Ben on +44 (0) 1494 787 478
Here at www.poundsterlingforecast.com we offer our clients a very personal service to help you try and maximise your exchange. The savings can amount up to 4% better than what your high street bank will offer you. Even if you have moved money overseas in the past and use a different currency broker please do get in contact we will always strive to beat any rate that you have been offered elsewhere.
If you have a requirement to buy or sell any major currency you can email me directly at bma@currencies.co.uk and I will look at what your exposure is to the market and help you judge the timing of your currency conversion.
Thank you for reading
Ben Amrany
GBPEUR rates SPIKING – Best time to buy in 4 weeks (Steve Eakins)
Over the last few days rates have pushed up for GBPEUR exchange rates, it has been two consecutive big days of gains that present the quick moving clients with an opportunity to buy at a 4 week high. In monetary forms this equates to a saving of £2,600 on a €200,000 in less than 36 hours.
What is the reason for the rally?
Yesterday we saw gains following the news that the UK economy could have avoided a recession which had been priced into the market. This resulted in a rally of nearly 1 cent on the day. Today the market has gained nearly another cent following comments from Mervyn King the current head of the Bank of England when he said “There Is Momentum Behind Recovery That Is Coming.”
Will it last long?
Probably not, these knee jerk reactions don’t normally last long so if you have funds available and need to buy within the next few weeks I would see current levels as an opportunity to buy. I personally don’t believe his comments long term as you only have to look at recent data from the UK to see there is no real recovery. It may be he is talking about a recovery coming this year but I certainly cannot see one within the next few months.
How do I get notified of these spikes?
Well timing trades can save thousands on an exchange. Using a pro-active currency broker will help as they will notify you of these spikes so you can take advantage. Contact me directly if this service is of any interest, Steve Eakins, at hse@currencies.co.uk
Why would I use a broker?
Here I work for a company called Foreign Currency Direct, and comparisons have shown that we can save clients as much as 3% – 6% on currency transfers when compared to rival brokers and the high street banks. Simply put, if we could not save you money we would not be in business. We are an FSA regulated company and have been highlighted as the “Best Exchange Rate Provider” with the “Best Exchange Rates” in Britain by The Sunday Times for three consecutive years and more recently by the Telegraph.
For more information along with possible strategy options on when to trade now and in the future contact me through hse@currencies.co.uk or 01494-787 478
Why the pound can only get weaker! Current pound sterling exchange rates should not be taken for granted…
The pound has dropped quite sharply this year and with very good reason. The number one question I am hearing is will it drop further and as painful as this may be to hear, the answer I have to say is yes. This is good news for those selling a foreign currency to buy sterling, read on to find out how we can help save you money and ensure you trade at the right time.
The UK economy is uncompetitive. Five years of a major depreciation in the value of the pound has done little to ignite the recovery many expected would be under way. It is majorly in the Government’s and Bank of England’s interest to have a weak pound as this will help the recovery and gives credibility to their economic plans. A major devaluing of the pound is the only way the UK can get out of the mess it is in.
Martin Weale from the Bank of England stated only recently that it was in the UK’s interest to have a weaker pound and I expect that these sentiments will prevail for most of the next few months. It is therefore unrealistic to expect that the pound will suddenly make major improvements against the major currency pairs.
Are you considering a currency exchange involving the pound and wondering where all this is headed? For an unbeatable rate of exchange and market updates to ensure you don’t miss out please feel free to contact me Jonathan directly on jmw@currencies.co.uk or call 01494 787 478. To ensure I can best help you it would be useful to provide an outline of your situation and a contact telephone number.
Tomorrow we have the Bank of England minutes which are likely to cause the pound to lose further ground against the majors. Rates could drop up to a cent or two. There is a very slim chance some members may have voted for a rate hike but I doubt it. The minutes last month were more telling and this could be the case again. I will be watching this release very closely to see what is happening as it may well provide news on where rates will go in the future. If you are too busy to read through twenty pages of Bank of England data please register an interest with me!
To best assess the future we can always look to the past. The pound was strong last year because of Eurozone worries. Investors put money into the pound as a safe haven. This year as those fears have subsided and the UK economy teeters on the brink of an unprecedented triple dip investors have sold off their GBP positions and this has contributed to a weak pound. My predictions are therefore that sterling will continue to suffer in the future and that anyone who thinks this is the lowest it will go should not take current levels for granted.
The best way to ensure you do not suffer at the hands of market movements is to register an interest. As specialist currency brokers we set this site up for our clients and new clients alike. Our personal and proactive service means we can watch the rates for you and provide all the information to make an informed decision. Please feel free to contact myself Jonathan directly on jmw@currencies.co.uk or call 01494 787 478 and ask for me.
I look forward to hearing from you and assisting you with your currency matters.
