Tag Archives: sterling

Sterling exchange rates drop to start the day only to recover – Theresa May to speak tomorrow at 11:45am (Daniel Wright)

The Pound had a bad start to the week, dropping against most major currencies in the Asian market session on Sunday night.

By the time we entered the trading floor rates had started to recover a little and U.K Manufacturing data released this morning helped to push the Pound back closer to where we saw it end last week.

Sterling really is having a rough ride of things lately and we are seeing multi month and even year lows against some major currencies. The GBP/AUD rate almost hit its lowest point since 2013 on Sunday night, giving those looking to bring Australian Dollar sellers into Pounds a great opportunity to repatriate their funds.

Now that the dust has settled on an extremely busy trading day we look ahead at what to expect tomorrow.. And it certainly does not look like a quiet one.

We have a flurry of inflation data out over the course of the morning for the U.k, with inflation expected to have risen ever so slightly. This is not a great surprise with the low value of the Pound and the Bank of England to have slight concerns over this so they will be looking to avoid the rise in inflation being too sharp.

The main event of the day will be Prime Minister Theresa may speaking about all things Brexit at 11:45am. Personally I feel we will just here more of the same comments that we have had come out from recent interviews but anyone with a currency requirement involving either buying or selling the Pound should still be poised and ready for action.

Investors and speculators alike will be moving off of every word and looking for any hints on what we are to expect so the market may be extremely volatile during this period and for the rest of the day.

If you are in the position where you are buying or selling a property overseas, your business moves funds between currencies or you have a foreign currency requirement for any other reason then it is key to keep a close eye on rates in the coming days, weeks and months ahead.

We keep our clients fully up to date with market movements and also assist with large foreign exchange transfers too. I created this site over 7 years ago to help people with market information but we also welcome new clients to assist with their money transfers on top of this.

Should you be in the position where you may need our service, you are getting rates from another broker that you don’t feel are the best or you merely want to have an efficient, pro active and friendly broker on your side then feel free to contact me (Daniel Wright) directly. You can email me on djw@currencies.co.uk with a brief description of your needs and I will be more than happy to get back to you. Alternatively feel free to call our trading floor on 01494 787 478 and ask for me (Daniel Wright) anytime from 08:30am until 18:00pm GMT.

Will the pound continue to fall? (Dayle Littlejohn)

If you are buying or selling a substantial amount of sterling for the first time, this article outlines the factors impacting the sterling’s value and how to save money when you come to converting.

Throughout 2016, it is likely that anytime you switched on the news, Brexit talks were stealing the headlines. Since the turn of the year, the pound has declined for two main reasons;

The first is that at any point, the Supreme Court will give their verdict to whether UK Prime Minister Theresa May has the power to start the process of leaving the EU, or if she needs to obtain Parliamentary approval. The outstanding decision is sending jitters through investors, which means they are selling their sterling and purchasing safer currencies.

Secondly, during UK Prime Minister Theresa May’s press conference on Sunday 8th January, she stated that she aims to tackle immigration and leaving the single market looks inevitable. The consensus on the market is that anytime a key figure within the UK exclaims that the UK will leave the single market, sterling exchange rates fall.
The week ahead

The Supreme Court decision is looming but they have not released an exact date. Personally, I believe the Supreme Court will rule Mrs May needs Parliamentary approval and therefore this decision will not have a negative impact on the pound. However, if I am wrong and this is the first shock of 2017 the pound could fall like a stone.

On Tuesday 17th January 2017, Mrs May will address the UK public, and no surprise the agenda is Brexit. If she continues with a similar stance to last Sunday, sterling is set to lose further value, which means buying a foreign currency becomes more expensive.

It’s key to note that the Commons Brexit Committee made up of MPs, announced at the end of the trading week that Mrs May must confirm whether she wants in or out of the single market and the Customs Union before Brexit talks begin. Could she give direction this Tuesday?

