Category Archives: USD

Where Next for Sterling Exchange Rates? (Matthew Vassallo)

GBP/EUR rates dropped during yesterday’s tradng, following poor UK Retail Sales figures. The expected figure of 5.4% was not hit, causing Sterling to lose value against most of the major currencies, in particular the EUR. This drop came after Sterling breached the 1.40 barrier earlier this week, once again providing EUR buyers with some of the best levels of the past 7 years.

Sterling’s positive move over the past couple of weeks was not expected when you consider the the uncertainty that was likely to be created by the UK general election. However the on-going economic difficulties inside the Eurozone, particularly in Greece, have not allowed the EUR to gain any sustained market value and this is why we are seeing the Pound trade at such attractive levels.

Personally I feel there is scope for the EUR to improve, especially when you consider its recent history and any UK media attention on Europe in the build-up to the election is likely to cause market uncertainty, which will not be positive for the Pound.

Looking ahead and with the latest Eurogroup meeting continuing today, expect issues in Greece to dominate discussions. Whilst scaremongering is rife at times like these, there is a very real threat that unless Greek finance minister Varoufakis presents a tangible list of reforms soon, then Greece will receive no further bailout funds from the IMF and it is likely they will default on their debts. If this does happen then their future participation inside the EU is likely to come under serious pressure.

GBP/USD rates crept back above 1.50 during Thursday’s trading despite the poor UK data mentioned previously. This move is certainly a positive one for the Pound, which for a time felt like it would be marooned under this glass ceiling for an extended period. The catalyst for yesterday’s spike could have been the weak US employment & Manufacturing data which came out under expectation and helped drive the Pound’s value back up. In truth it was fairly flat market for the pair yesterday but I expect this to change as we head towards the general election.

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 Spikes – Time to BUY with the Pound? ( Andrew Bromley )

The Pound had an incredibly strong trading day yesterday, following a positive outlook towards the UK Economy by the Bank of England. The Monetary Policy Committee (MPC) indicated that they weren’t too concerned about the low levels of inflation and subsequent rise in UK goods prices. Two ‘MPC’ members also indicated that their decision was harder this month to vote against an Interest Hike, with those comments providing the boost up to the 1.40s! I personally feel that this level is a bit ‘false’ given how close we are to the election. It is now only two weeks until the UK votes on potentially the government for the next 5 years!

If you are buying a currency with Sterling I’d strongly consider buying now. It is also worthwhile noting that if you don’t have the full funds available for your purchase (for example a property purchase abroad) then there are still options available to you. Feel free to get in contact using the details below – I’d be more than happy to run you through the mechanics of ‘forward buying’.

Those with a Dollar exchange will have been surprised with rates pushing back in to the 1.50s. I personally feel that this level is worth taking advantage of if buying the Dollar, with 1.45 / 1.46 being the target for USD sellers. The ‘Greenback’ is reacting heavily to interest rate speculation, with moves of 3 cents on average in either direction. I would be surprised if rates were hiked in July however one cannot rule it out – my personal opinion will be for a September hike.

The final currency trading heavily is the South African Rand. Levels are at their peak of 18.40 and wouldn’t surprise me if we hit 18.50. Many buyers are taking advantage so ZAR buyers should seriously consider their position!

As mentioned above, should you have an exchange requirement (now or in the future), please feel free to get in touch. Either email me AJB@currencies.co.uk or contact me directly 01494 787 478 (please quote this blog).

I look forward to hearing from you!

Andrew Bromley

How will the General Election impact Sterling Exchange rates?

How big an impact will the General Election be on sterling exchange rates? It could turn out to be quite a big issue as there is so much uncertainty as to the outcome. We generally expect the pound to fall in the run up to the election before rising after. Quite how much it will rise or fall is of course impossible to predict but I would not rule out movements of up to 5 cents in either direction.

You can protect yourself and capitalise from such volatility by utilising one of our many contract options:

  • Spot

Once the rate is fixed you need to get the money to us within a few working days. We arrange onward payment to the specified beneficiary oce all your funds have cleared. Internationally funds are sent via SWIFT – the fastest international payment method. Please contact me Jonathan on jmw@currencies.co.uk to learn more!

  • Forward

When you want a fixed exchange rate for up to 1 year.

You pay a small deposit to fix the exchange rate. Once the contract is agreed, regardless of market fluctuations, you know exactly how much currency you are buying. Perfect if you want to budget and protect yourself from market volatility.

  • Limit

When you have a target exchange rate and timing isn’t crucial

Placing a Limit Order means that when the market moves to your specified rate, our system automatically purchases your currency, letting us work as your eyes and ears in the market.

