Category Archives: Sterling strength

UK GDP Figures Released This Morning (Matthew Vassallo)

UK Gross Domestic Product (GDP) figures were released this morning and the figure of 0.7% growth came out as the market expected. We’ve seen a dip for Sterling against a basket of currencies and many investors are now trying to gauge whether this is just a short-term loss, or something more significant.

The Pound has struggled for the most part this week and it does seem as though its momentum has halted, after weeks of positive moves in the market. I still feel it is likely to find support around the current levels, as we have seen a steady run of economic data emanating from the UK for some time. However, whether we will see it recover all of the recent losses against the USD & in particular the EUR, is difficult to gauge under current conditions.

With the uncertainty surrounding Greece still hanging over the markets, despite the recent debt deal being agreed, we may have to wait to see how the situation develops there before the next major move is made. Any further negative developments are likely to push the Pound’s value back up but personally I feel it will struggle to move back above 1.40 unless there is another breakdown in negotiations.

We also need further confirmation of whether the Bank of England (BoE) will raise interest rates sooner than the markets expect, again news that if confirmed is likely to benefit the Pound.

We’ve seen Cable rates drop below 1.54 this morning and again it does seem as if the USD is winning the battle at present, due to the likelihood that the US FED will raise their interest rate before the BoE does. GBP/USD rates have remained fairly stagnant over the past couple of months and I cannot see a major improvement for Sterling unless the BoE surprise the markets with a rate rise in the last quarter of this year.

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

US GDP figures strengthen the Dollar and weaken the Euro (Tom Holian)

Sterling Euro exchange rates have once again rebounded today following the positive news from the US GDP data.

The figures showed growth of 2.1% compared to the expected 2% and annualized growth coming in at 3.7% compared to 3.2%.

This has seen the USD strengthen vs the Pound by almost 2 cents and with Dollar strength this often results in Euro weakness which is what has happened throughout this afternoon’s trading session.

It appears as though the havoc wreaked by China over the weekend and early this week has now dissipated and the global stock indices are all now looking more healthy compared to the start of the week.

The positive growth from the US could add more pressure to the Federal Reserve to raise interest rates as they have always stated it is data dependent but I still do not think we’ll see any change in monetary policy next month for the US.

The UK releases its own set of GDP data tomorrow morning and if you’re worried about what may happen to your Sterling Euro currency transfer then feel free to email me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

China shares rebounding helping Sterling (Joshua Privett)

The roller-coaster seems set to continue following the rout from the stock markets at the start of the week. Chinese shares have finally rebounded, and closed the day at 5% higher after massive losses just 3 days ago. However, the recovery is relatively minuscule compared to the losses suffered already.

With returning confidence to the stock market, and also with assurances that China’s slide has stabilised for now, the USD has rising against Sterling, dropping GBP/USD to 1.54 as UK trading opened.

GBP/EUR is a more interesting story. The Euro inflated its value rapidly as the capital from the mass sell off of stocks entered the single currency as one of the cheaper ‘safe haven’ options. This drove up the value of the Euro, and now investors are selling their Euros off, making staggering profits, and buying stocks at dirt cheap prices. More proof that there’s always money to be made, even in a crisis. But this sell off is hurting the value of the Euro in the short term, causing rates to gradually climb back up.

Those with Euros to sell in the next few months, it is unlikely that this situation in China will be helping you to the same degree within this period. This is still the best time to be buying Sterling with Euros since May, and a similar timeline for US Dollars. Call me on 01494 787 478 to receive tailored advice based on your situation and the allotted timeline for your transfer, and if your need is pressing I can also supply a free quote. jjp@currencies.co.uk

The Calm after the Storm (Daniel Johnson)

After “Black Monday” it seems some sanity has returned to the markets. The Global Economy is far too reliant on the Chinese. Growth figures are down considerably for China which is having a huge impact. Particularly on New Zealand and Australia who are heavily dependent on raw material export to the Chinese. We are now seeing new record highs for GBP/AUD and GBP/NZD.

Although we are now seeing some stability, I think there is still a massive risk to Global Markets with a slump in Chinese growth, It could well be the tip of the iceberg. I read in some detail of deep issues caused by shadow banking and fraudulent export data coming out of China. Their figures could well be distorted and now we could be starting to see the cost of this distortion. The race to become the world’s largest economy could take its toll on everyone. Question is are they too big to fail?

Each individual currency requirement at the moment requires serious thought and knowledge of the economic climate. This is when an experienced Currency Broker can really help to maximize your trade.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Chinese impact on the pound! Will sterling keep falling now?

The Chinese impact on sterling exchange rates has been fairly pronounced with exceptional volatility on the stock market and also the pound. Essentially the worries in China have stoked fears that the UK will not be raising interest rates any time soon, perhaps for years! This has weakened sterling as investors seek alternative investments with their money. The volatility in the market is truly exceptional as everyone awaits China’s next move which could very easily tip the scales one way or the other. I expect the pound is going to continue to suffer and that anyone who needs to buy a foreign currency with the pound should move sooner rather than later.

What happens next will be largely determined by the Chinese who are key to making an impact on financial markets. If you wish to buy or sell the pound please get in touch with us to learn more about the latest forecast. Economic data has been quite positive for the pound in the last month increasing expectations the UK would raise interest rates. However the latest Chinese developments have really upset this balance presenting an amazing opportunity to buy the more risky currencies such as the Rand, AUD and NZD.

