Category Archives: AUD

U.K economic data to impact Sterling exchange rates this week (Daniel Wright)

We have had a fairly quiet start to the week so far for Sterling exchange rates, however we may see things liven up as the week continues to progress.

It is important to remember that any news on the referendum may impact the value of the Pound rapidly and out of the blue, so if you have an exchange to carry out in the near future then it is key to have a proactive and sharp currency broker on your side for it.

Here at Pound Sterling Forecast we aim to give you the very best in market information to ensure you make the right decision to suit your needs.

Tomorrow we have Public Sector Net Borrowing figures due out at 09:30am and expectations are for the figure to increase which would suggest that the Government has slightly more ‘new debt’ than last month if predictions are correct. I actually feel that we may see a slightly more positive figure with the referendum in mind so Sterling may have a good day tomorrow.

We have nothing of great note on Wednesday and then will see growth figures on Thursday morning be the next piece of economic data that we are expecting to have an impact. 0.4% is the figure that analysts are expecting to see for economic growth and any deviation from this may lead to a volatile trading morning.

If you have the need to buy or indeed sell Sterling for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk  and I will be more than happy to get in touch with you personally. We can cater for people inside our outside of the U.K and carry out bank to bank transfers.

Positive narrative for Sterling boosts Euro and Dollar buying rates (Joshua Privett)

Sterling had a very productive mid-week session on international currency trading, most notably with Euro buying rates  reaching above 1.30 for the first time since February.

Two consecutive days of positive economic sentiment were the driving force for this breath of fresh air for the Pound, which had been in a period of relative stability preceding the previous week. Again this was seen most evidently on GBP/EUR exchange rates, where average changes since the beginning of the year of 1.5 Cents daily gave way to almost two consecutive weeks of buying Euro rates trading within 1.26-1.27.

Certainly this was a relief at our office to see some stability given back to the market place, but we empathize with the multitude at that time who were faced with a difficult decision – where are the rates going to go from here?

This was partially answered mid-week by the gifted movements for anyone holding Sterling and who are considering purchasing a foreign currency. Positive retail sales, wage and employment figures produced a brighter view towards the UK economy and the Pound, a surprising phenomenon this close to the Referendum.

Yet the overwhelming consensus on the marketplace is that this is not the beginning of a new trend. Most of the positive data has been attributed to an un-seasonally hot April (albeit patchy) which allowed industries normally dormant until late May or June to wake early and start contributing to UK performance. This explains why a sudden rise in retail sales coincided with a rise in employment.

This positive narrative on the Pound is set to change next week, when markets are reminded of the stagnant growth figures currently being posted by the UK economy.

Last month was the first time in nearly three years that UK growth was outperformed by the Eurozone, growing 0.4% in the first three months of 2016 compared to that of the Eurozone who enjoyed 0.6% according to the Office of National Statistics. Another look at these figures from an independent body is set to confirm this on Tuesday and Thursday for the UK and Eurozone respectively.

Growth is key. Growth shows an investment is worthwhile, and without this vote of confidence the slide on buying Euro and Dollar rates which occurred on Friday after the two big days on Wednesday and Thursday are set to continue.

No-one thought that buying rates would see this resurgence ahead of the Referendum, particularly whilst vote splits are still close enough to be counted as in the margin of error. There was a net gain of 2 cents on GBP/EUR last week, 1.3 cents on GBP/USD, and 4.5 cents on GBP/AUD, which should not be sniffed at in this current market.

I strongly recommend that anyone with a buying Euro or Dollar requirements should contact me on jjp@currencies.co.uk.

If you outline your requirement and the time span within which you plan to, or need to, conduct this, then we can begin a discussion to determine the most suitable option open to you through a currency exchange specialist which suits you with a view to maximizing your currency return.

I have never had an issue beating the rates of exchange offered elsewhere, and a brief conversation could save you thousands on your transfer.

