Tag Archives: weakness
Sterling flops following inflation drop off – Pound finishes the day down against all major currencies (Daniel Wright)
Sterling has been performing about as well as the England rugby team over the past few weeks and I am afraid that trend has continued today.
Inflation figures released this morning led to further Sterling weakness and it seems like the chances of any interest rate hike in the U.K have been pushed back even further once again.
Interest rate hikes or even the mere speculation of an interest rate hike can be very positive for a currency and the fact that this has effectively kicked the ball down the road has now led to Sterling dropping off considerably.
I am still of the opinion that this is a minor blip for Sterling exchange rates and that we may see a Sterling fight back in the near future however I would now suggest that any pending currency exchange you need to make is approached with caution and it may be sensible to look at exchanging a small chunk or even half of your requirement fairly soon to remove a little of the risk.
Tomorrow morning we have U.K unemployment figures and average earnings figures released at 09:30am. These are extremely important again for the U.K and will have further impact on what the Bank of England do next.
Expectations are for a small rise in average earnings which may give the Pound a little strength back, unemployment figures are expected to remain at 5.5% so any figure that differs from this may cause us another volatile morning of trading.
We assist with not only getting you the very best of market information but for those that are not aware we can actually save you money on the exchange rates when you come to booking out a transfer too. The company all of the writers of this site work for has won numerous awards for rates of exchange and customer service and we would love to add you to our book of over 50,000 clients.
If you were planning on using a bank or already have a currency brokerage lined up then it would be mad not to email me for a quote and to see how I can help you. You can contact me (Daniel Wright) the chief editor of this site on firstname.lastname@example.org with a brief description of what you are looking to do and a contact number and I will be more than happy to get in touch with you personally.
Sterling drops against all majors in a poor final weekly session for the Pound – Will this last? (Daniel Wright)
The Pound ended the week down against all majors in a week where very little economic data was actually released for the major economies.
In my opinion this is just a slight blip and presents a fantastic window of opportunity for anyone looking to sell Euros, Dollars, Australian Dollars, Canadian Dollars or any other major currency to buy Sterling.
Betting on interest rate hikes for the U.K has indeed been put back and yesterday BOE Governor Mark Carney did warn on a potential house price crash due to the buy to let market, but the economy is still performing pretty well compared to many others and with the rugby world cup currently giving the U.K economy a shot in the arm.
With this in mind I would expect retail sales figures to rise over the coming months and if the U.S do move forward with their rate hike in the next few months then speculation will be rife on the U.K following suit and Sterling may well get a boost from this.
My personal opinion on what to do in a market like this is to make good use of limit orders. A limit order is basically where you can place an order into the market to buy currency at a specific rate of exchange and should that level become achievable, even for a few seconds at any point (24 hours a day, 7 days a week) then your currency is bought out automatically for you.
The beauty of the order is that it can be cancelled or amended at any point as long as they have not been filled and there are no extra costs to use them.
If you feel that we could be of great use to you in terms of helping with an upcoming exchange or you would like more information on a limit order then you are more than welcome to contact me directly.
We welcome all new clients and can not only offer different contract types but we can also get extremely good rates of exchange.
All you need to do to get further information is to email me (Daniel Wright) on email@example.com and I will be more than happy to get in touch with your personally.
Sterling is performing well as UK GDP pointed to further improvements in the UK economy and we get back to pre-crisis levels. The unbalanced recovery is a concern and it appears unlikely the pound will just keep rising!
With the uncertainty surrounding Greece now removed from the market attention has shifted to wider concerns on interest rates and economic recovery. Personally I cannot see the UK raising interest rates any time soon but the pound appears likely to reach to the data as it has done in the last week.
I think it is really important to understand your options when buying currency with us so here is the information!
1 – Store currency safely in a client account. You don’t need a foreign bank account to buy foreign exchange with us! You can buy Euros and we can keep them here until you need them sending out perfect for business or overseas property investors who don’t yet have a foreign bank account. You can split payments too. eg buy 200k euros and send out 20k euros for deposit leaving remainder here until a foreign bank is open or you need sending out. This means you can buy whilst rates are good not just when you need the currency or have opened a foreign bank account.
2 – We can offer a forward contract to fix today’s rates for up to one year in advance useful for business and anyone buying a large volume of currency. You pay a deposit and choose how far forward. Eg you could fix 300k euros for 3 months and draw it down after 8 weeks if you needed them earlier. Again you don’t need a foreign bank account open to buy with us and can buy or lock in to a price whilst rates are good.
3 – Limit Order’s target a rate you wish to buy currency at in the future. eg 1.60 on GBPUSD. You give us a firm order and we place it into the market. Once the rate is achievable we buy at your desired rate.
If you need to buy or sell the pound understanding all of your options and what is going on in the market is the best way to minimise your exposure. For more information at no cost or obligation please speak to me Jonathan on firstname.lastname@example.org. Just email a quick outline of your position and your situation and I can hopefully offer some useful information to help you get a better deal.
I look forward to hearing from you!
Sterling is down against all currencies on political uncertainty arising from the most uncertain General Election in decades. The Tories and Labour are neck and neck fighting to gain any seats to reduce their reliance on other parties in coalition. Just what can we expect for the pound in the next 24 hours and weeks? It looks like sterling is going to fall further whoever gets into power!
Tory Majority – Sterling Positive. As plans on the economy to keep on the current course should help investor confidence surrounding the pound. Although the Tories have pledged a referendum on Europe which could damage business confidence for the coming months and in the future.
Tory and Lib Coalition – Sterling Positive. The Current partnership has reduced Unemployment and is currently in charge of a growing economy.
Tory, Lib, UKIP – Mildly Sterling Positive. Increaeses the chances of an EU Referendum being held sooner than expected which could be GBP negative.
Labour Majority – Sterling Negative. The increased spending plans are unlikely to boost confidence in sterling and fears over the mismanagement of the economy would be rife.
Labour Lib Coalition – Mildly Sterling Negative. The Liberal Influence may be viewed positively by markets.
Labour SNP Coalition – Strongly Sterling Negative. The SNP are likely to seek another referendum on the Union which they are more likely to win than before. The splitting up of the Union could be very worrying for investors seeking certainty on the outlook of the UK.
In short there are many outcomes that may affect your price! To be kept up to date with all the potential outcomes and learn what happens please contact email@example.com
US ~Non Farm Payroll data is due tomorrow which could be a big market mover as it is the first one since the US stopped their QE programme. Today’s meeting with Mario Draghi might also be very interesting and should be a market mover, the least interesting thing is probably the UK’s Bank of England decision which is not expected to yield anything new.
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. 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.
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.
When considering making a currency exchange understanding what is driving the exchange rate is vital to getting the most from the market. Please contact Jonathan on firstname.lastname@example.org for a quick overview of your position and to learn more about getting the best rates.
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.