Category Archives: USD

Sterling Continues to Benefit From Eurozone Uncertainty (Matthew Vassallo)

Sterling continues to benefit from the uncertainty surrounding the Eurozone, in particular the on-going economic downfall in Greece. Despite a deal being put in place we are already hearing rumours that Greece will not be able to meet its next repayment deadline in August, which if true is likely to throw the markets back into chaos again.

I do feel a general lack of confidence in the Eurozone is now so deep rooted that the EUR is suffering as a result. Its slightly ironic as GBP/EUR levels continue to trade near a 7 year high, not because the Pound is believed to be impenetrable but because investors cannot have any long-term faith in the EUR, whilst the Eurozone continues to be dragged down by individual member states. I do feel Sterling is over-valued against the EUR, possibly by as much as six or seven cents but until the markets can be confident that the Eurozone is once again moving forward together as a single entity, then the EUR will not be able to make any great strides against the Pound.

Eurozone data yesterday in the form of Consumer & Business Confidence was positive but this did little to help the single currency, with GBP/EUR rates moving back towards 1.43 on the exchange. We have a further key data out for the Eurozone today, with the latest inflation data and unemployment rate likely to cause additional volatility on GBP/EUR rates.

GBP/AUD rates have moved back towards a six and a half year high, with on-going concerns surrounding the Chinese economy hurting the AUD. Due to Australia’s trade links with China, any slowdown in this sector is always going to have a negative knock-on effect and with the Reserve Bank of Australia (RBA) committed to devaluing the AUD in order to boost exports, I cannot see any major turnaround for the AUD in the short-term.

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

Pound makes gains following growth figures this morning (Daniel Wright)

Sterling has had a fairly solid day against most major currencies after growth figures released this morning confirming that the economy had grown a little more than expected during the second quarter of 2015.

The U.K has indeed now seen 10 consecutive quarters of economic growth and chancellor George Osbourne has also commented that the economy is indeed ‘motoring ahead’.

This is great news for those looking to buy foreign currency in the coming weeks and months but also a little worrying for anyone with currency to exchange back into Sterling at some point soon.

Tomorrow is the next big point of note for the markets as we have the Federal Reserve interest rate decision due out in America at 7pm BST and this can have an impact on all major currencies as it has an affect on global attitude to risk. Should we even see the hint of an interest rate change coming up for the States the Dollar may gain strength and markets may well move around quite a lot overnight.

There are contracts that we offer that can help protect you from adverse market movements or to take advantage of a spike in your favour without needing to be available 24 hours a day. Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to have a no obligation and confidential discussion to explain how I may be able to help you.

Do you enjoy our market information? Just in case you were not aware then we can actually help you with currency exchange too! (Daniel Wright)

It has now been over 5 years that we have been consistently updated this site with market information and non biased forecasts on how we feel the Pound may perform against most major currencies in the future.

We now have over 100,000 unique visitors to the site and I thought it would make sense for me to remind you all that we can indeed assist you with currency exchange too.

All of the writers on this site including myself work for an award winning currency brokerage with a turnover of half a billion pounds worth of currency a year. So far we have had thousands of new clients contact us looking for a better deal than their bank or current broker and we have been only too happy to offer them both a better rate of exchange than than they have been offered elsewhere but also a much more efficient and proactive service.

If you transfer currency on a regular basis or you have a one off larger transaction to carry out either for your business or to buy an overseas property then it is well worth contacting us.

Feel free to fill in the form on the right hand side of this page and one of our friendly and helpful brokers will call you personally to discuss the various options available to you. We deal with transfers ranging from a few thousand pounds to multi million pound deals, we have tens of thousands of regular clients ranging from pensioners that live in France to Premier League footballers so can cater for anyone.

If you would like to speak to me (Daniel Wright) the creator of the site about a specific requirement then feel free to email me on djw@currencies.co.uk and I will be happy to get in touch.

Huge Volatility for Sterling Euro & USD next week (Tom Holian)

All three major currencies the Pound, Euro & US Dollar are all in line for a volatile next few days as the month draws to a close.

