Tag Archives: strength
Sterling has another positive day against most majors (Daniel Wright) Why did inflation data lead to Sterling strength?
The Pound has had a fairly good day on the market once again with a further small improvement against the Euro pushing the GBP/EUR exchange rate extremely close to a two year high which makes it an extremely tempting time to secure Euros for the purchase of property overseas or indeed for any business requirements.
I have had many clients this week decide to lock into their exchange rate on a forward contract to make sure they do not miss out on this current spike should the Pound drop away again and it is indeed turning into a very prudent approach, as many of those clients agreed to buy their property in Europe when the rates were a lot worse.
As an example, if you were buying €120,000 three weeks ago it would have cost you roughly £3,000 less now – This could pay for you to start furnishing your new holiday home or indeed pay for flights over there and back ten times over! To lock into a rate of exchange you only need to have a small deposit available so you do not even need the full availability of funds and you can lock in your rate for anything up to a year – Feel free to email me directly on email@example.com for more information on how to take full advantage of this handy contract type and I will be happy to answer any questions or queries you may have, along with helping you book something out if you wish.
The reason we saw the main spike yesterday was all due to a climb in inflation. A way to combat high inflation is to raise interest rates and generally a hike in interest rates can be seen as positive to the currency concerned. With the markets moving on rumour as well as fact this high inflation level did spark investors to believe that rates may go up earlier than first thought.
Today we saw unemployment figures improve a little for the U.K to 6.5% however this was pretty much cancelled out by the fact that wage growth was a little worse than expectations and the Bank of England have also stated they need to see wage growth out weight inflation for a period of time before they feel that the recovery is on top form and they really can start to move interest rates up so this was a minor setback.
We do not have a huge amount left to come out this week for the U.K however one release to watch out for, for anyone following the Euro we do have European inflation data out at 10:00am.
If you have an upcoming transfer to carry out and want to get the best exchange rates along with great customer service and knowledge of the markets then email me (Daniel Wright) directly on firstname.lastname@example.org I welcome all contact for bank to bank transfers however I am afraid I cannot help with cash transactions or speculation.
Sterling Euro exchange rates ahead of European central bank interest rate decision and press conference – Traders and speculators alike poised (Daniel Wright)
Today has the potential to be quite a market mover for exchange rates against the Euro. Shortly we have the Bank of England interest rate decision which we do not expect to see any great surprises crop up from, later on this afternoon we have the European Central Bank interest rate decision and press conference which has the potential to cause quite some volatility on the markets.
There is great speculation that something will be done by the ECB this time around, mainly due to comments by head of the European Central bank that they expect to put something in place during the June meeting which may be QE or indeed interest rate movements.
Either of these courses of action you would image may weaken the Euro however do be aware that there is a fairly high chance that any measures may have been priced in so we could possibly see the Euro gain strength if the actions from the ECB are not as firm as have been spoken about.
This is a key period for the Euro and if you are looking to carry out a currency exchange in the near future involving either buying or selling the Euro or the Pound then it is well worth you getting in touch with me directly as not only can I provide key market information, but I also work for a company that has won awards for exchange rates and customer service.
Please do feel free to email me directly on email@example.com with a brief description of what you are looking to do and a contact number and I will be more than happy to call you personally to explain the service and how I may be able to help.
The pound has dipped this morning despite a raft of good economic data showing improvements in government borrowing and falling budget deficit. There had been some high expectations of seeing the pound move higher due to a more hawkish outlook by the Bank of England but this failed to materialise. As one of my clients said to me ‘you can’t even trust the Bank of England’ nowadays…
This was in reference to their commitment to consider raising interest rates if the Unemployment rate dipped below 7%. This particular caveat was of course met recently causing the pound to spike but for now the BoE will not be raising interest rates, it would simply cause more problems.
If you are expecting the pound to just keep rising you could therefore be very disappointed as we need to see some really good data to warrant such a spike. I find the best way to maximise your return on your currency exchange is to set realistic targets and limits. If you would like some assistance in the execution and planning of your transfers please contact me Jonathan on firstname.lastname@example.org, even if your transfer is just a once off, we can help get you the most for your money.
Sterling exchange rates rose against all major currencies yesterday following Governor of the Bank of England Mark Carney speaking shortly after the quarterly inflation report for the U.K.
Carney, who is now getting a reputation for talking the Pound up compared to Sir Mervyn King who seemed to have an ability of making the Pound drop like a stone increased growth forecasts and spoke about the possibility of interest rate hikes and what would need to be met in order for him to start seriously considering hiking rates. In fairness to King he was in a much more dire economic situation than Carney, however for anyone looking to buy foreign currency with Sterling Mr Carney should be added to your Christmas card list at the moment!
As mentioned in my previous post I feel there is still a little risk of the flooding starting to weigh on the U.K economy which is one to be a little wary of if you are looking to buy foreign currency in the near future, however news yesterday can only be seen as good for the time being.
If you have a requirement either now or in the future to buy or sell foreign currency then is would be sensible to get in touch with me directly so that I can assist you both with the timing of the transaction and get you a great rate of exchange when you come to carry it out. I cannot ever directly advise you however with years and years of experience in the currency markets having me on your side should help to save you money.
Feel free to email me (Daniel Wright) directly on email@example.com with a description of your requirements and a contact telephone number and I will be more than happy to give you a call.
Mark Carney and the Bank of England have raised UK growth forecasts helping sterling to gain against a number of currencies. At the same time they have underlined interest rates will be on hold for a long period of time which limits just how much higher we can expect sterling to rise in the coming weeks and months.
If you have a sterling transfer to consider in the coming weeks and months making some plans now at these levels may be a sensible move.
In other news the new Federal Reserve Chairmen Janet Yellen underlined Quantitative Easing in the US is likely to continue until there are significant improvements in the jobs market. And overnight Chinese economic data was much stronger than expected presenting what I believe is a very good opportunity for anyone selling Australian dollars or South African Rand to buy GBP.
I am available to assist in the planning and execution of any international money transfers you need to make (including bringing funds back to the UK or Europe). Unfortunately no one can tell you exactly what will happen on exchange rates but having won awards for our service and rates, we are extremely well placed to offer expertise in managing your currency exposure.
For a breakdown of strategies and options on your particular exchange please call me Jonathan in UK office hours on 01494 787 478 or if you prefer email a quick outline of your position to firstname.lastname@example.org