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Trump victory and how it has impacted Sterling exchange rates today (Daniel Wright)

Following on from the announcement this morning that Donald Trump had won the U.S Presidential election Sterling exchange rates have had a fantastic afternoon, with the pound up against every major currency. Sterling climbed to 1.14 against the Euro, 1.25 against the Dollar, 1.72 against the New Zealand Dollar, 1.65 on the Australian Dollar, 1.22 on the Swiss Franc and 1.69 against the Canadian Dollar.

Initially we saw a fairly large sell off for the riskier currencies (Australian Dollar, New Zealand Dollar and South African Rand) however as of writing this they had started to claw back quite a bit of ground. Stocks and shares had a similar reaction, initially dropping off quite harshly and then slowly creeping back up as the day has gone on.

It appears the markets in general are waiting to see what Trump says next and how he plans to move forward with the economy before the next move. The general thinking is that a trade deal for the U.K may now not be “at the back of the queue” as Trump would favour the U.K getting a deal a little more than Obama may have.

I personally feel that focus will now move on to Brexit once again so be aware that the media will now be looking to fill their pages up with new material as the Trump/Clinton battle has cooled off.

There is a chance now that Sterling may fall back into fashion, and with Sterling exchange rates so low the Pound is cheap to buy so I would not be surprised to see this trend continue, but do beware that further Brexit news may dampen this.

For the rest of the week I feel we will more than likely see some volatility depending on what we hear from Trump, but there are a few other releases of note for the markets to digest.

We have the RBNZ interest rate decision over in New Zealand this evening and expectations are for a cut from 2% down to 1.75% which may weaken the New Zealand Dollar a little more. Most important may be the press conference after it and if there are any indications of further cuts.

More likely than not the markets will be hinging off of Trumps every word in the coming days and weeks, and with the U.S being a number of hours ahead of the U.K we may see large swings overnight.

If you are in the position where you may need to carry out a currency exchange involving buying or selling the Pound then it would be sensible to get in contact with me. I have worked at one of the largest currency brokerages in the U.K for the past 10 years and can assist you with sending money overseas or bringing money back. We do not only offer market leading rates of exchange but also an exceptional level of customer service too. Feel free to contact me (Daniel Wright) if you feel I may be able to assist you. Even if you already use a broker it is still worth spending two minutes emailing me as I would be surprised if I could not save you money.

You can email me directly on djw@currencies.co.uk and I will get back to you straight from our trading floor.

Finally some positive movements for the Pound! I know a lot of our regular readers have been hoping for this…

 

Sterling exchange rates – A volatile day to say the least (Daniel Wright)

Well I had mentioned at the start of the week that today would be the day to watch out for and it certainly did not let us down.

I started the day with a full order book of clients wanting particular rates of exchange and a large majority of them managed to achieve just what they were looking for.

The GBP/EUR rate had a high/low range of over three cents, GBP/USD 2 cents, GBP/AUD and GBP/NZD almost 4 centsand GBP/CAD almost four and a half cents.

The European Central Bank was the main focus and from the interest  rate decision at 12:45pm onwards the market went completely bonkers.

The ECB actually made a cut to deposit rates and added the their QE program, this led to Euro weakness for a short period of time, in all honesty it did then look like this may be the trend for the rest of the day…. then head of the European Central Bank Mario Draghi started to speak at his press conference.

Draghi came out with extreme confidence in how things are going and shocked the markets by confirming that he did not feel that anything further would be needed after this latest move. These comments led to a huge turnaround for Euro exchange rates and the Euro managed to claw back three cents in a could of hours which is a huge disappointment for those looking to buy an overseas property or businesses looking to purchase goods from Europe in the coming weeks or months.

Because of the huge surge for the Euro, a lot of money came out of the Dollar so the Dollar weakened quite significantly as EUR/USD is the most traded currency pair in the world.

On top of this, we saw a huge impact for the commodity currencies as global attitude to risk altered and the AUD, NZD and CAD all weakened off, creating a great opportunity for anyone looking to send money over to these countries in the near future.

Tomorrow should be a little quieter on the markets as there is a lot less out in terms of economic data but you must be aware that the market is always open to a surprise or two popping up.

