Tag Archives: strength

GBPEUR soars!

GBPEUR has been over 1.36 representing some excellent opportunities to buy Euros not seen for 7 years. If you need to buy or sell the pound taking stock of current levels could be the best way to maximise your deal. The outlook for the currency markets is rather uncertain with the Greek news and further uncertainty up ahead.

If you need to buy or sell the pound making plans is always sensible. Leaving everything until the last minute is not generally a very good option as you never know what will happen! For more information please contact me Jonathan on jmw@curencies.co.uk

Sterling strength today following positive unemployment figures – The Pound hits over a seven year high against the Euro – Is this now the best time to buy Euros? (Daniel Wright)

The Pound shot up during morning trading and has continued to creep higher during this afternoon following much better than expected unemployment figures along with uncertainty over Greece still casting a grey cloud over the Euro.

The Greek debt agreement is now starting to feel like an old soap opera with us being left with cliffhangers over and over again without really seeing any real resolutions.

The latest I had heard earlier today was that Greece would be looking to request a six month extension on their debt deadline which will further delay a main resolution and will no doubt keep this saga continuing.

Those looking to buy a property within the Euro zone will currently have a huge smile on their face as buying €300,000 has now become £16,000 cheaper so the temptation to book something in now is hard to resist.

It is easy to forget that you do not have to book out all of your currency in one go, a mistake many people still make. If ever I have the need to make a large currency purchase I would split my requirement into two or even three chunks. The beauty of this is that you are eliminating a portion of your risk should the rate suddenly come back down yet should it creep up a little further you are still able to take advantage of it.

If you have Euros to buy or sell, or indeed any other major currency to exchange and you want the very best rates of exchange along with exceptional customer service then you can deal with me personally. All you need to do is email me (Daniel Wright) directly on djw@currencies.co.uk and I would be more than happy to contact you personally.

 

GBPEUR is close to a 7 year high, the best time to buy Euros with sterling since 2008

The Swiss National bank decision last week reminds us of the uncertain nature of the currency markets and with two extremely important events tomorrow and Sunday for the Euro, I wanted to make sure you my clients understood the potential implications. Whether selling the New Zealand dollar or buying the Australian and US, the events in the Eurozone have changed market sentiment towards all currencies.

If you are planning any transfers in not just the next week but the next few months you might want to consider all of your options or highlight a situation to me. That way I can provide updates and information so you do not miss out.

GBPEUR is close to a 7 year high, the best time to buy Euros with sterling since 2008

GBPUSD is close to a 18 month low, it is the best time to sell USD for GBP since July 2013

The only way to predict the future is to create it!

Against such uncertainty using one of our contracts you can create the future. Forward purchasing using a ‘forward contract’ allows you to buy all the currency you need today paying only a small deposit and the balance within a year. Limiting your exposure to some of the most uncertain markets in years seems a very good idea to me.

Alternatively a Stop Loss order will automatically execute when the rate drops to a lower level than desired (protecting against losses) whilst a Limit order triggers when your desired higher rate is reached. Exchange rates change every second and such contracts guarantee your price even if the rate is just hit for a second.

For more information trade please email me Jonathan on jmw@currencies.co.uk

What to look out for on the pound in the coming months…

When considering making a currency exchange an understanding of what is driving the exchange rate is vital to getting the most from the market. How can you make a decision on when is the right time to enter the market if you don’t know what is happening? The idea of this blog is to provide information on just where rates are headed and make sure you get the best price when you do decide to enter the market.

Sterling has done really well this year as the UK economy improves and investors position themselves for the UK to raise interest rates. Next year we would expect the UK elections to move the market, the increased uncertainty surrounding the political situation in the UK is bound to cause ripples on exchange rates. If you have a transaction that you need to consider why not get in touch with our specialist team to find out more about moving money internationally at the very best rates.

Please contact me Jonathan on jmw@currencies.co.uk for a quick overview of your position

How will UKIP affect sterling?

UKIP continue to make gains in polls and are certainly likely to be a thorn in the side of the more established parties, indeed they already have been. But is this more a reflection of the tough times ahead for the UK (and the pound) or a flash in the pan protest vote?

UKIP have the power to severely undermine confidence in sterling. there is tremendous uncertainty posed by a party with no solid economic idea from what I have seen. Aside from promising to withdraw from Europe and playing on peoples immigration fears it is difficult to find concrete policy. Let it be known that any withdrawal from Europe would have wide reaching consequences for the UK economy and hence the pound. Whilst it might be welcomed we examine the relationship with Europe the economic benefits of being part of Europe should not be underestimated.

We shall learn much more about the true effects of UKIP on the pound in the next few months as we have bi-election and then the General Election in May 2015. The effect on sterling from increased political uncertainty will undoubtedly be negative and anyone hoping to see sterling keep climbing in 2014 and beyond might be disappointed.

