Ahead of spending cuts later today Pound Sterling makes minor losses against most major currencies – Pound Sterling against Euro, Dollar and all major currencies

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20th October 2010

The Bank of England released their minutes from the previous interest rate decision’s meeting and it has led to minor losses for the Pound in morning trading.

Effectively it confirmed what I believe most traders and investors already knew (that further QE was edging closer to being put in place). More members of the MPC had voted in favour of extending the programme and as many of you will know the mere mention of introducing further QE does tend to lead to weakness for the Pound.

I still beleive that later in the day will be the big market mover with the spending cuts being announced… they will no doubt prove there are still many jobs to be lost in the U.K and more than likely provoke a pretty bad reaction as not everyone can be pleased… watch this space for how they are taken by the markets I will ensure to get back to you with a mid afternoon update!

If you are buying or selling a property abroad, have business transactions to carry out or simply 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.

Sterling forecast exchange rates

By

Daniel Wright

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18th October 2010

Big week ahead for the pound

The week ahead will certainly prove to be extremely volatile for the pound. With very little data to note of in the early part of the week things will liven up on Wednesday when we have the release of the Bank of England’s minutes and the spending review from the government.

As mentioned in previously the minutes from the interest rate decision can cause sterling exchange rates to move quite rapidly. This month’s will not be any different but the focus will probably be more on the vote on QE.

Policymakers at the Bank of England appear to be split on the need for more QE: David Miles last week said inflation was too high and Andrew Sentance has argued and voted for rates to be raised in recent months to control inflation. Fellow MPC member Adam Posen is the main cheerleader for QE, with his pessimistic outlook on the real economy so watch out for this release first thing on Wednesday morning.

USD

The USD seems to weakening by the day at the moment hitting a 15 year low against the YEN, 8 month lows against the Euro and pound while also hitting parity with the CAD and AUD all on the back of growing speculation that the U.S. Federal Reserve will ease monetary policy.

Federal Reserve Chairman Ben Bernanke on Friday offered his most explicit signal yet that the U.S. central bank was set to ease monetary policy further, but provided no details on how aggressively it might act.

“There would appear — all else being equal — to be a case for further action,” Bernanke said at a conference sponsored by the Boston Federal Reserve Bank.

So it seems that further QE is on the horizon in the US and this could be the beginning of a currency war in which each country tries to weaken its currency at the expense of others to keep their own exports more competitive.

Currently there are some good opportunities to buy the USD but if the UK has a batch of bad data or does implement QE into the economy then we could see the current spike disappear so now may be time to take advantage.

EUR

By contrast to the UK and US the ECB has shown no appetite for printing more money helping the EURO strengthen immensely over the last month. Tomorrow we have construction data out for the whole Euro Zone and a ZEW survey for Germany which looks at investor sentiment. If there is an increase in either the Euro could continue its rise and make that currency exchange even more expensive.

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.

Savings on your currency transfer

By

Daniel Wright

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17th October 2010

“I can see sterling exchange rates getting somewhat weaker over the coming weeks as I think it probable that the BoE will try and devalue the currency via Quantitative Easing (QE), while the ECB will almost certainly not”

I have taken on lots of new clients recently who have registered with us to speak about their Euro purchase. They are extremely worried about the future outlook for the pound due to the weakening of the rates against the Euro.

I explained to them that the outlook is extremely bleak at present but that they do have options to give them the peace of mind with their currency exchange. You can attempt to safeguard your rate from forward contracts to utilising stop/loss and limit orders. These options would stop your currency exchange from becoming more expensive than you had budgeted for and would give you the peace of mind that you will be looking for when making a currency transfer.

I personally had a client who took advantage of the rates on the Euro 6 weeks ago by entering into one of our forward contracts for completion 3 months down the line. They were paying 250,000 Euros for their dream foreign home. They called me on Friday as it was the first time that they had looked at the exchange rates since entering the forward contract and thanked me as I had saved them around £13,000 on Friday’s exchange rates If you feel that this may suite your requirements please contact us on the form on the right hand side of this page and one of our authors will be in contact.

With the way the pound has strengthened against the US Dollar recently the above option may be ideal.