  • Stop

When you don’t want to trade below a certain exchange rate and timing is not crucial

You choose a lower limit on the price at which you are willing to buy. If the market drops to that level, you are guaranteed that you will get an exchange rate no lower than the one you specified.

I offer a personal service to highlight market movements and trends which might affect your rate as well. Even though you might not need to buy currency just yet please register so that we have a fully operational trading facility and I can quote live prices for you.

Making no plans and just hoping your rate will magically go up is one of the most common and costly mistakes clients make on foreign exchange payments. For more information on getting the best deals and making sure you know everything that  please contact Jonathan on jmw@currencies.co.uk.

Do you find our site useful? Why not use us for award winning exchange rates as well??!! (Daniel Wright)

Just to make you aware we have now had over 5500 people contact us through the site who have managed to get better rates of exchange than their current currency provider. If you are using one of the following it may be worth you getting in touch for a direct comparison:

Moneycorp, HIFX, World First, Smart Currency, UK Forex, Oz Forex, Foremost Currency, Foreign Currency Exchange, Currency Index, Currencies Direct, XE.com, Transferz, NZ Forex, Halo, Afex, Tor FX, Hargreaves Lansdowne and Transferwise. 

Not to mention Barclays, Lloyds, Natwest, HSBC, Yorkshire Bank, Clydesdale Bank, RBS, Halifax, Nationwide and pretty much all major banks.

We don’t only pride ourselves on a great exchange rate but also a really high level of service too, which you may find you are not getting to a high enough standard at present.

If you are using an online trading platform then make sure you get straight in touch, with an online platform you do not have someone negotiating on your behalf therefore generally do not receive the best rate of exchange you can.

We deal with bank to bank transfers ranging from one thousand Pounds to multi million Pound transactions for both private clients and corporate clients… We have a regular payments facility too which is free and can assist anyone with smaller payments to Europe.

The company we work for is FCA registered and Authorised as a payments institute and all funds are kept in client transaction accounts to give you peace of mind your funds are safe and secure, we have won awards both for our exchange rates and customer service and have now 50,000 clients under our wing. Anyone that contacts us through this site will deal with one of the authors, if there is an author you find particularly informative you can use them directly.

I have to say I am really proud as to how much this site has picked up over the past three years and it is thanks to my regular readers that it is as popular as it is today – Let me return the favour with exceptional exchange rates.

If you feel we could be of assistance to you as well, feel free to get in contact with me (Daniel Wright) the creator and main editor of this site  djw@currencies.co.uk or you can indeed fill in the enquiry form on this page and one of us will call you back.

You can also join our mailing list on this page too.

We look forward to speaking with you soon!

Exchange Rate Forecast – GBP USD EUR – When to BUY or SELL? ( Andrew Bromley )

US Retail Sales dominated the currency market movements today, coming in again lower than expected. Generally speaking the rates have been poor for the entirety of 2015, as bad weather on the East Coast hampered shoppers desire to head downtown to Macey’s!  The general overview for the Dollar is in line with the Interest Rate outlook. We may get further indication tomorrow at 7pm when the Federal Reserve releases its ‘Beige Book’. The Beige Book is a collection of essentially market sentiment from all Fed members, with some being a lot more ‘bullish’ (positive) than others. The key to the recent USD strength is on the back of Fed member ‘Lacker’s’ comments, as he feels that the economy could support an Interest Rate increase in June / July. I wouldn’t be surprised to see either another Fed member, or the Fed Chair Janet Yellen make a statement to the contrary. This could push GBP USD exchange rates up to the 1.49s – what I feel is the top of the current trading range. I feel that the next key limit for GBP-USD is 1.45 which is achievable with further positive market commentary.

On the other side of the Atlantic, Sterling holders are selling their positions quickly as the impending UK General Election will bring weakness. The overwhelming expectation is for Pound weakness as realistically we will see a ‘hung parliament’. This situation of no majority government is bad news for the UK with the pound likely to suffer. If I were buying a currency with Sterling I’d be moving sooner rather than later!

The Eurozone are STILL trying to sort out the Greek debt, with the proposal now for an amendment to the bailout. The Greek government are looking to repay the IMF (International Monetary Fund) loans as they are expensive, and then renegotiate the loans from the Eurozone. The Eurozone loans are at high rates of exchange as they were agreed at a period of more prosperity. Bringing the interest rates in line could provide a monumental cut to payments. Greece is the key factor for the Euro staying so weak – realistically EUR should have moved back closer to 1.30 as the UK goes in to Election mode. It is worth also paying attention to any announcements from the Swiss. In January we saw the largest peacetime currency move (for Major currencies), when the CHF-EUR trading peg was abolished. The Swiss National Bank have hinted at yet further change to policy – Euro sellers should pay particular note!!

