Category Archives: AUD

Sterling Continues to Benefit From Eurozone Uncertainty (Matthew Vassallo)

Sterling continues to benefit from the uncertainty surrounding the Eurozone, in particular the on-going economic downfall in Greece. Despite a deal being put in place we are already hearing rumours that Greece will not be able to meet its next repayment deadline in August, which if true is likely to throw the markets back into chaos again.

I do feel a general lack of confidence in the Eurozone is now so deep rooted that the EUR is suffering as a result. Its slightly ironic as GBP/EUR levels continue to trade near a 7 year high, not because the Pound is believed to be impenetrable but because investors cannot have any long-term faith in the EUR, whilst the Eurozone continues to be dragged down by individual member states. I do feel Sterling is over-valued against the EUR, possibly by as much as six or seven cents but until the markets can be confident that the Eurozone is once again moving forward together as a single entity, then the EUR will not be able to make any great strides against the Pound.

Eurozone data yesterday in the form of Consumer & Business Confidence was positive but this did little to help the single currency, with GBP/EUR rates moving back towards 1.43 on the exchange. We have a further key data out for the Eurozone today, with the latest inflation data and unemployment rate likely to cause additional volatility on GBP/EUR rates.

GBP/AUD rates have moved back towards a six and a half year high, with on-going concerns surrounding the Chinese economy hurting the AUD. Due to Australia’s trade links with China, any slowdown in this sector is always going to have a negative knock-on effect and with the Reserve Bank of Australia (RBA) committed to devaluing the AUD in order to boost exports, I cannot see any major turnaround for the AUD in the short-term.

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

Pound makes gains following growth figures this morning (Daniel Wright)

Sterling has had a fairly solid day against most major currencies after growth figures released this morning confirming that the economy had grown a little more than expected during the second quarter of 2015.

The U.K has indeed now seen 10 consecutive quarters of economic growth and chancellor George Osbourne has also commented that the economy is indeed ‘motoring ahead’.

This is great news for those looking to buy foreign currency in the coming weeks and months but also a little worrying for anyone with currency to exchange back into Sterling at some point soon.

Tomorrow is the next big point of note for the markets as we have the Federal Reserve interest rate decision due out in America at 7pm BST and this can have an impact on all major currencies as it has an affect on global attitude to risk. Should we even see the hint of an interest rate change coming up for the States the Dollar may gain strength and markets may well move around quite a lot overnight.

There are contracts that we offer that can help protect you from adverse market movements or to take advantage of a spike in your favour without needing to be available 24 hours a day. Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to have a no obligation and confidential discussion to explain how I may be able to help you.

Do you enjoy our market information? Just in case you were not aware then we can actually help you with currency exchange too! (Daniel Wright)

It has now been over 5 years that we have been consistently updated this site with market information and non biased forecasts on how we feel the Pound may perform against most major currencies in the future.

We now have over 100,000 unique visitors to the site and I thought it would make sense for me to remind you all that we can indeed assist you with currency exchange too.

All of the writers on this site including myself work for an award winning currency brokerage with a turnover of half a billion pounds worth of currency a year. So far we have had thousands of new clients contact us looking for a better deal than their bank or current broker and we have been only too happy to offer them both a better rate of exchange than than they have been offered elsewhere but also a much more efficient and proactive service.

If you transfer currency on a regular basis or you have a one off larger transaction to carry out either for your business or to buy an overseas property then it is well worth contacting us.

Feel free to fill in the form on the right hand side of this page and one of our friendly and helpful brokers will call you personally to discuss the various options available to you. We deal with transfers ranging from a few thousand pounds to multi million pound deals, we have tens of thousands of regular clients ranging from pensioners that live in France to Premier League footballers so can cater for anyone.

If you would like to speak to me (Daniel Wright) the creator of the site about a specific requirement then feel free to email me on djw@currencies.co.uk and I will be happy to get in touch.

