Category Archives: AUD

Sterling exchange rates – Stable against Euro, rising against Dollar, Australian Dollar, New Zealand Dollar, Swiss Franc and Canadian Dollar! (Daniel Wright)

Sterling exchange rates have remained fairly stable against the Euro over the course of this week, despite news from Greece and the QE program introduced by the ECB (European Central Bank) last Thursday. Many had expected the Euro to continue to fall but as ever the Euro has managed to just about stand firm following an initial sell off.

The Pound has had a fairly positive few days against most other major currencies gaining some ground back against the Swiss Franc most notably after a fairly dramatic few weeks.

We have very little left to come out in terms of economic data for the U.K for the rest of the week however you should be wary of tonight’s Federal Reserve interest rate decision over in America as it may alter global attitude to risk and could have an effect on all major currencies so it really is one to watch out for.

Also, Governor of the Bank of England Mark Carney shall be speaking just before this and although no bombshells are expected this could lead to market volatility this evening.

If you are looking to carry out a currency exchange and you want to not only achieve a better exchange rate than your current supplier but also an award winning personal service then feel free to contact me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to call or email you back.

Best Rates of Exchange – Exchange Rate Forecast – Andrew Bromley

The Pound has had a busy day today with a fair movement seen between day high and low against most currencies.

The key news today for the Pound was the UK GDP figure. Although a slight reduction against Month on Month and Year on Year was seen, the Pound has remained strong against the Euro and several other key currencies. This has highlighted not only the weakness of the Euro, but the state of other weak currencies. That being said, a watchful eye should be cast on the reducing timescale until the UK General Election.

Euro – When to BUY or SELL?

The Single Currency has been the victim of three major fallouts – The Swiss National Banks removal of their 1.20 EUR-CHF trading peg, Eurozone Quantitative Easing commencement and the Greek Election. The Greek election and subsequent triumph of the EU Sceptic ‘Syriza’ party has the potential to really put cracks in to the stability of the Eurozone as a whole. Syriza we a very popular choice for the Greek people, who feel that the excessive austerity measures need to change. Therefore the Syriza plan to re-negotiate the bailout by the ECB (Eurozone Central Bank) and IMF (international Monetary Fund) was a major factor to their success. This however is not something that Angela Merkel (German Chancellor) is keen on and has the propensity to force the Greeks out of the Eurozone entirely. Although this is a worst case scenario, it is a very real situation that the markets have yet reacted fully to. If you are buying Euros in the Short term (0-3 months) I’d be inclined to get exchanged prior to the UK General Election and whilst the rates are at the 6 year high.

Australian Dollar Forecast

The Australian Dollar has lost several cents in several trading sessions! The AUD is loosely linked to the US Dollar and investors attitude to risk. When the US Dollar is seen as the place to have your money, commodity currencies (Australian Dollar, New Zealand Dollar, South African Rand) tend to suffer. It is also worth noting that the Reserve Bank of Australia meet early next month to agree their monetary policy, and as the Reserve Bank of Australia have indicated on many occasions that the AUD is overvalued in their eyes (Most notably governor Glenn Stevens), we may be close to seeing 2 AUD to the Pound again.

If you have an exchange requirement, please feel free to get in touch. There is a huge amount of volatility currently, so using the market to your advantage (and not disadvantage!) is trickier than usual! Drop me an email AJB@currencies.co.uk or call direct to the trading floor 01494 787 478 to discuss. We have assisted over 70,000 clients, won exchange rate awards from the Sunday Times and Telegraph plus been trading for 15 years!

I look forward to being of assistance!

Andrew Bromley

 

Greek elections lead to further Euro weakness – Dollar breaks 1.50 (Daniel Wright)

Greek elections show Syrizia victory – Further Euro weakness

Well we have certainly seen an extremely busy start to the year as far as the currency markets go and this weekend did not fail to add to the drama.

Yesterday Greece voted in favour of the far left group Syrizia who have been saying throughout the campaign that they would aim to re-negotiate the Greek debt package. On top of this they have also suggested even looking to leave the Eurozone which would cause even further problems  in an already stumbling economy.

What this brings is yet further uncertainty to the Euro both politically and in an economic sense which can tend to weaken a currency fairly significantly.