Already this month Sterling vs Euro exchange rates have hit their highest level since 2007 to buy Euros meaning that a currency transfer to send funds to Europe has become significantly cheaper.

UK GDP data is due out on Tuesday for the second quarter of this year and with the previous quarter showing growth of 2.9% I think this could cause Sterling to fall if the data is not as good as expected.

Indeed, with Sterling having been trading so high vs the single currency this will ultimately cause less demand for British exports resulting in problems for the UK economy so Tuesday’s release could confirm this prediction.

Arguably the biggest market mover for the upcoming week is the US FED interest rate decision on Wednesday evening.

There have been persistent rumours for months that the US will be the first major economy to raise interest rates and this is possibly why we have seen the Dollar strengthen over the last few days.

Indeed, if they do this is likely to see GBPUSD rates drop dramatically.

On Thursday the US announces Quarter 2 GDP figures so like with the UK release even if the FED doesn’t raise rates if the data is strong this is likely to give more support to the Dollar and convince the FED to do something soon.

Finally, on Friday the Eurozone announces Inflation data as well as unemployment which could see the week end with huge movements for Sterling vs Euro.

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 Drops Sharply Following Poor UK Retail Sales Figures (Matthew Vassallo)

Sterling has dropped sharply during Thursday’s trading following poor UK Retail Sales figures released this morning. With heavy losses against the EUR and most of the other major currencies, are we finally seeing the end of the Pound’s recent run?

This morning’s poor UK Retail Sales were certainly a shock to the system, following a run of positive UK data stretching back a number of weeks. The official figure of -0.2% growth was well below the expected 0.3% and immediately Sterling was hit, losing almost 2 cents from the high of this morning by the close of European markets. The question now will be whether this trend continues or are we witnessing another false dawn for the EUR? Personally I did feel the EUR was likely to find some support sooner rather than later and it may be that this morning’s poor UK data was the catalyst it required. With a deal now in place between Greece and its creditors we may find that GBP struggles to break back through the highs of last week. I’m not anticipating a huge slide for the Pound but EUR buyers may now look to secure their currency near the high and not risk any further losses.

GBP/USD rates have also dropped with the pair now floating close to 1.55 and it feels as though we are approaching something of a crossroads for the pair. With positive noises being made from both the Bank of England (BoE) and US FED regarding a potential hike in interest rates, I feel the markets are waiting for something more concrete form either central bank before making their next decisive move.

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@currnecies.co.uk

Poor Retail Sales see Sterling fall against both Euro & US Dollar (Tom Holian)

UK Retail Sales have fallen to 4% from the expected 4.9% in June as consumers bought less household goods and less petrol.

As the figures were worse than expected this has caused Sterling to fall against both the Euro and the US Dollar.

This was the slowest annual rate since September 2014 and as the difference was rather large we have seen Sterling fall by 1% or the difference of £2,000 on a currency transfer of £200,00.

If you read my previous article I predicted this would be the case as the previous figures for retail sales have been very high recently.

Later this afternoon the US releases Jobless Claims and this could cause Dollar weakness resulting in Euro strength.

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

 

 

Pound may surge in trading tomorrow morning if BOE minutes give a nod towards a rate hike (Daniel Wright)

Sterling exchange rates have the potential to creep up over the course of trading tomorrow morning as we have both the Bank of England minutes and the inflation report.

Interestingly enough the BOE are due to change the amount of meetings they have from 12 to 8 which I found out yesterday.

The key really will be how many members of the BOE voted in favour of an interest rate hike, should we have even one more member now in favour of a hike in rates then Sterling may rise off of the back of it as an interest rate hike is generally seen as extremely positive for the currency concerned.

If you have a currency exchange to carry out either now or in the future then it is well worth getting in touch with me personally. I can help you not only get a great rate of exchange but also with the timing of your transaction. Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to get in touch personally to speak to you.

