Category Archives: USD

What is happening to Sterling vs the Euro and will the Pound make gains? (Tom Holian)

Sterling Euro exchange rates have finished the week almost 3 cents higher than when the week first started.

Prime Minister Theresa May was rather bullish in her speech on Tuesday and claimed that she would seek parliamentary approval concerning Article 50.

With the Supreme Court decision originally due to take take place earlier this week this has now been delayed and the expectation is now for Tuesday morning. However, it appears as though the ‘horse’ has bolted with the PM already having spoken about the issue.

This shows that the power is still clearly with the government and it will be them who will ultimately decide when Article 50 will be triggered and this is what helped the Pound to make the gains.

However, I think investors and speculators will be looking closely at the announcement nonetheless and I think this is likely to cause volatility for Sterling exchange rates so if you’re considering buying or selling Sterling then keep a close eye on the currency markets on Tuesday.

Yesterday evening saw the inauguration of the new President of the United States Donald Trump and although this has yet been felt in the foreign exchange markets his rhetoric was extremely pro-US and bringing back manufacturing to the US.

However, this will clearly be very difficult to change in the short term so expect to see volatility for the US Dollar as next week commences and the US opens for business on Monday.

My prediction going into next week is for Sterling strength against the Euro but weakness vs the US Dollar.

My name is Tom Holian and I have been working in the foreign exchange markets for over 14 years for one of the UK’s leading currency brokers. 

Not only does the company I work for offer better rate of exchange than using your own bank but also I can help you with the timing and offer you various different types of contracts to suit your needs.

To find our more or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Will this sterling rally keep going?

The pound has had a very turbulent start to 2017 being pulled from pillar to post on all fronts. What started as a reasonably positive year as markets expected a quick Supreme Court decision to help lift sterling soon gave way to Theresa May attracting headlines over her hard Brexit approach. The roller-coaster continues next week with the Supreme Court case being released Tuesday at 09.30 am. Then on Thursday we have the latest UK GDP data. All in all a busy week, how will sterling react?

Most commentators expect the Supreme Court decision will lead to sterling strength as the court upholds the previous decision by the High Court to force Theresa May to seek parliamentary approval to trigger Article 50. My personal view is this will be the case and sterling could enjoy a very good start to next week. GBPEUR could hit 1.16-1.17, GBPUSD could hit 1.24-1.25, GBPAUD could hit 1.65-1.66. If you have a transfer to consider then making some plans in advance is well worthwhile to capitalise on the volatility. I do feel any spikes will be short-lived so if you need to buy a foreign currency with the pound making some plans sooner rather than later is the best way forward.

As the market has ‘priced in’ the good news the real risk here is if the previous decision is rejected. Most commentators have reported that this is the big risk, sterling is more likely rise than fall. but if it falls it could be a big all! We have learnt in the last few weeks that nothing should be taken for granted on exchange rates, things can change very quickly. The best way to limit your exposure is to make yourself aware of any pending exchanges you might have and we can monitor the market and offer you some practical assistance with the timing of your plans.

My name is Jonathan Watson and I have worked for nearly ten years helping clients buy and sell foreign exchange. Whether buying or selling an overseas property or paying foreign currency invoices I can help business and private clients. Even if you deal with another currency broker it is important to point out that all companies are not the same. I am very confident I can undercut any exchange rate you are offered from another currency broker as well as offer you some insight into the timing and planning of your transaction.

The one certainty to me is that pound sterling rates will remain volatile. I would be very interested to hear from you to offer some help with this volatility and help you to maximise your currency transfer. Please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you and assisting in the future.

Jonathan Watson

Exchange rates for buying Euros and Dollars hold onto gains with Supreme Court decision date released (Joshua Privett)

This nervous market has delivered something rarely seen in this post-Brexit landscape…rates for buying Euros and Dollars have held their value after a powerful day for Sterling on Tuesday.