Here at Pound Sterling Forecast we do not only help clients with market information but all of us work for one of the largest currency brokerages in the U.K. We like to work on behalf of our clients and generally act as their eyes and ears on the markets, whilst ensuring that we get them access to the highest level of exchange rates hat we can. It is extremely rare for us not to significantly better a banks exchange rate or to beat any other brokers exchange rate and we like to think our customer service is second to none.

We have a range of contract types inclusive of a forward contract, limit order and stop loss contract to suit your needs, all of which at no extra cost to you.

If you have a currency exchange to carry out in the near future involving buying or selling the Pound, no matter if you are in the U.k or not then it is well worth getting in touch with me (Daniel Wright) personally. You can call me during our trading hours of 08:30am – 18:00pm or email me directly on djw@currencies.co.uk with a description of your needs and i will be happy to get back to you as soon as possible.

 

Sterling exchange rate forecast – The week ahead (Daniel Wright) Important data for followers of Euro, Australian Dollar, New Zealand Dollar and Canadian Dollar (Daniel Wright)

So we have seen a quiet start to the week for Sterling exchange rates with very little data for the market to feed on. I thought it may be best to take a look at what we have coming out for the rest of the week and how it may impact exchange rates.

U.K Data – Pound Sterling

The Pound will no doubt react to any further ‘brexit’ talks however we need to remember that there are other economic data releases that may have an effect on Sterling exchange rates.

We have plenty of information due out from other economies which will impact exchange rates but solely looking at what with affect the Pound, Wednesday looks like it provides us with the most information.

On Wednesday morning we have industrial and Manufacturing production data released at 09:30am which is expected to have shown a slight improvement. Services and Construction data haven’t been up to scratch of late so the pound really does need to  see something positive from this release otherwise we may start to expect poor growth figures for the quarter.

Later on tomorrow afternoon we have growth forecasts from the NIESR (National Institute of Social and Economic Research) which can impact the strength of the Pound. The NIESR basically will predict where they feel growth figures will be and they generally aren’t far out so their predicitions can have quite an impact on the value of the Pound.

If you are looking to buy or sell any foreign currency in the coming days, weeks or months and you would like to maximise your exchange rate then it is key that you get in touch with me. I do not only help with up to date market information but also work for on of the top foreign exchange brokerages in the country, we can generally better any other brokerages rates and like to think that the level of service we offer is second to none. Feel free to email me (Daniel Wright) on djw@currencies.co.uk and i will be more than happy to get in touch personally.

Euro data – All eyes on Thursday – EUR

The European Central Bank takes centre stage this week with Thursday being an extremely key day for Euro exchange rates. The ECB are set to release their latest plans on interest rate movements and alongside this what they wish to do regarding QE (Quantitative Easing).

Any cut in interest rates may lead to Euro weakness (making it cheaper to buy) and any extra addition to the QE program may also do the same. QE is essentially printing more money and making it available to the economy so it can lead to weakness for a currency as more of it is available.

Should they implement either then this may lead to a fantastic buying opportunity to buy Euros however do be aware that if we do see no movement from the members of the ECB then the Euro has the potential to rally once again.

Shortly after the decision we will have the press conference where head of the ECB (Mario Draghi) will answer questions and queries from the press and investors/speculators will no doubt be hanging off of his every word as to what he suggests may happen to future economic policy.

We will no doubt see a lot of volatility on Thursday and if you would like to be keep up to date with the action, or if you would like to place an order to buy or sell should a specific rate become available then feel free to contact me (Daniel Wright) on djw@currencies.co.uk with a description of what you are looking to do and I will be more than happy to get in touch.

Australian Dollar impacted by China – AUD

China takes the lead on data impacting the Australian Dollar this week with import, export and trade balance data released overnight tonight and inflationary data released towards the end of the week late night on Wednesday night.

China has been fairly quiet of late and the Australian Dollar has been on the charge, with better economic data out for Australia of late leading to speculation of a rate cut dwindling away, those looking to buy Australian Dollars will be hoping for a poor week for Chinese economic data.

With the markets moving 24 hours a day the best course of action for buying or selling Australian Dollars in my opinion is taking advantage of limit orders. A limit order is an automatic purchase that sits in our system 24 hours a day and means that if the specific rate you need becomes availalbe even for a matter of seconds then it will be bought automatically for you.

