Category Archives: USD

Sterling exchange rates – Stable against Euro, rising against Dollar, Australian Dollar, New Zealand Dollar, Swiss Franc and Canadian Dollar! (Daniel Wright)

Sterling exchange rates have remained fairly stable against the Euro over the course of this week, despite news from Greece and the QE program introduced by the ECB (European Central Bank) last Thursday. Many had expected the Euro to continue to fall but as ever the Euro has managed to just about stand firm following an initial sell off.

The Pound has had a fairly positive few days against most other major currencies gaining some ground back against the Swiss Franc most notably after a fairly dramatic few weeks.

We have very little left to come out in terms of economic data for the U.K for the rest of the week however you should be wary of tonight’s Federal Reserve interest rate decision over in America as it may alter global attitude to risk and could have an effect on all major currencies so it really is one to watch out for.

Also, Governor of the Bank of England Mark Carney shall be speaking just before this and although no bombshells are expected this could lead to market volatility this evening.

If you are looking to carry out a currency exchange and you want to not only achieve a better exchange rate than your current supplier but also an award winning personal service then feel free to contact me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to call or email you back.

Best Rates of Exchange – Exchange Rate Forecast – Andrew Bromley

The Pound has had a busy day today with a fair movement seen between day high and low against most currencies.

The key news today for the Pound was the UK GDP figure. Although a slight reduction against Month on Month and Year on Year was seen, the Pound has remained strong against the Euro and several other key currencies. This has highlighted not only the weakness of the Euro, but the state of other weak currencies. That being said, a watchful eye should be cast on the reducing timescale until the UK General Election.

Euro – When to BUY or SELL?

The Single Currency has been the victim of three major fallouts – The Swiss National Banks removal of their 1.20 EUR-CHF trading peg, Eurozone Quantitative Easing commencement and the Greek Election. The Greek election and subsequent triumph of the EU Sceptic ‘Syriza’ party has the potential to really put cracks in to the stability of the Eurozone as a whole. Syriza we a very popular choice for the Greek people, who feel that the excessive austerity measures need to change. Therefore the Syriza plan to re-negotiate the bailout by the ECB (Eurozone Central Bank) and IMF (international Monetary Fund) was a major factor to their success. This however is not something that Angela Merkel (German Chancellor) is keen on and has the propensity to force the Greeks out of the Eurozone entirely. Although this is a worst case scenario, it is a very real situation that the markets have yet reacted fully to. If you are buying Euros in the Short term (0-3 months) I’d be inclined to get exchanged prior to the UK General Election and whilst the rates are at the 6 year high.

Australian Dollar Forecast

The Australian Dollar has lost several cents in several trading sessions! The AUD is loosely linked to the US Dollar and investors attitude to risk. When the US Dollar is seen as the place to have your money, commodity currencies (Australian Dollar, New Zealand Dollar, South African Rand) tend to suffer. It is also worth noting that the Reserve Bank of Australia meet early next month to agree their monetary policy, and as the Reserve Bank of Australia have indicated on many occasions that the AUD is overvalued in their eyes (Most notably governor Glenn Stevens), we may be close to seeing 2 AUD to the Pound again.

If you have an exchange requirement, please feel free to get in touch. There is a huge amount of volatility currently, so using the market to your advantage (and not disadvantage!) is trickier than usual! Drop me an email AJB@currencies.co.uk or call direct to the trading floor 01494 787 478 to discuss. We have assisted over 70,000 clients, won exchange rate awards from the Sunday Times and Telegraph plus been trading for 15 years!

I look forward to being of assistance!

Andrew Bromley

 

Greek elections lead to further Euro weakness – Dollar breaks 1.50 (Daniel Wright)

Greek elections show Syrizia victory – Further Euro weakness

Well we have certainly seen an extremely busy start to the year as far as the currency markets go and this weekend did not fail to add to the drama.

Yesterday Greece voted in favour of the far left group Syrizia who have been saying throughout the campaign that they would aim to re-negotiate the Greek debt package. On top of this they have also suggested even looking to leave the Eurozone which would cause even further problems  in an already stumbling economy.

What this brings is yet further uncertainty to the Euro both politically and in an economic sense which can tend to weaken a currency fairly significantly.

If you also consider the fact that it was only last week that the Eurozone introduced a huge QE (Quantitative Easing) plan then it is absolutely no surprise at all that the Euro has found itself well and truly out of fashion and has weakened significantly this year against Sterling and the Dollar.

As it stands it would cost almost £8,500 less to buy €200,000 today than it would have cost at the turn of the year which is certainly nothing to be sniffed at.