For those unaware, Theresa May delivered a very measured and confident speech yesterday which received praise from global financial markets, shown by the massive buy up of Sterling which saw GBP/EUR, GBP/USD (in particular), GBP/AUD and GBP/CAD benefit. Sterling to US Dollars saw its biggest single daily rise since October 2008.

And what was the root cause? The fundamental point that was taken away from May’s speech, at least from a currency perspective, was that she was paving a course for the Brexit where Parliament was heavily involved.

Parliament is seen as a moderating actor. One which will delay rather than accelerate, and one which we urge caution rather than extreme measures. Whatever your politics the currency world has shown repeatedly that they wish to avoid a quick and hard exit from the EU, and this anxiety translates into a weaker Pound. Hence why this news caused the complete opposite effect on the Pound yesterday.

The fact that May took the time to say that Parliament will vote on any final deal with the EU is suggestive of continual consultation. Whether Parliament will be consulted on the triggering of Article 50, the beginning of the formal process to leave the EU, will be decided by the Supreme Court next Tuesday at 9:30am.

Given the line May took, and the fact that the heavy favourite is for the Supreme Court to uphold the initial Judicial Court decision in November, the Pound could see further improvements in the medium term.

However, Euro and Dollar buyers should be mindful that each weekend further political reactions can be expected to the Brexit. Not just from Theresa May but her European counterparts who have already expressed their own tough rhetoric. When she last discussed a hard Brexit GBP/EUR, GBP/USD and GBP/AUD fell by 1.2% as a collective average, and the very prominent example of when Hollande and Merkel said the UK’s aims were completely unrealistic, the October flash crash saw a 3%+ drop in all buying rates within a few hours.

The closer we get to March, arguably the more twitchy and nervous your will find this marketplace. Easily changeable, and with greater downside risk than positive improvement for foreign currency buyers.

USD buyers are the only ones who may enjoy greater variance in the forecasts, but that is because Trump is considered such a considerable wildcard.

As such the sensible option for anyone planning a transfer should be either to take advantage of the recent gains, or see next Tuesday as a final point of opportunity – as after this, there is little more to be decided until the official commencement of the process to leave the EU in March. Effectively this should create a ‘sweet spot’ of opportunity for Euro, US Dollar, Australian Dollar, and Canadian Dollar buyers before this period begins.

Sterling buyers, based on your personal timeline of course, do not seem to face the same degree of urgency, with the likelihood for a nervous market to produce sudden opportunities to buy the Pound fairly cheaply being quite high.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jjp@currencies.co.uk 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 speak to me directly on the phone by calling 01494 787 478 and asking reception to speak with Joshua.

Sterling’s Value Soars Following Theresa May’s Brexit Speech – Will This Trend Continue? (Matthew Vassallo)

Sterling’s value soared during Tuesday’s trading, following UK Prime Minister Theresa may’s speech regarding the UK’s Brexit.

This was her most detailed speech to date regarding how the government hopes to facilitate our exit from the EU, with Article 50 still scheduled to be triggered in March to start the formal process.

The Pound benefited from positive comments regarding a future relationship with the remaining EU states and made significant gains against all the major currencies.

GBP/EUR rates rose by over two cents with the pair now trading above 1.15, whilst GBP/USD rates gained over three cents at the high with the pair moving through 1.24, before retracting slightly this morning.

The markets have been left in limbo for months regarding how the UK economy intends to prosper following our exit, so yesterday’s more detailed plan will have come as a relief to investors who have been craving some solid information to work with. Personally, I don’t think the speech gave us a real insight into future policies but of course the noises being made were that the UK would create a stronger economy, which still had a relationship with our closest neighbours.

Theresa May did state that we would no longer be part of the single market but hoped for new custom arrangements with the remaining 27 EU states and that we would still contribute to the EU budget but wasn’t specific regarding how much.

All of this has led to increased investor confidence and the Pound has benefited as a result. This spike has flattened this morning and whilst the speech was certainly more bullish than many expected I’m not convinced it was strong enough for Sterling’s to continue its aggressive advance ever the coming days.

