Tag Archives: weakness
Sterling has another exceedingly volatile day against Euro, Dollar and all majors – Global markets remain fragile (Daniel Wright)
It has been yet another busy day on the trading floor and we have seen yet another volatile 24 hours for Sterling exchange rates.
Markets around the world appear to be exceedingly nervous at present and there is a little worry that we may have one hell of a storm brewing ahead.
In the past year we have seen issues with the European economy, issues with the Chinese economy, oil prices dropping off, bank share prices plummet and the potential of any interest rate hike for the U.K slowly but surely be kicked further and further down the road so it is no surprise that the markets are acting a little out of the ordinary.
My personal opinion is still that Sterling is a little undervalued however when you do see negative movements like we have witnessed of late then the question does start to arise of how much further can it drop before we see a recovery? We all wish we truly knew the answer to this question as we would make a great deal of money…
The key with these sort of situations if you are due to be making a large exchange is to make sure you protect your position. Many people fall into the trap of thinking that they have to carry out their currency needs in one large chunk, and to time that correctly is almost impossible, along with the fact that you leave yourself extremely exposed.
If you are in the position that you do need to buy or sell a large quantity of currency for your business or indeed for the purchase or sale of a property then it is well worth getting in touch with me (Daniel Wright) directly so that I can work together with you to try and maximise your money. I have been assisting clients in this position for nearly 10 years and I have been writing on this site for over 5 years so I am well positioned to not only help you get top commercial rates of exchange but also to ensure you have a proactive and efficient currency broker on your side at all times.
If you are stuck in a tricky position due to the latest movements and you are finding that you are stuck on your own with nowhere to turn the feel free to get in touch with me directly and I will be more than happy to call you personally. You can email me on email@example.com or call me on 01494 787 478 during U.K office hours of 08:30am – 18:00pm (please ask for Daniel Wright). You do not need to be based in the U.K for us to be able to help you.
Regular readers might by now becoming familiar with the two key events for December, that is the European Central Bank meeting this Thursday and the US Federal Reserve meeting on the 18th December. These two events carry significant weight on the markets and could easily change the current forecasts on a number of currencies. Whilst clearly not UK based events they will have a big impact on sterling exchange rates as investors move funds in and out of the Euro, USD and others, and then into and out of sterling. Let us remind ourselves what moves an exchange rate, it is the buying and selling of said currency. That demand is in the main triggered by corporate investors looking to capitalise or speculate on the currency markets, basically investing money to make money. Examples include hedge funds, pension funds and banks all seeking to invest funds to turn a profit. Understanding their attitudes to the market and their investing brains can help you too to navigate the markets and not get caught out!
The pound is one of the world’s leading currencies and in any currency portfolio will make up a reasonable share since it represents the wholly independent Bank of England and the UK is politically and economically seen as a safe bet. With the UK on a path to raising interest rates at some point in the future the UK represents a good investment opportunity and this explains some of the pounds gains this year. The outlook is therefore quite favourable for the UK and the pound but because much of this good news is priced in, we could easily see events take a turn in the future, particularly if the UK data does not live up to expectation.
If you have a transfer to consider involving the pound the next few weeks could be critical to determining what you actually receive. Understanding the market and everything going in will really help you to make an informed choice about what is the best way forward. If you have a transfer to consider and would like to receive some expert help and insight on the currency markets and all of your options please contact me Jonathan on firstname.lastname@example.org
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 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 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 firstname.lastname@example.org 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 email@example.com. 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 firstname.lastname@example.org