Tag Archives: strength
GBPZAR 5 year high, GBPAUD and GBPCAD 4 year highs, GBPUSD at 2 1/2 year high and GBPEUR over 1.20…
Sterling is at truly exceptional levels against most currencies as the UK’s recovery rakes hold and the UK sets itself apart from other leading economies by appearing to be likely to be one of the first leading economies to be raising interest rates. Whilst the United States are debating when to stop QE, the UK have not done any QE for the last year. The ECB are looking at possibly negative interest rates and the Bank of Canada is no longer looking to tighten policy. Overnight we learnt that GDP in Australia was weaker than expected, again a sign of another leading economy weakening whilst the UK has been performing well.
With the often crazy Christmas period fast approaching and changes in banking days there is a lot to be said for wrapping up a transfer like a present. The recent spike on exchanges rates has been a great gift to you and now could be an excellent time to either buy your currency or lock into a forward contract to minimise any losses. You can then remove the stress of the transfer and focus on the more important things at this time of year!
If you have a pending transfer we offer a specialist service to assist you in securing the most from the market. For more information at no cost or obligation please do feel free to get in touch. I am a specialist currency broker and my job is to assist private clients and businesses in managing their exposure to the currency markets, ensuring payments are made quickly and safely at the very best rates.
Please feel free to contact me Jonathan on email@example.com or call +44 1494 787 478 and ask to speak to me.
Best levels for selling the pound this week. Next weeks GDP figures could be key to how the pound performs next week. (Ben Amrany)
What a week it has been for the pound. We witnessed some excellent gains for the pound against many of the majors. Some of the key highs were against the Australian Dollar trading at the best levels this year of over 1.76. Verses the Euro sterling spiked to a 10 month high trying to cement rates above 1.20. While we also saw excellent gains against the USD over 1.62, CAD 1.71 and NZD of 1.99.
The current highs represent excellent buying opportunities against many of these currencies. We have seen all to often how quickly when the pound spikes something comes out which throws a spanner in the works and we see losses over the next couple of weeks.
If you are looking at selling the pound and would like more information on how to achieve better rates than through the bank then please do feel free to contact myself Ben Amrany at firstname.lastname@example.org. I assist clients in selling any major currency to buy the pound too if this is what you require doing.
Next week is certainly due to be an interesting one. It all kicks off this morning for the UK with mortgage approvals out at 9.30. A healthy number could assist the pound in what is a fairly quiet day.
Over in the US they release their pending home sales figures and for AUD buyers or sellers the deputy of the RBA Philip Lowe is giving a speech. The RBA have been very vocal about weakening the currency so his comments will be scrutinized by the markets and big movements could occur one way or the other.
For Euro buyers and sellers there is not much happening data wise for the next couple of days. This does not mean the markets will be flat though so don’t miss trading at the best levels for 10 months now.
Tuesday is all about the US & New Zealand. At 3.00 pm consumer confidence figures will be released. This gives us an idea of the confidence that individuals have in economic activity. Tuesday evening New Zealand release the important trade balance figures. A measure of the difference between imports and exports. Should it be negative then a move towards 2.00 could be available on Wednesday morning.
Wednesday is by far the most significant day of the week for the pound and the UK economy. We release our GDP figures which is a measure of how our economy is growing. Recent figures of 0.8% for the last quarter have been impressive and show we are rapidly moving away from the long drawn out recession. Should the figures show an unexpected contraction a dip back to the 1.18’s may occur.
My recommendation would be to capitalise in the early part of the week if selling the pound as to achieve very attractive levels and not to take the risk on the markets. For more information on what is released in the latter part of the week check out this site on Wednesday.
If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at email@example.com
Just when we all thought the ECB was far too cautious to make a bold policy move, it cuts the base rate across the Eurozone by 0.25% to 0.25%. This has weakened the Euro pushing EURUSD down to 1.33 yesterday and GBPEUR up to 1.2045 at the high.
