Category Archives: USD
Buying Euro and Dollar rates took a further slide this afternoon as markets were gearing up for Mark Carney’s appearance in front of the House Treasury Committee.
Mark Carney is the Governor of the Bank of England, and given the recent shock to the UK economy, this currently hypersensitive market was approaching the news release with baited breath.
The bread and butter of what markets were hoping for was some kind of indication as to what the highly anticipated growth figures for markets on Thursday may reveal.
In the run up to the event a nervous market revealed itself, with falls recorded on GBP/EUR, GBP/USD, and most noticeably on GBP/AUD.
It seems that most investors in commercial markets were keen to relieve themselves of any risk ahead of the event itself so sold Sterling off in droves to protect themselves. Unfortunately, with Sterling’s value lowering through decreased demand, this hurt anyone with a private Euro or Dollar purchase.
As my Sunday post detailed this week was fraught with risk for anyone buying a foreign currency and we are already seeing this manifest on the exchange rates.
Thursday is the first look at UK growth figures since the recession, and whilst Carney gave little away in his speech today, we have learned a valuable lesson that markets are risking little this week. It’s likely in the run up to the news on Thursday we will be seeing similar drops on Sterling as markets avoid gambling on what will be an important data release for the UK economy.
My opinion has not changed and as such I strongly recommend that anyone with a buying Euro, US Dollar, or Australian Dollar requirement should contact me on email@example.com to discuss a strategy on how to protect your upcoming transfer from any adverse movements and maximise your currency return with what is available in this current marketplace.
I have never had an issue beating the rates of exchange on offer elsewhere, and as such a brief conversation could save you thousands on an upcoming transfer.
You can also contact me on the form below whilst markets are quiet overnight and I will respond to you as soon as I am able.
Flat start to the week for Sterling exchange rates but what can we expect as the week evolves? (Daniel Wright)
A fairly flat day for the pound against most major currencies so far today, with Sterling trading in a very thin range against Euro, Dollar, Australian Dollar and New Zealand Dollar exchange rates.
We have had very little economic data out of note today however there are a number of other releases that are worth noting as the week moves on.
Tomorrow we have two key speeches from both the Governor of the Bank of England (Mark Carney) at 15:30pm and Head of the European Central Bank (Mario Draghi) an hour later at 16:30pm. Both of these may lead to a volatile afternoon for Sterling and Euro exchange rates.
Many speculators and investors will be watching every word during both of these speeches for any hints to future changes in economic policy and the market will no doubt move around extremely quickly should any hint to new changes arise.
If you have an exchange to carry out and you would like to be kept up to date with the action then feel free to contact me (Daniel Wright) by emailing me personally on firstname.lastname@example.org and I will be happy to get in touch with you.
Late on Tuesday night we have a flurry of inflation data which will be interesting for anyone with the need to buy or sell Australian Dollars, especially with the market rate for GBP/AUD hanging around the pivotal point of 1.60. Expectations are for Australian inflation figures to remain fairly static however any result that differs from this may lead to a sharp movement overnight. There are ways to take advantage of overnight movements in your favour, most notably a limit order where you request that if a certain rate of exchange becomes achievable at any point 24 hours a day then your currency will be bought out automatically for you. This contract type is free to use with us and can be extremely handy.
The Dollar and New Zealand Dollar take centre stage on Wednesday with lots of data out from the States over the course of Wednesday afternoon and then import, export and trade balance data out for New Zealand later in the evening at 22:45pm – Again a limit order may be worth considering overnight if you are close to your target rate and do not wish to miss out should a spike occur.
Thursday will be important for Sterling exchange rates as we have GDP (Gross Domestic Product) or growth figures out at 09:30am and then later in the day Durable Goods and Jobless Claims data out for the States which will impact U.S Dollar exchange rates.
We round the week off with lots of data our from all over Europe which will impact Euro exchange rates and then U.S GDP (Growth) figures to wrap up the week which can have an impact on all major currencies as it has an effect on global attitude to risk.
