Category Archives: AUD

Great Expectations… GBP Weakness…

The pound has dipped this morning despite a raft of good economic data showing improvements in government borrowing and falling budget deficit. There had been some high expectations of seeing the pound move higher due to a more hawkish outlook by the Bank of England but this failed to materialise. As one of my clients said to me ‘you can’t even trust the Bank of England’ nowadays…

This was in reference to their commitment to consider raising interest rates if the Unemployment rate dipped below 7%. This particular caveat was of course met recently causing the pound to spike but for now the BoE will not be raising interest rates, it would simply cause more problems.

If you are expecting the pound to just keep rising you could therefore be very disappointed as we need to see some really good data to warrant such a spike. I find the best way to maximise your return on your currency exchange is to set realistic targets and limits. If you would like some assistance in the execution and planning of your transfers please contact me Jonathan on jmw@currencies.co.uk, even if your transfer is just a once off, we can help get you the most for your money.

Thank you,

Jonathan

 

 

Sterling Poised On The Bank Of England Minutes

Sterling is still looking fairly good after the Easter break, with particular pressure growing versus the Euro.  With recent good news in the UK jobs market and retail sector, there is a growing sense of optimism surrounding the pound.  Tomorrow sees the latest Bank of England Minutes published, and although it seems unlikely any of the members will have voted for a rate hike, it seems more a question of when, not if, one of them will break ranks and decide UK interest rates need to go up.  I suspect sterling may still make headway against a few currencies as there will be little data out to dent the pound, with retail figures at the end of the week once again set to show a positive trend.

We have Eurozone PMI data out tomorrow morning and again there is the possibility that weak figures could see the Euro slip further so anyone holding Euro may want to sell sooner rather than later.  Australian inflation data is due out in a few hours and the pound has been hovering near 1.80 for a few days now.  Weak figures could see sterling break this barrier, but a strong showing may keep sterling trapped under the 1.80 barrier for a while longer.

If you need to make a currency transfer and would like some more ideas about the services we offer please feel free to email Colm at cmg@currencies.co.uk and I would be happy to help.

Quiet start to the week for the pound following the Easter break as focus will look to the Bank of England minutes tomorrow (Mike Vaughan)

Sterling exchange rates have consolidated this morning pushing on close to 1.22 against the Euro and reaching 1.6825 against the US dollar. Looking at data to start the working week look out for the following:

- Euro Zone consumer confidence figures today at 15:00 – expected to show a slight improvement

- Speech from former FED Chairman Ben Bernanke at 16:45 this afternoon

- RBA inflation figures overnight at 02:30 am

- Tomorrow 09:30 Bank of England minutes

- Tomorrow 21:00 RBNZ interest rate decision

- Thursday US Initial Jobless claims 13:30

- Friday Retails Sales figures at 09:30

As you can see it is a relatively busy end to the week with focus for anyone with an interest in the pound being the Bank of England minutes tomorrow morning and Friday’s retail sales figures. Tomorrows minutes will give insight as to how the nine members from the MPC voted in relation to interest rates and will give clues as to future monetary policy.

Should you have an upcoming bank to bank money exchange to arrange and you would like more information regarding the full currency service we provide please contact the office on +44 (0)1494 725353 or email Mike at mgv@currencies.co.uk

Sterling Consolidates Against Most Majors

After initial wobbles early this morning, sterling has consolidated its gains before the Easter break.  Most UK news of late including retail figures and unemployment, has all been exceptionally good, allowing the pound to make headway against most of the majors.  However the gains are being limited by the fact the Bank of England is still highly unlikely to adjust interest rates before the second quarter of 2015.

The UK markets will be closed tomorrow and on Monday, however many other countries will be open for business as usual so we could still see some movement although I suspect sterling will be reasonably well supported because of the recent jobs news.  We have Australian next Tuesday evening so I am hoping we can break back into the 1.80 barrier for GBP AUD, and whilst European inflation figures recently were just about passable, I am hopeful that next week’s Markit PMI could trigger further weakness for the single currency.

If you are likely to need a currency transfer in the near future and would like to discuss how best to go about it then feel free to email Colm at cmg@currencies.co.uk and I would be happy to explain how our services work.

Sterling having a better run as we head to the long Easter break (Mike Vaughan)

As we head to the long Easter weekend the pound has begun to show some signs of positivity, notably against the Euro and US dollar with rates at a near four year high against the greenback. Prior to this the pound had seen some volatile times against a host of currencies and in particular the Australian Dollar and New Zealand Dollar.