Euro and Dollar sellers can also get in contact to have a similar discussion, though my thoughts will sway towards waiting for the news next week to re-coup the losses incurred to you over the last week of trading. Certainly, with the near two cent losses on Friday’s trading for GBP/EUR in particular, the momentum is in your favour.

 

Sterling exchange rates cool off after a very bullish week, will this trend continue? (Joseph Wright)

After the week we’ve just had I’m expecting next week’s trading session to be very interesting for Sterling exchange rates, and hopefully by this time next week we’ll have more clarity as to which direction the Pound is moving.

In the meantime I believe those looking to sell GBP in order to purchase other major currencies such as US Dollars, Euro’s or Australian Dollars for example, have been presented with some surprisingly good entry levels, especially when we consider that the EU Referendum is just around the corner and that event is what’s been weighing on Sterling’s value for most of this year.

This week Sterling hit it’s strongest level against the Euro for 3 months, and this was mostly due to the UK bookies now claiming that there is a 70% likelihood of the UK remaining within the Eurozone.

This news has been well received by the marketplace as historically speaking, political uncertainty weighs on the value of the underlying currency, therefore the bookies and polls suggesting that the UK public has already made its decision has resulted in a strong Pound as investors and speculators become less tentative when buying Pounds (or buying financial asset’s denominated in Pounds).

Today, Sterling has weakening across the board as many would have expected. Having gained so much ground on it’s peer’s this week I felt that it was inevitable that Sterling exchange rates would cool off today, particularly this afternoon, as day traders and speculators alike take their profits which would then drive down the value of Sterling somewhat.

Next week I’m expecting Sterling to continue to ease off as I struggle to justify the likes of GBPEUR trading above 1.30 with such a historic vote around the corner, and I think anyone with a currency requirement involving selling Pounds should consider making that transfer sooner as opposed to later.

If you would like to discuss an upcoming currency exchange you have to make, feel free to contact me on 01494 787478, just ask reception for Joseph. I work for one of the UK’s longest standing specialist currency brokers. We can save clients thousands when compared with the high street banks and also offer a lot more than just award winning exchange rates and high levels of security. Next week see’s the release of some key data which could swing exchange rates so we can also discuss how these events could effect your exchange if you like. You can also contact me by email on jxw@currencies.co.uk 

Boost to buying Euro and Dollar rates for second consecutive day (Joshua Privett)

The Pound has now broken through several benchmarks on most major currencies, with buying Euro rates breaching 1.30, and GBP/AUD now well above 2.0 for the first time since February.

The Pound’s recovery has caught the eye of many potential buyers. GBP/EUR was almost 9 cents lower only a month ago, GBP/USD has now established itself north of 1.45, and GBP/AUD has gained near on 20 cents in a single month.

A combination of political and economic factors are the root cause for this sudden turnaround.

Economically speaking the UK has had a fantastic few days with all of the good news of the month seeming to come out within a relatively short period. Wages, unemployment, and most recently this morning retail sales figures have seen positive news eclipse some of the UK’s questionable growth data released at the start of the month.

Furthermore, some confident strides ahead for the remain camp have made some investors a little more confident about the outcome of the looming Referendum. But the mistakes in the polls during the May election haven’t been forgotten, and with the traditional margin of error being plus or minus 3%, there’s still not enough conviction for Sterling to breach much higher for the moment, which explains why the Pound’s rally tailed off this afternoon.

With no economic news of note out tomorrow and no releases on the polls until next week, this very gradual negative loss on buying rates for anyone holding Sterling will likely continue as profit taking after the big movements this week governs changes in buying rates for Euros and Dollars.

Unless the Remain camp gains a hefty lead the Pound is likely to be coming under further pressure as we edge closer to the vote itself. With debates and speeches lined up for the beginning of the month, it’s fair to say that the heavy campaign season hasn’t even begun. Anyone waiting to buy foreign currency, particularly after the opportunities gifted to many buyers over the last 7 trading days, has to have a very strong economic argument if they are expecting many further gains on the marketplace in the short-term.