On top of everything we have the U.S election which will no doubt keep the Dollar on its toes so we have a lot for the market to digest throughout the week.
if you have a currency exchange to carry out either now or in the coming weeks and months then it is well worth getting in touch with me personally. I can help you not only ensure you get a market leading rate of exchange but also that you get an extremely high and award winning level of customer service too. You are welcome to email me (Daniel Wright) directly on email@example.com which will take you merely two minutes to do and may save you thousands of Pounds in the future. I look forward to assisting you.
Will Sterling Euro exchange rates fall further owing to the Brexit issue and Article 50? (Tom Holian)
Sterling Euro exchange rates have had an interesting week with the Pound struggling to make gains even though inflation has shown a rise. Since the Brexit vote back in June Sterling has suffered badly against all major currencies and we are now over 20 cents lower against the single currency and I think we could further losses for Sterling ahead.
Some analysts at Credit Suisse have predicted that we could see GBPEUR rates hit 1.05 soon and GBPUSD rates hit as low as 1.10. The reasons for the predictions are down to the higher possibility of a ‘hard’ rather than a ‘soft’ Brexit.
Since the news that Article 50 will be triggered in March next year Sterling has plummeted against both the Euro and the US Dollar and even positive UK economic data is doing little to lift Sterling’s value. Recently both Bank of England governor Mark Carney and Ben Broadbent have both spoken about the value of the Pound and don’t appear to be too concerned. They have both spoken out saying that the Pound’s value is not their highest priority so to me this signals that we could see an interest rate cut when the Bank of England next meet in November.
Typically when a central bank cuts interest rates this causes the Pound to weaken and I would not be surprised to see this happen next month. Carney also recently spoke out about the previous interest rate cut and claimed that it was a good idea in the wake of the shock caused by the Brexit and therefore again I think we could see further intervention by the Bank of England.
With interest rates at historic lows in the UK the Pound is not offering its previous attractive yields and this is another reason for the decline in the vale of Sterling against the Euro and the US Dollar.
If you’re in the process of buying a property in Europe before Article 50 is triggered in March it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future. In the last month I have noticed a huge interest in my people buying forward contracts to avoid the uncertainty for Sterling in the months ahead.
Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you competitive rates of exchange when buying or selling Euros so if you have a currency transfer to make and want to save money on exchange rates compared to using your own bank or if you’d like further information then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
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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 email@example.com
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 firstname.lastname@example.org 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.
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 email@example.com 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.
Short lived Sterling recovery vs Euro and US Dollar owing to rising UK inflation levels (Tom Holian)
Sterling has seen one of its biggest gains against both the Euro and the US Dollar yesterday as UK inflation came out higher than expected. Inflation rose 1% in September up from 0.6% in August according to the Office for National Statistics.
Clothing rose as well as fuel and it could be suggested that the price of the weak Pound could have been a key factor especially when you consider how much GBPUSD exchange rates have dropped since the vote to leave the European Union.
The rise in inflation is the biggest monthly increase since June 2014 and if this trend carries on this could really have a longer term impact on the UK economy. Indeed, if inflation goes above 2% then this starts negatively affecting income in real terms and if the Pound vs Dollar rate remains this low or drops even further then this is likely to increase the cost of a basket of goods.
The Bank of England deputy governor has even said earlier this week that the central bank are not too concerned with Sterling’s fall and with the Bank of England due to meet next month I think we could even see an interest rate cut coming next month.
Therefore, I think yesterday’s recovery for the Pound vs the Euro and the US Dollar is likely to be relatively short lived as the Pound is being mainly driven by political influences caused by Article 50.
If you’re in the process of buying a property in Europe before the end of the year then you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the industry since 2003 I am confident not only of offering you better exchange rates than using your bank when buying or selling Euros but also help you with the timing of your transfer.
If you would like further information or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
Alternatively fill in the form below