On a weekly basis, the UK release economic data that shows how well the economy is performing. This week the UK are set to release:

Inflation – Tuesday 17th January 2017

Unemployment and Average earnings – Wednesday 18th January 2017

Retail Sales – Friday 20th January 2017

Since the start of the year economic data has been impressive for the UK. Out of the 13 data releases that tend to have a major impact on sterling 11 releases have exceeded expectations and only trade numbers have shown a decline. This shows to me that economic data is living in the shadows of politics. The economic data releases could cause small spikes for sterling, however, the direction of exchange rates will be dictated by Brexit news.

To summarise if you are buying or foreign currency short-term, there could be spikes in the market to take advantage of, however, the safe option is to convert sooner rather than later. If you are buying the pound I would recommend outlining your requirements to me so I can keep you up to date and then sit back and wait to see how far the pound falls.

When buying or selling the pound you also need to analyse the other currency you are converting before making your final decision. Feel free to email me the currency pair you are converting (GBPEUR, GBPUSD, GBPAUD, etc) the reason for your conversion (company invoice, buying a property) and I will provide you with further information drl@currencies.co.uk.

How to save money

The company I work for helps the client understand the factors that are influencing the currency pair they are trading, whilst having the ability to offer exchange rates that the client wouldn’t be able to receive with their own bank. We have been in business for over 17 years and on a daily basis save clients money on currency transfers. Feel free to drop me an email or alternatively you can call the trading floor Monday morning and ask to be put through to Dayle Littlejohn to discuss your options 0044 1494 787 478.

Enjoy the rest of your weekend and I look forward to speaking with you Monday morning.

** People are deal with on a daily basis are sole traders, financial directors, property buyers and sellers **

Sterling exchange rates still looking shaky as we await news on Supreme Court – On the plus side a trade deal with New Zealand may be agreed (Daniel Wright)

As most of our regular readers will be more than aware, Sterling exchange rates have had a pretty torrid time this week, with the pound dropping to its lowest point on a trade weighted basis since October.

We have seen Sterling almost drop below 1.20 on against USD, 1.13 against EUR, 1.60 against AUD, 1.70 against NZD, 1.20 against CHF and it is sat below 1.60 against the Canadian Dollar as I write this!

The uncertainty caused by comments from Prime Minister Theresa May over the weekend and during the week are still causing investors and speculators to remain shaky over the Pound, and economic data has not done anything to provide a backup like it has been over the past few weeks.

The key talking point now is just what will the Supreme Court decide to do? As previously mentioned this decision matters a huge amount not only because it will show us what the next steps will have to be for article 50 being invoked, but it will also more than likely lead to lots of MP’s having their say afterwards and every single comment has the potential to move the market considerably.

On Tuesday we also have Prime Minister Theresa May speaking about Brexit, which makes me wonder whether or not she is expecting to have a result from the Supreme Court before then, if we do then Sterling is set for an extremely busy week.

One positive for the Pound today was news that we appear to have all but agreed a trade deal with New Zealand, and it appears that this is ready to go as soon as possible after Brexit. A number of major economies are stepping forward and happy to do business with the U.K which is no great surprise to me.

More and more good news like this that comes out during this long winded process should only lead to the Pound getting stronger, we just need to get over the potential banana skin of the Supreme Court and Article 50 being invoked first.

If you are in the position where you need to carry out a large currency exchange either imminently or in the coming weeks and months then it is extremely important to have an experienced and proactive broker on your side. Most brokers out there will only try and convince you to buy or sell your currency as soon as possible but we are here to help you try and make the right decision for you.

Should you feel that I could be of assistance then I deal with both business clients and private individuals that need large currency transfers and would be more than happy to help you too. I created this site over 7 years ago and have helped thousands of clients that have contacted me save money over their bank or current broker.

All you need to do to make a simple enquiry is to email me (Daniel Wright) the creator of this site on djw@currencies.co.uk with a brief overview of what you need to do and I will be more than happy to contact you personally.

Why is the Pound losing value at the moment, and will it continue? (Joseph Wright)

Brexit jitters are continuing to weigh on the Pounds value, with the currency losing a substantial amount of value over the past week across the board of major currency pairs.

Currency markets were already weary of the Pounds future price movements as we await the outcome of the Supreme Courts impending decision on whether or no the UK Government requires parliamentary approval before beginning the Brexit.