I strongly recommend that anyone with a Euro or Dollar buying requirement between now and Referendum should contact me on jjp@currencies.co.uk to start a dialogue around a strategy for your transfer in order to maximise your foreign currency return.

I have never had an issue beating the rates of exchange offered elsewhere, and a brief discussion could save you thousands on your transfer. These current levels available today can also be fixed in place for any planned transfers in the future to completely avoid the risk of waiting for the exchange rates available to you later in the year when you wish to conduct your transfer.

Anyone considering buying Sterling with a foreign currency can also do the same, and I will explain how best to approach the coming weeks to ride the expected movements in your favour to their completion.

Sterling Rallies Following Latest Brexit Polls (Matthew Vassallo)

Those clients holding Sterling received a welcome boost today, following aggressive spikes for the Pound against a basket of major currencies. Sterling was boosted by the latest Brexit poll, which indicated that the Remain vote was up to 55%. The EU referendum has dominated headlines for many weeks and will confirm to do so up until the vote on June 23rd.

Whilst I was not anticipating any sustained Sterling strength under current market conditions, the fact that we have now had two separate polls indicate a relatively healthy lead for the Remain camp, the markets are viewing this as a major positive for the UK economy. I am still wary about assuming this strength will continue, as I have no doubt we will hear conflicting reports over the coming weeks, which are likely to bring back that market uncertainty. In fact if you think back only a couple of weeks we saw a similar, if slightly less aggressive move for the Pound. Those gains were quickly eradicated on the back of some negative reports and I would be very tempted to secure my position, rather than assume that this positive spike is here to stay.

I am still not convinced that the UK economy is strong enough to act as a catalyst for GBP to continue this run and with the Bank of England (BoE) remaining steadfast in their commitment to control Sterling’s value, for fear of alienating the Eurozone (our largest trade partner). They will be keeping a very close eye on today’s developments and should they need to I have little doubt that they will step in total down a facet of our recovery, with the hope this will ease market confidence in the Pound.

If you have an upcoming GBP currency requirement and would like to be kept up to date with all the latest market movement, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 725 353 and ask one of the team for Matt. Alternatively, I can be directly on mtv@currencies.co.uk

Sterling exchange rates against EUR USD AUD and CAD in the near term – What impact may the referendum have? (Daniel Wright)

GBP/EUR

Sterling has gained ground against the Euro overnight as we have seen criticism of some European Central Bank policies in an interview with the head of Germany’s Bundesbank Jens Weidmann. These comments surrounding monetary and fiscal policy show a lack of togetherness which may well lead to further problems for the European Central Bank further down the line.

We must remember that although there is a lot of hype surrounding the referendum and problems for the Pound, the Euro has many problems itself with Greece apparently still struggling and fiscal policies that have been implemented so far not really having the impact that the European Central bank wanted.

I feel that there will be a lot of cat and mouse between this currency pairing in the coming weeks and plenty of buying and selling opportunities may arise, so if you are looking to purchase or sell Euros in the near future then it is key to let me know. We have rate alerts, limit orders and all sorts of tools available to help you maximise your rate of exchange so if there is a particular level you are looking to achieve then feel free to get in contact and I will explain these free market tools to you.

If you have the need to buy or indeed sell Euros for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk  and I will be more than happy to get in touch with you personally. We can cater for people inside our outside of the U.K and carry out bank to bank transfers.

GBP/USD

The Pound has been fairly range bound against the Dollar over the past few weeks and the political fiascos along with delaying of interest rate hikes over in the States still does not appear to have knocked the Dollar as much as we may have expected.

Later this afternoon we have inflation data out for the U.S along with the Federal Reserve meeting minutes due out tomorrow evening. These minutes may be crucial to the strength of the Dollar as they will show us just what had been discussed during the last interest rate decision, along with an indication as to whether or not we may see interest rate changes in the future.

The Dollar gained a lot of strength in the lead up to the end of last year due to the fact that the Federal Reserve had indicated that there may be four interest rate hikes this year and now it appears we may only get two at best. With an interest rate hike generally being positive for a currency and a cut negative, the mere speculation of a rate movement can lead to market volatility.