If you are looking to purchase a property overseas this year and you want to take advantage of current buying levels then there is a great option available to you known as a forward contract. This useful contract option allows you to lock into a rate of exchange for anything up to a year in advance, paying merely a small deposit initially and then the balance on or before whichever date has been agreed, this is absolutely vita if you are working to a fairly tight budget. Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk with a contact number and I will be more than happy to call you personally.

Dollar breaks 1.50 – Antipodean weakness

Trading on Friday also saw Sterling drop through the 1.50 mark against the Dollar and I personally would not be surprised to see this run continue. In times of global uncertainty the Dollar can quite often become the main benefactor and it appears that this is happening again.  On top of this the antipodean and perceived ‘riskier’ currencies (AUD, NZD and ZAR) are starting to weaken off again.

With Europe finally showing huge cracks appearing and more uncertainty than England’s batsmen in the cricket, along with terribly sad news over the weekend that Islamic state have now potentially killed a Japanese hostage  there is a huge shift in global attitude to risk so a flight to safety to the Dollar is well and truly underway.

GDP figure for the U.K due out on Tuesday

Apart from the fallout from one of the most important weeks in the history of the Euro one key piece of data for the U.K is due out on Tuesday morning at 09:30am. The release is our GDP (Gross Domestic Product) figure for the last quarter of 2015. GDP basically measures how much an economy grew or shrank during a specific period and expectations are for the quarter to have shown a slight drop from 0.7% to 0.6% so any change to this may lead to an extremely volatile day for the Pound to add to what is lined up to be an exceptionally busy week.

How has QE affected Sterling Euro Rates (Tom Holian)

Sterling Euro exchange rates have this week hit their highest levels in 7 years as the ECB announced a huge amount of QE.

The ECB has confirmed that it will pump in EUR60bn per month until at least September 2016 in an attempt to combat deflation across Europe.

The stimulus was expected but by how much was not revealed until Thursday afternoon. However, it was not the announcement itself but the press conference that really took hold of the currency markets.

Indeed, Sterling rallied against the Euro by over 3 cents from Thursday morning until Friday afternoon creating the best level to buy Euros for 7 years.

With the surprise movement by the Swiss National Bank over a week ago and a movement of 30% on the CHFEUR rate it came as no surprise that the ECB had to do something.

EURUSD exchange rates are now their lowest level in history as of Friday and this has helped to push GBPUSD exchange rates below 1.50 on Friday afternoon’s trading session and my opinion is that this could fall even further.

UK GDP figures are released on Tuesday morning and with the previous measure showing 2.6% any marginal fall could put paid to Sterling’s recent strength against the 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

 

 

 

 

More is lost through indecision than a poor decision!!! Sterling at multi-year high against the Euro and multi year low against the Dollar (Daniel Wright)

Good afternoon and what a crazy week once again on the trading floor!!!

A very quick update from me as we are currently busier than we have been in a number of years!

The Euro has fallen well and truly out of fashion this week with thanks to the QE (Quantitative Easing) program bought in yesterday.

QE is generally seen as a negative for the currency concerned as we have seen previously with the U.K and U.S so this may weigh heavily on the Euro in the coming weeks.

The Dollar managed to briefly break the pivotal 1.50 level today and is now poised just above the 1.50 mark and I would not be surprised to see it potentially break through it mand offer a trading price of 1.50 at the start of next week.

If you are looking to buy foreign currency and you want the very best exchange rates then feel free to contact me directly and I will be able to not only save you money over your current provider but also ensure you get an exceedingly high level of customer service too.

Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to assist you personally.

 

 

Sterling Euro hits new highs (Tom Holian)

Sterling Euro exchange rates hit their highest level in 7 years today as the ECB confirmed a new round of Quantitative Easing this afternoon.

The ECB has confirmed that it will buy bonds worth EUR60bn until September next year and maybe even longer is things don’t work out as expected.

As of March the new programme will begin and this is aimed at helping the struggling Eurozone.

With the Eurozone being affected by very low inflation the change in monetary policy was inevitable as predicted in my previous posts and I think they could have even gone further than today’s announcement.

The target level for inflation is 2% and they are well off at the moment. Indeed, EURUSD exchange rates are now the lowest in history and fell by 2% during today’s trading session. GBPEUR rates are now the highest in 7 years.

The scheme has seemingly worked in the UK and US and both economies are looking relatively strong in recent times.

The idea in principle is to create more lending into the economy which in turn will get consumers spending which promotes growth. However, I think we’re a long way off before the Eurozone gets back to the required growth levels

If you would like to take advantage of these current highs on exchange rates then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Anticipation in the Markets Ahead of ECB QE Decision (Matthew Vassallo)

The markets are waiting with bated breath ahead of today’s latest European Central Bank (ECB) interest rate decision and monetary policy statement. Whilst the general consensus is that the ECB will keep their base interest rate on hold, it is widely anticipated that the ECB will initiate a series of Quantitative Easing measures in order to counter the Eurozone’s recent deflation.