If I was holding GBP and had a short-term currency exchange to make I would be tempted to monitor the market over the coming hours, before making a decision on when to move. I still do not feel that the Pound will be able to sustain any aggressive move up against either the EUR or USD, with March’s timeline for Article 50 likely to handicap any major advances over the coming months.

We may find that investor confidence allows for a short-term improvement but if we start to see a snap back I would be tempted to take advantage of Sterling’s increased value, rather than gamble on what is still a very fragile and unpredictable market.

If you have an upcoming Sterling currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, 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 mtv@currencies.co.uk

Huge Sterling rally following comments made by Theresa May’s Brexit Speech (Tom Holian)

Sterling has gained by a huge amount against all major currencies following Theresa May’s comments made earlier today in her Brexit speech.

Although the Prime Minister has said that the UK can not remain in the single market as staying means that we will not be leaving the European Union she also went on to say that the UK would be looking for new trade deals elsewhere as well as trying to negotiate with our European neighbours.

Theresa May is still confident that the UK will trigger Article 50 by the end of March and that it would be parliament that will vote on the final deal due to be agreed between the UK and the European Union.

This is arguably one of the clearest moments since October concerning Brexit and one of the main reasons for Sterling’s improvement during today’s trading session.

We have also seen the Pound make improvements across the board after the losses that Sterling saw over the weekend against all major currencies.

However, although the Pound has made huge gains today the Supreme Court judgement is still due to come out and this could cause further volatility for Sterling exchange rates when the decision is announced.

The biggest winners of the day are those people looking to buy US Dollars with Sterling and with Donald Trump due to be inaugurated on Friday we have seen the Dollar weaken against Sterling by almost 3% or the difference of £3,000 on a currency transfer of £100,000.

We have also seen Sterling gain by almost 3 cents from the low to the high for GBPEUR exchange rates as it looks as though there is a clear intention to carry on the negotiations rather than cast ourselves adrift.

With all the uncertainty expected to continue in the foreign exchange markets it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date and avoid the risk of the market moving against you

If you would like further information about the process or for a live quote when buying currency then feel free to contact me directly.

Having worked in the currency markets since 2003 for one of the UK’s leading currency brokers not only am I able to offer you bank beating exchange rates but also help you with the timing of your transfer.

Tom Holian teh@currencies.co.uk

 

 

Major Volatility expected ahead of Supreme Court Judgement and Theresa May Speech (Daniel Johnson)

Supreme Court Judgement imminent

Today there are expected to big swings on the currency market. It would not be surprising to see the decision from the Supreme Court Judgement arrive before Theresa May’s speech at 11.45am. If it is not however, the PM’s speech will become even more important as she well have a good idea as to the outcome and her speech could give hints to investors. I think it is probable that parliament will get to vote on the triggering of article 50 and this should be seen as positive for Sterling as it would point toward a softer brexit. Temporary trade deals could be in place while new deals are negotiated.

If they do not get the option to vote on article 50 it would mean the UK could well be moving toward a hard brexit. This is what Theresa May is indicated is her preference. The current target for a full exit from the EU of two years would be even more unrealistic and the uncertainty surrounding the future of the UK economy would damage investor confidence considerably. Sir Ivan Rogers recently resigned from his position as UK ambassador to the EU stating the exit strategy is insufficiently planned and trade negotiations could take as long as a decade.

Theresa May to deliver Brexit Plans

Theresa May’s Speech commences at 11.45am and she is set to reveal plans for exit from the EU. It is expected that she will tell other European countries that the UK wishes to trade as freely as possible but she does wish to have a full exit, a further hint toward Britain leaving the single market. May stated during a Sky news interview last weekend she would be willing to sacrifice free trade in order to have control over immigration.

The speech will be watched very carefully by investors and high levels of volatility are expected. It is crucial to be in touch with an experienced broker in order to maximise your return. We have contract options available to suit your individual needs and can notify you of opportune moments to get the most from your transfer. If you already have a currency provider I will provide a comparison and I am very confident in showing you a significant saving. If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading.