For a live quote to buy or sell Dollars and the very latest market information feel free to contact me (Daniel Wright) on djw@currencies.co.uk and I will be happy to speak with you directly.

GBP/AUD

The Australian Dollar is another currency having a tough time of things lately, we have seen the AUD drop by over 10 cents against the Pound in recent weeks and it looks like we may see a breach of 2 again in the near future. Like with the Euro it is important to realise that although there is a pending referendum in the U.K, we also have many problems in Australia too both in an economic and political sense… Not to mention China!

I feel that the potential to buy at a trading price of 2 may well be a stark possibility in the coming days and weeks and with this currency pairing moving 24 hours a day limit orders are well worth taking advantage of. A limit order is where you can set a particular rate of exchange you wish to achieve and should the market tick up there, even for a second then your currency will be purchased automatically for you. There is no cost to place this order and it can be cancelled or amended at any time as long as it has not gone through.

Call me (Daniel Wright) on 01494 787478 or email me on djw@currencies.co.uk for more information on this handy market tool.

GBP/CAD

With oil prices on the rise many would have felt the Canadian Dollar would be on a fight back, however recent information showed that the number of oil rigs in operation was at its lowest point in years, this is a stark reminder that the oil industry is nowhere near where it needs to be for prices to rise consistently. With the Canadian Dollar being so reliant on oil and the horrific fires that we witnessed last week the Canadian Dollar is looking a little shaky at present.

I feel that this pairing may remain fairly range bound in the next week or so, we do have the Bank of Canada Interest rate decision and rate statement next Wednesday which will be the next big Canadian release to look out for.

There is no doubt that the pending referendum will cause uncertainty for Sterling against all major currencies but the global economy as a whole also has many, many problems so this is certain to be an interesting time for the Pound and the global currency market as a whole. If you are not registered with us then it is well worth contacting me directly on djw@currencies.co.uk and I will be in touch to explain exactly how I will be able to help you.

If you have any questions or queries about this update or would like information on another currency pairing then please feel free to contact me directly.

Pound Sterling Forecast – Inflation and unemployment key for Sterling exchange rates in the next two days (Daniel Wright)

Tomorrow morning brings the release of key inflation data for the U.K at 09:30am and expectations are for a slight drop off month on month but for figures to remain steady at 0.5% year on year.

The target for the Bank of England is to keep inflation steady at 2% so any figure higher than expectations may give Sterling a welcome boost and any drop off for inflation figures could knock the Pound back after a solid enough start to the week.

On Wednesday morning, also at 09:30am we have unemployment figures for the U.K and expectations are for the level of unemployment to remain at 5.1%. Unemployment is one of the key parameters considered when the Bank of England think about interest rate changes along with average earnings. The reason average earnings are so key is that if they are not going up in line or above inflation then the public would not have any more spare money to spend so an extra lump to pay on their mortgage payments each month may make life fairly difficult.

With the referendum slowly creeping up on us I feel like the Government and Bank of England would be doing their best to make economic data appear steady so I would not be surprised to see a good few days for Sterling exchange rates and a slight boost for the Pound.

If you have the need to buy or indeed sell Sterling for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk  and I will be more than happy to get in touch with you personally. We can cater for people inside our outside of the U.K and carry out bank to bank transfers.

“Brexit”. The Key Factor in any Trade involving Sterling (Daniel Johnson)

The EU referendum has caused the Pound to significantly weaken against all major currencies. I think we are starting to see below par UK data releases as a result which will  cause resistance on a Sterling rally. Polls  currently suggest it is almost 50/50 whether the UK will remain in the EU or leave.

I expect GBP/EUR to remain between 1.24-1.29 until after the referendum. If the UK remain in, expect to see 1.35. If we leave however I would expect GBP/EUR to drop to below 1.15. If you have a GBP/EUR trade it may be wise to hedge your bets to limit potential losses. Feel free to get in touch with regards to strategy and contract options.

