Sterling Strengthens on Strong Economic Figures

The UK had strong inflation figures yesterday which gave the pound a boost as it suggest further Quantitative Easing is unlikely and that we may even see an interest rate rise at the back end of the year.

Today we have had low unemployment figures for the UK, which has led to the pound gaining almost 0.5% against the Euro USD and Japanese Yen. With national debt figure out tomorrow for the UK, this could be a short lived spike.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

Volcano and grounded planes – will they affect the Pound?

GBPEUR rate remains steady as markets await the Autumn Budget

Grounded planes and stranded Brits – We wanted cash not ash from Iceland!

Without doubt the biggest story in the news over the past few days has been the grounded planes in Europe and the amount of Brits stranded and businesses struggling off the back of it.

It is clearly going to take quite some time to sort this mess out, and there must be a huge amount of businesses that have suffered greatly let alone the aircraft companies that are losing millions on a daily basis. This in my opinion is now big news – much bigger than the media is allowing it to be.

In a day of people keeping minimal stock many places will be reliant on stock being flown in to continue with their daily work and these hold ups and back logs in my opinion will lead to the Pound suffering even more.

Data is sure to be affected for the month of April in a negative fashion and this coupled with the potential hung parliament lead me to think the Pound has a seriously rocky few weeks ahead against most major currencies.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

Sterling gains in morning trading following higher than expected inflationary data

The Pound made reasonable gains folowing the release of key inflationary data this morning which actually came out higher than expected.

The main way to curb high inflation is to raise interest rates and an interest rate hike is generally seen as positive for the currency concerned.

Although I don’t see an interest rate hike in the near future it does leave scope for one going forward therefore has led to Sterling strength.

Over the course of the rest of the afternoon the Pound has slipped back however as the grounded plane saga continues.

I personally feel this whole matter has been majorly damaging to the U.K economy and there will be more to come from this which in turn may be damaging for the Pound.

Apparently things are due to get back to normal shortly but there is one hell of a backlog to clear and a lot on money has been lost.

Those with CAD interest may wish to be wary as they have suggested rate hikes in the near future and that their economy has recovered at a rapid pace, at the time of writing this GBP/CAD had dropped by 1.38%

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

What could move exchange rates this weekend?!

GBPEUR rate remains steady as markets await the Autumn Budget

I’ve had several clients asking if the markets will move over the weekend and I’ve said pretty much the same as last week, the main factor this weekend will be the polls. 

If the weekend papers show the gap between Labour and the Tory’s has reduced then this will increase the chance of a hung parliament and therefore weaken sterling.  If the Conservatives have extended their lead the pound could strengthen, although I imagine any gains will be limited as the pound has made some good gains this week.  So if you need to buy foreign currency…. keep an eye on the polls!

Back Sterling for the short term but be cautious

Veteran investor George Soros the man who made millions from speculating stated today that the UK is in a far stronger position to bring its fiscal policy back under control following the election than the 16 nation Euro Zone. 

Speaking at the annual Economist City Lecture, Soros said the lack of concessions offered in a rescue package for Greece agreed this week had highlighted the lack of effective policy making in the Euro Zone and that the Euro still had a long way to go before it resolved the crisis among it members adding, that Greece was still at risk of falling into a ‘debt spiral’.

The comments could be good news for anyone looking to buy Euros in the near term with sterling hopefully starting to push on. However with all the doom and gloom still surrounding the UK economy it may be a while before we start to see sterling exchange rates start to pick up against a host of major currencies. Post election will be very interesting for the Pound.

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Pound due to have a quiet day data wise – don’t be fooled that rates will be stable though!

GBPEUR rate remains steady as markets await the Autumn Budget

The Pound Sterling is set for a quiet day on the data front however as many of you will know this does not mean that Sterling exchange rates will stay stable as there are a number of other factors that could affect levels.

The four factors that affect the strength of a currency are economic stability, political certainty, acts of terror and acts of god so there are always surprises popping up on the markets.

Couple this with the fact that there is data due to be released for numerous other currencies with the key data being for the Dollar today and these releases will also have an effect on how many Dollars you can buy for your Great British Pounds!

Inflationary data and retail sales data from accross the pond is released over lunchtime and later on this evening the Federal Reserve also have the beige book – an overview of American economic activity and policies previously and going forward.

Overnight the U.K Consumer Confidence is released at 00:01am so if you have upcoming requirements you need to be sharp and in a position to act quickly in order to maximise your return.

To ensure you are in the best position to do this, you should consider setting up a free no obligation trading facility with me at the company I work for – Foreign Currency Direct, I can then be a second pair of eyes on the market for you and although I cannot advise I can give you updates and my personal opinion based on market knowledge.

For further information fill in the contact form on the right hand side of this page and I will personally give you a call to discuss the options available to you.

Have a great day! – Daniel Wright

Pound Euro rate update and forecast

GBPEUR rate remains steady as markets await the Autumn Budget

The Pound has lost ground against the Euro so far today following news that the Greek saga may well be coming to a close (for now).

In fact the Euro has gained against a basket of major currencies inclusive of 0.85% against the Dollar and 0.47% against the Pound which is a solid start to the week for the single currency.

The Pound in general has made gains against the Dollar, Australian Dollar, New Zealand Dollar and South African Rand.

Retail sales are due out overnight for the U.K and following positive news from Marks and Spencer I would not be surprised to see them to come out as a pretty positive figure therefore leading to Sterling strength overnight.

If you have an upcoming transaction to make then be sure to contact me by filling in the quick call back form on the right hand side.

Sterling strength continues

The Pound has continued to gain ground against a basket of major currencies in this mornings trading  as confidence in the U.K is seemingly continuing to grow.

With the upcoming election on May 6th be sure to expect some extremely volatile markets with investors hanging onto every poll for hope of an indication as to who may be edging closer to taking power.

Should we get closer to the big day and the prospect of a hung parliament still be well and truely in place then I would expect the Pound to struggle however should the conservatives start to pull away and the likelyhood of a majority win for them look like a foregone conclusion then I would not be surprised to see the Pound rally.

There will be fantastic opportunities both to buy and sell the Pound in the coming weeks and if you have an upcoming transaction to make then you need to be in the position to act fast.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

I look forward to hearing from you.

Sterling strength ahead of GDP figures

GBPEUR rate remains steady as markets await the Autumn Budget

Sterling is on the up this morning ahead of revised GDP figures expected for the U.K at 09:30am this morning.

Expectations are for the figure to come out at 0.3% growth and any change to this may lead to market volatility however unless it is majorly different I wouldn’t expect the movements to be significant enough to worry about.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

Sterling forecast and report – the week so far and looking forward

GBPEUR rate remains steady as markets await the Autumn Budget

The Pound started of the week poorly then managed to have a fantastic few days of gains and positive data which has bought up some great buying and selling opportunites so far.

Unemployment data came out much better than expected for the U.K which led to large Sterling gains over the course of the following 24 hours.

It is not surprising to see data releases coming out much better leading up to an election…. i’m sure the figures were spot on however that element of doubt always creeps in as the Government are battling to regain their position.

Today the Pound has lost ground following comments from one of the members of the Bank of England Andrew Sentance saying the following:

“You have to recognise there is some risk of a double dip, but that’s not the central forecast”

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the contact form and I will be in touch with you shortly.

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