To keep up to date with the pound and how important events affect your exchange please contact me Jonathan on jmw@currencies.co.uk

U.K inflation data weakens Sterling in morning trading (Daniel Wright)

Inflation data released this morning for the U.K has led to a drop in the value of the Pound as figures came out much lower than expectations.

The worry was that inflation figures may have dropped off a little however the actual figure released was a lot lower than had been predicted.

Lower inflation will lead to the potential of an interest rate hike being put back a little further and an interest rate hike generally is seen as positive for the currency concerned and with the markets moving on speculation as well as firm economic releases.

We have also seen the Euro weaken off lately and the reason for this is extremely low inflation figures leading to the risk of deflation, one of the ways they are looking at to combat this is by introducing QE (Quantitative Easing) which as many regular readers will know generally is seen as very negative for the currency concerned as it is essentially printing more money and injecting it into the economy.

We still have quite a busy week ahead with a few interesting points of note including unemployment figures for the U.K tomorrow (predicted to have improved to 6.1%) and U.S Retail sales figures tomorrow afternoon. For those with an interest in the Euro you should be aware of President of the European Central Bank Mario Draghi speaking at 8:00am tomorrow morning which could move Euro exchange rates in advance of trading lines opening.

if you have a currency transfer to carry out in the coming  days, weeks or indeed months then it may be prudent to contact me directly as the company I work for has not only won awards for our exchange rates but also our customer service. You can contact me directly on  Djw@currencies.co.uk please leave a contact number and a brief description of what you are looking to do and I will be happy to get in touch.

GBPEUR Forecast and Rate Predictions Q4 2014

With the UK economy and the pound performing extremely well for the majority of 2014, the last quarter has some high expectations to live up to. In the end it might be this high expectation which is ultimately sterling’s downfall although of course it depends on which pairing you are concerned with. Below is a brief overview of the key issues, if you have a transfer to consider making some careful plans is always sensible. We offer a specialist service designed to assist you in the planning and execution of your transfers at the very best rates of exchange.

GBPEUR – GBPEUR moved over 3% in September which would have meant transferring £200,000 at the high compared to the low would have saved or cost you €7,921. We usually beat the banks by anywhere from 1 to 4% which at the very least would be €2300.on this volume. These big differences underline the importance of a service like ours, one that gets you a better rate in the first instance and offer information on the better times to execute the deal.

Sterling has risen on the back of the No vote in the Scottish referendum but has dipped in October owing to economic data coming showing September was plagued by uncertainty and hence business confidence and spending was low. Much of the strength we have seen for the pound this year is based on interest rate hike expectations. Investors have bet big on the UK being the first leading economy to raise interest rates. It may be however that the UK does not raise interest rates as soon as expected and this would negatively impact sterling rates.

The other big reason GBPEUR has been up to a two year high is the Eurozone have cut their interest rate. Crucially today they announced Quantitative Easing measures which is likely to underpin Eurozone policy moving forward for the next couple of months. I personally feel it more likely it will be Eurozone policy which will have the biggest impact on GBPEUR and if the data continues to impress GBPEUR could easily comes back to the 1.25 level in October, particularly if sterling suffers on weak data.

Looking to November I would expect rates to trade above 1.20 but for more uncertainty over the UK raising rates to creep in and the Eurozone to finally benefit from all the measures taken to rectify their economy. Don’t forget the UK benefits from doing 40% of its trade with the Eurozone which means if the Eurozone economy struggles, the UK economy can be afflicted too. Looking to December I would foresee rates remaining in the mid 1.20’s perhaps with a mildly GBP positive tone as investors start to bet back on the pound.

2015 certainly has much in store on the rates with the UK election and the possibility of a referendum on Europe. Of course the prospect of rising interest rates and evidence of a sustained economy recovery will also impact sterling.

Do you need to move any funds still in 2014? Unfortunately no one can tell you exactly what is around the corner but should you wish for a little more insight and information on the rates plus deals which I am confident will save you money over your bank or broker, why not drop me an email? I will do my best to give you some pointers on what might be the best course of action.

Thank you,

Jonathan Watson

jmw@currencies.co.uk

 

 

Sterling could be in for a very tough Winter…

Sterling has had a truly remarkable year making firm gains against pretty much all currencies and presenting some of the best rates to buy a foreign currency with in years. GBPUSD hit a 5 year high, GBPEUR has hit a two year high (and not far off a 6 year high!) and GBPNZD and GBPAUD are also both at multi year highs… Clearly sterling is faring well but this now begs the question will it continue?

October is looking like a tough month for the pound  with economic releases from September’s data likely to be poor owing to lower business and consumer confidence due to the Scottish referendum. I feel this is likely to feed into the rest of the year and with it interest rate hike expectations (currently expected in April) liable to be pushed back further. Economic growth in the UK is currently running at 0.8% and with house prices not rising as fast as previously I think the need to raise rates will dampen in Q4.

