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Sterling weakness

Pound to US Dollar forecast: Best time to sell US Dollars for Pounds in 2019

GBP USD Exchange Rate Rebounds Above 1.31

Best time to buy Sterling with US Dollars

Pound to US dollar exchange rates are at the best time to sell the US dollar all year. The pound has weakened against the greenback on Brexit uncertainties, as investors remain nervous about which direction Brexit taking. The US dollar is also stronger as it appears the euro will remain weak, which has pushed EUR/USD lower.

Investors abandoning Euro

A key factor often on GBP/USD exchange rates is the behaviour on the EUR/USD pairing, as investors seek to abandon the euro with the market predicting further woes ahead for the single currency. Mario Draghi, the President of European Central Bank, has spoken this morning and pointed out that the ECB’s QE program, has ‘considerable headroom’.

QE or Quantitative Easing is a form of monetary policy whereby the central bank seeks to inject liquidity in to the financial system through the purchase of government debt, to help stimulate the economy. After a period of sluggish growth, QE has helped the Eurozone economy to pick up but now with Inflation low again, the ECB might be forced to act once again.

Global tensions affecting Pound to US Dollar rates

This has seen the euro weaker against the US dollar, which has weighed the USD down against the pound. Another factor on the exchange rate is the concerns that have been held over future direction of US monetary policy, with investors initially nervous of the US cutting rates, but now reassured by the fact the Eurozone could be embarking on more easing.

If you have a currency transfer involving the pound and the US dollar, there are a number of global events which are influencing the pairing, as well as the conventional Trade Wars, Trump and Brexit news.

GBP/USD levels sit just above 1.25 on the interbank rate, the lowest since Jan 3rd 2019, if you have a transfer buying or selling and wish for some practical information on appropriate strategy and the best exchange rates, then please do not hesitate to contact me directly.

Pound to euro rate forecast: Sterling slumps to 1.14 as Theresa May looks destined for failure

GBPEUR Forecast – Internal Market Bill Drives GBP Lower

The pound to euro rate slumps as Theresa May seems to be destined for failure again when she puts her deal before the House of Commons in early May. Her deal has failed on three occasions to go through and it seems there is little change from the deal fro her last attempt to have it passed through.

Strong opposition to May’s Brexit bill impacts pound to euro rate

Figureheads from both within and outside the Tory party have stated they are in opposition to the current deal which does not bode well for the next vote.

When GBP/EUR reached the 1.17 level recently I was unconvinced the rally would last. I was of the opinion the rise was false. It was based on getting a potential deal through before the European elections held on 23rd May.

I was of the opinion there was little chance of this and I feel the same about the PM getting a deal through in early June. May has had more than two years to negotiate and even at this stage it seems we are a long way from a deal.

Unshakeable Brexit deadlock rocks pound to euro rate

Brussels stance remains unchanged, the European Deputy spokesman recently stated there would be no concessions made and the deal on the table will remain the same.

The breakdown in talks between Labour and the Conservatives has not helped the pound and GBP/EUR now sits in the 1.14s. The recent movements show that the pound to euro rate is being dictated by Brexit news.

If you look at EUR/USD it is close to a yearly low as the Eurozone economy struggles and investors seek to put their funds into safe haven currencies such as the greenback in times of global economic uncertainty.

I am of the opinion the pound will remain fragile until we have firm news on Brexit and now again we are below the 1.15 resistance point that pre March held strong for 18 months. Every time it was breached, the rates quickly retracted. It will be interesting to see if it holds up moving forward.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 18yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.

Should I sell euros for pounds now?

GBP EUR Stuck in Range at 1.1700 Level

Is now the best time to sell euros for pounds?

Brexit uncertainty has been key for those looking to sell euros for pounds in recent weeks, and this trend has continued today. At present investors are eagerly awaiting the latest Brexit news from the UK Prime Minister and EU officials. This will help them to decide where to invest. However at present the pound is being sold off due to uncertainty. This has provided a fantastic opportunity for those that wish to sell euros for pounds.

My personal opinion is that the UK and EU will secure a deal surrounding the transitional period in the upcoming weeks which will pave the way for Brexit negotiations to begin in early April. If this materialises then the opportunity to sell euros for pounds may diminish. The currency company I work for (a UK brokerage) can repatriate a foreign currency into sterling for no transfer costs. For more information my email address is [email protected].

European Central Bank to make selling euros for pounds cheaper?

Politics seem to be a key driver for euro to pound exchange rates at present, however economic data releases will always have an influence on exchange rates. This week the European Central Bank (ECB) will deliver their latest interest rate decision followed by the monetary policy statement by President Mario Draghi. Euro exchange rates could well be affected by these events.