These fears were exacerbated over the past weekend as a much talked about interview offered the marketplace an insight into the UK PM’s plans for the Brexit. UK Prime Minister, Theresa May alluded to prioritising the control of immigration, as opposed to focusing on retaining the UK’s access to the single market.

Moreover, May commented that the UK cannot keep ‘bits’ of EU membership and this comment has fueled the fire of bearishness towards the Pound at the moment.

It’s for these reasons that we’ve seen the Pound soften over the week, and the sell-off accelerated this afternoon after May announced that she will be giving another major speech on her Brexit plans on Tuesday of next week.

I personally think that the Supreme Court decision will have been announced by then, so there’s a possibility we could see a lot of volatility between GBP exchange rates between now and then.

Until then, I think that anyone with a currency exchange requirement involving the Pound should pay close attention to the Supreme Court decision. The likelihood is that if the Government is successful in their appeal we can expect to see the Pound fall further, as the Government plans on invoking Article 50 at the end of March and there polices generally lean towards a ‘Hard Brexit’.

On the other hand if they’re unsuccessful the general consensus is that the Pound could get a lift. Feel free to get in touch if you wish to be kept up to date with the outcome of the Supreme Court’s decision, as of yet we have no definitive time as to when this announcement will be made.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well 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 speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joe.

Sterling tentatively up but US Dollar steals spotlight away from buying Euro exchange rate gains (Joshua Privett)

The very politicized landscape for 2017 has struck the currency markets once more, with Sterling gaining strength following very encouraging economic performance news, but still losing out heavily to improvements on the US Dollar and Australian Dollar today.

I’m sure many of the readers here would have seen the news coming out in the last 24 hours about the alleged ties between Trump and Russia. Rather than Russia seeming to be the outside actor influencing the election, there is now talk of the Trump campaign team and Russia actively working together.

What does this have to do with exchange rates?

The value of the US Dollar is heavily linked to the Australian Dollar, and today was the confirmation hearing for the US Secretary of State. With all of this news, markets were worried he would flounder and create an issue for his confirmation hearing. Quite the opposite. He confirmed the party line and seemed to allude to a continuation of previous foreign policy under Obama (i.e. critical of Russia), and market confidence in the Dollar soared, taking the Australian Dollar with it.

So US Dollar and Australian Dollar sellers were gifted some tempting exchange rates from this sudden situation found in the US and the way it was dealt with.

The positive news today for the Pound, however, is still suggestive of further improvements for Sterling in the medium-term. The Supreme Court could be released any day from tomorrow now that they are back in session, and the anticipated result should improve Sterling’s buying power against its major currency pairings.

As in November, when the initial ruling from the Judicial Court stated that Parliament must be consulted to trigger Article 50, rates for buying Euros and Dollars soared.

However, as we edge closer to Article 50 being triggered, this is causing heightened anxiety surrounding the Pound. The sudden drop in the Pound on Monday in reaction to Theresa May’s very vague and hardly shocking comments in an interview on Sunday.

So with the risk of May and other European leaders having to make more and more comments on the aims of the negotiations as we edge closer to March, it can be argued that the clear result of the Supreme Court decision could bring a ‘sweet spot’ on buying Euro and Australian Dollar rates in particular before we edge further into this period of heightened political risk to the value of the Pound.

To ensure you make the most of this particular opportunity, a premium will be put on being able to move quickly over the next few weeks. There are a number of options through a currency exchange specialist which makes sure you are never ‘last to the party’ when more tempting buying opportunities arise, as they are rarely available for long.

You can contact me overnight whilst markets are quiet on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximizing your currency return and protecting it from any sudden pitfalls, which can occur in this marketplace with little warning.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Pound slides as May comments lead to ‘Hard Brexit’ being more likely (Daniel Wright)

Sterling exchange rates have taken quite a tumble in early morning trading today, following comments from Prime Minister Theresa May over the weekend suggesting there is a higher possibility of us looking for a ‘hard brexit’ and that control of our borders appeared to be a higher focus than remaining in the single market.

Why does a hard brexit weaken the Pound?

