Pound closes in on 1.60 against the USD – How much longer will the stuttering against the Euro continue?

Brexit news: Is a move below 1.10 for GBP/EUR realistic

Sterling had a great day against the USD in trading yesterday and stayed fairly stable against the majority of majors.

We are around a five month high against the USD, however be aware we are now possibly going to find ourselves in limbo much like we have been against the Euro over the past few weeks stuck hovering just below and just above the 1.20 barrier. GBP-USD is now just below 1.60 and I fear we could see a similar pattern forming until we get a nudge one way or the other by means of an important data release.

Earlier this month 800 Eurozone banks brought €530bn from the ECB in the  “largest investment of its kind”. On the same day Mario Drahgi  the head of the ECB said the Eurozone had avoided a “major, major credit crisis” since this announcement the Euro zone has shown signs of stabilising and the Euro has strengthened by roughly 1% against the GBP.

The GBP/EUR exchange rate is one to watch as Europe  continues to show positive signs of stabilising, in recent years the Euro has  bounced back faster and stronger than expected against the GBP.

  • November 2008 rate 1.21, 1 month later GBP fell 15.7% to
    1.02
  • June 2010 rate 1.2251, 1month later GBP fell 4.3% to 1.1721
  • August 2010 rate 1.2250 3 months later GBP fell 8.7% to
    1.1184
  • Jan 2011 rate 1.2069 4 months later GBP fell 8.3% to 1.1057

The GBP hit an 18month high of 1.2157 high at the start the year and has  remained above the 12month average for more than 2months. Ask yourself how much  this type of movement would affect your business or  upcoming property purchase? If you have a currency transfer to carry out in the coming weeks or months either for yourself or your company then please do feel free to email me directly djw@currencies.co.uk with a brief explanation and a contact number and I will be happy to get in touch to assist you with both an explanation of the options available to you and my thoughts ahead of what is sure to be an extremely volatile market.

U.S GDP figures this week may lead to Sterling spike

The States seems to be the talking point this week with Federal Reserve Chairman Ben Bernanke Speaking on Tuesday evening about the economy which of course can throw up absolutely anything as we have seen over the past year or so.

Most importantly we see the release of U.S GDP (Gross Domestic Product) figures On Thursday at lunchtime if you are in the U.K. THis release can effect a host of major currencies and with the old saying on the markets of when the U.S sneezes the U.K catches a cold a positive release for the U.S may indeed benefit the Pound.

With China seemingly slowing down we have seen the Australian Dollar struggle over the past week or so and it wouldn’t surprise me for the AUD to have a volatile week once again. If you have a transfer involving either buying or selling the Australian Dollar I suggest you inform an experienced broker if you already use one, if you don’t and you have been just buying or selling when you see a good rate then maybe it is time you got some help on your side.

Feel free to email me directly djw@currencies.co.uk if you have a pending transfer to make and I will be happy to explain the various options available to you to either protect yourself from adverse market movements or to make sure you take advantage of a spike in your favour no matter what time of day or night.

As the week goes personally I feel that confidence is slowly creeping back into the Pound so we could have a fairly poitive week however as you are all aware, anything can happen these days!

Is the Pound about to make a major comeback? Sterling at best levels in 13 months…

tariffs and jobs data to impact Pound to Dollar rates

What could have been a very negative week has actually passed off
pretty uneventfully; in fact the pound has performed rather well. This may
actually be more a case of things being not as bad as expected rather than
genuinely ‘good’, but it is good to have slightly more positive tones
surrounding the pound. Well good if you are buying a foreign currency with
sterling. For those who are holding a foreign currency waiting for the right
time to pounce and buy pounds I foresee more challenging times ahead.