Last week another member of the ECB stated that the Central Bank could look to end the Quantitative Easing (QE) program by the end of the year if Eurozone economic growth continues to climb through 2018. This is an extremely positive statement by the ECB as other members, including the Mario Draghi have raised concerns about the strength of the euro. If the ECB do decide to taper the QE program, I am in know doubt this would help to strengthen the euro further. This would give those looking to sell euros for pounds an opportunity to capitalise on.

However, the news for those looking to convert pounds to euros is that I expect the ECB President’s opinion to remain unchanged. This could lead to a period of euro weakness as investors want to hear that the QE program is going to be cut in the future.

If you are reading this website in order to find out information in regards to selling euros for pounds, I can help you achieve the best possible exchange rates whilst keeping you up to date with regular economic information. Common clients I deal with are business owners, high net worth individuals and people buying property abroad.

Its important to analyse both currencies that you will be trading. I would recommend contacting me with the currency pair (GBPEUR, GBPUSD, GBPAUD, GBPCHF etc), the reason for your trade (company invoice, buying a property) and I will email you with my forecast and the process of using our company [email protected].

** IF YOU ARE ALREADY USING A BROKERAGE IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING  **

Pound to euro rate forecast: How will the pound to euro rate react for the rest of this week?

GBP USD Exchange Rate Edges Away From 21-Month Lows

The pound to euro rate has been volatile as investors react to the results of the all-important European elections which took place over the weekend.

European elections, the impact on the pound to euro rate

Investors are still digesting the news but essentially, all the predicted ‘shifts’ in electoral behaviour rang true. There was a noticeable shift in the make up of the European Parliament which has seen the euro fractionally weaken. Also, the rise of the Brexit party has seen sterling weaken too.

Looking forward, the GBP/EUR exchange rate seems destined to be dictated by politics for the foreseeable future, as investors seek to better understand what lies ahead. And there is plenty to discuss, with the prospect of a general election, second referendum and potentially even a Scottish independence vote again too.

Pound to euro forecast

The outlook for the political situation seems destined to remain very unclear with the Conservative Party leader election getting underway with now ten candidates having thrown their hats into the ring.

I expect sterling will remain on the backfoot as investors seek to assess where the fortunes for the UK government will turn next, the resignation from Mrs May has removed one uncertainty but created plenty more.

The euro too looks like it will struggle with the more extreme parties gaining traction, this could present many opportunities for euro buyers, if sterling can capitalise. There has been a fear that the more extreme parties would be capitalising on the recent malaise in European politics but so far this has not manifested itself as much as many had feared.

Clients with a transfer to buy or sell euros against pounds will find volatility ahead on both sides of the channel, I would not be surprised to see the pound lose more ground depending on what the outcomes are from the Conservative Party leadership contest.

If you have a transfer to consider and wish to learn more, please do not hesitate to contact me Jonathan Watson to discuss further.

Pound to US dollar exchange rates fall: Why is the pound dropping against the US dollar?

Pound to Dollar Rate Recovers Losses

Over the last 10 trading days pound to US dollar exchange rates have dropped from 1.3170 to 1.2830 at the time of writing this article. To put this into monetary value a £200,000 transfer into US dollar now generates clients $6,800 less.

Many of my clients are questioning why exchange rates are falling when UK economic data for the UK over the last 10 days has actually impressed. Unemployment is at a record low of 3.8%, Trade Balance numbers are down, manufacturing/industrial production numbers exceeded expectation and GDP for the quarter increased to 0.5% when market analysts were predicting 0.2%.

Lack of Brexit developments causing drop in pound to US dollar rates

UK Prime Minister Theresa May’s announcement earlier in the week that MPS will vote on her deal at the beginning of the month has important significance. It appears that the cross party talks are over between the Conservative and Labour Parties and therefore Labour have a choice, back the deal or the UK may crash out of the EU without a deal. The reason why the chances of a crash out has increased is because if Theresa May’s deal is not passed its likely her position as PM will become untenable and there is a strong chance a Brexiteer will take over at number10.

Trying to second guess Brexit is difficult and quite frankly anything could happen. However an opportunity has presented itself for clients buying sterling with US dollars or any currency that is pegged to the US dollar. If you find yourself in this category I would recommend getting in touch to discuss your options in regards to protecting the gains you have seen in the last 10 days.

Upcoming data releases that may affect pound to US dollar rate

For the remainder of the week UK economic data is limited however there are a few data releases to look out for in regards to the US. Building permits and continuous jobless claims will be released at midday, the Michigan Consumer sentiment index will be released tomorrow at midday and there are two speeches late Friday by Fed members Clarida and Williams. For more information on how the data releases may impact your currency exchange or how Foreign Currency Direct plc can help you to save money feel free to fill in the form below to contact me directly.