If you also consider the fact that it was only last week that the Eurozone introduced a huge QE (Quantitative Easing) plan then it is absolutely no surprise at all that the Euro has found itself well and truly out of fashion and has weakened significantly this year against Sterling and the Dollar.

As it stands it would cost almost £8,500 less to buy €200,000 today than it would have cost at the turn of the year which is certainly nothing to be sniffed at.

If you are looking to purchase a property overseas this year and you want to take advantage of current buying levels then there is a great option available to you known as a forward contract. This useful contract option allows you to lock into a rate of exchange for anything up to a year in advance, paying merely a small deposit initially and then the balance on or before whichever date has been agreed, this is absolutely vita if you are working to a fairly tight budget. Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk with a contact number and I will be more than happy to call you personally.

Dollar breaks 1.50 – Antipodean weakness

Trading on Friday also saw Sterling drop through the 1.50 mark against the Dollar and I personally would not be surprised to see this run continue. In times of global uncertainty the Dollar can quite often become the main benefactor and it appears that this is happening again.  On top of this the antipodean and perceived ‘riskier’ currencies (AUD, NZD and ZAR) are starting to weaken off again.

With Europe finally showing huge cracks appearing and more uncertainty than England’s batsmen in the cricket, along with terribly sad news over the weekend that Islamic state have now potentially killed a Japanese hostage  there is a huge shift in global attitude to risk so a flight to safety to the Dollar is well and truly underway.

GDP figure for the U.K due out on Tuesday

Apart from the fallout from one of the most important weeks in the history of the Euro one key piece of data for the U.K is due out on Tuesday morning at 09:30am. The release is our GDP (Gross Domestic Product) figure for the last quarter of 2015. GDP basically measures how much an economy grew or shrank during a specific period and expectations are for the quarter to have shown a slight drop from 0.7% to 0.6% so any change to this may lead to an extremely volatile day for the Pound to add to what is lined up to be an exceptionally busy week.

More is lost through indecision than a poor decision!!! Sterling at multi-year high against the Euro and multi year low against the Dollar (Daniel Wright)

Good afternoon and what a crazy week once again on the trading floor!!!

A very quick update from me as we are currently busier than we have been in a number of years!

The Euro has fallen well and truly out of fashion this week with thanks to the QE (Quantitative Easing) program bought in yesterday.

QE is generally seen as a negative for the currency concerned as we have seen previously with the U.K and U.S so this may weigh heavily on the Euro in the coming weeks.

The Dollar managed to briefly break the pivotal 1.50 level today and is now poised just above the 1.50 mark and I would not be surprised to see it potentially break through it mand offer a trading price of 1.50 at the start of next week.

If you are looking to buy foreign currency and you want the very best exchange rates then feel free to contact me directly and I will be able to not only save you money over your current provider but also ensure you get an exceedingly high level of customer service too.

Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to assist you personally.

 

 

How do I protect my currency position over QE

Pound Sterling Forecasts are rather changeable at the moment all in the build-up to tomorrow events, plus the movement expected over the weekend with the Greek election.  Remember that markets will move on rumour as well as fact so the change in order numbers for currency are also impacting costs.  Today we have seen traders put in their positions and we have seen GBPEUR rates drop by nearly ½ a cent. This could be the poor Unemployment figures for the UK which were released earlier but could also be traders hedging their bets before the release tomorrow. In either case if you have exposure to the GBPEUR rates in the next 7 days you NEED to be putting a protective net over the market. This is through LIMIT ORDERS and STOP LOSS ORDERS. These put in automatic buy orders below and above the current trade price, therefore protecting you from any move outside of these levels. It is a tool that most business users utilise all the time on large volumes over small events but are equally valuable on small figures on large events. What I am saying is that these are available to most through ourselves here so feel free to use them for Free to protect your currency exposure.

Contact myself, Steve Eakins, via email if you would like more information about it through hse@currencies.co.uk for a personal response.

Sterling exchange rates – Potential drop tomorrow morning to be aware of! (Daniel Wright)

Following on from an absolutely crazy end to last week the markets are starting to settle down again for Sterling against most major currencies as all eyes now appear to focus on what the European Central Bank will do on Thursday.

Talk of what may happen next with the ECB (European Central Bank) has been constant since the turn of the year and this may be the reason that the Euro has dropped off quite a lot against most major currencies.