Bank of England minutes tomorrow and all eyes on GBP/AUD rates (Joshua privett)

Overnight the minutes released by the Reserve Bank of Australia show a mixed view of the current economic forecast for the Australian economy.

While they hinted that increased employment had ‘put a dent’ in the chances for another rate cut, this was balanced out by negative views on the current state of the world economy. As such the Australian Dollar is now lower once the minutes revealed developments in Greece and China would influence future rate decisions.

After such a morbid view, inflation data to be released tomorrow morning must be positive to stop a complete slide on Dollar value.

Today is a quiet day for data releases, so markets are looking to the release of Bank of England minutes and interest rate decisions.

Recently Mark Carney, the Governor of the Bank of England, suggested that interest rates may rise at the turn of the year. This means we could see a change in the voting tally for raising rates tomorrow. This could bolster Sterling, yet the alternative (no change from the 0 out of 9 who voted for a rate hike last month) will do the opposite. It will show that Carney’s comments may be more bluster than concrete policy supported by the rest of the board, which could lead to Sterling weakness.

Call into the trading floor on 01494 787 478 and ask for Joshua to discuss how to take advantage of a specific economic event. A number of tools are available to help you buy at the high, or buy before the rates fall back to far to prevent any losses. jjp@currencies.co.uk

Pound Sterling Forecast – The week ahead… Economic data which may affect Dollar, Euro, Australian Dollar, Canadian Dollar, New Zealand Dollar and Pound Sterling exchange rates (Daniel Wright)

We have had a reasonably quiet start to the trading week but I thought I would take a look at what the rest of the week has to offer.

This evening we have the RBA (Reserve Bank of Australia)  meeting minutes from the last Australian interest rate decision. Any indication on future interest rate cuts or a change in fiscal policy may lead to Australian Dollar movement overnight. It has been Governor Glenn Stevens that has time and time again suggested he would like a weaker Australian Dollar and he is finally now getting what he has asked for. It would not surprise me to see comments from him that may make the Australian Dollar a little weaker.

The rest of the day tomorrow is fairly quiet all round however we have another late night release for those with an interest in Australian Dollars with a flurry of inflation data for Australian and then Glenn Stevens speaking shortly after.

Wednesday will no doubt be interesting and volatile for Sterling exchange rates with the Bank of England minutes coming out from the last interest rate decision in the U.K. Most important will be how many members of the BOE have voted in favour of an interest rate hike. Recent comments by Governor of the BOE Mark Carney have led to Sterling strength so another nod towards a potential hike may give the Pound a boost.

Shortly after this we have the inflation report and this can also lead to a volatile period for Sterling. This is released at 10:30am and I would expect a jumpy market during this period.

An interest rate decision is then the main focus later on which comes from New Zealand and then Thursday only really has Canadian retail sales figures to offer in the latter part of the afternoon.

Finally on Friday we have some manufacturing data for Europe throughout the course of early morning trading  rounded off with New home sales over in the states in the afternoon.

If you have a currency exchange to carry out either now or in the future then it is well worth getting in touch with me personally. I can help you not only get a great rate of exchange but also with the timing of your transaction. Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to get in touch personally to speak to you.

Why sterling will rise further!

The pound has gone from strength to strength in the last week as investors worst fears over Greece fail to materialise and the strong likelihood of the UK raising interest rates comes sharply back into focus. Markets and investors look for safe bets and it seems a fairly safe bet at the moment the UK will be one of the first leading economies to raise their base interest rate. Interest rates are a key aspect of any currency as the higher an interest rate the more likely it is that currency will strengthen. So for example if investors believe the UK will raise their interest rate in the coming months investors will buy into the pound expecting the value of it to rise in the future.

All in all there is a strong likelihood the pound will rise and rise particularly if the Greek affairs pass off successfully and UK data keeps helping show improvements. The strength of sterling was not even dented by news today that Unemployment had unexpectedly risen. This just shows how confident market participants are in the value of the pound so if you need to buy or sell sterling taking stock of this current forecast is I believe a very sensible move. For more information on all of your options please contact me Jonathan on jmw@currencies.co.uk

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