In the last few years the pound has
had a terrible run of form due to the financial crisis. With anaemic growth and
record lows on interest rates…

(if you are unsure about the impact of interest rates on a
currency’s strength please view my post here on our sister site http://www.eurorateforecast.com/2012/03/22/when-will-the-euro-strengthen-against-the-pound/)

….the UK and the pound have not
exactly set investors hearts on fire. But this may now be changing…

In the midst of the debt crisis in both America and Europe the UK
is being seen in a better light because of the coalition’s efforts to tackle the
UK’s own debt crisis. The government is largely on track to meet its own
targets and this has given the markets confidence. Yes Unemployment is still
high and there are worries ahead but it would appear to me that the UK is
standing itself in good stead for the future. Surprisingly enough the pound
gained in value towards the end of the budget and on a trade weighted basis,
the pound is the strongest it has been against a basket of currencies in 13
months. This could be the perfect time to book a forward contract to protect
your exchange rate. If you would like information about all your options please speak to me direct on jmw@currencies.co.uk – I always prioritise enquiries from this site! Let us look at the facts:

GBPEUR – Still
close to 18 month high buying Euros

GBPUSD – Nudging
closer to the 1.60 levels. Historically speaking (the last ten years) the
1.5-1.6 range is where the pound has always sat against the dollar.

GBPAUD – Currently
at the best levels we have had all year!

GBPNZD – Nudging
closer to the best rates we’ve had all year

GBPZAR – Having
reached a 6 month high against the pound, the South African Rand has weakened
and coupled with a strong pound is back 4.5% from these 6 month lows, in a
matter of weeks.

If you don’t see your currency here we can still help. Check with me on jmw@currencies.co.uk

Whilst there are certainly some challenges ahead it may be that
the worst for the UK is over. GDP figures released next week will be key to
highlighting to what extent, if any we are in recession – although we won’t
know officially until 22nd April 2012.

If you are selling a currency to buy the pound you are probably
seeing rates move against you as the pound continues to finds favour. Even with
the challenges ahead I cannot see the pound taking a major hit, particularly
when events in China are causing the Aussie, Kiwi and Rand to weaken. The
possibility of a European banking crisis appears to be under wraps for the time
being, but its presence is still concerning investors, hence the pound’s favour
as one of the more stable currencies.

If you have any currency transactions to undertake and would like
to find out more about how we can:


Book today’s levels forward for two years


Insert Stops and Limits into the market so your transfer does not
become more expensive than planned


Provide internationally recognised fully auditable
receipts for tax and proof of payment


Beat the banks and other brokers on exchange
rates


Provide information relating to your exchange
that can help make you aware of trends so you can maximise your trade, as well
as make sure your transfer does not become too expensive

Please feel free to make an enquiry on the right
hand side of the page or email me personally on jmw@currrncies.co.uk

We work for the UK’s largest independent
currency brokerage and offer a highly personal service to help guide you through the
transfer from start to finish. Whether you are totally new to the service of a
currency broker or already dealing with someone else, it is worth double
checking what you are doing and getting a second opinion. We have saved a lot of people a lot of money, and all because they made an enquiry here.

Thank you

The Budget and the effect it may have on the Pound

Once again the headlines are all about how much the British public will be poorer than ever over the coming year or tw, but as the Pound goes although I don’t feel it will rapidly strenghen in the coming weeks I do feel that the Pound will gather strength towards the back end of the year should things go to plan.

Of course this is by no means set in stone as all of you will know, predictions can go out of the window within a few days should we see a shock announcement to the markets globally(and there are indeed plenty of those around these days!)

People will no doubt be hit in certain matters with the budget and may gain through others, but the positive thing I am taking from it is that it does appear to support growth in the economy which in essence can only be good for those of you waiting for the Pound to strengthen before you shift your savings overseas to buy that dream second home.

I constantly speak with clients who have now emigrated to New Zealand or Australia and have spent the last year or two dripping over the proceeds of a house sale until the rates they saw when they were applying for their visas a few years ago come back.

Hopefully with the slowdown in China and numerous other factors we may see improvement for people in this positon soon…By no means do I think we will be back at 2 to the AUD or 3 to the NZD but I would not be surprised to see an improvement.