If you have an exchange requirement, please feel free to get in touch. I can assist you in achieving award winning exchange rates, but also making available facilities to ‘forward buy’ your currency. For just a small deposit you can secure your entire exchange, helping large currency exchanges (e.g. house purchase) much easier to budget.

Andrew Bromley

AJB@currencies.co.uk

01494 787 478

 

Dollar Strength against Sterling (Tom Holian)

GBPUSD exchange rates have fallen below 1.50 over the last few weeks as rumours persist of an interest rate hike in the US.

Indeed, a couple of Fed members have suggested that this could happen as early as June which has seen the US Dollar strengthen against both Sterling and the Euro.

This is not good news if you have a currency transfer to buy US Dollars so it may be worth getting something organised over the next few days.

Over the next few weeks the UK general election will take place and with no party likely to from a majority we could see Sterling lose further ground as it is likely that we’ll experience another hung parliament.

When the same thing happened previously Sterling took a fall against all major currencies.

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

 

 

Currency Forecast – When to BUY or SELL USD / EUR – ( Andrew Bromley )

EUR Forecast

The UK General Election still realistically underpins the potential direction for the Pound. At times it does feel as if this is a political broadcast blog, however such is the potential impact from the uncertainty, it would be foolish not to provide a commentary!

A hung parliament is still very much the likely outcome with the Scottish Nationalist Party likely to be the key. The SNP look set to win the vast majority of Scottish seats (from Labour) and would probably be viewed as the most sensible party with whom to form a coalition. Although a coalition with the SNP would realistically mean another Scottish referendum, it may avoid an immediate withdrawal from Europe. This would be favourable for the Conservatives, who generally speaking are the most economically focussed party and fear leaving Europe would be catastrophic for the Pound. The main point that the Tories and SNP would need to thrash out would be the Trident Nuclear deterrent, with both parties very much in opposing camps! Cameron managed to get Nick Clegg to about turn on Tuition fees – will he turn Nicola Sturgeon??

If you are holding Pounds to buy a currency, I’d be inclined to move sooner rather than later. As noted above, Uncertainty and Volatility is guaranteed! Euro Buyers – Is it worth risking the current excellent levels chasing say 1.40? I don’t personally feel that we will see that level again for a fair while! The key data out for the UK today is a GDP Estimate at 15:00. This estimate (released by NIESR – The National Institute for Economic and Social Research) is pretty accurate and will give a good indication as to the strength of the UK economy.

USD Forecast

As bad as you forecast jobs and employment data (Nonfarm Payroll), the strong Dollar will make back it’s ground! This has been made brutally obvious as last weeks poor figures on Good Friday weakened to Dollar almost back to 1.50. However we are now back this morning in to the 1.46s. Minutes for the Federal Open Market Committee meeting indicated that some FED members still feel that a June Interest Rate hike is realistic, boosting the Greenback to current levels.

I have previously indicated that I feel 1.45 (and better!) is achievable. Therefore USD buyers may want to get in touch to make sure if favourable spikes are seen – you’re in a position to take advantage!

If you have any currency requirement, please feel free to get in touch. The direct line to the trading floor is 01494 787 478 (please quote this blog and ask for Andrew Bromley). Alternatively, email me AJB@currencies.co.uk

 

‘Luck shines most on those who have made preparation to grasp their opportunities’

Do you know who is going to win the election in the UK? Nor do I. But I think a hung parliament is looking more and more likely, this is something anyone considering buying or selling sterling should be very aware of. The pound is likely to fall in the coming weeks as uncertainty rises as to who will take the reign of the UK public finances. This is not a time to be sitting on the fence waiting for something to happen!

Moody’s the ratings agency confirmed yesterday that they view a UK exit from the EU more damaging than any uncertainty over just how the election pans out. As a client pointed out to me recently any uncertainty in the UK parliament may pale into insignificance when compared with some of the uncertainty in the Eurozone at the moment!

Simply put no one can say exactly what will happen. But from my experience of past events (the 2010 election and the Scottish Referendum) sterling is likely to fall before the event before rising after. However with the Tories pledging a referendum on Europe and Labour pledging to increase spending neither outcome looks good from a market perspective. It may be that sterling could fall further after the election or around the result as the parties scramble to get in bed with one another over important issues.