You are more than welcome to get in touch with me (Daniel Wright) on djw@currencies.co.uk for more information on this handy market tool.

New Zealand interest rate decision – NZD

Overnight on Wednesday night we have the RBNZ interest rate decision, policy statement and press conference.  no changes to interest rates are expected however anyone with a requirement involving buying or selling New Zealand Dollars may wish to get an order in place or to keep a keen eye on the market on and shortly after 20:00pm.

The NZD has made great gains against Sterling in recent weeks however I personally do not see this charge continuing for too long however depending on what is mentioned in the monetary policy statement and press conference this opinion may change.

Should you need to buy or sell Australian Dollars in the near future then feel free to get in touch with me personally on djw@currencies.co.uk and i will be more than happy to help you.

Canadian Interest rate decision – CAD

Oil prices have started to pick up which may suggest that the baron spell for the Canadian Dollar may be over and  CAD exchange rates have indeed followed suit. We have the Canadian Dollar interest rate decision and rate statement on Wednesday afternoon and although no change in interest rates is expected, we will no doubt find out for the Bank of Canada plan to tackle their economic position in the coming weeks and months which will more than likely give us a volatile afternoon for GBP/CAD exchange rates.

I feel that the Canadian Dollar may find a bit of form in the coming weeks so if you have a need to buy or sell Canadian Dollars then it may be prudent to get in touch with me so that I can help you every step of the way. We can get much better rates than banks and do not have a problem bettering other brokerages so do be sure to contact me (Daniel Wright) on djw@currencies.co.uk If you feel that I can be of assistance.

Pound Sterling claws back ground against the Dollar, remains steady against Euro and drops off against New Zealand Dollar and Australian Dollar (Daniel Wright)

Sterling exchange rates have had a mixed day on the markets during a week where in general things have been fairly positive.

I wrote an article last Friday on why I feel we may see Sterling Strength in the coming weeks and so far, asides from having a struggle against the AUD and NZD my thoughts have been correct.

There will no doubt be drop offs along the way with the potential of a brexit hanging over the head of the Pound however the economy is in a much better position now than it has been when we have seen large bouts of weakness in recent years.

We need to remember that although the U.S economy is in a fairly strong position they also have their uncertainty however in a political sense with the media hype surrounding the election over there.

Tomorrow we have Non Farm Payroll data for the States which can have a large impact on all major currencies as it can have an effect on global attitude to risk. The data release measures the number of people in Non-agricultural employment and predictions for it can be quite a way out so be prepared for a bout of volatility at around 13:30pm Friday lunchtime.

if you are looking to exchange foreign currency in the near future and you would like to have an experienced, proactive and helpful broker on your side that can not only access the very top exchange rates but also ensures you get a smooth and efficient service then feel free to get in touch with me directly.

I created this site 6 years ago to help clients keep a track of the markets but also welcome new clients getting in touch to see if I can assist with foreign exchange for their business or for buying or selling a property overseas. You can email me directly on djw@currencies.co.uk with a description of your needs and a contact number and I will ensure I get in touch with you to discuss your requirements.

The week ahead for Sterling exchange rates – Economic data of interest and contract types that may assist you (Daniel Wright)

So we have another busy week ahead for Sterling exchange rates including an interest rate decision for Australia tonight, Unemployment data for New Zealand tomorrow night, Bank of England interest rate decision and meeting minutes on Thursday lunchtime followed by Non-Farm Payroll data due out on Friday afternoon.

There is indeed plenty for the market to feel off of this week and I would expect some fairly large swings, especially for the Antipodean currencies (Australian and New Zealand Dollar) overnight early in the week. With the possibility of such large movements overnight it is key that you have protection in place should you be looking to carry out a currency exchange in the near future.

All the writers here at Pound Sterling Forecast work for a currency brokerage with a turnover of over half a billion Pounds a year, which means we have access to fantastic rates of exchange. Even if you feel you are getting a good deal elsewhere at the moment I would be extremely surprised if we couldn’t do better for you. You can email me (Daniel Wright) the creator and main editor of this site on djw@currencies.co.uk with a brief description of what you are looking to do and a contact number and I will be happy to contact you personally. You can also call me during U.K office hours on 01494 787 478 (please ensure you ask for Daniel Wright).

