Pound Sterling Forecast

This week ahead is set to be very volatile for sterling against a host of currencies. There are numerous data releases that will have an impact on the pound and a host of other majors. If you require making a conversion on your funds this week then you should keep a close eye on the following data releases and contact me so i can explain how you can benefit from our excellent rates of exchanges. Just drop me an email at bma@currencies.co.uk

Tuesday - For sterling the first major data release will be tomorrow morning in the name of public sector net borrowing. This release captures the amount of new debt held by the UK government. We are expecting levels to come out worse than last month’s release so sterling exchange rates could take a hit tomorrow morning.

Wednesday morning will bring the biggest data release for the UK with the Bank of England’s Minutes. This really will be key as it will indicate how many members of the MPC voted for QE and by how much. If their is any indication that some members wanted more than the £50 billion then it may bring some sterling weakness as further stimulus could be on the cards in the future.

The last major release will be on Friday with revised Q4 GDP figures. This is as big a release as they come. It is expected to show a contraction in growth for the UK economy and if Q1 for 2012 comes out the same then the UK will officially be in a recession. because we are expecting a contraction this Friday the losses may not be so sever for the pound but you may be wise to act well before this release.

For the pound against a host of other currencies you may be interested in the following releases.

Germany and the EU – With a host of data from PMI to GDP rates will be extremely volatile this week. The real key mover will be events in Greece. If they cut their budget which is pretty much expected and receive the agreement for their bailout then expect to see some good Euro strength. This will be key for clients looking at selling back their Euros. Be ready to act quickly though if there is a spike in the market as it may not be around for long!!!

For the US it is a pretty quiet week compared to normal. They have presidents day today so no releases and then over the rest of the week there is some home sales and jobless claims. I expect that the USD will have a range bound from 1.56-1.59 this week. if you see a movement above the 1.59 capitalise on the gain.

Australia – RBA minutes released early hours of Tuesday morning. Same as in the UK and if no indication of further rate cuts down under expect the Aussie to continue its rise of all time highs against the pound.

If you would like to discuss any major data release with us so you can find out how it may affect your currency transfer please feel free to contact me at bma@currencies.co.uk

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used
someone else for years – Just like buying car insurance you need to always shop around. You can also email me directly bma@currencies.co.uk with any questions or queries.

Well, just when Friday was looking kind of quiet, Germany have lost their president… This suggests to me that as we have been saying for a very long time on here there is much, much more to this European crisis than is being let out of the bag.

I think the Euro Zone is in complete crisis and it is going to take heroic economic performance to resolve it, political instability does effect a currency and this indeed will not help the Euro and investor confidence.

This week is sure to be a lively one, below is what is due out and what I feel may happen:

This morning – Inflationary data has been released for the U.K (09:30am)

13:30pm Retail Sales (USA) – One for those with an interest in the Dollar this afternoon with Retail Sales figures being released. Many top analysts still believe the Dollar will launch a fight back in the coming weeks and months, and some believe the Dollar will have a strong year (making it more expensive to buy). Expectations for this release is an improvement and personally I feel the release will be good, but not quite as good as expected however this isn’t a huge release so no major market movement expected from this one.

21:45 Retail Sales (New Zealand) – This one will effect the ever strong New Zealand Dollar, which has had a great few months (Not so great for Britons with money to shift over there). The data covers the last quarter of 2011 and expectations are for a drop, this may lead to a short term spike against the new Zealand Dollar however in my opinion unless we see real global uncertainty again soon the the NZD will stay reasonably strong.

23:30 Consumer Confidence (Australia) – A late release for Australian Dollar followers which will show the confidence levels of individuals have in the economy and how things are going in Australia, many clients I speak to say all is not as rosy as is being made out over in Australia unless you are in the mining industry, but lets see what this brings, personally much like the NZD I feel the AUD will stay strong unless something major happens worldwide.

Tomorrow 08:00am (German GDP) – A key indicator as to how the largest economy involved in the Euro is performing, this is followed up at 10:00 by GDP data for the European Monetary Union. A bad release for Germany may indicate that the worst is yet to come as the EMU is expected to release a negative figure for Q4 of 2011.

