Category Archives: Sterling strength

Where Next for Sterling Exchange Rates – Will the Pound Recover? (Matthew Vassallo)

The Pound has found life extremely tough going of late, with losses against most of the major currencies. This has been particularly apparent against the EUR & USD, with the Pound losing value in line with the current uncertainty surrounding the UK economy.

However, despite these losses it is not all doom and gloom for those clients holding GBP, as Tuesday’s positive spike for the Pound proved. Currency does not move in a straight line and therefore we will see opportunities for those clients holding GBP to take advantage of, even if a sustainable Sterling recovery is unlikely in the short-term.

Sterling has had a better week and the catalyst for the was Tuesday’s inflation data, which came out above market expectation. Whilst this spike cooled, the Pound was holding its position against the EUR & USD following the latest UK employment data and official Unemployment rate. Whilst the official figure of 4.9% came in as expected, average earnings were up and this should help to support Sterling’s position as we head into next week’s trading.

Thursday’s European Central Bank interest rate decision was something of a non-event but President Mario Draghi did elude to the fact that the central bank would extend the current monetary policy (QE) programme if necessary, news which is likely to help support the Pound around its current levels.

My overall feeling at the moment is that the Pound is suffering due to the unique situation the UK finds itself in and the uncertainty that corresponds with this. We will no doubt find out more information about how we will facilitate our Brexit and the trade deals that may be acquired and as each facet of this uncertainty is removed, the Pound is far more likely to gain enough support to drive its value up.

If you have an upcoming Sterling currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you 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 on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on


Buying Euro and Dollar rates set for further boost this morning (Joshua Privett)

Yesterday saw heavy drops and rises on GBP/EUR, GBP/USD and GBP/AUD, with buying Euro and Dollar rates impacted by the volatility caused by swinging commodity prices, lower than expected retail sales in the UK, alongside the highly anticipated European Central Bank interest rate decision and monetary policy statement.

There was very little change to the status quo in all three of the above market events, yet GBP/EUR and GBP/AUD in particular were swinging wildly to the news. This further highlights just how hypersensitive this current market is.

Nothing out over the past few days were suggestive of long-term trends, however, in the short-term some key indicators have been given.

Rates have been rising marginally following the flash crash which I’m sure all readers of this website would have noted 12 days ago. Given that this was an artificial fall, there is still room for rates to improve back to a level where the Pound’s value has more justification.

The further boost needed may come from UK public sector net borrowing figures this morning.

Despite all the fan-fare that in the wake of the Brexit vote the Government has abandoned its target to cut the deficit, public sector net borrowing figures are expected to fall during the month of September, which should further dispel the current narrative of ‘crisis’ when looking at the UK economy.

The news will be coming out at 9:30 am UK time, however, as early as the afternoon the Pound is likely to be coming under further pressure.

The phenomenon of profit-taking, which has been covered extensively by this website, has regularly and markedly impacted the Pound’s value heading into the weekend.

Traders at high street institutions are the actors who move the volumes large enough to affect the average buying rates have to choose a stable currency with which to allocate their currency into for the weekend to protect its value whilst they are away from their desks. For obvious reasons Sterling is very low on this list of stable currencies, and as such the total lack of demand for the Pound during this period sees its value cascade downwards.

As such, if you have a short-term requirement for buying Euros or Dollars, a window of opportunity is expected today and I am in a position to detail the options open to you to seize any tempting opportunities which emerge.

I recommend contacting me on 01494 787 478, and the reception team will put you through to Joshua if you ask for me directly. We can discuss a strategy aimed at maximizing your currency return.

Alternatively, you can reach me on if you requirement is slightly more longer term, but in this current market it is clearly prudent to plan ahead of time.

You can also fill out the form below and I will contact you as soon as I am able to.


Sterling exchange rate forecasts lowered once again, is now the time to act? (Joseph Wright)

I recently outlined forecasts for the GBP/EUR pair of 1.0922 – 1.1000 from Credit Suisse, and unfortunately now for those hoping for a Sterling recovery, the same bank has lowered their forecast to 1.0526, and this is based on a 3 month period.