A hard brexit leads to Sterling weakness because it could seriously hamper trade for the U.K and a report from the centre for economics and business research discovered that all sectors that create wealth for the economy would be negatively effected. Obviously a lot would depend on any agreements that get put in place but these may take a great deal of time and the worry is that it is highly doubtful that any agreement that is eventually sought does not end favouring one sector over another, which would mean someone will end up missing out.

What this does create is uncertainty for all sectors within U.K trade and uncertainty is extremely bad for an economy, a company and most importantly for a currency so this has led to the Pound dropping off and losing value all morning so far.

Supreme Court decision to change things?

One factor that may turn around the form of the Pound is the eagerly awaited Supreme Court decision on whether to overturn the need for Thesera May to have to put the triggering of Article 50 through Parliament before moving forward.

Should the Supreme Court stick with the original decision then there is a chance members of Parliament will aim for more of a say in how things are handled which may stop a full on ‘hard brexit’ and could also slow down the process a little which would hopefully give the Pound back a little strength.

On the flip side, a decision to overturn the original result may kick the Pound whilst it is down and the Sterling exchange rates may get even weaker again.

They are back together on January 11th and we expect to see a decision in the few days after this, what this does mean is that if you have a currency exchange to carry out you need to be poised and ready to react quickly.

If you are fairly busy day to day and you do not have time to watch the rates (which move by the second) then why not let one of our dedicated, helpful and friendly brokers do this for you. We have a variety of tools available to assist you in maximising your rate of exchange including rate alerts, limit orders and forward contracts.

Should you need to carry out a currency exchange involving any major currency for you business, a property purchase/sale or any other reason then feel free to contact me (Daniel Wright) on djw@currencies.co.uk personally. Please leave a brief overview of what you need to do and I will personally contact you to discuss the options available and to tailor a game plan. Please note we do not deal in cash or travel money. You can also call our trading floor on 01494 787 478 please quote Pound Sterling Forecast and ask to speak Daniel Wright.

 

 

 

Sterling strength expected later in the week, Euro and Dollar sellers should be looking to act soon (Joshua Privett)

It’s been a fairly uneventful beginning to the year on the currency markets, with Sterling exchange rates against the Euro and the US Dollar moving heavily each day, yet by close of business we’ve tended to find ourselves back where we started.

GBP/EUR has reamined around the 1.16/17 mark, GBP/USD has held quite firmly at 1.23, and GBP/AUD around the 1.68-1.70 range.

This exchange rate behaviour is indicative of a market awaiting some very important news.

I hate to flog a dead horse for our regular readers by continuing to address the upcoming Supreme Court decision and the implications this will have for the Pound, but it is incredibly pertinent to anyone planning to buy or sell Sterling for a foreign currency. Not just over the next few weeks as we await the verdict, but over the next few months in the run up to the triggering of Article 50.

For those who are not aware, the Supreme Court is currently ruling an appeal of November’s Judicial Court decision to allow Parliament to vote on the enactment of Article 50 – the formal process to leave the EU.

As in November, financial markets should react well to the decision to involve Parliament in the Brexit process. The Pound’s value increases with investors gaining confidence that Parliament’s involvement will mean the Brexit process will be delayed to some degree due to cumbersome Parliamentary procedures, and that this increases the likelihood of a softer exit from the EU.

You can also argue that Parliament’s involvement means that the aims of the negotiations and how well they will progress will be much more public. This permits greater confidence to invest in the Pound as investors and financial institutions will have a greater understanding of what trajectory the UK economy, and therefore the Pound, will be taking in the medium-term.

The expectation is that the Supreme Court will uphold the initial conclusion of the Judicial court a few months ago. Based on November’s currency movements, this will likely cause 1-2 cent improvements on GBP/EUR, similar gains on GBP/USD, and likely larger positive spikes on GBP/AUD due to the volatile nature of the currency pairing.

The verdict is expected between the 12-17th of January, so if you are a Euro or Dollar seller, it may be wise to move ahead of this coming Thursday to avoid being caught up in any sudden and unannounced spikes in Sterling value when we are told the decision.

Furthermore, on Wednesday data sets for manufacturing and industrial sectors of the UK economy, and a first look at growth for the final quarter of last year, will be released in the morning for markets to react to.