We have a number of contract types that can help you during such volatile times including the following:

Forward contract: This is where you can lock into a rate of exchange for anything up to two years in advance with just a small deposit. This is really handy for anyone buying or selling a property overseas that would like to protect some or even all of their funds against currency fluctuations. I see time and time again clients agreeing to purchase a property overseas and putting down a deposit only to find themselves in a tricky situation later down the line when coming to pay for the balance on the property because the rate has dropped so much. For some reason even the most sensible people decide to effectively gamble thousands of Pounds based purely on hope over actually having knowledge that an exchange rate will go their way. djw@currencies.co.uk if you would like more information.

Limit order: If there is a particular rate of exchange you would like to achieve but the market just is not there yet then you can place a limit order into the market. This order is free and can be cancelled or amended at any time you like as long as it has not gone through, but basically means that if at any time 24 hours a day/7 days a week your rate becomes achievable then your currency will be bought out automatically and we will just contact you to let you know the good news. djw@currencies.co.uk if you would like more information.

Stop Loss: This contract type is handy if you are working to a tight budget and cannot afford to go any lower than a particular rate and works in a similar way to the limit order above, yet will trigger should your buying rate hit your chosen lowest possible point. Some clients like to ‘chase the market up’ and raise their stop order on a daily basis when the market is moving in the right direction for them. djw@currencies.co.uk if you would like more information.

I have no doubt this will be a busy week, please do feel free to get in contact with more information on the above or if you have an exchange you with to carry out and you would like to know what rate we can offer you.

