Tag Archives: strength
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.
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 firstname.lastname@example.org
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 email@example.com 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 firstname.lastname@example.org and I will be happy to call you personally.
So today the unexpected happened and two members of the MPC (Monetary Policy Committee) Martin Weale and Ian McCafferty both voted to raise interest rates citing improvements in the economy and expectations wage growth could soon rise in line with inflation which has been falling. The effects were immediate and sterling spiked up reaching a peak of 1.2546 (GBPEUR) and 1.6679 (GBUSD) offering relief to anyone buying a foreign currency with the pound. The gains were quickly undone however with sterling finishing the day only about 0.1% above the opening on most pairings.
I think this highlights the danger in banking on big improvements in sterling exchange rates in the future. Here we have had the first split vote since 2011 at 7-2 and the effects were rather timid and failed to help lift sterling to the lofty heights we enjoyed a few weeks ago. I think if you need to buy a foreign currency with sterling making some plans now is a wise move since it is difficult to see where any further major boost will emanate from.
Tomorrow are Retail figures plus Government Borrowing data which may all serve to help lift the pound. Both releases were actually negative for sterling last month so if you are in a position to be holding sterling waiting to buy another currency, moving sooner might be the best course of action. To help catch the very best rates we offer STOP LOSS and LIMIT orders which trigger when certain levels are hit. This is often the only way to catch the best rates since the market can move so quickly!
For more information on what is the best approach to your currency situation please contact me Jonathan on email@example.com. I have been working as a currency broker for 5 years and have lots of experience in the planning and execution of international payments. I look forward to hearing from you.
On a day where there was an outside chance of the Bank of England hiking interest rates the pound was left very much disappointed with no movement by the Governor of the Bank of England which left the pound hovering around 1.26 against the Euro and 1.6820 versus the US Dollar.
For those buying or selling Euros the main spotlight for the day was firmly on the European Central Bank (ECB) who also released their latest interest rate for the month of August. We were expecting more of a chance of policy change from the ECB after two months ago they announced unprecedented monetary easing which assisted the pound in gaining to the highs of 1.2699. The ECB stated they were not making any change to policy and may look at things next month should inflation not start to rise so it may be another month before a further push for the pound occurs.
Even if this does happen though the IMF (International Monetary Fund) recently stated that they felt the pound is a good 10% overvalued and if the Bank of England feel the same we could see a rate hike be put off until next year as it may strengthen sterling further if it happened to soon.
As we head into the last day of the week tomorrow the UK trade balance figures could weigh on the pound should our trade balance not fall as much as expected. We still feel that GBP/EUR will be range bound from a low of 1.25 to 1.2650 and GBP/USD from 1.6750 to 1.69 for the next week or two.
If you are looking at making an exchange to buy any of the major currencies we can help you make a saving n your exchange by up to 4% over the high street banks. I offer a very personal service to give you the information needed to help you decide when to buy. If you feel that you would like to compare our rates then please do feel free to contact myself Ben Amrany at firstname.lastname@example.org
Sterling has clearly risen sharply this year representing an excellent time to buy a foreign currency with the pound. There are however a number of factors to beware of which could easily see the pound drop in the coming months. If you need to make a foreign payment understanding the market and how to go about getting the best deals is central to enhancing your advantage.
Ultimately no one knows what will happen in the future but like weather forecasters, we can look ahead and based on what we know make certain calls as to what may or may not happen. Tomorrow is the Bank of England Interest Rate decision meeting where we could see some movement on GBP rates. No change is expected but the release by nature can be volatile as investors seek to second guess the market. Perhaps more interesting is the ECB decision and Press Conference afterwards at 13.30. Recent Eurozone data has not been particularly encouraging and any comments by Mario on this could cause some EUR movements affecting GBPEUR positioning
If you need to make a currency exchange please email me Jonathan email@example.com for information to help you get the best deals.
Tomorrow is UK Retail Sales and Friday is the latest UK GDP (Gross Domestic Product) data. Both of these releases could easily spark volatility in the market underlining the importance of keeping up to date with the market. In the last few weeks sterling exchange rates have crept up notably against the Euro but we are at multi year highs against pretty much everything! Can sterling keep on this trajectory?
Well early indications seem to think so with recent poor borrowing economic data being ignored in anticipation of an interest rate at hike at some point in the future. As is so often the case with exchange rate it isn’t just which currency is the best, it is that others are very unpopular! Take the Euro for example, we may still see some QE (Quantitative Easing) in the future. This form of ‘printing money’ is very bad for the currency as by increasing the money supply it effectively dilutes the strength of the currency. The UK used QE many years ago and this is one of the reasons the pound dipped to almost parity with the Euro, imagine the detrimental effect QE in the Eurozone would have on GBPEUR rates!
If you have any need to buy large volumes of foreign exchange getting the best exchange rate is central to making the most of your money. The authors of this blog and I are extremely confident we can undercut other sources like banks and other currency brokers on exchange rates, plus also offer practical assistance in the timing and management of your payments. For a quick rundown of your situation and a comparison why not make contact? We can then have a quick chat at no cost or obligation and you can decide for yourself what is better! After all if you were entirely happy with your current situation you probably wouldn’t have read this far!
Jonathan Watson, firstname.lastname@example.org
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.