We are currency specialists here to assist in the planning and execution of your currency transfers. If you wish for a quote please fill in the form and we will be in touch immediately to work with you to help you get the best deal. Please contact me Jonathan on jmw@currencies.co.uk to learn more.

A little less action today – Markets still on a knife edge (Daniel Wright)

Well I think it is safe to say today saw a lot less volatility for Sterling exchange rates following one of the most volatile days I have seen in the past ten year over the course of yesterday.

Opportunities were there to be taken for anyone looking to sell Euros, buy Australian Dollars, New Zealand Dollars, Canadian Dollars or South African Rand and by the end of play the best rates had already been missed.

This just once again went to show just how important it is to have an experienced and proactive currency broker on your side if you are looking to buy or sell foreign currency in the coming weeks and months. I spent the entire day going through my list of clients that have shown an interest in these currencies and saved a lot of people a lot of money on their exchanges, especially those that are too busy to watch exchange rates yet had been waiting on that spike in the market to convert their Euros back into Sterling.

Tomorrow is another day and I think with China bubbling away you need to ensure you either have an extremely close eye on the market or that you have some sort of protection in place.

We offer various contract types including limit orders, stop loss contracts and forward contracts to help protect you from adverse market movements or to take advantage of a spike in your favour.

I would love to add you to my ever growing list of clients so if you have a currency exchange to carry out over the value of £20,000 please feel free to email me (Daniel Wright) the creator of this site and I will be more than happy to contact you personally to explain how I can help. You can email me directly on  djw@currencies.co.uk with a number to call on and a description of what you are looking to do and I will be in touch.

After Black Monday – what can we expect on Tuesday?

Sterling rates were in as much chaos yesterday as the financial markets. GBP/EUR had fallen 2.71%, whilst GBP/AUD had increased 4.1% – a difference of 9 cents on the rates in a single day of trading.

Black Monday, the mass sell of of stocks as markets reeled from a suddenly obvious slowdown in China (a massive contributor to global growth), caused a huge amount of capital that was previously held as securities being released; which either had to go into alternative investment or remain liquid in a currency of their choice.

Most of this capital fled into safe-haven currencies such as Sterling and the USD. Yet, strangely, the lion-share ended up in the Euro which is not traditionally considered a safe-haven.

The great lengths the European Union, European Central Bank, and particularly the German Parliament have gone to recently to bolster the stability of the Euro -financially and politically- have made it more attractive to investors as a currency to move to when taking cover from an explosive stock-market. Another cherry on top is that the Euro is still historically incredibly cheap.

So I think we can expect Sterling to make gains today against commodity currencies such as the CAD, AUD and NZD, albeit unlikely to the same degree. But GBP/EUR may fall again as well. Chinese stocks fell another 4% already and UK markets have only just opened.

We are currently in an incredibly precarious position on the currency markets. It is the best time to sell Euros since May when Sterling weakened on the expectation of a hung-parliament. I strongly recommend that anyone with a currency requirement call in to 01494 787 478 and ask for Joshua. We will know more as the day goes on and I can keep you up-to date once we establish initial contact, and give you tailored advice on your situation. I am happy to supply a free quote and guarantee to beat any rates offered by banks and competing brokerages. jjp@currencies.co.uk

 

Euro strength at present – What is causing the current level of strength?

We have an exceedingly busy trading floor here today so I thought I would direct you all to my most recent market report on the Euro which can be found by clicking here.

This report should explain just what is causing Euro strength and how long we may expect for it to continue.

For news on the Australian Dollar and how the Chinese stock plunge is having an impact click here

 

Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk if you would like any further information.

Chinese Issues cause Euro Strength against Pound Sterling and US Dollar Exchange Rates (Tom Holian)

Sterling Euro exchange rates ended at their lowest level for many weeks at the close of business Friday as the problems in China impact upon global currency markets.

The news from China was not good as initially they devalued the Yuan and then posted some very poor data for business activity and manufacturing, which means the US Federal Reserve are now less likely to raise interest rates in the US in September.

With the currency markets having previously priced in an interest rate hike for the US this now means without an imminent rate hike we have seen a huge amount of Dollar weakness which often results in Euro strength.

This has created some excellent selling opportunities for Euros into Sterling after a very difficult period for the single currency.

Greece has now also received its third bailout of EUR 86bn which was ratified by the Germans on Wednesday and since then we have seen further strength for the single currency.

Next week the Eurozone’s largest economy Germany publishes GDP figures and this could either help to push the Euro even stronger or fall against Sterling if the data is worse than expected.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Sterling on the Slide! (Matthew Vassallo)

Sterling has taken another hit during Friday morning’s trading, following on from yesterday’s losses. GBP/EUR rates have now dipped below 1.39 on the market and the Pound is now trading 5 cents lower than it was a month ago.

We have seen the EUR gain support following news that the German government had ratified the Greek debt deal. This has been viewed as a positive step in trying to secure Greece’s future participation in the Eurozone and the EUR has benefitted due to this new found confidence. Personally I am sceptical as this is not the first time we have seen a  false dawn for the EUR, only for market sentiment to switch and the Pound regained its position very quickly.

We also had poor data for the UK in the form of the latest Retail Sales figures and this also dragged the Pound’s value down. Moving forward and whilst I do feel Sterling will struggle to move back to the highs we saw a month ago, I do expect GBP to find support around the current levels in the short-term. Whether this Greek deal is actually sustainable only time will tell but if I had EUR to sell I would certainly be considering my position following the positive move we’ve seen.

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

This site is protected by Comment SPAM Wiper.