GMT Time left Area Currency Event Consensus Previous
09:30 UK GBP Markit Manufacturing PMI (Jan) 51.8 51.9
09:30 UK GBP Consumer Credit (Dec) £1.300B £1.476B
09:30 UK GBP Mortgage Approvals (Dec) 69.60K 70.41K
13:30 US USD Personal Consumption Expenditures – Price Index (YoY) (Dec) 0.4%
13:30 US USD Core Personal Consumption Expenditure – Price Index (MoM) (Dec) 0.1% 0.1%
13:30 US USD Personal Income (MoM) (Dec) 0.2% 0.3%
13:30 US USD Personal Spending (Dec) 0.1% 0.3%
13:30 US USD Personal Consumption Expenditures – Price Index (MoM) (Dec) 0%
13:30 US USD Core Personal Consumption Expenditure – Price Index (YoY) (Dec) 1.3%
14:30 CA CAD RBC Manufacturing PMI (Jan) 47.5
14:45 US USD Markit Manufacturing PMI (Jan) 52.7 52.7
15:00 US USD ISM Manufacturing PMI (Jan) 48.0 48.2
15:00 US USD ISM Prices Paid (Jan) 34.0 33.5
15:00 US USD Construction Spending (MoM) (Dec) 0.6% -0.4%
16:00 EMU EUR ECB President Draghi’s Speech
18:00 US USD Fed’s Stanley Fischer speech
TUESDAY, FEB 02
03:30 AU AUD RBA Interest Rate Decision 2% 2%
03:30 AU AUD RBA Rate Statement
08:15 CH CHF Real Retail Sales (YoY) (Jan) -1.3% -3.1%
08:55 DE EUR Unemployment Change (Jan) -7K -14K
08:55 DE EUR Unemployment Rate s.a. (Jan) 6.3% 6.3%
09:00 IT EUR Unemployment (Nov) 11.3% 11.3%
09:30 UK GBP PMI Construction (Jan) 57.6 57.8
10:00 EMU EUR Unemployment Rate (Dec) 10.5% 10.5%
21:30 US USD API Weekly Crude Oil Stock 11.4M
21:45 NZ NZD Unemployment Rate (Q4) 6.1% 6.0%
21:45 NZ NZD Employment Change (Q4) 0.8% -0.4%
21:45 NZ NZD Participation Rate (Q4) 68.6%
WEDNESDAY, FEB 03
00:00 NZ NZD RBNZ Governor Wheeler Speech
00:30 AU AUD Exports (Dec) 1%
00:30 AU AUD Imports (Dec) -1%
00:30 AU AUD Trade Balance (Dec) -2,500M -2,906M
01:45 CN CNY Caixin China Services PMI (Jan) 50.2
02:30 JP JPY Bank of Japan Governor Kuroda Speech
08:00 EMU EUR Non-monetary policy’s ECB meeting
08:15 ES EUR Markit Services PMI (Jan) 54.5 55.1
09:00 EMU EUR Markit PMI Composite (Jan) 53.5 53.5
09:00 EMU EUR Markit Services PMI (Jan) 53.6 53.6
10:00 EMU EUR European Commission Releases Economic Growth Forecasts
13:15 US USD ADP Employment Change (Jan) 195K 257K
14:45 US USD Markit PMI Composite (Jan) 53.7
14:45 US USD Markit Services PMI (Jan) 53.7
15:00 US USD ISM Non-Manufacturing PMI (Jan) 55.1 55.3
15:30 US USD EIA Crude Oil Stocks change (Jan 29) 8.383M
23:50 JP JPY Foreign bond investment (Jan 29) ¥475.3B
23:50 JP JPY Foreign investment in Japan stocks (Jan 29) ¥-189.2B
THURSDAY, FEB 04
00:30 AU AUD National Australia Bank’s Business Confidence (QoQ) (Q4) 0
06:45 CH CHF SECO Consumer Climate (3m) (Q1) -18
08:00 EMU EUR ECB President Draghi’s Speech
09:00 EMU EUR Economic Bulletin
12:00 UK GBP BoE Interest Rate Decision (Feb 4) 0.5% 0.5%
12:00 UK GBP BoE Asset Purchase Facility (Feb) £375B
12:00 UK GBP Monetary Policy Summary
12:00 UK GBP Bank of England Quarterly Inflation Report
12:00 UK GBP BOE MPC Vote Unchanged 8 8
12:00 UK GBP BOE MPC Vote Cut 0 0
12:00 UK GBP BOE MPC Vote Hike 1 1
12:00 UK GBP Bank of England Minutes
12:45 UK GBP BOE’s Governor Carney speech
13:30 US USD Initial Jobless Claims (Jan 29) 278K
15:00 US USD Factory Orders (MoM) (Dec) -2.6% -0.2%
22:30 AU AUD AiG Performance of Construction Index (Jan) 46.8
FRIDAY, FEB 05
00:30 AU AUD Retail Sales s.a. (MoM) (Dec) 0.5% 0.4%
00:30 AU AUD RBA Monetary Policy Statement
05:00 JP JPY Coincident Index (Dec 111.9
05:00 JP JPY Leading Economic Index (Dec) 103.5
13:30 US USD Nonfarm Payrolls (Jan) 190K 292K
13:30 US USD Average Hourly Earnings (YoY) (Jan) 2.5%
13:30 US USD Unemployment Rate (Jan) 5% 5%
13:30 US USD Labor Force Participation Rate (Jan) 62.6%
13:30 US USD Average Hourly Earnings (MoM) (Jan) 0.3% 0.0%
13:30 US USD Trade Balance (Dec) $-43.0B $-42.4B
13:30 CA CAD Unemployment Rate (Jan) 7.1%
13:30 CA CAD Net Change in Employment (Jan) 22.8K
15:00 CA CAD Ivey Purchasing Managers Index (Jan) 42.5
15:00 CA CAD Ivey Purchasing Managers Index s.a (Jan) 50.3 49.9
18:00 US USD Baker Hughes US Oil Rig Count 498
20:00 US USD Consumer Credit Change (Dec) $16.00B $13.95B

I have no doubt this will be a busy week, please do feel free to get in contact with more information on the above or if you have an exchange you with to carry out and you would like to know what rate we can offer you. You can call me on our trading floor 01494 787 478 or email me directly djw@currencies.co.uk and I look forward to assisting you.

 

Sterling drops further against the Euro and Dollar – Makes gains against the Australian Dollar, New Zealand Dollar and Canadian Dollar in volatile end to the week (Daniel Wright)

The Pound has ended the week down to a fresh 10 month low against the Euro as Friday’s trading comes to a close, whilst making ground against the antipodean currencies.

It all seems to me that the issue with China is having a big impact on all major currencies and i’m afraid we will not have seen the last of this for quite some time.

