Category Archives: AUD

How will the General Election impact Sterling Exchange rates?

How big an impact will the General Election be on sterling exchange rates? It could turn out to be quite a big issue as there is so much uncertainty as to the outcome. We generally expect the pound to fall in the run up to the election before rising after. Quite how much it will rise or fall is of course impossible to predict but I would not rule out movements of up to 5 cents in either direction.

You can protect yourself and capitalise from such volatility by utilising one of our many contract options:

  • Spot

Once the rate is fixed you need to get the money to us within a few working days. We arrange onward payment to the specified beneficiary oce all your funds have cleared. Internationally funds are sent via SWIFT – the fastest international payment method. Please contact me Jonathan on jmw@currencies.co.uk to learn more!

  • Forward

When you want a fixed exchange rate for up to 1 year.

You pay a small deposit to fix the exchange rate. Once the contract is agreed, regardless of market fluctuations, you know exactly how much currency you are buying. Perfect if you want to budget and protect yourself from market volatility.

  • Limit

When you have a target exchange rate and timing isn’t crucial

Placing a Limit Order means that when the market moves to your specified rate, our system automatically purchases your currency, letting us work as your eyes and ears in the market.

  • Stop

When you don’t want to trade below a certain exchange rate and timing is not crucial

You choose a lower limit on the price at which you are willing to buy. If the market drops to that level, you are guaranteed that you will get an exchange rate no lower than the one you specified.

I offer a personal service to highlight market movements and trends which might affect your rate as well. Even though you might not need to buy currency just yet please register so that we have a fully operational trading facility and I can quote live prices for you.

Making no plans and just hoping your rate will magically go up is one of the most common and costly mistakes clients make on foreign exchange payments. For more information on getting the best deals and making sure you know everything that  please contact Jonathan on jmw@currencies.co.uk.

Do you find our site useful? Why not use us for award winning exchange rates as well??!! (Daniel Wright)

Just to make you aware we have now had over 5500 people contact us through the site who have managed to get better rates of exchange than their current currency provider. If you are using one of the following it may be worth you getting in touch for a direct comparison:

Moneycorp, HIFX, World First, Smart Currency, UK Forex, Oz Forex, Foremost Currency, Foreign Currency Exchange, Currency Index, Currencies Direct, XE.com, Transferz, NZ Forex, Halo, Afex, Tor FX, Hargreaves Lansdowne and Transferwise. 

Not to mention Barclays, Lloyds, Natwest, HSBC, Yorkshire Bank, Clydesdale Bank, RBS, Halifax, Nationwide and pretty much all major banks.

We don’t only pride ourselves on a great exchange rate but also a really high level of service too, which you may find you are not getting to a high enough standard at present.

If you are using an online trading platform then make sure you get straight in touch, with an online platform you do not have someone negotiating on your behalf therefore generally do not receive the best rate of exchange you can.

We deal with bank to bank transfers ranging from one thousand Pounds to multi million Pound transactions for both private clients and corporate clients… We have a regular payments facility too which is free and can assist anyone with smaller payments to Europe.

The company we work for is FCA registered and Authorised as a payments institute and all funds are kept in client transaction accounts to give you peace of mind your funds are safe and secure, we have won awards both for our exchange rates and customer service and have now 50,000 clients under our wing. Anyone that contacts us through this site will deal with one of the authors, if there is an author you find particularly informative you can use them directly.

I have to say I am really proud as to how much this site has picked up over the past three years and it is thanks to my regular readers that it is as popular as it is today – Let me return the favour with exceptional exchange rates.

If you feel we could be of assistance to you as well, feel free to get in contact with me (Daniel Wright) the creator and main editor of this site  djw@currencies.co.uk or you can indeed fill in the enquiry form on this page and one of us will call you back.

You can also join our mailing list on this page too.

We look forward to speaking with you soon!

