Markets await interest rate decisions!!!

Today we see both the Bank of England & the European Central Bank make announcements setting the interest rates for the month of August. The currency pairing between GBP-EUR have been extremely flat over the last 2-3 days. the expectation is for both central banks to keep rates on hold but should either decision come out differently then we could really see either currency struggle

At present the pound has lost about 0.43% against the Euro on the back of some factory orders for Germany which has showed a positive gain of 3.2% for the month of June. This goes to show that even the smallest of economic data releases can have a real impact on the price of sending money overseas. If you were exchanging £200,000 into Euros now you would be achieving 1460 Euros less than at the high of the day.  

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 form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Get the best exchange rate on Pound Euro Dollar Swiss Franc South African Rand New Zealand Dollar Australian Dollar and every other major currency?

Poundsterlingforecast.com has been running now since April and although I only planned to make a site that kept my clients up to date with what is going on in the markets it is turned into a real hit.

Now geting around 5000 hits a month it is clear that people out there want to know in basic, simple terms what may happen in the next few months and this can make a huge difference on any upcoming purchases be it for business or personal transactions…. a 4% movement on a £200,000 property purchase can make that property abroad £8000 cheaper or potentially more expensive so you have to make a calculated decision at the right time.

Although I cannot fully advise I have a dedicated team giving their personal opinion based on market knowledge as to what the Pound may do against the major currencies and hopefully this gives you all a helping hand!!

If you do have a transaction to make I am Associate Director of a specialist foreign exchange brokerage saving clients up to 4% on transactions over using their high street bank whilst giving clients award winning customer service making sure your funds are there on time and with no hassle…

We are a Public Limited Company in the U.K trading over £500,000,000 per year so let us help you too!

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 form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

US Dollar forecast

Sterling is currently sitting close to a 5 month high against the US Dollar and as a result is presenting excellent buying opportunities for anyone with USD requirements.  The key data to look out for tomorrow is US Gross Domestic Product figures (GDP).  This shows the growth or contraction in the economy and is expected to return an annualised return of  2.5%, which would be a fall from last months 2.7%. 

The reduction does not bode that well for the USD, and there have been concerns of a slowdown in the US amid fears of a double dip recession.  However, as sentiment has fallen in the states and there is an expectation of a poor figure, a better than expected figure could cause some USD strength.  If you have a USD requirement, fill in the form on the right to see what options are open to you to protect your funds.

Sterling weakness forecast to continue today

 Following on from yesterday late afternoon, sterling has lost ground across the board this morning.  The pound is up vs. the Japanese Yen and Swiss Franc, possibly due to carry trade unwinds and reduced risk aversion.  This morning’s movement could be a correction from Friday’s rally for the pound, but looking in more detail at the key currency pairs there could be other reasons. 

For Sterling Euro we have had positive consumer confidence figures from Germany this morning (showing a figure of 3.9 up from the 3.6 expected). German Import Prices also came in higher than expected at 0.9 from expectations of 0.7.  Both appear to have had a positive effort on the Euro and with no data of note out today for the pound, this trend looks set to continue. 

For sterling US Dollar (also known as Cable) the £17billiion losses announced by BP may have seduced demand for sterling a little, especially as US oil companies look set to benefit from BP plight.  Surprisingly strong US home sales data yesterday has also helped strengthen the Dollar therefore pushing GBPUSD exchange rates down.  For more information and insight into exchange rate movement and forecasts, fill in the form on the right.

Pound GBP faces crucial data release for 2010 GDP data out at 09:30am

GBP EUR Edges Higher After Recent Rates Sell-Off

An extremely important day for the pound in the morning which may set the trend for how it may perform against the Euro, Dollar and most major currencies in the short term.

GDP (Gross Domestic Product) data is due out at 09:30am and it basically informs us whether or not the economy grew or shrunk during the second quarter of 2010, and just how much by. It could let us know the chances of a double dip recession which, if the news is worse than expected may lead to investors running away from the pound for the time being.

Expected is 0.6% growth – an  increase of 0.3% from quarter one, any change from this will no doubt bring market volatility be it positive or negative.

As always it is a coin toss as to how it comes out but I feel due to the world cup and numerous other factors then we may see a positive result and Sterling strength.

 Keep your eyes peeled for the result here tomorrow!

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 form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

UK retail sales data up .2% GBP exchange rates hold firm

Sterling has held ground agasint the Euro and made gains v’s the US Dollar following UK retail sales data showing better than expected 0.7% increase.  An increase of  0.5% was expected, and this is good news for the UK economy, particularly with GDP figures out tomorrow.

Sterling forecast – GDP data and Sterling Exchange Rates

GBP EUR Edges Higher After Recent Rates Sell-Off

Sterling exchange rates are looking toward GDP figures tomorrow at 9:30 am.  This release is forecast to have a big impact on sterling exchange rates as the economy in the UK is seen as fragile.  

Yesterday Ben Bernanke, chairman of the FED reserve continued warnings of economic slowdown in the US and the potential of the US experiencing double dip recession.  If this happens in the US it’s likely that the UK will follow suit as our economy is relatively closely linked to the States.  This would most likely have a negative effect on GBP exchange rates, making other currencies more expensive to purchase. GBPEUR has made good gains recently and in my opinion we are at the top end of exchange rates that we are likely to see over the next month.

AUD exchange rate forecast

One of the few economies to fair well throughout the economic crisis is the Australian economy and as a result the AUD has strengthened significantly.  Unfortunately for anyone holding sterling looking to buy GBP, with further growth predicted for 2010 as trade with China drives the economy, GBPAUD exchange rates are widely expected to continue to fall.  Therefore if you need to buy AUD in the next few months it may be worth carefully considering your options.

Pound Sterling Forecast and update for the week so far – interesting news on Canadian and Australian Dollar

Sterling has had a reasonably positive start to the week as predicted in my previous post gaining ground against a variety of major currencies, however losing against the Canadian Dollar.

The losses against the CAD were surprising, as during the week they did raise interest rates over there by 0.25% (however this was widely expected therefore didn’t lead to much strength) but at the same time they also revised their expected GDP (economic growth forecast) down for the rest of the year.

In Australia, the wheels are now fully in motion for an election over there expected on the 21st August  – we are all aware just how important the election was for the U.K and indeed the Pound so I would imagine we should see the same volatility for the Australian Dollar over the next 6 weeks.

Should they head for a hung Parliament then we could see the AUD weaken leading up to the election or should things lead to a majority victory then the AUD may gain much more strength as political certainty is one of the main drivers for the strength of a currency.

Once again there are important economic releases for the U.K every morning this week so if you have an upcoming transaction to do then it is imperative you let one of the currency experts here at Pound Sterling Forecast know so they can keep you up to date with what is happening in the markets – Just fill in the form on the right hand side of this page and someone will contact you shortly.

When will the Pound gain against the Israeli Shekel

This year to date the Shekel has strengthened by 6.41% against the ILS. There have not been many other currencies that have been stronger against the pound. Other currencies that have strengthened by more this year is as follows.

MXN at a whopping 11.28%
CAD 9.8%
INR 8.93%
AUD 8.36%
SGD 6.91%

The 0.1% rise in the CPI in March for Israel brought annual inflation down to 3.2% from 3.6% in February. While inflation expectations remain around 2.5-3%, near the top of the 1-3% target range. This could leave us to believe that the Bank of Israel will start to raise interest rates well before that of the UK.

With much better GDP figures in Israel than that of the UK we could see sterling exchange rates really struggle to fight back against the Israeli Shekel in the near term.

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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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.