The bank has also offered a price target for the GBP/USD pair of 1.1700, so I guess the bottom line is that they’re currently expecting further Sterling downside.

Despite these prominent predication the Pound has actually held it’s ground over the past couple of days after falling on almost a daily basis for almost 2 weeks after Theresa May publicly confirmed suspicions that the invocation of Article 50 will go ahead in March of next year.

The Pound fell because many had hopes for a ‘Soft Brexit’, but those hopes have now all but faded after May’s decision to begin the UK’s separation of the EU earlier than many had hoped.

The reason for the Pound staging a fightback has been some better than expected inflation figures from the UK which came out earlier this week. The figure came out much better than expected at 1% which puts the UK on track to reach it’s 2% target, but I do think inflation could get out of hand if the Pound continues to fall at such a fast rate.

Those planning a currency conversion which involves exchanging the Pound for another currency may wish to consider making that conversion sooner as opposed to later, because if the forecast from Credit Suisse as well from an increasing number of banks are to become true, the Pound has a further 6% or so to fall which equates to large amounts of money on the larger currency conversions.

If you would like to discuss timings and exchange rates, feel free to contact me on in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also get in touch by telephone on 01494 787 478, just ask reception for Joe.


Has the pound bottomed out? I wouldn’t bet on it…

With the pound finally finding some support after a very challenging couple of weeks a very valid question at present is whether or not the pound has now bottomed out. The first reflections following the flash crash which saw GBPEUR hit 1.09 and GBPUSD 1.18 indicated we would see a move lower to perhaps parity on GBPEUR and 1.10 on GBPUSD. Will this now start to materialise or will the rate gently rise as market spotlights focus elsewhere?

Sterling has dropped almost 20% on its TWI (Trade Weighted Index) since the Referendum vote. Billions of pounds of value of the UK economy has been written down as investors fears over the UK’s future relationship with its biggest trading partner manifest on the currency markets. Yesterday’s news on Unemployment shows the economy is still creating jobs, we finally saw some rises in Inflation too this week. A welcome knock on effect from the weakness of sterling versus the deflationary situation only a few months ago.

With the political developments remaining the big driver on sterling we have to be preparing for further losses for the pound. Whilst the Brexit seems to some of us like it has been going on for ages it has only been 4 months since the vote. When we step back from this situation and perhaps reflect on the vote in further months and years to come we will view now as the very infant stages of what is going to be a very long and drawn out process. In such an environment it is difficult to be overly positive for the pound and whilst we might have some small bounces like we have seen this week to help anyone holding the pound, I would not suggest this will be indicative of a move much higher in the short term. Buying on such spikes is I believe a very worthy strategy to avoid being caught off should we see further big challenges on the markets.

Key information for anyone buying or selling the pound comes this morning with UK Retail Sales and then in the afternoon today we have the latest ECB (European Central Bank meeting) where we may learn of any fresh approach by the Eurozone to manage their economy. Any suggestions on future policy direction may cause volatility on GBPEUR rates as well as GBPUSD since swings on EURUSD impact both of these pairs.

I wouldn’t be betting that the pound has now bottomed out since there are still many huge challenges ahead for the UK both politically and economically. The weak pound itself whilst helping Inflation could become more of a problem as it exacerbates the gap between wage growth and prices. I don’t think anyone voted for Brexit to be poorer and one way or another a chronically low pound does make the UK as a net importer worse off.

Sterling is enjoying some of its best news in October with some big improvements particularly against the Euro and US Dollar but it has improved by a small percentage against the Australian dollar and New Zealand dollar too. If you are making a transfer in the future understanding all of your options and the market in advance can really help you to make informed choices about when and how to make your currency exchange. I cannot tell you exactly what to do or what will happen but with nearly ten years experience helping private and business clients plan and manage their FX exposure in a friendly yet professional manner I am sure I can add value with a better rate and some sound analysis.