Tomorrow 09:30am (U.K Unemployment) – A flurry of unemployment data for the U.K which is not expected to be too good (yet again). If you have Pounds and wish to buy a foreign currency it may be prudent to seriously consider your options before this release.

10:30am – (Mervyn king’s speech) Mr King seems to be very good at making the Pound weaken, whether it be on purpose or not  and those that have tracked Sterling over the past few years will indeed be well aware of this, certainly one to watch with interest… In my opinion Wednesday will be the most volatile day and I expect it to be poor for Sterling.

Thursday – Overnight (Australian Unemloyment Rate) No huge changes to unemployment expected in Australia however as always expect the unexpected in this market!

09:00 – ECB monthly Report - The European Central bank will release their monthly report on Thursday morning, this will give an indication as to how they plan to deal with the economy in the coming monthand what has happened in the past month, we may see a hint as to whether or not we can expect another cut in interest rates as has been mentioned of late, if this is mentioned with an indication for next month, we may see Euro weakness following it.

Friday 09:30am – U.K Retail Sales (January) How well did the retail sector perform after Christmas, I feel the U.K tightened their belts during this period and it would not surprise me to see another poor start to the day for the Pound.

12:00pm Canadian Inflation data – The Bank of Canada release inflation data at noon, slight rise to 0% is expected and any change from this could lead to movements either way… again we do appear to be range bound against this currency however I feel that sub 1.55 is just around the corner unless the U.K can bring us an unexpected good week.

13:30pm U.S Inflation- Inflation time for the States to round off the week, personally I feel this won’t be a big one for the markets unless something major is thrown into the mix.

In short I think the Pound will find it tough this week, if you have a bank to bank transfer to make from sterling to a major currency or from a major currency to Sterling then contact me directly djw@currencies.co.uk to make sure you really are getting the best exchange rates for your transfer along with the highest level of customer service and efficiency. I look forward to hearing from you.

Since the turn of the year the pound has constantly weakened against the Aussie Dollar. With Australia pretty much recession proof compared to the ongoing issues in the UK the pound has weakened to a 27 year low against AUD.

Overnight the pound has finally seen a small gain of 0.7% against the Aussie due to pressure on the Reserve Bank of Australia (RBA) to cut its interest rates. This week the markets were expecting the RBA to cut its interest rates down to 4% and when they did not the AUD strengthened further.

Global events in Europe, China & the US has a massive effect on how the Australian Dollar performs. Investor sentiment can mean that the purchase or sell off of Aussies can move the rates quickly and vigorously in either direction. After all it is the investors risk currency of choice.

If you require buying or selling the Aussie Dollar to buy any major currency then you must keep a close eye on Greece and China. The more bad news that comes out of either economy and we should see Aussie weakness. This however is not set in stone. Australia’s biggest exports are to China and events in Europe help investors decide to increase or decrease their risk.

With current levels up at 1.4792 against the pound I can see a range bound of 1.46 up to a high of 1.50 over the next week. If you are buying Aussie Dollars with the rates of exchange so low you must make sure that you get the best return on your funds.

Here at www.poundsterlingforecast.com we will do everything we can to offer you our expert opinion on all things currency and challenge you to see if we can make you a saving on your exchange. Please contact me bma@currencies.co.uk to compare our rates with your high street bank.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used
someone else for years – Just like buying car insurance you need to always shop around. You can also email me directly bma@currencies.co.uk with any questions or queries.

I look forward to speaking with you.

Today was one of the busiest days on the trading floor this year and mainly due to the big decline in sterling exchange rates. When there is major movements in rates that is when we are at our busiest either helping clients decide to capitalise on a gain or stop their loss. The pound took a big
hit against nearly every major currency the day before the big interest rate decision in the UK & Euro Zone. All our regular readers will be well aware of what may occur tomorrow should the Bank of England initiate any further QE. The decision is at 12pm tomorrow so please keep in close contact with us so we can be your eyes and ears on the market.

Just as things had looked like getting better for the pound against the Euro spiking at 1.2098 a couple of days ago, sterling has crashed down to 1.1920 today. Euro exchange rates spiked against most major currencies bringing back better opportunities to sell your Euros to buy GBP or USD. We have been looking at events in Greece for days now wondering if they will find a resolution to cut their spending to the tune of 3 billion Euros which will enable them to get the desperatelyneeded bailout funds they require.