If you are considering a sterling transfer in the future the coming weeks may present at opportunity that does not return. Making plans in advance is the only way to limit your risk and help maximise your currency exchange. We offer a specialist proactive service to help you get the most from the market when transferring money overseas. This blog is intended to highlight important events and information in the market so that you can help minimise your risk through an informed decision.

To really get the most from our service speaking to one of our team or myself is recommended. I Jonathan Watson have worked as a foreign exchange broker for the same company for 6 years and am here to assist in the planning and execution of any international money transfer you need to make. I cannot tell you exactly what to do but hope to provide useful insight and a platform for achieving the most for your money. Even if funds are not required at this stage with plenty of uncertainty around, utilising a forward contract or a stop loss or limit order might be a good idea.

I am very confident I can show you a saving on the exchange rate versus other sources and also offer a friendly, knowledgeable service above any bank or foreign exchange broker. If you wish to learn more about the pound and just what to expect plus what you can do about the uncertainty up ahead please email me on jmw@currencies.co.uk

Other Currencies News

CAD – Unemployment data today at 13.30 has helped the current 2 month high the Loonie dollar is enjoying against sterling. In a nutshell the Canadian dollar is benefitting from an improved Oil price and overall improvements in their biggest trading partner America’s economy. The Loonie may well track further future projected improvements in the USD against sterling so anyone buying the Canadian dollar in the future might wish to make plans sooner than later.

AUD – The Reserve Bank of Australia decided not to cut their interest rate as expected helping the Aussie to strengthen against sterling. Expectations are for the RBA to make at least one more rate cut before the end of the year as they seek a weaker currency to help boost their exports.

ZAR – A general improvement in risk appetite and commodity prices has helped the Rand to rise against sterling, anyone selling Rand for the pound might want to move on any GBP weakness before the upcoming election.

No matter which currency you are buying or selling and when, please feel free to make contact to be kept up to date with the latest news and events which may alter your price. Whether a regular business buying currency or a private property investor looking at a one off international payment, I am sure I can offer you something of interest.

I look forward to hearing from you, please don’t forget to vote :)

Jonathan

FOMC Minutes show a split decision on rate hikes (Daniel Wright)

The latest set of Federal Reserve minutes from the last interest rate decision released this evening have actually shown that even the Fed are currently torn on when to raise interest rates.

An interest rate hike or more the timing of the interest rate hike has been key to the strength of the Dollar over the past few months with many major analysts expecting to see a hike this summer.

Now that it appears that the members of the Fed are actually quite split you would imagine that the Dollar may actually gain strength but at present it is still the best of the three majors.

With numerous problems within the Eurozone and a pending tight election for the U.K expected to hold Sterling back the Dollar is still well and truly holding ground.

Personally I expect this to continue however depending on the result of the election there is a high chance of a Sterling fight back should there be no major changes in terms of Government for the U.K.

If you have the need to exchange any currency in the coming days, weeks or months then it is key to have a proactive and efficient currency broker on your side for it. The company we work for has won awards both for our exchange rates and customer service so even if you are already set up with a broker it may be well worth you getting in touch with me directly and should save you money.

You can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of what you are looking to do and I will be more than happy to contact you personally. I look forward to hearing from you.

Sterling on the Rise (Matthew Vassallo)

Sterling has started gain some momentum again this week, following losses against both the EUR & USD recently. Despite GBP/EUR rates hitting a fresh 8 year high only a few weeks ago, the EUR had threatened to wipe out these gains, with a move back towards 1.35. However, as often happens the currency markets have proven unpredictable and Sterling has benefitted from better than expected UK service sector data this week, along with better than expected growth in the first three months of 2015.

However, all those clients expecting rates to shoot back above 1.40 may still be left disappointed as there is an on-going concern amongst investors that the upcoming UK general election will cause uncertainty in the markets and this could cause the Pound to weaken, a scenario the Bank of England (BoE) would likely support. Due to Sterling’s rising value against the EUR we have seen UK factory orders fall to a two year low, which ultimately means that our export industry is suffering. If this is not stemmed and we see the recent highs broken, it is likely the BoE will step in to try and control this, for fear of alienating our largest trade partners through an overvalued currency.

GBP/USD rates continue to trade below 1.50 and despite Cable rates moving back above 1.49 during today’s trading, I do feel this threshold will continue to protect the USD in the short-term. Whilst Sterling is performing well against both the EUR & AUD, the same cannot be said against the USD and it is interesting to note that both currencies mentioned have had huge economic difficulties to contend with over the past 12 months. It makes me wonder whether Sterling is actually as strong in the market as people believe, or if it is benefiting from the on-going negative circumstance that are handicapping the aforementioned currencies?

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 co0mpare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

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