If you have transfers to make involving either buying or selling the Pound I can help you when it comes to getting the best exchange rates both in terms of having a knowledgable input and getting you the highest rate when you do decide to book your currency. Please feel free to email me if you would like me to help and you find my site useful. djw@currencies.co.uk

Sterling forecast for the week ahead – Pound spikes against Euro, Dollar and Australian Dollar

Key week for GBPUSD exchanges: Will GBPUSD get back over 1.30?
If you need to make a transfer into Euros now may be an excellent time as the pound made good gains last week and has climbed a little today!  The big market mover this week I would imagine is the BOE meeting minutes released on Wednesday morning at 09:30am. The minutes will give a detailed overview of the last interest rate decision and how the members had voted regarding interest rates and further Quantitative Easing. For those buying foreign currency you need to be aware, as any mention of QE potentially being reintroduced and we could see the Pound take a tumble one again however you just don’t know what is going on behind closed doors at present,
so this release presents a very interesting Wednesday morning of trading.We also have the budget due on Wednesday, again, we already know most of the details to be announced however much depends on how the markets and indeed investors view the announcement as a positive or negative thing for the U.K economy going forward.If you need to transfer funds over the next few weeks, let me know and I will keep you informed of market movements.  Even if you don’t have full availability of funds, you can reserve your rate for a small deposit with a forward contract. 
As mentioned above the mid-market rate has crept above 1.20 again for the first time in a few weeks. Many of you will be aware that for some reason the Pound does not stay above 1.20 for too long, in all honesty the greedier among us are usually the ones that miss out, so if you have a pending transfer it may be sensible to take a serious look at the options available to you. 
Once again a tricky one as Sterling Dollar predictions are changing almost daily. Much depends on global confidence and when the economic problems around the world do settle down the Dollar tends to weaken, making it cheaper to buy as we have seen recently. Should the Euro Zone and in particular Greece come back to headline news then it would more than likely lead to the Dollar strengthening back again.
 
Finally the mid market rate has battled back over the 1.50 barrier today albeit slightly and hopefully it will be there to stay, much depends on the Australian minutes overnight and of course news for the U.K on Wednesday. The recent growth forecast cuts from China won’t help the AUD and the ideal thing for AUD buyers tonight would be
potential future rate cuts mentioned for Australia in the minutes tonight.

 

If you have a pending transfer to carry out either buying or selling the Pound then do feel free to contact me directly by email me on djw@currencies.co.uk and I will be happy to discuss the options available to you along with getting you the very best rate of exchange in todays market.

Fitch warning hit the pound yesterday but sterling has reversed the trend against the Euro & USD today

Flash crash sinks Pound to US Dollar rates

There were no data releases to note of in the UK yesterday but the pound was hit by the credit rating agency Fitch
issuing a stark warning to the UK economy. They have not YET cut our credit rating but did revise our outlook from stable to negative. This was due to the UK having very little room to manoeuvre to absorb further adverse economic
shocks.

These economic shocks could come from Europe as we are such close trading partners or the uncertainty about spiraling
national debt. If this happens it could mean a prolonged period of economic stagnation and a decline in the state of the pound.

With the pound marginally weakening yesterday there are still some fantastic buying opportunities that do arise
during the day. Infact today we have seen the pound bounce back up to 1.2051 as a high. We can sometimes see a high to low movement of over a cent and if we know what your requirement is we can be your eyes and ears on the market to help you maximize any potential gains that may occur.

Looking into next week the budget in the UK could go two ways for sterling so if you require buying or selling Euros you may be wise looking at securing your currency before the weekend arrives. Please email me at bma@currencies.co.uk with your requirement and telephone number and i will call you to discuss all the options that are available to you.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking
here
and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop
around. You can also email me directly bma@currencies.co.uk with any questions or queries.

I look forward to speaking with you.

Is now a good time to buy your Euros

Sterling exchange rates have strengthened back up to 1.2009 this afternoon. This is an increase of over 1% from the low of 1.1868 that we witnessed this morning. Sterling started to increase against a range of currencies on the back of our trade deficit figures. Although our trade deficit widened from the previous month it was not as bad as what was expected. All this led to speculation that the UK may not fall into a double dip recession.

Over the last week or so you would have been able to see exactly how volatile the pound is. A movement from 1.1868 up to 1.2009 is a very good gain if you are looking at buying Euros. Over the last few years when the pound spikes it does not tend to hang around at the high end for long.

Tomorrow we have both the unemployment and claimant count for the UK. These two data releases that will hit the market in the morning can cause a fair bit of volatility for sterling. Be cautious as it would not surprise me to see the pound weaken back to 1.1950 or worse on bad data.