In just over a week China are expected to register the lowest growth figures we have seen from them in 25 years and all of this had been predicted on our forecasting sites for a number of months now.

This has a great impact on currencies like the Australian Dollar as if China is not performing then the Australian economy generally will drop off a little as it gets a huge income from exporting raw materials, hence the fact we have seen the AUD lose ground against most majors this week.

We are also seeing an unwinding of carry trades. A carry trade is where an investor borrows a large amount of money in a currency with a low interest rate(EURO) and then puts it into a currency with a higher interest rate(AUD,NZD), making a return on the difference. When the currencies with the higher interest rate start to weaken you do start to see what is known as an unwinding of carry trades, and with the Euro being cheap to buy last year it was used a lot as a base currency for these trades. This recent unwinding basically has led to lots of money flowing into the Euro which is making it more expensive to buy.

I personally feel that Euro exchange rates are artificially strong at present, however only when we see the Asian markets open late on Sunday night will we be able to see which direction most major currencies will be starting the week off heading.

If you have a currency exchange to make during these volatile times then it is vital that you have an experienced currency broker on your side who can both explain all of the various options you have available and who will also make sure that your transaction is treated just like it is their own.

All of the writers on this site work for a brokerage that turns over half a billion Pounds worth of currency a year and we have all been in the industry for a number of years so it is well worth getting in touch with us to see how we can help you both in terms of getting the most for your exchange rate and making sure your currency transaction is smooth and efficient.

If you would like me (Daniel Wright) to get in touch with you personally then I am also taking on new clients at present. You can email me on djw@currencies.co.uk with a brief description of your needs and I will make sure I get in touch as soon as I can, or you can call me on the trading floor during the hours of 08:30am and 18:00pm U.K time.

We deal in all major currencies and would love to demonstrate our friendly and efficient service to you should you wish to get in touch.china, euro,

Sterling exchange rate news against Euro, Dollar, Australian Dollar, New Zealand Dollar and Canadian Dollar (Daniel Wright)

Sterling Euro

The Pound has been fairly range bound against the Euro of late however still remains over 10% up against the single currency since the turn of the year. A difference of over €15,000 per £100,000!!

Unemployment figures due out tomorrow morning at 09:30am will be key for the performance of the Pound during trading tomorrow. Figures are expected to remain at 5.6% and any change to this may cause a volatile start to the day.

Unemployment and average earnings figures are one of the key factors that will impact the Bank of England’s decision on when to raise interest rates so this data is extremely important.

Later in the week on Friday we also have European GDP (Growth figures) and inflation which will show us how much the economy within the Eurozone has grown or shrank during a specific period of time. Expectations are for a little improvement year on year so this may give the Euro a little strength, making it more expensive to buy.

You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. Also feel free to check out my section on forward contracts below. You can email me on djw@currencies.co.uk or call me on 01494 787478 if you do need to carry out a transfer soon.

Sterling Dollar

Sterling has also been fairly range bound against the Dollar lately as investors and speculators continue to second guess just when an interest rate hike may be coming for the States.

Every time it looks like all signs are pointing towards an imminent hike in interest rates the economic data released appears to dampen expectations due to not quite being as solid as has been expected.

Personally I feel we may see a rate hike before the end of the year but if I had Dollars to sell I would be tempted to exchange at least half of my requirement sooner rather than later as if the hike continues to be delayed then rates may creep back towards the 1.60 level once again.

U.S Retail Sales are due out on Thursday afternoon so this is a key data release to watch out for if you are in the market to buy or sell USD in the near future.

You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. You can email me on djw@currencies.co.uk or call me on 01494 787478 if you do need to carry out a transfer soon.

Sterling – Australian Dollar/New Zealand Dollar

We have seen fantastic buying opportunities for both of these currencies over the past few months as China finally starts to show the cracks of growing at such a monumental rate.

Chinese data out overnight weakened both of these currencies after they had staged a minor fight back.Governor of the RBA Glenn Stevens still appears content to see a weaker Australian Dollar and data out from New Zealand has not been particularly promising so I feel both these currencies have the potential to still drop further. If you are looking to buy either currency however then it is key to remain vigilant as both currencies have the potential to turn around their  trends extremely quickly and with great force.