Daniel Johnson

 

 

Sterling exchange rates drop to start the day only to recover – Theresa May to speak tomorrow at 11:45am (Daniel Wright)

The Pound had a bad start to the week, dropping against most major currencies in the Asian market session on Sunday night.

By the time we entered the trading floor rates had started to recover a little and U.K Manufacturing data released this morning helped to push the Pound back closer to where we saw it end last week.

Sterling really is having a rough ride of things lately and we are seeing multi month and even year lows against some major currencies. The GBP/AUD rate almost hit its lowest point since 2013 on Sunday night, giving those looking to bring Australian Dollar sellers into Pounds a great opportunity to repatriate their funds.

Now that the dust has settled on an extremely busy trading day we look ahead at what to expect tomorrow.. And it certainly does not look like a quiet one.

We have a flurry of inflation data out over the course of the morning for the U.k, with inflation expected to have risen ever so slightly. This is not a great surprise with the low value of the Pound and the Bank of England to have slight concerns over this so they will be looking to avoid the rise in inflation being too sharp.

The main event of the day will be Prime Minister Theresa may speaking about all things Brexit at 11:45am. Personally I feel we will just here more of the same comments that we have had come out from recent interviews but anyone with a currency requirement involving either buying or selling the Pound should still be poised and ready for action.

Investors and speculators alike will be moving off of every word and looking for any hints on what we are to expect so the market may be extremely volatile during this period and for the rest of the day.

If you are in the position where you are buying or selling a property overseas, your business moves funds between currencies or you have a foreign currency requirement for any other reason then it is key to keep a close eye on rates in the coming days, weeks and months ahead.

We keep our clients fully up to date with market movements and also assist with large foreign exchange transfers too. I created this site over 7 years ago to help people with market information but we also welcome new clients to assist with their money transfers on top of this.

Should you be in the position where you may need our service, you are getting rates from another broker that you don’t feel are the best or you merely want to have an efficient, pro active and friendly broker on your side then feel free to contact me (Daniel Wright) directly. You can email me on djw@currencies.co.uk with a brief description of your needs and I will be more than happy to get back to you. Alternatively feel free to call our trading floor on 01494 787 478 and ask for me (Daniel Wright) anytime from 08:30am until 18:00pm GMT.

Sterling Euro rates hit lowest point since November (Tom Holian)

Sterling Euro exchange rates have continued to tumble during the week with GBPEUR rates now at their lowest point to buy Euros since early November 2016.

The Pound has also fallen against all major currencies with big losses seen vs the US Dollar and the Australian Dollar.

The Pound has struggled as it appears, at least for the moment, that we could be facing a hard Brexit which means we may not necessarily remain in the single market which has sent shockwaves through the currency markets and therefore Sterling has fallen.

Personal debt per household has continued to rise and this means that with inflation also set to rise it may be difficult for the Bank of England to increase interest rates in the future as this could cause further problems and this has resulted in weakness for the Pound.

Indeed, Bank of England member Andy Haldane went on to say ‘interest rates are still very low, and are expected to remain so for the foreseeable future.’

On the continent the Eurozone’s leading economy Germany has announced strong economic data in the form of GDP which came out at 1.9% for 2016 which was better than expected.

As the Eurozone’s strongest economy this has led to the Euro strengthening against the Pound creating some excellent opportunities to sell Euros to buy Sterling.

Next week Prime Minister Theresa May is set to address the nation on Tuesday and hopefully we will have the announcement of the recent Supreme Court judgement coming soon.

However, MPs have been explicit in that they want Theresa May to clarify her position with regards the single market before any Brexit talks can begin.

With the continued uncertainty surrounding Brexit I feel there are further problems ahead for the Pound vs the Euro as well as other major currencies so if you need to send money abroad in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.