Sterling Drops Sharply Following Poor UK Retail Sales Figures (Matthew Vassallo)

Sterling has dropped sharply during Thursday’s trading following poor UK Retail Sales figures released this morning. With heavy losses against the EUR and most of the other major currencies, are we finally seeing the end of the Pound’s recent run?

This morning’s poor UK Retail Sales were certainly a shock to the system, following a run of positive UK data stretching back a number of weeks. The official figure of -0.2% growth was well below the expected 0.3% and immediately Sterling was hit, losing almost 2 cents from the high of this morning by the close of European markets. The question now will be whether this trend continues or are we witnessing another false dawn for the EUR? Personally I did feel the EUR was likely to find some support sooner rather than later and it may be that this morning’s poor UK data was the catalyst it required. With a deal now in place between Greece and its creditors we may find that GBP struggles to break back through the highs of last week. I’m not anticipating a huge slide for the Pound but EUR buyers may now look to secure their currency near the high and not risk any further losses.

GBP/USD rates have also dropped with the pair now floating close to 1.55 and it feels as though we are approaching something of a crossroads for the pair. With positive noises being made from both the Bank of England (BoE) and US FED regarding a potential hike in interest rates, I feel the markets are waiting for something more concrete form either central bank before making their next decisive move.

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@currnecies.co.uk

Why the pound can only strengthen from here

When trying to determine the exchange rate forecast there are various indicators to consider which can help us to work out the ultimately impossible to answer question ‘what will happen next on exchange rates’. My favourite indicator to look at is the words and comments of the central bankers and their teams to see what kind of language they are adopting. The Bank of England today confirmed that they felt the time for an interest rate rise is moving forward and as such sterling is highly likely to strengthen in the future.

One of the main reasons the Bank of England kept interest rates on hold this month is the fears over Greece. That is not to say that removing Greece from the equation would have led to an interest rate rise but that it was a factor preventing most members from looking at the economic situation of the UK. With Greece seemingly dealt with now market attention has and will continue to look more at the economic data and see to what extent it corresponds to the Bank’s own language on raising interest rates.

Why do interest rates strengthen a currency?

Raising Interest rates by a central bank strengthens the currency concerned and the mere prospect of that event happening in the future will serve to increase the value of the currency concerned. When considering a large currency purchase and trying to understand which direction your exchange rate will take, working out what drives the exchange rate will be of key importance to understand what might happen.

Therefore if UK economic data keeps showing the UK economy is growing, creating jobs and people are spending money the Bank of England will be more likely to raise the base rate which should strengthen the pound.

The pound has strengthened and is currently enjoying multi-year highs against the Euro, Australian dollar, Rand, Canadian dollar, Kiwi dollar and the Swedish Kroner. If you need to buy the pound then you might wish to make some plans sooner rather than later. If you are business getting paid in Euros or an overseas property investor looking to repatriate funds and buy in the UK our services might really be up your street.

If you are considering a large volume currency purchase why not get in touch to see if we can offer some assistance with your exchange? Alongside friendly and knowledgeable customer service you can check your current exchange rate to see if you really are getting the best deal.

My name is Jonathan and I have been working as a currency specialist for over 5 years. I like to think I am approachable and can answer any questions you might have not just on the markets but also our services!

Please feel free to drop me an email on jmw@currencies.co.uk and I really do look forward to hearing from you :)

Pound may surge in trading tomorrow morning if BOE minutes give a nod towards a rate hike (Daniel Wright)

Sterling exchange rates have the potential to creep up over the course of trading tomorrow morning as we have both the Bank of England minutes and the inflation report.

Interestingly enough the BOE are due to change the amount of meetings they have from 12 to 8 which I found out yesterday.

The key really will be how many members of the BOE voted in favour of an interest rate hike, should we have even one more member now in favour of a hike in rates then Sterling may rise off of the back of it as an interest rate hike is generally seen as extremely positive for the currency concerned.

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.

Bank of England minutes tomorrow and all eyes on GBP/AUD rates (Joshua privett)

Overnight the minutes released by the Reserve Bank of Australia show a mixed view of the current economic forecast for the Australian economy.