Sterling – Canadian Dollar

After finally breaking 2 those looking to buy Canadian Dollars are also seeing a great opportunity compared to where this currency pairing has been sat for the past few years.

With oil prices seriously adding to the grey cloud currently hovering over the Canadian economy the outlook is fairly gloomy for the Canadian Dollar as it stands.

Once again though we do need to remember that it would not take much to see the GBP/CAD rate drop back below 2 should oil prices start to gather traction again so it is imperative that you keep a close eye on this pairing if you have an exchange to carry out.

Forward contracts

If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.

This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.

I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange.

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Pound Sterling Forecast – The week ahead… Economic data which may affect Dollar, Euro, Australian Dollar, Canadian Dollar, New Zealand Dollar and Pound Sterling exchange rates (Daniel Wright)

We have had a reasonably quiet start to the trading week but I thought I would take a look at what the rest of the week has to offer.

This evening we have the RBA (Reserve Bank of Australia)  meeting minutes from the last Australian interest rate decision. Any indication on future interest rate cuts or a change in fiscal policy may lead to Australian Dollar movement overnight. It has been Governor Glenn Stevens that has time and time again suggested he would like a weaker Australian Dollar and he is finally now getting what he has asked for. It would not surprise me to see comments from him that may make the Australian Dollar a little weaker.

The rest of the day tomorrow is fairly quiet all round however we have another late night release for those with an interest in Australian Dollars with a flurry of inflation data for Australian and then Glenn Stevens speaking shortly after.

Wednesday will no doubt be interesting and volatile for Sterling exchange rates with the Bank of England minutes coming out from the last interest rate decision in the U.K. Most important will be how many members of the BOE have voted in favour of an interest rate hike. Recent comments by Governor of the BOE Mark Carney have led to Sterling strength so another nod towards a potential hike may give the Pound a boost.

Shortly after this we have the inflation report and this can also lead to a volatile period for Sterling. This is released at 10:30am and I would expect a jumpy market during this period.

An interest rate decision is then the main focus later on which comes from New Zealand and then Thursday only really has Canadian retail sales figures to offer in the latter part of the afternoon.

Finally on Friday we have some manufacturing data for Europe throughout the course of early morning trading  rounded off with New home sales over in the states in the afternoon.

If you have a currency exchange to carry out either now or in the future then it is well worth getting in touch with me personally. I can help you not only get a great rate of exchange but also with the timing of your transaction. Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to get in touch personally to speak to you.

Sterling exchange rate movements today – Quiet week for economic data this week (Daniel Wright)

First and foremost our sincere condolences to anyone involved in the air crash today, always deeply saddening to hear such news.

Regarding currency, we have seen another fairly stable day for Sterling against the Euro and Dollar yet with fairly sharp drops against the Swiss Franc, Australian Dollar, Canadian Dollar, New Zealand Dollar and South African Rand.

We saw inflation figures out earlier this morning which immediately knocked the Pound as inflation dropped to a rather concerning 0% against market expectations of dropping down to 0.1%.

The inflation issue remains a concern for the Bank of England, along with the fact that Manufacturing figures at the start of the week showing the U.k manufacturing levels are really down.

This may be partially down to the fact that Sterling has been so strong against the Euro of late which has possibly led to European clients of U.K businesses seeking to buy their goods and services from elsewhere in Europe instead of from the U.K as Sterling is just so expensive for them.

With this in mind it is no surprise that the 1.40 level for GBP/EUR did not stick around for long and although there are many problems still within Europe I personally still do not see Sterling gaining significant ground against the Euro in the coming weeks, so if you have a pending requirement to buy Euros for your business or to purchase a property overseas then it may be prudent to look at making a purchase soon rather than potentially seeing another boat of opportunity sail away.

If you have the need to exchange any currency in the coming days, weeks or months then it is key to have a proactive and efficient currency broker on your side for it. The company we work for has won awards both for our exchange rates and customer service so even if you are already set up with a broker it may be well worth you getting in touch with me directly and should save you money.

You can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of what you are looking to do and I will be more than happy to contact you personally. I look forward to hearing from you.

 

2015 so far and what may lie ahead – Currency market update (Daniel Wright)

‘A bird in the hand is worth two in the bush’

Sometimes it is more sensible to be content with what you already have rather than chasing something which is uncertain

With such great rates on offer at present – It is worth seriously considering locking into a rate of exchange now.