For more information please contact me using the form below or email directly using Ideally please leave a number so we can speak or please call me on 00 44 (0) 1494 787 478.

The author is Chief Analyst and Associate Director of the UK’s largest private currency brokerage with nearly ten years experience helping private clients and business plan and manage their FX exposure.

Will the Pound continue to fall this year, and what to look out for tomorrow (Joseph Wright)

It’s been an interesting couple of days for Sterling exchange rates as the currency has been undecided on its general direction of movement.

At the time of writing the Pound is actually down on the day against all major currency pairs such as the US Dollar, Euro and the Australian Dollar. Although throughout today’s trading session Sterling has spiked upward at times, offering clients the chance to book their trades whilst the exchange rate was quite considerably higher than it’s lowest point throughout the day.

The reason for the buoyancy towards the Pound this morning and at times throughout the day, is most likely down to the better than expected inflation figures yesterday which demonstrated a 1% gain in inflation over the past year, which is currently a healthy level although that could change if it gets out of hand due to the rapidly weakening Pound.

It’s on days like today whereby our clients benefit from the service we provide, as the monetary difference between converting currency at the bottom of the day’s exchange rate range, compared with the top of the day’s range can be huge when converting large amounts of currency.

We’re already in a position to improve substantially on the exchange rates offered by high street banks, but with our proactive service we’re able to often maximize our clients exchanges to their benefit.

There are a number of analysts from major institutions offering forecasts for the GBP/EUR pair of parity, which means they’re expecting the Pound to fall another 9% or so between now and in many cases, the end of next year. HSBC are perhaps the most prominent entity to make such a claim, so feel free to get in touch if you wish to discuss your options regarding this potential fall as there are methods of protecting yourself against such a fall.

Tomorrow is expected to be a busy day for exchange rates due to the raft of economic data releases, with the European Central Bank’s Interest Rate Decision likely to be the most prominent. Should there be a change to the 0% figure expected tomorrow by analysts, I would expect to see some substantial movement within exchange rates involving the Euro as well as many other pairs who’s performance is interconnected with the ECB’s monetary policy.

The ECB’s release is at 12.45pm which gives you plenty of time to get in touch beforehand should you wish. You can call me (Joseph) directly on 01494 787 478 if you wish to regarding the news release and our service. 

If you are planning to make a currency exchange involving the Pound, it’s worth your time getting in contact with me on in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.


What will affect the value of the pound this week?(Daniel Charles Johnson)

Pound Forecast

UK inflation data was released today and there were worries of a significant rise, which would have been negative for the pound. The Unilever-Tesco is a prime of example of more expensive imports causing inflation and this problem could become more wide spread throughout commerce as the true impact of the vote to leave the EU filters through.

There was a slight increase, but this was not considered large enough to warrant major problems for Sterling and as  result Sterling strengthened during today’s trading session. GBP/USD up to 1.23 and GBP/EUR at 1.11.

Keep an eye on events at the EU summit this Thursday and Friday as Theresa May is due to be grilled about how Brexit will occur. If there is any change in her stance expect the markets to react. Also on Thursday is the European Central Bank monetary policy statement and if Mario Draghi gives any hint to a change in quantitative easing (QE) increments expect volatility on GBP/EUR. There has been rumors that monthly QE increments would decrease, although this would be quite a surprise considering there has been no increase in inflation in the Eurozone.


With Hilary now clear favorite in the race the markets probably factored in a Clinton win. USD sellers should beware on procrastination however as Trump may well have a trump card up his sleeve to try and convert undecided voters. Political uncertainty historically weakens the currency in question so the green back could weaken as the election vote draws closer.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is crucial during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange.  Please do get in touch by contacting me at Thank you for reading.

Pound Sterling Forecast – A busy week ahead for Sterling exchange rates with lots of data out (Daniel Wright)

Sterling exchange rates are no doubt in for a busy and volatile week this week with plenty of economic data releases due out for the market to get stuck in to.

I have listed the main key releases below and what to look out for. If you click on the links then you will get a more detailed explanation of what each release is and how it may impact the markets.