While they hinted that increased employment had ‘put a dent’ in the chances for another rate cut, this was balanced out by negative views on the current state of the world economy. As such the Australian Dollar is now lower once the minutes revealed developments in Greece and China would influence future rate decisions.

After such a morbid view, inflation data to be released tomorrow morning must be positive to stop a complete slide on Dollar value.

Today is a quiet day for data releases, so markets are looking to the release of Bank of England minutes and interest rate decisions.

Recently Mark Carney, the Governor of the Bank of England, suggested that interest rates may rise at the turn of the year. This means we could see a change in the voting tally for raising rates tomorrow. This could bolster Sterling, yet the alternative (no change from the 0 out of 9 who voted for a rate hike last month) will do the opposite. It will show that Carney’s comments may be more bluster than concrete policy supported by the rest of the board, which could lead to Sterling weakness.

Call into the trading floor on 01494 787 478 and ask for Joshua to discuss how to take advantage of a specific economic event. A number of tools are available to help you buy at the high, or buy before the rates fall back to far to prevent any losses. jjp@currencies.co.uk

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.

GBP/EUR Best Rates – 1.41 briefly seen on the markets (Joshua Privett)

Today was an extraordinary day on the markets. Sterling gained against all major currencies and did the opposite of what most analysts, myself included, had predicted would occur when an ‘aGreekment’ was reached.

But the logic was sound. Sterling had benefitted from a huge influx of currency out of the Eurozone when Greek talks were deteriorating. We fully expected, and large hedge funds even stated, that investors would flock back to the Eurozone once some form long-term stability was established for Greece.

Thus, it seems that markets are not convinced that any form of a deal is reached, and they have a point. In order to recieve his €83Bn bailout, Alexis Tsipras had to go against everything the Greek people had voted against in their referendum. This bailout has until Wednesday to be ratified by the Greek Government, and with the conditions imposed, this is unlikely to be a smooth process.

This is likely why the rates have cannoned up, investors are waiting to see what happens before Wednesday. This panic has created excellent buying opportunities for the Euro and I believe they should be taken. Greece is facing a crisis of liquidity, and this puts pressure on the Parliament to accept the terms offered, and Tsipras would not have accepted terms which he knew his people could not stomach. These rates are essentially gift wrapped. We already saw that positive talks moved rates down to 1.37, after Wednesday, a solid agreement will likely push them even further down.

Commodity based currencies were hit even further today by falling oil prices – for more information click here. to see even better buying opportunities than GBP/EUR

Thus anyone looking to buy Euros should email me overnight on jjp@currencies.co.uk for a free quote on your transfer to achieve the best rates while they are available. These rates can also be pegged at no additional cost if your requirements for Euros are not until later in the year, so that you do not have to miss out.

Sterling Rates Drop Ahead of Prospective Greek Deal (Matthew Vassallo)

Sterling rates have dipped against the EUR during Friday trading, with rumors rife that a deal between Greece and its creditors is close.

The situation in Greece has dominated headlines for some time and the negative connotations attached to it have certainly handicapped the EUR. The latest developments indicate that a deal is getting closer, with the Greek Prime Minister now back tracking on proposals set out in the recent referendum. There seems to be some middle ground found in terms of the austerity measures required for Greece to receive further bailout funds and if this finally comes to fruition, then I expect the EUR to find support around the current levels.

GBP/EUR rates have dipped back below 1.39 and it seems as though the markets are starting to factor in a deal for Greece. Whilst I feel the Pound will struggle to break back through the recent highs, I don’t anticipate a major fall either and even these short-term opportunities for EUR sellers could be worth taking advantage of.

It is a different story for Cable exchange rates however, with the Pound making inroads against the USD throughout today’s trading. Due to the possible Greek deal it may be that investors are moving away from the safe haven Dollar and back into riskier currencies. This spike could be short-lived if a deal between Greece and its creditors is not upsurged through, so again it could be worth taking advantage of today’s improvement for the Pound.

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, then please feel free to contact me directly on mtv@currencies.co.uk

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