It seems that Greece has finally agreed to the austerity cuts but what will happen with Euro exchange rates? The issues in Europe are far from being over. To many countries are in too deep but this latest resolution will probably strengthen the Euro against a range of currencies in the very
near term. I do not see long term Euro strength and we may see the pound weaken to 1.17/1.18ish over the course of the next week and the USD to weaken to 1.34. I would then expect to see the Euro weaken to levels of 1.20+ against the pound and dip back below 1.30 against the USD.

If you are selling Euros to buy any major currency you may find that today’s agreement may bring that small glimmer of light for you to achieve that little bit more than what has been available over the last two months. Don’t let this opportunity pass you by. Feel free to contact me at bma@currencies.co.uk and we can look at your personal situation and see what options may be suited to your circumstances. In terms of the rate we will offer you please compare what we can offer you to your bank. We will do our upmost to make you a significant saving over your high street bank. Please call us to get a comparison rate.

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Good afternoon all, there are once again growing rumours that the SNB may be close to devaluing the CHF once again as it has been extremely close to their 1.20 benchmark against the Euro of late.

Last time the SNB did theis the Swiss Franc lost around 10 cents against Sterling in about an hour and has not recovered back since, so those of you earning your wages in CHF may wish to consider various options inclusive of a forward contract to lock in your rate of exchange for the coming year just in case this does happen.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have
saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting
up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop around. You can
also email me directly djw@currencies.co.uk with any questions you may have.

I look forward to speaking with you.

Good Afternoon,

The pound witnessed some excellent gains against the Euro today spiking at 1.2098 before dipping back down to 1.2054 at time of writing.

The main reason for the movement is mainly due to events in Greece. It seems that time is running out on Greece to implement their austerity measures and Greek politicians are arguing as to how to cut their public sector GDP by around 3 billion Euros. The politicians need to sign this off otherwise they will not receive the 130 billion Euro bailout package
that is due.

France & Germany have come out with very hard comments pressuring financially troubled Greece to quickly complete deals to cut its debt and impose more unpopular austerity measures.

For clients that need to buy or sell Euros now is a very tricky time. With the amount of uncertainty out there at the moment I would suggest if you are buying Euros to capitalise on the uncertainty and achieve some of the best levels we have seen for a year or so.

Today’s movement of nearly a cent from high to low goes to show that even the markets don’t know what is around the corner and if there is a resolution for Greece soon (In my opinion there will be) you should act quickly as the rate can drop very quickly once the pound has spiked.

With the interest rate decision out on Thursday if the dreaded QE does happen then sterling could easily dip below 1.20 once more. It was only a few days ago that sterling exchange rates hit a low of 1.1899. Don’t get caught out holding out for a little bit more to get your fingers burnt. Please feel free to contact me at bma@currencies.co.uk and we can discuss your requirement and the options that are available to you.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have
saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting
up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop around. You can
also email me directly bma@currencies.co.uk with any questions you may have.

I look forward to speaking with you.

The pound has continued its mixed performance according to on going international sentiments. I think it is fair to say that the poor state of the UK and its finances is hampering any kind of major comeback. On the data front the key market  mover will be whether or not we see QE this Thursday, but there is also a host of other data including Manufacturing and Industrial Production data as well as Trade Balance data. House price data this morning showed a small 0.6% increase in the last month according to Halifax, although they are down 1.8% on last year. Last weeks PMI data was generally positive but I think the underlying sentiments show that the UK is suffering. The recent run of not so bad data may mean any further QE is on the backburner for the time being however.

Against the Euro the pound is still touching the excellent highs seen for most of the year. Aside from the above data the key news story will surely be the outcome over Greece. I feel focus will be on not only Thursday’s QE decision but also whether or not the ECB cut rates on Thursday. There is definitely the chance of some big movements around this time as investors second guess the outcomes. It is worth noting that GBPEUR has been range bound at 1.19-1.2150 in the last month which is not massive when you consider the continued pressures on both currencies. We may well see the rate break out of this range this week depending on the outcomes of the above events.

Whichever way the market moves we can help secure preferential and commercial rates of exchange. For a full discussion of all the events affecting your trades please feel free to contact me direct on jmw@currencies.co.uk