The next key piece of economic for anyone either buying or selling the Pound in the coming days is the Bank of England minutes and U.K unemployment data, both due out tomorrow morning at 09:30am. Unemployment is expected to come out at  5.9% so any change to this may lead to volatility for the Pound. The minutes may be of greater interest as they will show what was discussed at the last interest rate decision and also how many members of the Bank of England voted in favour of or against an interest rate hike.

For a long period of time we have seen two members of the bank of England voting in favour of a hike and seven members against, and now that it is hard to see interest rates go up in the U.k this year you do start to wonder if one of the two members that were in favour of a hike now may have changed their mind?!

With an interest rate hike (or the mere speculation of it) generally being positive for the currency concerned if one less member is in favour of one then we may see the Pound drop in value against all major currencies.

If you are looking to carry out a currency transfer in the near future then I would be surprised if I could not get you a better rate of exchange than you are currently being offered along with a smooth and efficient service. If you feel that the site has been of use to you then feel free to email me (Daniel Wright) djw@currencies.co.uk directly with a brief description of what you are looking to do and a contact number and I will be more than happy to contact you personally.

 

 

Currency Forecast 2015 – When should I buy or sell my pounds? If you need to buy or sell GBPEUR this next week or two is extremely crucial…

The first two weeks of 2015 have seen incredible movement on all currency pairings, is this a taste of what is to come or will things settle down? With elections, terrorism and economic uncertainty catching headlines I think we could be in for some turbulent times in 2015. Making plans with financial matters is never a bad idea…

GBP – The General Election is the hot topic and with any interest hike now being priced well into 2016 sterling seems unlikely to find any favour until the second half of the year. Much will depend on how the UK’s biggest trading partner the Eurozone performs, which for the time being looks to be a big ask. I don’t think sterling will be a strong performer in 2015 and suggest anyone selling sterling sells on the spikes higher as we have seen with the Euro. I would keep a very close eye on the BoE (Bank of England) meeting Minutes next week as it seems probably one member will cut their call to hike rates which will cause a sterling slide. Don’t say we didn’t warn you! For a fresh update specific to your situation email me Jonathan on jmw@currencies.co.uk

EUR – This is the most important time on the Euro since 2012 when Greece looked like possibly leaving the Euro. The spectre of a ‘Grexit’ is causing the Euro to weaken and news the ECJ (European Court of Justice) have given the go-ahead for ECB (European Central Bank) monetary transactions (basically QE) will only increase expectations of worse to come for the single currency. If you need to buy or sell GBPEUR this next week or two is extremely crucial. A limit order or stop loss or forward contract might be the best option to negotiate the market. Sitting on your hands waiting for something exceptional to happen will generally lead to disappointment! Contact me on jmw@currencies.co.uk direct to find the best exchange rates on GBPEUR transfers…

USD – All eyes are on the Federal Reserve to raise interest rates in 2015. I feel with the global economy struggling this is unlikely and much like the pound in 2014, the dollar will weaken down the line. if we manage to break 1.50 I would be surprised , the expectations for USD strength are in my opinion very much priced in.

AUD, NZD – A raft of good news from China has helped these currencies improve against a weaker pound but longer term I expect them to suffer as we slowly return to more historical averages.

I work as a currency specialist assisting private clients and businesses to manage their foreign exchange exposure. We can assist to make sure your international payments go through smoothly at the very best rates of exchange with the minimum fuss. For further information please contact me Jonathan on jmw@currencies.co.uk, I hope to hear from you soon!

QE forecasts this next – impact on currency

GBPEUR rates have climbed once again this week revisiting the best levels seen for over 3 ½ years.  There is a lot of speculation about exactly what will be released in a weeks’ time at the European Central Banks. I think everyone is expecting some find of QE however the format of this program could really change the markets.  QE in essence is the process of buying government bonds and therefore giving the banks access to very cheap money. They in turn are incentivise to loan this money out to business and the general population that invest and spend the money therefore creating an additional tax revenue and hopefully growth.  The reason why this will be introduced is in an effort to increase growth and to try and tackle to deflation issues seen across Europe.