Key UK Data Releases

Tomorrow at 08.30 will see the release of PPI and CPI data, I expect CPI to cause more movement  on GBP value than PPI. It is a measure of inflation and and can be used as barometer as to the health of an economy. I wouldn’t be surprised to see a slight decline which could weaken the Pound.  Thursday at 08.30 is the release of retail sales and I would expect to see a further decline. If you have to move short term it may be wise to move before these events.

GBP/AUD The Reserve Bank of Australia (RBA) have made their intentions clear, to weaken AUD to encourage growth. We have already seen an interest drop which has bolstered Sterling position. If the UK remain in the EU expect GBP/AUD to move above 2.10. If you are an Aussie seller I would be looking to move before the referendum as I think the current trend will continue and it is too big a gamble to hang on until after the referendum Current trading levels are attractive considering six months ago GBP/AUD was at 2.20 +.  China is the key purchaser of Australian exports  and Chinese Industrial and Retail figures came in over the weekend and were below expectation levels. This will add further ammunition to the belief AUD needs to lose value. Keep an eye on the the RBA minutes on Tuesday to get a further insight on monetary policy.

GBP/USD

If I was a USD seller I would be looking to take advantage of current rates of exchange. GBP/USD currently sits at 1.43. Keep in mind GBP/USD has only fallen below 1.40 three times in the last forty years so 1.43, historically, is a very good time to move.

If you have a currency requirement I will be happy to help. I specialise in property and commercial trading and I am in a position to beat high street banks exchange rates by as much as 5%. Feel free to contact me for  a no obligation quote on 01494 787478 and ask for Daniel Johnson or e-mail me at dcj@currecnies.co.uk. Thank you for reading my blog.

 

 

Today is the day!

The outlook for the pound is not very good and today will be further news about just what to expect for the UK and the pound in the coming months and weeks. Uncertainty over the Referendum and worries surrounding recent economic data will become more apparent in the coming weeks and any acknowledgement of the trends by the Bank of England should see sterling slide. The Quarterly Inflation Report is likely to carry the most weight but there is an outside chance of a call for an interest rate cut which would likely cause the pound to lose value.

If you need to buy or sell sterling in the next year the Referendum will have an impact on the pound well beyond the 23rd June. Expectations are for a Remain vote but only just. It is far too close to call and the current levels should not be easily dismissed as we might have a whole different ballgame in 7 weeks time. The best way to predict the future is to create it and we do offer a range of options to help you capitalise on any big swings that we might see.

For more information on getting the best exchange rates and keeping up to date with the latest trends please email me Jonathan on jmw@currencies.co.uk

Sterling exchange rates have a quiet start to the week – Tomorrow and Thursday are sure to be different! (Daniel Wright)

So far this week we have not seen a great deal of movement for Sterling exchange rates but may that be about to change?

Tomorrow morning we have industrial and manufacturing figures out for the U.K and following poor construction figures last week, investors and speculators will be poised to see how the U.K performed in these sectors during April. Both releases are due out at 09:30am tomorrow morning so if you have an imminent exchange to make it is well worth tracking the market shortly after this time.

Thursday has the greatest potential for market volatility as we have the Bank of England interest rate decision, inflation report and the meeting minutes from the interest rate decision.

It is highly unlikely that we see any changes to interest rates however investors and speculators alike will be watching to see if any of the 9 members of the BOE have changed their stance with which way they would like interest rates to move.

The inflation report will also be of great importance, Mark Carney (Governor of the Bank of England) will give an overview as to what he plans to do about the current level of inflation and any potential changes to forecasts or fiscal policy may also result in a volatile day for Sterling exchange rates.

With releases like this coming out all the time it is key that you have a proactive and reliable broker on your side should you be due to carry out an exchange and that is where I can step in.

If you have the need to buy or indeed sell Sterling for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk  and I will be more than happy to get in touch with you personally. We can cater for people inside our outside of the U.K and carry out bank to bank transfers.