As can be seen above current exchange rate levels are absolutely fantastic for a number of major currencies, especially if buying Euros, Canadian Dollars, Australian Dollars or New Zealand Dollars – Or selling U.S Dollars.

With such great prices available it is always easy to continue to hold out for the rate to keep going but it is indeed key to remember that the markets generally tend to do whatever they need to in order to prove the majority wrong.

If you are looking to purchase a property overseas this year and you want to take advantage of current buying levels then there is a great option available to you known as a forward contract. This useful contract option allows you to lock into a rate of exchange for anything up to a year in advance, paying merely a small deposit initially and then the balance on or before whichever date has been agreed, this is absolutely vita if you are working to a fairly tight budget. Feel free register for free by clicking here and using my name (Daniel Wright) as a point of contact and I will be happy to call you to explain this in more detail.

Euro

2015 has been a great year for those looking to buy Euros with Sterling, even with a slight drop off over the past week or so.

With the European Central Bank recently introducing a huge QE (Quantitative Easing) program along with serious uncertainty surrounding Greece the Euro has taken quite a bashing.

With all of this going on it is very easy to think that this trend will continue, it might but I would be exceedingly careful as over the past few years the Euro has had a lot more thrown at it and managed to stand its ground.

If you have been a follower of the market for a number of years you will recall that during the whole European debt crisis the Euro actually managed to gain significant strength and European woes can actually have an effect on the strength of Sterling too.

I would also not be too surprised to see the Government or the Bank of England step in at some point in the future to try and weaken the Pound a little as such high rates against the Euro are very damaging to our exports of goods and services.

All in all we are very close to a seven year high to buy Euros so from my point of view the current buying level is seriously tempting.

Dollar

The Dollar had been on a great run of form and we had been looking to potentially break through the l level of 1.50 however in the past 24 hours we have moved away from that with thanks to both a slight recovery in oil prices and a member of the Federal Reserve last night commenting that he felt their QE program had stopped too early.

The main Dollar surge came straight after the QE program stopped in the States so if we did see a call to start it again then I would expect to see the Dollar Decline once more.

On the flip side of this, there is so much global uncertainty out there at present we are still witnessing a flight to safety and the Dollar appears to be the main benefactor as it stands.

Australian Dollar

The Australian Dollar has lost quite a lot of ground against the Pound since the start of the year which has been fantastic for those of you that have emigrated and have been waiting on the opportunity to exchange funds at a respectable level once again.

With a surprise interest rate cut and the Governor of the RBA Glenn Stevens seemingly still looking to have the Australian Dollar weaker than it currently is there is still a chance of seeing the rate get up close to 2 but beware as we have seen many a time in the past few months the Australian Dollar can bite back and when it does it is usually a fairly rapid and large surge of strength over a few days.

Canadian Dollar

Sterling has made solid gains against the Canadian Dollar as the Canadian economy has started to drop off a little along with low oil prices and a poor economic outlook. Many major banks now are predicting a bit of a slump in the value of the Canadian Dollar as their economy has to rely on non-export based growth a lot more which will not be easy.

I personally agree at present that there may be a little further for the Canadian Dollar to fall but as always beware of potential banana skins like the election which is due in the U.K that could quite suddenly lead to Sterling weakness.

Swiss Franc

Following the move from the SNB to lift the 1.20 artificial level against the Euro the Swiss Franc has made a slight recovery over the past week or so.

At one point the rate was over 25% lower than the start of the year and now it is less than 10% which just goes to show how much movement we have seen from this currency this year.

Personally I would not be surprised to see this recovery continue now however there have been mentions that the SNB still have a few extra fiscal policies up their sleeve so be extremely cautious and ready to move quickly in case we do see another major market swing.

Here at FCD we pride ourselves on not only award winning exchange rates but also on keeping clients fully up to date with market movements so that they can get on with their busy day to day business.

If you have a currency exchange to make throughout the course of 2015 and you would like us on your side then email me on djw@currencies.co.uk and I will be more than happy to contact you personally.

If you find these alerts useful then why not register with me for a free, no obligation trading facility by clicking here if you have not already done so to get a comparison against your current provider.