Now this is where it gets complicated. Most think it will be unfair for the ECB to buy the same amount of Greek Bonds as German as they contribute a very different amount to the single currency. Greece tasking money out and Germany putting a lot in. As a result there has to be some kind of grading system to make this fair.  Also with only 3 of the 25 member states expected to have a budget surplus this year it will have an impact on the cost of paying back the loans each country has. Therefore and as an example it could in theory make the loans that Greece have to pay back a lot more expensive and therefore make it an easier decision for them to try and leave the Euro! And what is to say that this could open the door for Italy that is struggling massively!

So the above is the reason why rates have been so changeable as the market tries to second guess what will come next week.  Now what do I expect to happen?

I personally expect rates to continue tin this positive trend within the next week in the build-up to the announcement. I can only trust that the traders whom are paid $1,000,000’s a year to second guess the markets are good at it meaning that the most likely outcome. Of cause if they are wrong the market will reflect this quickly pushing rates potentially up by a little bit or down by a big bit.  As a result anyone with exposure to the EURO within the next 6 months arguably should be watching this announcement very very closely. Here we have a number of tools to help clients get the most out of the market and equally protect your exposure if you do decide to ‘roll the dice’ over the event. This includes limit orders and stop loss orders that put an automatic buy request either side of the market and therefore puts a safety net around your position. This enables you to limit your losses or equally take advantage of any quick moving spikes in the right direction.

For more information on the any of the above  feel free to get in contact with myself through hse@currencies.co.uk. My name is Steve and I will be happy to help and give you my views.

Exchange rate update and forecast (Daniel Wright)

Sterling Euro

The Pound has been fairly range bound against the Euro of late following a reasonably good gain towards the start of the year. The main talking points surrounding the Euro at present appear to be  both the potential introduction of QE (Quantitative Easing) and the upcoming elections in Greece.

As regular followers will be aware QE general tends to weaken a currency (like we saw for both Sterling and the Dollar when the U.K and U.S have introduced this previously) however do also be aware that the markets do move on speculation as well as fact so the majority of this movement may have already been priced into the market.

We do appear to keep hitting a glass ceiling not too far above where the market is now and we will need to see some fairly substantial news to push us through this level of resistance so unless we see that I would not be surprised to see us remain within this range (which we are close to the top of) for the next week or two.

You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. You can email me on djw@currencies.co.uk or call me on 01494 787462 if you do need to carry out a transfer soon.

Sterling Dollar

After an almighty charge from the Dollar towards the end of December/start of January the mid-market price looked like it may well test the 1.50 marker but Sterling managed to hold off the pressure and I currently nestled just above that. The key now is whether the Dollar has a second wind and if it can actually break through a key resistance level.

In times of global uncertainty you general tend to see the Dollar come into favour as a perceived ‘safe haven’ currency and on top of this at present the U.S look almost nailed on to raise interest rates before the U.K.

An interest rate hike generally tends to strengthen a currency and a cut in rates can weaken it and at present the bank of England appear to be constantly pushing back their rate hike expectations which is not doing the Pound any good.

Sterling – Australian Dollar

Following on from Sterling hitting multi year highs the Australian Dollar has also managed to gain back ground moving back against the pound by almost 4% since the start of the year.

We have had comments from RBA Governor Stevens towards the back end of the year that his preference would be to see a weaker Australian Dollar since it is damaging the Australian economy. Personally I would not be surprised to see further comments or some sort of action to push the rate back up however this must be approached with caution as the Australian Dollar can move rapidly and substantially when it is in a particular trend.

With the rate also moving overnight, if you are looking to achieve a particular level of exchange there is the option of a limit order r stop loss contract to ensure that if your rate becomes available overnight it will be taken advantage of, or the stop loss can protect you from adverse market movements if you want no lower than a particular rate of exchange.

Thursday morning will bring unemployment figures from Australia which are currently expected to not be too great which may weaken the Australian Dollar a little.

Sterling – New Zealand Dollar

The New Zealand Dollar had also made great progress at the start of the year against the pound however a drop in dairy prices yesterday caused it to weaken away again, seeing it drop by almost 1.5%. Personally I feel the NZD may well try to head back towards 1.90 again unless we see any major news as demand for the currency is still fairly high.

Forward contracts

If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.

This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.

I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange. Please feel free to email me on djw@currencies.co.uk and I will be more than happy to contact you personally.

Our award winning site is not only a great source of information but we can save you money and make your life easier too! Contact us today! (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:

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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.

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