In fact earlier this week the pound was trading at its lowest level against the Australian Dollar since November last year having shifted over 7% from the highs of January. This makes a difference of 24k AUD in a little over three months on a £200k money exchange. Looking at other currencies and the market is also proving very volatile against the NZD having shifted over 5% since February and the ZAR with the pound being some 6% down on this year’s high of 18.81.

Since these lows the pound has shifted back towards 1.80 against the AUD following strong UK unemployment figures yesterday which are now below the 7% level sitting at 6.9% and the sentiment coming from the RBA minutes that maybe they are not as comfortable as originally suggested with the current value of the Australian Dollar. For me this pair is now likely to settle around the 1.80 range.

To finish off the working week the UK has little in the way of data releases with initial jobless claims from the US at 13:30 the major data of note. Should you need to get anything locked in before the Easter weekend then there is still time. Registration is free and carries no obligation and can be done on-line all in a matter of minutes. Contact the office on 01494 787478 or email Mike mgv@currencies.co.uk

Sterling receives a boost following better than expected unemployment figures (Daniel Wright)

The Pound has had a really good morning against all major currencies this morning following much better than expected unemployment figures for the U.K and also news that after six long years wage growth has now overtaken inflation.

Both of these factors have led to a spike in the market for Sterling which is great news for anyone looking to buy foreign currency in the near future.

If you are in the process of buying a property overseas then your dream home abroad has indeed just become a little cheaper for you!

We have some European inflation data out shortly and then this afternoon we have the Canadian interest rate decision and statement so keep a keen eye on exchange rates between 3-4pm this afternoon.

Personally I think the Pound has the potential now to kick on once again as long as we see this positive trend continue in terms of economic data.

If you are looking to buy or sell foreign currency in the near future then it is well worth getting in touch with me directly. Not only can I help you achieve better exchange rates than your bank or current broker but I can also help you with the timing of your transaction with years of knowledge of the currency markets. Feel free to email  me directly on djw@currencies.co.uk with a description of what your requirements are and a contact number and I will be more than happy to assist you personally.

Where Next for Sterling Exchange Rates

It’s been a quiet day for the Pound on the currency markets, with little movement against both the EUR and USD. GBP/EUR rates continue to float around 1.21 on the exchange and the markets seem to be waiting for guidance before making their next decisive move. With concerns over France’s economic health and the very real threat of deflation hanging over the region, you can make a very good case that Sterling is more likely to find further market support from its current position than the EUR.

However, there is a is a case to be argued that the EUR, when considering its recent history against GBP, has far more scope for improvement than the Pound. If the negative issues raised earlier in this post can be resolved then you do feel the EUR could go on a run and break back through 1.20 for a sustained period.

Personally I feel GBP will continue to be well supported in the market, in line with the improvements we are seeing in the UK economy. Any move towards 1.25 against the EUR is likely to find market resistance but it will be difficult for the EUR to make a decisive move under 1.20, based on the current market conditions.

We have seen a positive spike during Tuesdays trading against both the AUD and NZD, following loses against both currencies last week. With China’s economy starting to show signs of improvement and their demand for Australia’s raw materials once again starting to increase, we may find the AUD can gather market support over the coming weeks and help to control Sterling’s recent gains.

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 at mtv@currencies.co.uk.

Do you need to exchange foreign currency? Whether you plan to use your bank or already have a currency broker in place we can more than likely save you a great deal of money! (Daniel Wright)

I have now had thousands of new clients contact me through this site in the 4 years I have been running it and have found that I have been  able to save the vast majority a great deal of money on their foreign exchange needs.

Some were planning to just send money through their banks and others have used a broker a few times already if not for years…. I would say 99% of people that have got in touch have got a better rate through me than the other options they have available.

For the sake of taking two minutes to email me directly you may potentially save yourself thousands of Pounds so if you feel that our award winning exchange rates and level of customer service may be of use then feel free to contact me (Daniel Wright) on djw@currencies.co.uk

Benefits of you getting in touch and dealing with me are:

  • I will be your personal account manager, so you have one point of contact for all transfers
  • We have been trading for over 14 years and are one of the UK’s leading specialist foreign exchange companies with over 45,000 satisfied clients
  • We are registered with the FCA and Authorised as a Payments Institution
  • We have achieved Best Currency Deals, Best Currency Provider and Best Exchange Rates 3 years running by the Sunday Times as well as more recently by The Telegraph. I am confident I will get you the best rate.
  • We have been recently voted as a finalist in the Orange ‘National Business Awards’ for customer service
  • We are purely an execution only service and we do not speculate with your funds, or company funds

If you feel that you are not getting the very best rate of exchange that you can through your bank or current broker or feel that there is room for improvement on the service side of things then it may be prudent to get in touch.