A report leaked yesterday has indicated they may inject up to 1 trillion EUR. This will be broken down into 50 billion tranches each month, running up until December 2016, almost double the initial estimate. Whether or not this will have the desired effect only time will tell but it will certainly be one of the biggest decisions made since the Eurozone group was first initiated.

ECB president Mario Draghi will outline the ECB’s plans during his address this afternoon and it will be interesting to see how the markets react to this. Personally I feel this decision has been factored in so I do not anticipate a major spike for GBP and it is interesting to note how yesterday’s Bank of England (BoE) minutes indicated there were no longer any members voting in favour of a UK interest rate hike. This decision has likely dampened expectation of a rate rise this year and this is likely to control the Pounds value as investors see this a s a key economic decision.

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

Sterling exchange rates – Potential drop tomorrow morning to be aware of! (Daniel Wright)

Following on from an absolutely crazy end to last week the markets are starting to settle down again for Sterling against most major currencies as all eyes now appear to focus on what the European Central Bank will do on Thursday.

Talk of what may happen next with the ECB (European Central Bank) has been constant since the turn of the year and this may be the reason that the Euro has dropped off quite a lot against most major currencies.

The next key piece of economic for anyone either buying or selling the Pound in the coming days is the Bank of England minutes and U.K unemployment data, both due out tomorrow morning at 09:30am. Unemployment is expected to come out at  5.9% so any change to this may lead to volatility for the Pound. The minutes may be of greater interest as they will show what was discussed at the last interest rate decision and also how many members of the Bank of England voted in favour of or against an interest rate hike.

For a long period of time we have seen two members of the bank of England voting in favour of a hike and seven members against, and now that it is hard to see interest rates go up in the U.k this year you do start to wonder if one of the two members that were in favour of a hike now may have changed their mind?!

With an interest rate hike (or the mere speculation of it) generally being positive for the currency concerned if one less member is in favour of one then we may see the Pound drop in value against all major currencies.

If you are looking to carry out a currency transfer in the near future then I would be surprised if I could not get you a better rate of exchange than you are currently being offered along with a smooth and efficient service. If you feel that the site has been of use to you then feel free to email me (Daniel Wright) djw@currencies.co.uk directly with a brief description of what you are looking to do and a contact number and I will be more than happy to contact you personally.

 

 

Swiss Franc causes panic on the currency markets (Tom Holian)

The Swiss Franc experienced movement of 30% against the Euro on Thursday as the Swiss National Bank decided to remove their capped exchange rate on CHFEUR. This caused huge panic on the currency markets with global investors not knowing where to place their funds.

With the European Central Bank likely to intervene with monetary policy on Thursday we could see huge movements on currency paris such as Sterling vs Euro and Sterling vs US Dollar.

The Swiss bank cut interest rates to -0.75% which having now set a precedent could even see the same for the ECB which would in theory have a big weakening effect on the single currency.

Sterling Euro rates are the highest now in 7 years creating some excellent buying opportunities for those needing to make a money transfer to Europe.

In my opinion I think the ECB could do something unexpected and therefore I expect to see a huge amount of volatility this week for Sterling exchange rates.

Falling inflation is the big problem for Europe so the ECB needs to do something and with rates for the Euro against Dollar the lowest now in history I think things could get worse for the single currency.

Bank of England minutes are due out on Wednesday and if there is any change to the previous got of 7-2 in favour of keeping rates the same we could see some movement for Sterling Euro.

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

 

 

 

GBP/EUR Rates Hit 7 Year High! (Matthew Vassallo)

It’s been an extremely volatile 24 hours for the Pound, following yesterday’s decision by the Swiss National Bank (SNB) to discontinue their minimum exchange rate of 1.20 against the EUR.

This caused a huge shift in the markets with GBP/CHF rates moving by over 30% during the day’s trading! It also had a knock on effect for GBP/EUR rates, with the Pound gaining further momentum against the single currency and moving up through 1.30 to a fresh high. This momentum has continued today with GBP/EUR moving above 1.31, providing EUR buyers with the best rates available in the last 7 years.

This morning Eurozone inflation data was released and came out slightly worse than expected, which has helped facilitate today’s rise for the Pound. Moving forward it does seem as if the EUR will continue to come under pressure but I do believe we will see the Bank of England (BoE) step in if this trend continues, as the rising value of the Pound will cause some concern as it could alienate our trade partners, in particular the Eurozone.

GBP/USD rates continue to float in the low 1.50’s but the Pound has found some support around 1.51. I still feel longer-term a move below 1.50 is likely. However, with US Retail Sales figures coming out lower than expected earlier this week, we may find the Pound is supported above 1.50 for longer than we initially anticipated.

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

This site is protected by Comment SPAM Wiper.