For further information, a live quote to see if you can save money over your bank or current broker then feel free to email me (Daniel Wright) on and I will be more than happy to assist you personally. It still surprises me how many people contact me that felt they were getting a good rate with their broker that they had been using for years only to find out that they could be getting so much more through us, always make sure you check as it can make the difference of hundreds if not thousands of Pounds in your back pocket.

Tuesday, Oct 18

RBA Meeting’s Minutes Report

09:30 U.K (GBP)

Core Consumer Price Index (YoY) (Sep)

09:30 U.K (GBP)

Consumer Price Index (YoY) (Sep)

Wednesday, Oct 19
03:00 CHINA (AUD)

Gross Domestic Product (YoY) (Q3)

03:00 CHINA (AUD)

Gross Domestic Product (QoQ) (Q3)

15:00 CANADA (CAD)

Bank of Canada Monetary Policy Report

15:00 CANADA (CAD)

BOC Rate Statement

15:00 CANADA (CAD)

BOC Interest Rate Decision

Thursday, Oct 20

Employment Change s.a. (Sep)


Unemployment Rate s.a. (Sep)

12:45 EUROPE (EUR)

ECB Interest Rate Decision (Oct 20)

12:45 EUROPE (EUR)

ECB deposit rate decision

13:30 EUROPE (EUR)

ECB Monetary policy statement and press conference

On top of these releases we also have Unemployment data and Retail Sales data out for the U.K on Wednesday and Thursday morning and both of these may also have quite an impact.

How Sterling ends the week will really rely of two factors… How well U.K data comes out and what happens around the rest of the world.

Key focal point of the week is the European Central Bank and what they decide to do with their QE (Quantitative Easing). This will be released on Thursday afternoon and can lead to an extremely volatile exchange rate for GBP/EUR. The press conference shortly after by Mario Draghi (Head of the ECB) can also throw up some great opportunities for those looking to buy or sell Euros.

I personally assist clients that have the need to exchange large sums of currency either for their business, to buy/sell property or even for wages too.

My book of clients ranges from premier league footballers and large company directors Mr and Mrs Jones buying a retirement home in Spain and I always welcome new enquiries. Every individual is dealt with on a personal level and my main aim is to save you money when you do decide to book out your rate and also to try and help you time your exchange by giving you the market information you may struggle to get elsewhere, in simple terms.

Feel free to get in touch with me (Daniel Wright) directly by emailing me on and I will be more than happy to contact you to discuss the various options available to you.


Buying Euro and Dollar rates set for marginal improvements next week (Joshua Privett)

Boris Johnson hitting the headlines on Sunday isn’t expected to muddle the chatter on currency markets next week, with buying Euro and Dollar rates set to benefit from a focus on economics over politics.

There is a host of data sets coming out from both within the UK and outside of it, with the positive or negative nature of the information set to sway the value of the currency attached to that particular economy.

Whilst Boris Johnson’s comments are inflammatory they will not be deemed by markets to alter the current course of the Brexit. This has been the major guage used on how recent political news has affected the value of the Pound.

With big announcements coming recently, the deadline for Article 50 in March 2017, and the very public spat between Theresa May, Merkel and Holland about what a future agreement between the UK and the EU may look like, it seems as if most of the curveballs which could impact the Pound in the short-term politically have come and gone.

With this in mind, we may finally see some of the positive news coming out of the UK economy begin to register on the currency markets.

We’ve already seen some promising hints to show the UK economy is weathering the storm of the Leave vote relatively well.

Despite the news about ‘marmite-gate’ and the pricing pressures forced on the UK with a weak Pound, business confidence in manufacturing, construction and the financial service sectors are recovering and in some cases surpassing what was recorded last year.

Firstly on Monday we have Eurozone inflation data which is expected to come in poorly as it has done quite consistently for a few years now. Conversely on Tuesday the UK has their own inflation data, which is expected to show a healthier reading closer the Bank of England’s 2% yearly target. Combined both of these data releases could see improvements on buying Euro rates in particular.