I have had lots of clients who are planning to buy Euros over the next 2-3 months enter into a forward contract this afternoon to give them the peace of mind that they know exactly how much their overseas property is costing them. They saw the pound significantly weaken yesterday and got very concerned. Today they feel a lot happier that they cannot lose anymore to bad exchange rates. If you are concerned about the state of the pound and worried about what direction the rates may head over the next few weeks then please feel free to email me at bma@currencies.co.uk and we can discuss if a forward contract may be suitable for your own circumstances and also discuss all the options that are available to you.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking
here
and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop
around. You can also email me directly bma@currencies.co.uk with any questions or queries.

I look forward to speaking with you.

 

Why trading online generally does not get you the best deal… For the sake of a free phone call you could save hundreds if not thousands!!

I have had an increased number of people get in touch with me through the site lately who currently buy their currency online through their existing broker, and whilst it is fairly straight forward and easy to do you must beware that it usually means you are paying a lot more than you should be for your currency.

In my experience, companies with online platforms tends to slowly stretch out their clients margins over time, so slowly that the client may not realise however if they do and call in to question the rates they are being offered then an IT error is usually blamed and rates are set back to their original tightness for a few months.

Along with this, when buying online you do not have anyone putting any work into the rate for you, therefore they cannot be getting you the best they can, here we actually put work into rates for our clients whether they are trading £1000 or £10,000,000 we treat every deal the same as a large amount of money to one person might be completely different to a large amount of money to another.

Simplicity is key too, you only need to provide onward payment details once to us too, we scan the details and keep them on file so quite simply one two minute phone call and your rate is booked, all you then need to do is organise sending us the money.

If you are currently using an online trading platform and want to check if you can get better rates, email me with your requirement and telephone number, I will aim to call you within 30 minutes (within U.K office hours 8am-6pm) so that you can compare and see jsut how much I can save you on each and every transaction you carry out. You can contact me by emailing djw@currencies.co.uk

Greece Defaults, ‘If you were looking at the current news and outcome of the agreed Greek bailout as a ‘gift’, perhaps you should also ‘beware’…’

As widely expected the Greek debt write off was agreed Friday but the nature of this ‘agreement’ has been viewed as a default by the ISDA (International Swaps and Derivatives Association) who oversaw the deal and Moody’s, the credit ratings agency. The lack of major movement seen on the Euro seems to suggest that markets have priced in the fact that Greece’s debts will not be repaid. Will this remain the case though? The major danger here is whether or not too much resource has been spent looking after Greece and not enough will be available to rescue Portugal, Italy, Spain or Ireland. Whilst French President Sarkozy claims ‘the problem is solved’, the Eurozone debt crisis and it’s affects on the markets may only just be beginning.

If you are considering undertaking any currency transactions, don’t get caught out by events beyond your control. Speak direct to one of our team on the contact form or me direct jmw@currencies.co.uk to find out more about all your options following this historic event.

What can we expect for the pound this week?

The uncertainty still ahead for the UK is reflected in the lack of clear trends on sterling rates at present. Unemployment is the main release for the pound this week on Wednesday and could easily cause a sterling slide. Unemployment has been a major issue for the coalition government and with Lib Dem support for coalition measures being questioned ahead of next week’s budget, we could see sterling confidence fall. If buying Euros with the pound you are still at close to an 18 month high and with the ECB’s LTRO (Long Term Refinancing Operation) and the Greek deal agreed I would not be surprised to see the rate remain under 1.20 for the week ahead.

Buying Dollars?

US data continues to impress! Non–Farm Payroll that came out Friday showed continued improvements in the US economy but there are still concerns at what lays ahead. As Oil prices have increased some have warned of pressures on the US recovery. Petrol prices in the UK rose to an all time high last week and events in Iran and the Middle East are still tense. The US dollar will move according to investor’s attitudes to risk and current trends and worries over the pound make me think we may well see a move towards the 1.55 mark this week. Key will be Wednesday’s Federal Reserve Interest rate decision and comments post decision.