Exchange Rate Forecast – GBP USD EUR – When to BUY or SELL? ( Andrew Bromley )

US Retail Sales dominated the currency market movements today, coming in again lower than expected. Generally speaking the rates have been poor for the entirety of 2015, as bad weather on the East Coast hampered shoppers desire to head downtown to Macey’s!  The general overview for the Dollar is in line with the Interest Rate outlook. We may get further indication tomorrow at 7pm when the Federal Reserve releases its ‘Beige Book’. The Beige Book is a collection of essentially market sentiment from all Fed members, with some being a lot more ‘bullish’ (positive) than others. The key to the recent USD strength is on the back of Fed member ‘Lacker’s’ comments, as he feels that the economy could support an Interest Rate increase in June / July. I wouldn’t be surprised to see either another Fed member, or the Fed Chair Janet Yellen make a statement to the contrary. This could push GBP USD exchange rates up to the 1.49s – what I feel is the top of the current trading range. I feel that the next key limit for GBP-USD is 1.45 which is achievable with further positive market commentary.

On the other side of the Atlantic, Sterling holders are selling their positions quickly as the impending UK General Election will bring weakness. The overwhelming expectation is for Pound weakness as realistically we will see a ‘hung parliament’. This situation of no majority government is bad news for the UK with the pound likely to suffer. If I were buying a currency with Sterling I’d be moving sooner rather than later!

The Eurozone are STILL trying to sort out the Greek debt, with the proposal now for an amendment to the bailout. The Greek government are looking to repay the IMF (International Monetary Fund) loans as they are expensive, and then renegotiate the loans from the Eurozone. The Eurozone loans are at high rates of exchange as they were agreed at a period of more prosperity. Bringing the interest rates in line could provide a monumental cut to payments. Greece is the key factor for the Euro staying so weak – realistically EUR should have moved back closer to 1.30 as the UK goes in to Election mode. It is worth also paying attention to any announcements from the Swiss. In January we saw the largest peacetime currency move (for Major currencies), when the CHF-EUR trading peg was abolished. The Swiss National Bank have hinted at yet further change to policy – Euro sellers should pay particular note!!

If you have an exchange requirement, please feel free to get in touch. I can assist you in achieving award winning exchange rates, but also making available facilities to ‘forward buy’ your currency. For just a small deposit you can secure your entire exchange, helping large currency exchanges (e.g. house purchase) much easier to budget.

Andrew Bromley

AJB@currencies.co.uk

01494 787 478

 

‘Luck shines most on those who have made preparation to grasp their opportunities’

Do you know who is going to win the election in the UK? Nor do I. But I think a hung parliament is looking more and more likely, this is something anyone considering buying or selling sterling should be very aware of. The pound is likely to fall in the coming weeks as uncertainty rises as to who will take the reign of the UK public finances. This is not a time to be sitting on the fence waiting for something to happen!

Moody’s the ratings agency confirmed yesterday that they view a UK exit from the EU more damaging than any uncertainty over just how the election pans out. As a client pointed out to me recently any uncertainty in the UK parliament may pale into insignificance when compared with some of the uncertainty in the Eurozone at the moment!

Simply put no one can say exactly what will happen. But from my experience of past events (the 2010 election and the Scottish Referendum) sterling is likely to fall before the event before rising after. However with the Tories pledging a referendum on Europe and Labour pledging to increase spending neither outcome looks good from a market perspective. It may be that sterling could fall further after the election or around the result as the parties scramble to get in bed with one another over important issues.

If you are considering a sterling transfer in the future the coming weeks may present at opportunity that does not return. Making plans in advance is the only way to limit your risk and help maximise your currency exchange. We offer a specialist proactive service to help you get the most from the market when transferring money overseas. This blog is intended to highlight important events and information in the market so that you can help minimise your risk through an informed decision.

To really get the most from our service speaking to one of our team or myself is recommended. I Jonathan Watson have worked as a foreign exchange broker for the same company for 6 years and am here to assist in the planning and execution of any international money transfer you need to make. I cannot tell you exactly what to do but hope to provide useful insight and a platform for achieving the most for your money. Even if funds are not required at this stage with plenty of uncertainty around, utilising a forward contract or a stop loss or limit order might be a good idea.

I am very confident I can show you a saving on the exchange rate versus other sources and also offer a friendly, knowledgeable service above any bank or foreign exchange broker. If you wish to learn more about the pound and just what to expect plus what you can do about the uncertainty up ahead please email me on jmw@currencies.co.uk

Other Currencies News

CAD – Unemployment data today at 13.30 has helped the current 2 month high the Loonie dollar is enjoying against sterling. In a nutshell the Canadian dollar is benefitting from an improved Oil price and overall improvements in their biggest trading partner America’s economy. The Loonie may well track further future projected improvements in the USD against sterling so anyone buying the Canadian dollar in the future might wish to make plans sooner than later.

AUD – The Reserve Bank of Australia decided not to cut their interest rate as expected helping the Aussie to strengthen against sterling. Expectations are for the RBA to make at least one more rate cut before the end of the year as they seek a weaker currency to help boost their exports.

ZAR – A general improvement in risk appetite and commodity prices has helped the Rand to rise against sterling, anyone selling Rand for the pound might want to move on any GBP weakness before the upcoming election.

No matter which currency you are buying or selling and when, please feel free to make contact to be kept up to date with the latest news and events which may alter your price. Whether a regular business buying currency or a private property investor looking at a one off international payment, I am sure I can offer you something of interest.

I look forward to hearing from you, please don’t forget to vote :)

Jonathan

FOMC Minutes show a split decision on rate hikes (Daniel Wright)

The latest set of Federal Reserve minutes from the last interest rate decision released this evening have actually shown that even the Fed are currently torn on when to raise interest rates.

An interest rate hike or more the timing of the interest rate hike has been key to the strength of the Dollar over the past few months with many major analysts expecting to see a hike this summer.

Now that it appears that the members of the Fed are actually quite split you would imagine that the Dollar may actually gain strength but at present it is still the best of the three majors.

With numerous problems within the Eurozone and a pending tight election for the U.K expected to hold Sterling back the Dollar is still well and truly holding ground.

Personally I expect this to continue however depending on the result of the election there is a high chance of a Sterling fight back should there be no major changes in terms of Government for the U.K.

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.

Sterling on the Rise (Matthew Vassallo)

Sterling has started gain some momentum again this week, following losses against both the EUR & USD recently. Despite GBP/EUR rates hitting a fresh 8 year high only a few weeks ago, the EUR had threatened to wipe out these gains, with a move back towards 1.35. However, as often happens the currency markets have proven unpredictable and Sterling has benefitted from better than expected UK service sector data this week, along with better than expected growth in the first three months of 2015.

However, all those clients expecting rates to shoot back above 1.40 may still be left disappointed as there is an on-going concern amongst investors that the upcoming UK general election will cause uncertainty in the markets and this could cause the Pound to weaken, a scenario the Bank of England (BoE) would likely support. Due to Sterling’s rising value against the EUR we have seen UK factory orders fall to a two year low, which ultimately means that our export industry is suffering. If this is not stemmed and we see the recent highs broken, it is likely the BoE will step in to try and control this, for fear of alienating our largest trade partners through an overvalued currency.

GBP/USD rates continue to trade below 1.50 and despite Cable rates moving back above 1.49 during today’s trading, I do feel this threshold will continue to protect the USD in the short-term. Whilst Sterling is performing well against both the EUR & AUD, the same cannot be said against the USD and it is interesting to note that both currencies mentioned have had huge economic difficulties to contend with over the past 12 months. It makes me wonder whether Sterling is actually as strong in the market as people believe, or if it is benefiting from the on-going negative circumstance that are handicapping the aforementioned currencies?

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to co0mpare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

How do I get the best exchange rates for buying and selling sterling?

1 – Don’t use the bank! Despite what they might claim, they will not get you the best rate. If you believe my claim suprious call me now and make a comparison. 01494 787478 is my number, ask to speak with Jonathan.

2 – Speak to a currency broker about all of your options. A broker will be able to offer you an exchange rate that is better than a bank. If you have a broker already and want to check if they are truly getting you the best deal, speak to me again! I work as a broker and have done for 6 years. I have only ever worked for the same company and they have been in business for 15 years. I am very confident I can better any rate you are given, please speak to me Jonathan to learn more or email jmw@currencies.co.uk

3 – Make some realistic plans! Just hoping exchange rates will rise isn’t enough. And just expecting the rate to move to a level you need is not enough either. Exchange rates move for a huge variety and range of reasons. Accept you will not buy at the absolute top of the market and that it could move against you. Speak to me about the range of contract options available to fix rates for up to one year and to receive updates on the foreign exchange market too.

How will the pound perform in April?

The rates really are predicted to fall in the coming weeks owing to the uncertainty of the election. Labour are not being viewed favourably by markets as they plan to increase spending, the Tories have pledged a referendum on Europe (bad for business confidence) and the consensus is for a hung parliament – again more uncertainty. Let us look at the last few events which led to political uncertainty in the UK. Ahead of the 2010 General Election sterling lost 7 cents, ahead of the Scottish Referendum sterling 5 cents. Now I ask you dear reader, what do you think will happen to sterling in the coming weeks?

Of course no one can tell you exactly or precisely what will happen on exchange rates. But by working with a specialist who understands the market and setting some realistic targets you can limit your exposure and maximise your gains when opportunities do arise. The gamble is to do nothing so please contact me to learn more and have a chat about your situation. Each transaction and circumstance is different, with various options to consider.

If you need to make a currency transaction in the coming weeks I would love to hear from you and personally assist in the execution and planning of any payments. Even if you believe you have a system in place a second opinion and price is often sensible. Please email me jmw@currencies.co.uk or call (+44) 01494 787 478 and ask to speak to Jonathan. If I am on a call please leave some details and I will call you back personally as soon as possible.

We assist clients located all over the world but if you are in the UK, don’t forget to vote!

Will the pound fall or rise next week?

Next week could be a very challenging time for sterling exchange rates! We will enter the month of April, the month before the UK’s General election. This event is widely predicted to cause GBP losses and anyone buying or selling the pound should really take stock of the excellent improvements in their favour this year.

The pound has struggled in recent weeks as the prospect of raising interest rates by the Bank of England moves out further. Lower Inflation has meant there is less need to raise interest rates and comments by Andy Haldane, a member of the Bank of England’s Monetary Policy Committee that interest rates may need to fall rather than raise did little for confidence this week. Hence the reason GBP rates fell this week.

Mark Carney turned the coin over with comments an interest rate hike was in fact more likely, hence GBP strength today. Such volatility underlining the sensitivity markets can have to comments and economic data. On the whole the pound is up at multi year highs against the Euro, Canadian dollar, New Zealand dollar, Australian dollar and the Rand. The only currency the pound is struggling against is the US dollar!

All in all the exchange rate is likely to fall next month at some point owing to the uncertainty of the election. This will impact both buyers and sellers of the pound so making plans in advance is in my opinion sensible. For more information on all of your options please contact me Jonathan directly on jmw@currencies.co.uk

Sterling’s Value Continues to Fall (Matthew Vassallo)

Sterling’s value has fallen this week against almost every major currency and it now looks like we have seen the end of the recent GBP momentum. Only a couple of weeks ago the Pound hit a fresh 8 year high against the EUR, sitting at over 1.42 on the exchange. However, a poor run of economic data, including weak Manufacturing and worse than expected unemployment figures, has halted the Pound’s rise and pushed GBP/EUR rates down by over 6 cents from the recent high.

Whilst I always felt that a realignment was likely, this week’s move has been extremely aggressive and proves how fickle the currency markets can be. It is likely that the recent talks between Greek Prime Minister Alexis Tsipras & German Chancellor Angela Merkel have helped ease pressure on the EUR, with both now agreeing the Greece needs structural reforms if it going to continue as part of the single union.

We also need to remember the Bank of England’s (BoE) stance on the matter, as they have become concerned about how the Pound’s rising value would negatively affect UK exports. These fears were confirmed recently with UK factory orders falling to a 2 year low. The central bank have already indicated we will not be seeing a UK interest rate hike any time soon and I now feel it is unlikely that GBP/EUR rates will move back through 1.40 in the short-term.

Looking ahead and UK Retail Sales figures are released tomorrow and are expected to show an improvement. This could help the Pound find some support, although if figures are worse than expected then I anticipate the Pound’s slide to continue.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

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.

 

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