Pound to US Dollar predictions: Will the pound fall further against the dollar?

Pound to Dollar Rate Boosted by UK Retail Sales

The pound has had a torrid time against the US dollar for the last 4 months. GBP/USD (cable) mid market exchange rates have dropped approximately 5.5%. To put this into monetary value a $250,000 purchase is now just under £11,000 more expensive.

Brexit continues to hamper Sterling

It’s been heavily documented in previous articles and mainstream media around the globe, the on going Brexit saga is having a major impact on the value of the pound. Bookmakers are predicting that Brexiteer Boris Johnson will be taking over the Conservative Party and as we know, the former Mayor of London’s approach will be extremely different to outgoing Prime Minister Theresa May. The closer we get to the end of October and a deal not being in place, I expect the pound could lose further value.

Positive US China trade talks offer more support to the US Dollar

Last weekend Presidents Donald Trump and Xi Jinping of the USA and China met at the G20 summit and reports are suggesting the talks went well. Mr Trump has announced that talks will begin once more to bring the ongoing trade war to an end, but he did confirm this wouldn’t be rushed. In regards to exchange rates, if the leaders of the two largest economies can reach an agreement sure this is a good thing for the US dollar.

Fed interest rate decision this month: How could these affect Pound to US Dollar rates?

Looking further ahead the major talking point this month will be the US interest rate decision at the end of the month. Mr Trump has made it clear that he believes the strong US dollar is having a major impact on the US economy therefore he wants the Federal reserve to cut interest rates. He even went on to say that he believes President Mario Draghi of the ECB should take over the federal reserve. It looks like the Fed will cut by 25 bps and this may be priced in before the event. However if a surprise cut of 50 bps materalises this could weaken the dollar dramatically.

In regards to the UK, the Tory leadership contest is the major talking point. The 160,000 Conservative MPs will vote on who they want to be the next PM. With the pounds fall in value over the last 6 weeks, I believe the market has priced in a Boris victory. However if Jeremy Hunt wins this could have a positive impact on the pounds value as he’s not keen on crashing out of the EU without a deal. If you would like to keep up to date on factors influencing GBP/USD exchange rates, or have an upcoming currency transfer, you can contact me directly using the form below.

Should I buy Canadian dollars now?

GBP to CAD Rate: Sterling Gains Against the Canadian Dollar Ahead of Bank of Canada Statement

Its been a tough couple of days for the Canadian dollar vs Sterling so should you buy Canadian dollars now? Yesterday the Bank of Canada kept interest rates on hold at 1.75% and thereafter provided an extremely dovish statement which was a surprise to the markets.

The Central Bank stated that a sharp fall in oil prices, which will likely to have an impact on economic growth was the main concern, and the trade war between the US and China is still a concern for global growth.

Is now the best time to buy Canadian dollars?

Now that Sterling vs Canadian dollar has risen from the mid 1.60s back above 1.70, the question my clients need to ask themselves is will the Canadian dollar continue to devalue or should they take advantage of the spike in the market and buy Canadian dollars now?

Personally I believe this is a spike that is worth taking advantage of, if clients need to purchase Canadian dollars with Sterling. Across the Atlantic, UK Prime Minister Theresa May is struggling to persuade MPs to back her Brexit plan.

Reports are suggesting that she could lose the vote on the 11th December by over 100 votes and this could cause major problems for the PM. If she loses by that kind of amount I believe her position comes untenable and we would see a resignation or she will be ousted by her own Party.

A real concern for Brits moving to Canada or Brits that buy Canadian exports is the commentary coming from the Bank of England. Governor of the Bank of England Mark Carney has warned, if the UK come crashing out of the EU without a deal, house prices could crash by a third, GDP could fall 8% and exchange rates could fall 25%.

I’m confident that MPs are taking the Bank of England’s advice on board and therefore I do not fear that the UK will crash out of the EU, nevertheless the uncertainty of the deal not going through on the 11th December is a growing concern.

If you hold Sterling at present and are planning a move to Canada short term, you need to ask yourself the question now, are you prepared to take the gamble and wait until after the vote on the 11th? If she fails to get a deal over the line I believe GBP/CAD rates will fall towards the lower 1.60s and remain there for months to come.