The manufacturing sector has enjoyed a resurgence following the sudden devaluation of the Pound in June, and growth in the UK economy has shown on mutliple occasions since the June vote to Leave the EU to be resiliant to the economic shocks this had entailed.

So, in short, very good news is expected to be provided to Euro, US Dollar and Australian Dollar buyers in the short-term. Two major events are expected to make your transfers more profitable, which is why anyone looking to conduct a Sterling purchase, even over the next few months, should look to how you can secure these still historically favourable exchange rates before Wednesday.

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 jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, and these current exchange rates can be fixed in place for anyone wanting to prebook their currency transfer later in the year at current exchange rates.

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. 

 

Economic data out this week to impact your currency exchange (Daniel Wright)

First and foremost a Happy New Year to all of our regular readers along with those visiting the site for the first time!

We have had a slow start to the year for Sterling exchange rates, very much like the past few weeks where the Pound has dropped off a little against most majors but there is plenty for the market to get its teeth into this week that may turn that trend around.

Tomorrow morning we have PMI Construction data for the U.K for December, and with the weather in December being considerably better than that of last year I would not be surprised to see a slight improvement year on year.

Later tomorrow evening we also have the Federal Reserve meeting minutes from their last interest rate decision. This can impact all major currencies as any comments on future interest rate changes may lead to a great deal of money moving around the world.

on Thursday morning we have Markit services PMI for the U.K in December. With the services sector being responsible for a large part of the growth figures in the U.K this can also be extremely important and expectations are for a slight drop off from the previous month, however I would not be surprised to see something a little more favourable in what may be a good week for Sterling exchange rates.

Finally on Friday we have another fairly bit data release over in the U.S in the form of Non-Farm Payroll data. Non-Farm data is the number of people in Non-agricultural employment (due to this being seasonal) and can have a huge impact on global attitude to risk.

Predictions for this data release can be way out so the market may price in one result yet the release can be quite a bit different so if you have the requirement to move any currency anywhere in the world then it is worth keeping your eye on the market at 13:30pm on Friday afternoon.

Here at Pound Sterling Forecast we do not only pride ourselves on providing regular and non-biased market information but we all work for one of the top foreign exchange brokerages in the U.K too.

If you have a currency requirement either now or in the coming months and you would like to maximise your exchange rate then we can also help with that too.

Feel free to contact me personally with  brief description of what you are looking to do and I will be more than happy to get in touch with you. We deal with bank to bank exchanges ranging from smaller sums up to multi-million Pound transactions, unfortunately we cannot assist with travel money.

All you need to do is email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to get in touch with you at the earliest possibility.

 

Sterling still struggles as investors seek a safer haven to bring in the new year (Daniel Wright)

The Pound is not having the greatest end to 2016, particularly against the Dollar.

It appears investors and speculators are stepping away from Sterling and taking their profits after a slight gain seen by the Pound over the past few weeks of trading.

As we ease into the final few days of the year there are no major signs that this will turn around so if you have a foreign currency to purchase with Sterling in the next few days it may be prudent to look at doing something sooner rather than later.

As we move into 2017 the main focus will be on the actions of the Supreme Court and whether or not they do decide to overturn the ruling over article 50. Sterling exchange rates may move suddenly straight after the result is released and following this I would not be surprised to see yet another bout of jawboning, speculation and issues hanging around the matter that will no doubt add to the market volatility.

My personal opinion is that although this may be a potential banana skin, I feel the Pound is still greatly undervalued and that Sterling exchange rates should have a good recovery to look forward to, we just need to get all of the negative press out of the way first!

If you are looking to carry out a currency exchange in the coming days, weeks, months or indeed years then it is well worth getting in touch with me personally. The company that we all work for assists clients with large currency exchanges day in, day out and we have a base of over 90,000 satisfied clients.

We pride ourselves on highly competitive rates of exchange along with the very top level of customer service, and I would be extremely surprised if we could not save you money over your bank or current broker, along with offering you a smoother service.

Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk and I will be more than happy to get in touch with you personally to discuss the various options available to you and answer any questions or queries you may have too. I look forward to speaking with you.