Tomorrow is some very important Eurozone news on Inflation which will be indicative of how much QE we can expect Thursday from the ECB. With so much volatility surrounding this release making some careful plans ready to trade on the news seems sensible.

I couldn’t possibly fit everything important in one post, would you read the whole article anyway? So if you need to consider a currency exchange and wish for further information please contact me directly on jmw@currencies.co.uk. I work as a foreign exchange dealer and we focus on a personal proactive service to help you get the most from the market. Please contact me for more information regarding your situation.

Will sterling continue to rise

The pound remains at elevated levels and it would appear it shall continue to do so. Expectations of Quantitative Easing in the Eurozone next month are keeping the Euro weak and following the dollar’s recent surge investor appetite for favourite the safe haven looks set to remain cooled for the time being.

The pound was looking in serious danger on the back of a possible Yes vote in the referendum but these fears have now cooled with the No vote. There are however significant reasons for concern for GBP weakness down the line with the UK election and the possibility of the EU referendum to follow. These topics could make the Scottish referendum look like a Parish Councillors meeting by comparison…

All in all the news is generally very positive for the pound at present but further gains in the absence of something ‘new’ to impress investors look limited. If you need to buy a foreign currency with sterling capitalising on these extremely impressive levels might be the best course of action. To be notified of any impressive spikes please contact me Jonathan on jmw@currencies.co.uk

 

Scotland decides on NO – What impact has this had on the Pound and what may we see for Sterling in the coming weeks? (Daniel Wright)

Scotland decides to stay in the U.K

Following an extremely volatile few weeks for the Pound we finally have the decision from the Scottish referendum and Scotland has decided to stay with the United kingdom giving the pound a little strength against most major currencies.

We saw a huge turnout as far as voting goes (84%) which just goes to show how much this has captivated Scotland and divided opinion north of the border. Sterling has had a roller coaster ride against all major currencies over the past few weeks as polls have swung back and forth both ways after we had months of the markets almost assuming we would see a No vote. More importantly what this means for the Pound is that it has bought both economic and political certainty to the U.K for the time being, both of which should give the Pound a little strength in the coming days.

Investors and speculators alike hate uncertainty and the mere fact that the referendum had seemingly been in the balance has been holding Sterling back recently even with fairly solid economic data still being released almost on a daily basis. Sterling exchange rates have moved around three and a half cents from high to low against the Euro, four cents against the Dollar and ten cents against the Australian Dollar in the past two weeks as the markets try to second guess just what would happen with the vote.

Finally on Friday morning the decision came and I am pleased to say the U.K will indeed remain as one and now hopefully politicians and the Bank of England can fully concentrate on pushing the economy forward as a whole, rather than having to unravel an exceedingly complicated tangle that may have cast a grey cloud over the Pound and kept it weak for months to come.

If you find this site of use and would like assistance with any pending currency transfers involving either buying or indeed selling the Pound then feel free to contact me by email with a brief description of what you are looking to exchange and a contact number and I will be happy to get in touch. You can email me (Daniel Wright) directly on djw@currencies.co.uk

So what does this mean for me if I have currency to exchange?

Being an unprecedented situation, nobody really knows the exact impact this will have on Sterling but in my personal opinion I now feel that the Pound will kick on and gain a little strength over major currencies and heads can now turn towards if or indeed when interest rates may rise.

For those looking to sell foreign currency I would say now could be the time to secure your exchange rate. If you take the Euro as an example, it was only a few weeks ago that the European Central Bank not only cut interest rates but also indicated a few changes in Fiscal policy coming up.

Most notable of these is QE (Quantitative Easing). QE can generally weaken a currency once put into place and was one of the big reasons we saw both Sterling and the Dollar weaken a lot over the past few years. In my opinion once the dust has settled over the referendum the focus will come back on to Europe which still has huge problems to tackle and I feel the Euro could be in for a tough time of things.One must remember however we have crossed this bridge before and The Euro is a powerful beast. Only two years ago most analysts expected a rise through 1.30 when the Euro had even more problems than they do today and within a few months it was back below 1.20.

In essence the key thing you need to make sure you do is to keep in close contact with a currency broker no matter what your requirement in these particularly volatile times. Here at FCD we pride ourselves on not only the very best rates of exchange but also in being extremely proactive for our clients, making them aware of any spikes in their favour or drops against them.

We can’t let you know if we aren’t aware of what you are looking to do so make sure you email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to help you personally. Sterling is trading at over a two year high against the Euro, a two week high against the Dollar and the highest we have seen against the Australian Dollar since March this year. If you would like to speak with one of our experienced and knowledgeable traders about any currency pairing then feel free to call us on 01494 787 478 or email me on djw@currencies.co.uk and I will be happy to call you personally.

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