For more information about when might be the best time to buy Canadian dollars or to discuss GBP/CAD rates in more detail feel free to drop me a message using the form below:


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Pound to US Dollar forecast: Best time in 2 years to sell US Dollars for Pounds

GBP USD Exchange Rate Rebounds Above 1.31

Pound to US Dollar exchange rate: Investors back the US Dollar

The US dollar has been in the ascendancy lately, as investors back the currency against all others. This is especially true of the US dollar against sterling, as the British currency suffers under Brexit uncertainties. GBP/USD levels had dipped into the 1.25’s but have staged a late recovery back over 1.25 in the day, as Jerome Powell, the US Federal Reserve Chairman, lines up the possibility of further interest rate cuts. GBP/USD levels still remain in the territory of the best time in 2 years to sell US dollars for pounds, what can we expect next?

Fed interest rate cut looks to further support strong US economy: Will USD rates continue to rise?

On the US currency side, it might be fair to say that cutting interest rates will weaken the currency, and the possibility of such a trend has been loosely re-established this afternoon, following the Jerome Powell’s comments. However, one of the reasons the US dollar has risen so much is that investors have embraced the cuts to the extent that, by cutting interest rates, the US is positioning itself to keep its economy strong and growing in the future. Recent jobs data for the US showed strong employment data which is further supportive of the economy and with the Fed now appearing inclined to cut on the 31st July, when they next meet, the economy should remain resilient and the currency strong.

US interest rates are still the highest of the world’s leading economies which will I am sure provide confidence for investors to keep backing the US dollar for a higher return on their investments. The future looks like it will prove beneficial for the US currency even with interest rate cuts ahead. Recent uncertainty over the US trade wars with China have even gently subsided, as investors have reasons to be optimistic over the more immediate outlook.

Brexit uncertainties remain: Sterling weakness likely to continue

On the British side, Brexit uncertainties look set to remain which will only keep pressure on the pound. Sterling is unlikely to be rising dramatically until there is some kind of clarity on Brexit which does not appear forthcoming. Having said that, the upcoming Conservative leadership race could provide further confidence for sterling but ultimately, the prospect of no-deal has probably risen as both Hunt and Boris are openly backing a no-deal option, something which has been closely associated with sterling weakness.

GBP/USD levels could now remain anchored in the 1.20’s according to some commentators, including Lee Hardman of MUFG, a Japanese Bank, who said in the FT yesterday that the recent fall below 1.25 could open the door to the 1.20 level.

Thank you for reading and please contact me directly using the form below to learn more about all of your options and the latest forecasts for GBP/USD or USD/GBP exchange rates.

Pound to Euro rates: What next for Brexit and GBP/EUR rates?

GBP EUR Exchange Rate: Weekly Review April 9th

The pound to Euro exchange rate has often been quoted as a barometer of the Brexit uncertainties, and to no real surprise it has gently drifted lower this week as we head into the UK Easter weekend. The absence of any new positive news has seen the pound lower and investors, clients and other interested parties are not comfortable holding sterling because of the precarious nature of what lies ahead.

Pound to Euro rates lower, but still higher than the start of 2019

It is well worth pointing out that those buying Euros with pounds are still performing trades at a very high level. A £250,000 purchase of Euros will today deliver an €14,000 extra compared to January 1st. The optimism that a ‘no-deal’ Brexit is now much less likely, or will not happen at all has seen the pound supported.

The outlook ahead for Euro exchange rates had been rather shaky and could continue to be in the months ahead. This is owing to increased political questions (more on which later), and economic concerns too. However, the latest weakness has subsided, as the potential for a breakthrough in the US-China trade talks, provides some optimism over how US-EU talks will pan out.

Will GBP/EUR rates rise or fall in April and May?

Overall those looking to purchase Euros with pounds have, I feel great concerns ahead, since Brexit uncertainties do outweigh concerns on the continent. Moving forward we have two major political tests too, the UK local elections on the 2nd May and the European elections on May 23rd.

Personally, I expect the pound to suffer during these as voters reject Theresa May and Jeremy Corbyn for their poor handling of Brexit so far. The belief is that both parties will suffer, with the Tories expected to suffer the most.

We are already seeing signs of the Brexit Party performing well in the polls and this could bode well for Mr Farage and further complicates the already fractured picture on Brexit.

What next for pound to Euro exchange rates?

I foresee a lower range for GBP/EUR rates of the 1.10-1.11 is still a real possibility if events take certain directions. With any surprise optimism we could retest the 1.18 handle, providing further opportunities for Euro buyers.

If you have a position to buy or sell the pound against the Euro, there are no shortage of events to move the rate. Forecasting is no easy feat, but with our expert knowledge of the FX markets and many years’ experience, we can provide an informed voice to provide options and discuss strategy.

Thank you for reading my latest pound to Euro forecast. If you would like more information on GBP/EUR rates or have a currency transfer you would like to discuss please feel free to contact me using the form below:

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Where interbank exchange rates are referenced within the website these should only be used as a guide on the performance of a market. These rates are not indicative of our exchange rates – please contact us for a quote.