Once again all you need to do is email me (Daniel Wright) on djw@currencies.co.uk with a contact number and a brief description of what you are looking to do and I will be more than happy to contact you personally.

Next week we have a fairly busy start with key inflation data on Tuesday morning for the U.K followed by unemployment figures on Wednesday, keep checking back here for further information on how this affects the strength of the Pound.

 

Trading Week Overview (Matthew Vassallo)

Sterling was well supported during the early part of the trading week, following the release of better than expected UK Industrial and Manufacturing Production data. These positive figures helped to push GBP/EUR levels through 1.21 on the exchange and this good feeling was reinforced by the NIESR’s prediction that UK GDP would grow at 0.9% for the first three months of this year, the fastest pace at which our economy has grown since 2010.

Thursday was also an important date in the diary as we had the latest BoE interest rate decision and monetary policy statement, both of which stayed at their current levels. A monthly report by the ECB seemed to help ease pressure on the EUR and rates have dipped back under 1.21 as we move towards the end of the trading week.

GBP/AUD rates have dipped below 1.80 on the exchange, as the AUD continues to move away from its four year low against GBP. An announcement this week that Australia and Japan have agreed a trade deal is also likely to reinforce this positive feeling. The deal between Australia and Japan has been in negotiation for seven years and is seen as key to future trade between the two economies. The agreement in place will lower tariffs on key imports and it is the first time Japan have negotiated such an agreement with another major economy.

It’s been well documented that the AUD has found life tough going due to a slowdown in China’s demand for their raw materials and the Reserve Bank of Australia (RBA) was keen to see the AUD lose value, in order to help boost exports. Following the market loses witnessed against Sterling over the past twelve months the RBA recently stated that they would not be cutting their base interest rate further and this seems to have steadied the ship.

It now seems the markets have found a level in which GBP/AUD rates seem to be fluctuating and if GBP/AUD rates did spike above 1.80 again I would be very tempted to consider my position.

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 exchange rates with your current provider, then please feel free to contact me directly at mtv@currencies.co.uk.

Sterling SPIKES – GBPEUR Trades at 1 month high

The value of the pound has shoot up this week, a majority of the gains were seen on Tuesday which was the best day for the Pound in nearly a month.  The movement there was a lot of promising UK data including a boost in productivity, GDP figures and an IMF report which increased the growth forecast for the UK.  This climb gave our traders the opportunity to buy both the euro and the USD at a 1 month high.  The IMF report was the most influential following its upwards revision of growth in the UK through 2014.  Growth is now expected to climb by 2.9% compared to 1.5% they forecasted less than 12 months ago.  This means that the UK is the best performer this year across the G7, even higher than the world’s largest economy the US.

Following the breaking news the market SPIKED up giving some of the best prices we have seen for MONTH. Here we offer a number of services including both SPIKE NOTIFICATIONS and RATE ALERTS which are designed to help our clients get the most out of the market. For more information simply get in contact with myself – STEVE EAKINS via email at hse@currencies.co.uk or by calling me on 0044 1494 787 478.

Following these gains there normally a risk that levels fall back as traders take their profits but I believe there may be another day in it yet as today we have more data due, this time from the central banks both sides of the channel. The BOE release their Interest Rate Decision which is expected to have no surprises and therefore little impact on the markets. Everyone will really be focusing on the European Monthly Report which is released at 9 am today. The Euro has also climbed in value against most currencies like the USD, which has reached a 29 month high only last month. This climb in its value is greatly hurting the single currencies competitiveness with exports and has increased the risk of deflation. The bank has made commentary suggesting that they are aware and that they plan to bring in new policies to tackle it, all of which are expected to weaken the euro.  These new policies are probably not going to happen for a month or two but any hints released today could impact the value of the GBPEUR.

My view is that current levels are at the top of GBPEUR’s range over the next 7-10 days meaning buyers may want to trade sooner rather than later. For more information simply get in contact with myself – STEVE EAKINS via email at hse@currencies.co.uk or by calling me on 0044 1494 787 478.

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