The South African Rand’s 6 month high against sterling reflects in some respects a return to confidence. We are approaching the same levels at which the Rand majorly weakened back in autumn following a major sell off of the Rand on Greek fears. The Rand responds well when global confidence is high and the Greek bailout being secured has helped the ZAR strengthen by 12.89% in 6 months. The Rand is one of the most volatile currencies so if you need to make a Rand trade, speak to us today to ensure you don’t suffer if we see sharp movements one way or the other.

Dealing with us is completely free and at no obligation. Our contracts options allow you to forward book today’s rates for up to two years, and insert stops and limits into the market to make sure your exchange doesn’t become too expensive. We can help secure the very best rates from the market and work with you to make you aware of all the issues surrounding your trades so you can make an informed decision.

If you need to make a currency transfer and are unsure about what lies ahead we can help with our unbiased and free service. If you have any questions whatsoever feel free to contact me directly on jmw@currencies.co.uk

I look forward to hearing from you

What may happen to the Pound today? Interest Rate Decisions and Press conferences to be key – U.S Dollar data tomorrow with Non Farm Payroll Data

US/China trade war escalates

Interest Rate Decisions – What may happen today?

Today sees the release of interest rate decisions for both the Bank of
England and the European Central Bank at 12:00 and 12:45pm respectively.
Although no change in interest rates is expected, the key for the two will be
as follows:

Further QE for the U.K? All eyes will be on Quantitative Easing when the Bank
of England release data at 12:00pm. For those that have followed the markets
over the past few years you will be aware that even the mere mention of QE
(essentially printing and injecting more money into the economy) tends to weaken the Pound. Last Wednesday the
Pound saw great losses as the BOE mentioned in the minutes of their last
interest rate decision, that more QE had been discussed and indeed two members
of the Monetary Policy Committee had voted for more QE than we actually did
receive, suggesting more may be just around the corner.

ECB Mario Draghi Press Conference – Following the ECB rate decision this afternoon the
markets will no doubt be dominated by the ECB press conference and what plans
‘super Mario’ has to tackle the various problems Europe has to deal with. We
can see quite wild swings during this, the mention of another cut in rates may
be Euro negative and a confident stance surrounding Greece may be seen as Euro
positive. If you have an upcoming transfer to carry out involving buying or
selling the Euro, you should contact me on djw@currencies.co.uk so I can make you
aware of any changes to exchange rates either positive or negative for you.

U.S Dollar Forecast and Non-Farm Payroll Data due tomorrow

The Sterling Dollar rate of late has been
a bit of a rollercoaster for those with a Dollar interest be it buying or
selling, and to be honest with the ongoing European debt problems and investors
not knowing what may be going on behind closed doors this rocky ride is sure to
continue. In times of uncertainty investors tend to look for a safer haven, one of which is the USD.

Tomorrow we also see the release of U.S
Non-Farm payroll data at 13:30pm and this release can be just as important as
an interest rate decision as predictions by analysts in advance can be wildly
incorrect, and with the market moving in advance on rumour as well as fact, a
stiff market correction can happen fairly rapidly, affecting all major
currencies. My personal opinion is that the Dollar will continue to strengthen
in the short term whilst problems in Europe are still rife, and we will be
closer to 1.55 than 1.60 by the end of the week.

If you have a transfer to carry out before
then end of the week email me directly here djw@currencies.co.uk and I will call you back. We have a series of different contract types to
assist you ranging from forward time options, to stop loss and limit orders,
feel free to get in touch for a full and straight forward explanation as to how
these options work.

New Zealand Interest Rate Decision

Last night the RBNZ kept interest rates on hold as
expected, however due to a positive outlook on the economy over in New Zealand
due to an increase in Private sector Consumption and an uptick in wage growth
has indeed opened the door for a potential interest rate hike in the next few
months. A hike in interest rates is generally seen as positive for the currency
concerned and merely speculation of this could continue to strengthen the NZD
in trading this morning.

Selling property overseas?

If you are one of the thousands of Brits looking to sell your overseas property
then you will be well aware that the European property market isn’t an ideal
playground to be in at the moment. Here at PSF we try and assist our clients in
every way we can and we have recently re launched our property website www.propertyline.co.uk . For more
information on how to advertise on this site for free please contact your account manager or if you do
not have an account then email me djw@currencies.co.uk
for further information.

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