Pound sterling rates were improved on by this news as funds found their way to the pound keeping GBPUSD in familiar ranges. This afternoon is a very important release for the US with Non-Farm payroll employment data. It bears more significance following last month’s shutdown as this may have impacted on Employment. The likelihood would be a bad number equalling USD weakness. This could cause euro strength in the afternoon as dollars are moved to the Eurozone.
However as the last few releases show ‘likelihood’ does not always mean much. The majority expected the Fed to taper back in September – they didn’t. The majority expected the US budget impasse last month to be solved by the deadline – it wasn’t. Few really expected the ECB to cut rates yesterday – it was. Therefore it is not unreasonable to expect that the payroll report could be better than expected and cause some USD strength. This may lead to GBP strength too as it shows the shutdown last month was not as bad as expected. It was such sentiments (the shutdown not having such a bad effect on the UK) which helped sterling to climb this week on the services PMI.
Making predictions on currency is no easy task. But giving yourself an advantage by exploring all your options is fairly easy. all you need to do is write an email (preferably with a phone number) outlining your position and we can offer our opinion on everything to beware of. We cannot tell you what to do but can highlight the news and tell you what is driving your price. We offer a professional and friendly service on the markets plus much better rates than banks and other sources of currency.
For more information please contact me Jonathan on firstname.lastname@example.org
Sterling has spiked today as improvements in the Services sector far outweighed the expected dip in growth for the sector. This bodes well for the future for Q4 for the UK and hence anyone considering buying sterling may wish to think twice about holding on for too long in anticipation of much better rates.
Time to cut your losses?
The reason the pound dipped last month to 1.16 on GBPEUR and 1.59 on GBPUSD was the possibility the slowdown in the US would impact growth for the UK in Q4. Remember one of the main reasons we have seen sterling spike is the prospect of an interest rate hike if the Unemployment rate falls. A growing economy is more likely than not to lead to falling Unemployment and the much improved growth for Services today shows the UK is on the right track.
This month’s data is the most up to date for Q4 – it is the first snapshot of October and Q4 data for the UK. It proves quite convincingly that the UK is heading in the right direction. For the time being at least sterling should remain well supported and it is my opinion if you are holding a foreign currency and looking to buy sterling, moving sooner may be the wisest course of action.
Further Euro and USD weakness this week?
The Eurozone interest rate decision is on Thursday and this could lead to Euro weakness. The prospect of the Eurozone cutting interest rates is much higher than a week ago due to the rising Unemployment and falling inflation in the Eurozone. Even the mere suggestion of a rate cut could cause Euro weakness so Euro sellers and buyers should both beware of what could potentially be a very interesting afternoon for the GBPEUR rate. I would not rule out the 1.20 although no action could see these much improved buying euro rates fall.
Friday is the day for the USD with Unemployment and Non-Farm Payroll data. The USD is still being driven by the possibility of a QE taper which may not be until 2014 now. I think the data Friday could be poor due to the slowdown which would weigh on the USD and could easily see rates back up towards the 1.61 and 1.62 level.
If you would like more information regarding possible strategies to maximise your exchange rate I would be interested to speak with you. Even a small improvement on your rate on a large volume can make a huge difference to the currency received. Please contact me on email@example.com for more information on getting the best rates and service.
Sterling makes minor gains against the Australian Dollar following RBA (Reserve Bank of Australia) comments
Late night news from Australia confirmed no interest rate change at the latest interest rate decision however comments from the Governor did mention that a strong Australian Dollar is a concern for the Australian economy going forward.
This has led to around half a cent gain for the Pound against the Australian Dollar and does open up the potential for possible interest rate cuts further down the line in Australia.
There is little data out over the course of Tuesday of great note although we do have economic forecasts from Europe and a little data out from the states in afternoon trading.
Personally unless there are any great surprises that crop up on the market I would expect to day to stay fairly range bound however as always in the current economic climate absolutely anything may happen.
If you have a pending currency transaction to carry out and you would like me to personally monitor the market for you then feel free to email me directly on firstname.lastname@example.org and I will be more than happy to help you.