To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Sterling exchange rates still looking shaky as we await news on Supreme Court – On the plus side a trade deal with New Zealand may be agreed (Daniel Wright)

As most of our regular readers will be more than aware, Sterling exchange rates have had a pretty torrid time this week, with the pound dropping to its lowest point on a trade weighted basis since October.

We have seen Sterling almost drop below 1.20 on against USD, 1.13 against EUR, 1.60 against AUD, 1.70 against NZD, 1.20 against CHF and it is sat below 1.60 against the Canadian Dollar as I write this!

The uncertainty caused by comments from Prime Minister Theresa May over the weekend and during the week are still causing investors and speculators to remain shaky over the Pound, and economic data has not done anything to provide a backup like it has been over the past few weeks.

The key talking point now is just what will the Supreme Court decide to do? As previously mentioned this decision matters a huge amount not only because it will show us what the next steps will have to be for article 50 being invoked, but it will also more than likely lead to lots of MP’s having their say afterwards and every single comment has the potential to move the market considerably.

On Tuesday we also have Prime Minister Theresa May speaking about Brexit, which makes me wonder whether or not she is expecting to have a result from the Supreme Court before then, if we do then Sterling is set for an extremely busy week.

One positive for the Pound today was news that we appear to have all but agreed a trade deal with New Zealand, and it appears that this is ready to go as soon as possible after Brexit. A number of major economies are stepping forward and happy to do business with the U.K which is no great surprise to me.

More and more good news like this that comes out during this long winded process should only lead to the Pound getting stronger, we just need to get over the potential banana skin of the Supreme Court and Article 50 being invoked first.

If you are in the position where you need to carry out a large currency exchange either imminently or in the coming weeks and months then it is extremely important to have an experienced and proactive broker on your side. Most brokers out there will only try and convince you to buy or sell your currency as soon as possible but we are here to help you try and make the right decision for you.

Should you feel that I could be of assistance then I deal with both business clients and private individuals that need large currency transfers and would be more than happy to help you too. I created this site over 7 years ago and have helped thousands of clients that have contacted me save money over their bank or current broker.

All you need to do to make a simple enquiry is to email me (Daniel Wright) the creator of this site on djw@currencies.co.uk with a brief overview of what you need to do and I will be more than happy to contact you personally.

Sterling Exchange Rates Uncertain ahead of Supreme Court Ruling (James Lovick)

The pound is on the cusp of a very volatile and symbolic period. The Supreme Court ruling on whether UK Prime Minister Theresa May must consult Parliament is expected imminently and if it is not made this week then realistically it will be offered next week some time.

Considering how much is riding on this decision then I feel that the judges will want to move as quickly as possible in producing the outcome. This topic has been discussed at length on this blog but for me at this point in time the verdict will be the single largest driver for the price of sterling as we approach the end of March. The problem is that nobody know what the outcome will be which is why the markets are likely to react wildly.

Any clients looking to move a sizeable amount of currency in either direction would be wise to get in touch to be able to take advantage of the market volatility expected in the coming days. Those clients needing to sell Euros could potentially see a very good opportunity around the corner. Similarly those needing to sell Australian dollars may also see a win outcome on the exchange rates.

Should Theresa May win the appeal then the pound is likely to see a very sharp fall which may be seen over the course of a few days. A good few percent could be wiped off sterling’s value very quickly and it will dampen hopes of those opposing groups which are gathering momentum which are trying  to keep Britain in the single market.

Data is light for the UK today with no economic releases either today or tomorrow. Those client with a GBP USD requirement see a host of data this afternoon to include US jobless claims, import / export data and speeches from some of those policy makers on the US Federal Open Market Committee (FOMC). The dollar is also likely to be impacted by this latest mind-blowing surrounding President-elect Donald Trump which has supposedly been produced by Christopher Steele, the former British MI6 agent. The former agent is now on the run in fear and this story may have some mileage in it yet.

GBP EUR has seen a poor start to the year although things have stabilised marginally with a lift yesterday and another jump higher this morning taking levels for his pair 0.5% higher to 1.1550.

If you would like further information on buying or selling pounds and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk