Category Archives: AUD

UK GDP Figures Released This Morning (Matthew Vassallo)

UK Gross Domestic Product (GDP) figures were released this morning and the figure of 0.7% growth came out as the market expected. We’ve seen a dip for Sterling against a basket of currencies and many investors are now trying to gauge whether this is just a short-term loss, or something more significant.

The Pound has struggled for the most part this week and it does seem as though its momentum has halted, after weeks of positive moves in the market. I still feel it is likely to find support around the current levels, as we have seen a steady run of economic data emanating from the UK for some time. However, whether we will see it recover all of the recent losses against the USD & in particular the EUR, is difficult to gauge under current conditions.

With the uncertainty surrounding Greece still hanging over the markets, despite the recent debt deal being agreed, we may have to wait to see how the situation develops there before the next major move is made. Any further negative developments are likely to push the Pound’s value back up but personally I feel it will struggle to move back above 1.40 unless there is another breakdown in negotiations.

We also need further confirmation of whether the Bank of England (BoE) will raise interest rates sooner than the markets expect, again news that if confirmed is likely to benefit the Pound.

We’ve seen Cable rates drop below 1.54 this morning and again it does seem as if the USD is winning the battle at present, due to the likelihood that the US FED will raise their interest rate before the BoE does. GBP/USD rates have remained fairly stagnant over the past couple of months and I cannot see a major improvement for Sterling unless the BoE surprise the markets with a rate rise in the last quarter of this year.

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

The Calm after the Storm (Daniel Johnson)

After “Black Monday” it seems some sanity has returned to the markets. The Global Economy is far too reliant on the Chinese. Growth figures are down considerably for China which is having a huge impact. Particularly on New Zealand and Australia who are heavily dependent on raw material export to the Chinese. We are now seeing new record highs for GBP/AUD and GBP/NZD.

Although we are now seeing some stability, I think there is still a massive risk to Global Markets with a slump in Chinese growth, It could well be the tip of the iceberg. I read in some detail of deep issues caused by shadow banking and fraudulent export data coming out of China. Their figures could well be distorted and now we could be starting to see the cost of this distortion. The race to become the world’s largest economy could take its toll on everyone. Question is are they too big to fail?

Each individual currency requirement at the moment requires serious thought and knowledge of the economic climate. This is when an experienced Currency Broker can really help to maximize your trade.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Chinese impact on the pound! Will sterling keep falling now?

The Chinese impact on sterling exchange rates has been fairly pronounced with exceptional volatility on the stock market and also the pound. Essentially the worries in China have stoked fears that the UK will not be raising interest rates any time soon, perhaps for years! This has weakened sterling as investors seek alternative investments with their money. The volatility in the market is truly exceptional as everyone awaits China’s next move which could very easily tip the scales one way or the other. I expect the pound is going to continue to suffer and that anyone who needs to buy a foreign currency with the pound should move sooner rather than later.

What happens next will be largely determined by the Chinese who are key to making an impact on financial markets. If you wish to buy or sell the pound please get in touch with us to learn more about the latest forecast. Economic data has been quite positive for the pound in the last month increasing expectations the UK would raise interest rates. However the latest Chinese developments have really upset this balance presenting an amazing opportunity to buy the more risky currencies such as the Rand, AUD and NZD.

We are currency specialists here to assist in the planning and execution of your currency transfers. If you wish for a quote please fill in the form and we will be in touch immediately to work with you to help you get the best deal. Please contact me Jonathan on jmw@currencies.co.uk to learn more.

A little less action today – Markets still on a knife edge (Daniel Wright)

Well I think it is safe to say today saw a lot less volatility for Sterling exchange rates following one of the most volatile days I have seen in the past ten year over the course of yesterday.

Opportunities were there to be taken for anyone looking to sell Euros, buy Australian Dollars, New Zealand Dollars, Canadian Dollars or South African Rand and by the end of play the best rates had already been missed.

This just once again went to show just how important it is to have an experienced and proactive currency broker on your side if you are looking to buy or sell foreign currency in the coming weeks and months. I spent the entire day going through my list of clients that have shown an interest in these currencies and saved a lot of people a lot of money on their exchanges, especially those that are too busy to watch exchange rates yet had been waiting on that spike in the market to convert their Euros back into Sterling.

Tomorrow is another day and I think with China bubbling away you need to ensure you either have an extremely close eye on the market or that you have some sort of protection in place.

We offer various contract types including limit orders, stop loss contracts and forward contracts to help protect you from adverse market movements or to take advantage of a spike in your favour.

I would love to add you to my ever growing list of clients so if you have a currency exchange to carry out over the value of £20,000 please feel free to email me (Daniel Wright) the creator of this site and I will be more than happy to contact you personally to explain how I can help. You can email me directly on  djw@currencies.co.uk with a number to call on and a description of what you are looking to do and I will be in touch.

After Black Monday – what can we expect on Tuesday?

Sterling rates were in as much chaos yesterday as the financial markets. GBP/EUR had fallen 2.71%, whilst GBP/AUD had increased 4.1% – a difference of 9 cents on the rates in a single day of trading.

Black Monday, the mass sell of of stocks as markets reeled from a suddenly obvious slowdown in China (a massive contributor to global growth), caused a huge amount of capital that was previously held as securities being released; which either had to go into alternative investment or remain liquid in a currency of their choice.

Most of this capital fled into safe-haven currencies such as Sterling and the USD. Yet, strangely, the lion-share ended up in the Euro which is not traditionally considered a safe-haven.

The great lengths the European Union, European Central Bank, and particularly the German Parliament have gone to recently to bolster the stability of the Euro -financially and politically- have made it more attractive to investors as a currency to move to when taking cover from an explosive stock-market. Another cherry on top is that the Euro is still historically incredibly cheap.

So I think we can expect Sterling to make gains today against commodity currencies such as the CAD, AUD and NZD, albeit unlikely to the same degree. But GBP/EUR may fall again as well. Chinese stocks fell another 4% already and UK markets have only just opened.

We are currently in an incredibly precarious position on the currency markets. It is the best time to sell Euros since May when Sterling weakened on the expectation of a hung-parliament. I strongly recommend that anyone with a currency requirement call in to 01494 787 478 and ask for Joshua. We will know more as the day goes on and I can keep you up-to date once we establish initial contact, and give you tailored advice on your situation. I am happy to supply a free quote and guarantee to beat any rates offered by banks and competing brokerages. jjp@currencies.co.uk

 

Euro strength at present – What is causing the current level of strength?

We have an exceedingly busy trading floor here today so I thought I would direct you all to my most recent market report on the Euro which can be found by clicking here.

This report should explain just what is causing Euro strength and how long we may expect for it to continue.

For news on the Australian Dollar and how the Chinese stock plunge is having an impact click here

 

Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk if you would like any further information.

Sterling on the Slide! (Matthew Vassallo)

Sterling has taken another hit during Friday morning’s trading, following on from yesterday’s losses. GBP/EUR rates have now dipped below 1.39 on the market and the Pound is now trading 5 cents lower than it was a month ago.

We have seen the EUR gain support following news that the German government had ratified the Greek debt deal. This has been viewed as a positive step in trying to secure Greece’s future participation in the Eurozone and the EUR has benefitted due to this new found confidence. Personally I am sceptical as this is not the first time we have seen a  false dawn for the EUR, only for market sentiment to switch and the Pound regained its position very quickly.

We also had poor data for the UK in the form of the latest Retail Sales figures and this also dragged the Pound’s value down. Moving forward and whilst I do feel Sterling will struggle to move back to the highs we saw a month ago, I do expect GBP to find support around the current levels in the short-term. Whether this Greek deal is actually sustainable only time will tell but if I had EUR to sell I would certainly be considering my position following the positive move we’ve seen.

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

GBP/EUR crashing following FED minutes (Joshua Privett)

The Federal Reserve Bank of America’s minutes from their July meeting yesterday has altered the whole timeline for global interest rate rises. The consensus among analysts was that most were expecting an interest rate hike in September, but the views expressed in the minutes by the FED members has put seeds of doubt into the market prices had previous reflected a ‘sure thing’. The stimulus for their change in heart seems to be mainly attributed to a slowdown in China and prolonged low oil prices, which crashed again overnight, affecting all major commodity currencies like the CAD, USD and AUD.

What does this have to do with GBP/EUR rates?

Firstly, Sterling’s current strength is largely based around the established understanding that the UK will be following close behind the US in raising interest rates. Multiple reasons do not permit the Bank of England to raise rates before their cousins in the FED. Due to the current weakness in the Euro, should the UK be the first Western country to raise interest rates, the value of the Pound would go out of control, and our largest trading partner will not be able to afford our goods. As such the delay in America for raising rates will have a similar delay for the UK. This is why the Pound is weakening across the board against all major currencies as investors move away to get more short-term returns elsewhere. 

Furthermore, Euro strength is why these rates are crashing rather than simply move gradually against the favour of Euro buyers. Yesterday saw GBP/EUR fall following increased confidence in the Eurozone, a result of the final ratification of the Greek bailout deal. This was exacerbated by the FED minutes as, traditionally, when the USD weakens this translates into Euro strength. USD/EUR is the most commonly traded currency pair in the world, so USD weakening usually means that investors are selling off their USD for EUR, particularly while the single currency is a bargain.

There are no expected data releases today to counteract this rapid crash in GBP/EUR rates. I fully expect that rates will drop below 1.40 today. Those with Euros to buy over the next month will see their budgets tightened further down the road. This change to interest rate timelines will put long-term pressure on the Pound and not be reversed in a week.

I strongly recommend calling me on 01494 787 478 and asking for Joshua in order to receive a free quote, and some tailored advice to your particular situation. I guarantee to beat any rate offered by banks and other sources and will happily peg these current buying levels until the end of the year at no additional cost. Alternatively email me on jjp@currencies.co.uk for me information, particularly if you are a Euro seller and want advice on how to ride this move in your favour.

When Should I Buy Euros? (Daniel Johnson)

Sterling has strengthened over most of the major currencies this week. Inflation figures came in above expectations at 0.1% and there were further rumours circulating of a possible interest rate hike. Personally I feel Sterling is overvalued and a rate hike would simply add to our current mounting export problems.

I think Mark Carney, the head of the Bank of England (BOE) could well “jawbone” (talk down the value of Sterling) in order to weaken Sterling and boost the U.K’s dwindling Exports.

Retail Sales figures are an excellent barometer as to the health of an economy. We will see the UK’s figures released tomorrow and the general consensus is there will be an improvement. The market moves on rumour as well as fact so expect GBP/EUR to already have a rise in retail sales factored in. If there is a drop, I would expect Sterling to weaken.

If I had a Euro requirement I would be tempted to move now. Sterling is only in the position it is in predominantly due to Greece’s debt Crisis.

I would be looking to avoid any volatility that the Retail Sales figures may bring. We only have to look at the recent “Super Thursday” situation to realise that when a prediction is proved wrong, the Currency in question can take a hammering.

These factors along with the UK exports problem are the reason I would be looking to get a deal done and take advantage of the current, extremely favourable market conditions.

I am offering a free rate alert service to notify potential clients of any spikes or troughs in the market. feel free to drop  me an email if you would like to take advantage of this service.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

 

 

All eyes on the Federal Reserve…

The big news on exchange rates is the Federal Reserve Minutes due this evening. This is the latest views on just how the American policy makers views the shape of the global and domestic economy plus to what extent the world should be gearing itself up for the US to raise interest rates. This is important stuff because US economic policy has a great impact not just on the US Dollar but also other currencies which in turn can impact sterling exchange rates.

In the end the US is bound to raise their interest rate at some point in the future, the main question is one of timing. I am seeing more and more reports that expect the US will hike their interest rate next month although the recent news from China plus concerns in the Eurozone might still weigh on confidence. This latest report from the US will be very interesting as a guide as to when we can expect the US to raise their rate.

Most commentators expect the raising of the rate to lead to USD strength but I myself am a bit more sceptical. I don’t think it is a given that the USD will strengthen particularly if it is widely expected that they will raise interest rates. We might even see some unwinding of positions and USD weakness if they raise rates as investors feel more confident about improvements in the global economy.

Understanding the market is key to making an informed choice on exchange rates so please speak to me Jonathan to learn more about everything going on that might impact your exchange rate.

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