The ECB (European Central Bank) interest rate decision was released yesterday and with no major fiscal changes coming from it all heads turned to the press conference held by head of the European Central Bank Mario Draghi.
Sterling – Euro exchange rates did once again test the level of 1.20 but failed to get through during the press conference and we then saw the Euro finish off with a bit of a rally back against the pound coming back down closer to the 1.19 mark.
Mario Draghi basically commented once again that he would do everything he could and he would use all the tools available to him to ensure the Eurozone makes a promising recovery.
For a full overview on this press conference click here for a great article on Yahoo about yesterday’s actions.
If you have an up and coming currency transfer to carry out involving buying or selling the Euro and you want the very best rates of exchange along with a high level of customer service then feel free to get in touch with me directly.
You can email me on email@example.com and I will be more than happy to assist you.
Well once again it is politicians causing uncertainty on exchange rates! Amazing really that in 2013 we still have politicians acting quite frankly like babies! In the US the budget impasse and government shutdown has caused a sell off on the dollar whilst in Italy we are due to have a vote of no confidence in the ruling coalition which has weakened the Euro. Berlusconi is still exerting pressure on the government and all the while this continues, urgent reforms to the Italian economy are missed.
I say calm before storm because these issues taken alone whilst significant are not disastrous. What they may pave the way for however could be and as we know nothing should ever be taken for granted on exchange rates. Careful preparation in advance of such uncertainty is often the best course of action, leaving everything until the last minute can prove costly.
Will sterling remain strong? Today and this week is key for shaping the next few week’s movements on GBPEUR, GBPUSD, GBPAUD and many more. Whilst the pound has been trading at excellent levels due to better economic data, it is also being seen as a temporary haven due to the current background of bad news and uncertainty over the US and Euro.
US Shutdown Many have suggested that the Republicans are strengthening their negotiating position by allowing the shutdown so that they are taken more seriously ahead of the all important Debt ceiling deadline on the 17th October. 17th? Ah yes that was the date last month when the Fed unexpectedly kept QE on hold and the USD weakened by 3 cents. For now it would appear markets are fairly relaxed but as this deadline approaches we are bound to see more USD weakness, the flipside of course is that any negotiation will pave the way for a strengthening of the USD and hopefully an agreement for the debt ceiling too.
Important Economic data this week! This week remains a very important one for sterling, will the latest run of data remain favourable? Yesterday’s Manufacturing was not as good as expected and today’s Construction and tomorrow’s Services data will be closely watched for signs the recovery is consistent. Today we have the ECB banking decision in Paris and tomorrow the Bank of England meeting.
All in all sterling should remain well supported but it is likely to be overseas developments which provide the biggest catalyst on rates. If you are considering a currency deal we can offer assistance with the timing of your exchange plus a commercial exchange rate.
There are some important events on the horizon which are likely to move rates so some careful preparation may prove prudent. Please contact me Jonathan on firstname.lastname@example.org for more information.
The decision by the Federal Reserve to not taper QE has kept riskier assets like the AUD, NZD, ZAR stronger. The decision has also caused the USD to weaken presenting some very good opportunities to buy USD which will probably not last. The pound continues to remain strong although vulnerable to any poor data as we saw last week
The most important things for sterling are twofold; whether or not the economic data can continue to impress and whether or not Mark Carney or (anyone else at the Bank of England) will offer guidance on the disparity between market expectations of an interest hike (as early as late 2014) and the Bank’s own estimations of 2016.
This week we have the final GDP revision for Q2. This is essentially old news now but could affect sterling on Thursday. It is still very close to the best time in 9 months to buy US Dollars and Euros with the pound.
Next week with the start of the new month there are many new economic data releases which could push the pound higher. Sterling is still vulnerable to weak data however, last week we saw sterling fall by close to a cent on the back of some poor retail figures.
All in all there are still some very good deals for those buying a foreign currency with the pound so to ensure you are up to date with the latest developments and do not miss out please get in touch on email@example.com to learn more.