Furthermore, employment and wage data for the UK on Thursday morning could provide the additional support needed behind Sterling to see some improvement on GBP/EUR, GBP/USD, GBP/AUD.

With this hypersensitive market, opportunities can develop and evapourate quite quickly, and it is important not to be ‘last to the party’ in these situations as the flood of people buying a particular currency will suddenly make its price rise.

I offer a very proactive service to make sure my customers with an upcoming buying or selling Euro or Dollar requirement remain well informed currency purchasers.

I have never had an issue beating the rates of exchange on offer elsewhere, and if you are not a regular reader of this website I recommend noting that you can pre-book your currency for a future currency transfer using a small deposit.

You can contact me over the weekend whilst markets are closed on or fill out the form below and I will be in contact as soon as I am able to to discuss the options open to you to safeguard your transfer and try to maximise your currency return.

Brexit Talks Continues to Drive Sterling’s Value Down (Matthew Vassallo)

Sterling’s value has been driven down since the UK’s decision to leave the European Union (EU), following our referendum vote back in June. Since then we have seen increased volatility on all GBP exchange rates, with particular attention being paid to heavy losses for the Pound against both the EUR & USD.

Sterling’s losses increased following UK Prime Minster Theresa May’s comments last week, where she stated that the UK would trigger Article 50 in March 2017. This will formally start our exit from the European Union and despite this announcement removing some of the uncertainty surrounding the situation, the markets reacted negatively and the Pound has once again found itself on the back foot.

GBP/EUR rates have dropped to some of the lowest levels seen in the past five years (1.1051), offering EUR sellers a fantastic opportunity to take advantage of the current dip. There is no guarantee that the current trend will continue and you could argue that many of the negative factors surrounding the UK economy have now been integrated, at least to some extent, into the current GBP/EUR exchange rate.

GBP/USD have also fallen through the floor, with the pair hitting 1.2130 at today’s low. With so much focus on the current election campaign in US and the focus on Donald Trump’s almost humorous ability to further unravel his fading hopes of becoming US President, many investors have turned away from a strong run of economic data, which has helped propel the greenback to its current highs. Whilst Sterling remains handicapped due to the current Brexit dramas, it is almost unheard of to see the USD trading close to 1.20 on the exchange and for this reason I would be looking to sell any USD positions and take advantage of the current rates.

If you have an upcoming Sterling currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you 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 on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on


Another Sterling negative headline pushes the Pound lower, will the Pound continue to reach new lows? (Joseph Wright)

The ongoing effects of the UK electorate’s Brexit vote is once again in the headlines this morning, and for very relatable reasons.

Tesco as it stands has fallen out with a major household product supplier called Unilever, who provide everyday goods. The reason behind the deterioration in their business relationship is due to the depreciating Pound pushing up the prices of a numebr of household goods.

As it stands customers are unable to buy a number a household goods online, such as Marmite, Hellmann’s mayonnaise, Pot Noodles, Lynx and PG Tips amongst other major brands.

Personally I think this could be just the beginning of a number of price wars created due to the Brexit votes effects, with petrol likely to gain in value also over the upcoming months.

Another major lender has announced this morning that they expect to see the GBP/EUR pair continue to decline over the coming months down to 1 for 1 and that’s at the mid-market inter-bank level. Many holiday goers are already experiencing these levels as a number of bureau de changes are already offering less than 1 Euro for a Pound as their rates are generally very uncompetitive.

There is little to no economic data out of the UK this week so we can expect to see headlines such as this mornings to continue to drive Sterling exchange rates this week, as has been the case for much of this year.

With our pro-active service we assist our clients with the timings of their trades daily, and we’re here to help clients trying to buy Sterling at the best possible rates of exchange also so feel free to get in touch if you would like to discuss exchange rates, your price targets or the markets in general.

If you are planning on making a currency exchange involving the Pound, it’s worth your time getting in contact with me on in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in and ask for Joe on 01494 787 478.