Sterling weakness

By

Daniel Wright

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14th October 2010

The pound has lost 7 cents against the euro from highs last month following a host of negative data for sterling.

Falling house prices and consumer confidence, coupled with the increased chance of quantitative easing has led to less demand for the pound and sterling exchange rates have suffered. Yesterday, unemployment figures actual showed few people out of work but unfortunately more of those that remain out of work claiming benefits. This caused sterling weakness because it increases the burden on the government to pay benefits.

However, the pound has gained back some ground today following news that the government will save £2billion per year by switching the way in which they calculate inflation for benefits. There is huge focus on government spending at present with the most severe austerity measures in a generation due to be announced ton the 20th, so this ‘saving’ is seen as positive for the UK economy and therefore the pound.

Sterling is up over half a percent vs. the euro and almost a percent vs. the USD. On large scale transfers this can make quite a big difference.

Data to look out for today that could move sterling exchange rates:

At 13:30 Jobless claims from the US, PPI Inflation data and Trade balance figures

Because the US Dollar is the world’s reserve currency these important releases can cause volatility between the worlds three majors; US Dollar, Sterling and the Euro. If you would like to discuss how this could affect your currency transfer, fill in the form on the right to speak to a currency specialist.

Sterling losing momentum. Will the slide continue?

By

Daniel Wright

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13th October 2010

Sterling exchange rates have held their ground today but with the spending review and BoE minutes on the 20th of this month the pound could come under increasing selling pressure. Employment figures are poor, consumer confidence is falling, inflation is above the BoE target level of 2% and quantitative easing is being openly discussed. These are just some of the reasons why the pound has come under enormous pressure recently resulting in GBP-EUR exchange rates hovering at around a 5-6 month low.

Sterling exchange rates are trading at:

EUR 1.1332 USD 1.5845 CAD 1.5871 CHF 1.5190 AUD 1.5975 NZD 2.0782 ZAR 10.7935

SEK 10.502 DKK 8.4540 TRY 2.2898 ILS 5.6868 SGD 2.0633 JPY 129.61 HKD 12.2920

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.

Federal Reserve give the go ahead on QE – USD Weakness – Pound generally makes losses against the majority of majors

By

Daniel Wright

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13th October 2010

Last night the U.S Federal Reserve (American version of the Bank of England) said full steam ahead for QE in their minutes released at 19:15pm which as regular readers will know led to minor losses for the Dollar against the vast majority of currencies.

Earlier on in the day the Pound lost against most major currencies, due to BOE member David Miles speaking in Dublin – He mentioned that the BOE had to balance the need to bring down inflation against tightening policy too soon mentioning that interest rates would stay on hold for some time yet the input of more QE was possible, this in turn sent the Pound tumbling against pretty much every major currency.

Once again the Pound has taken a few steps forward yet taken quite a few back shortly after and it really does heighten the importance of catching the exchange rate at the right time, when the Pound rose above 1.20 against the Euro a lot of my clients decided to hold out even though 1.20 was a level they had originally set as a rate they would be really happy with to purchase their property or goods from overseas…. they got greedy and now unfortunately have ended up paying a lot more than they would have liked to now their completion date has arrived.

I cannot advise yet I can always give my personal opinion based on market knowledge and it is always easy to get caught up in a vicious circle should rates be shifting against you or moving in your favour, personally I don’t like to gamble and holding out over a period of time is exactly the same as walking down to the betting shop and placing £5000 on a horse…. would you do that???

Should you be buying a property why not book out your rate on a forward contract the second you agree a price and sign documents, you then know that it will cost excactly what you originally agreed to pay for it… get in touch with me by filling in the form on the right for more details on how these work, for a small deposit you can book a rate for anything up to two years in advance…

If you are buying or selling a property abroad, have business transactions to carry out or simply 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.

Sterling hit an 8 month high against the USD

By

Daniel Wright

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8th October 2010

The pound hit an 8 month high against the US Dollar yesterday spiking at just over 1.60 after the MPC decided not to extend QE this month. The pound then came back down by around a cent and a half and it goes to show how quickly the currency markets can change. It will be interesting to see the comments that come out of the MPC in two weeks time where we may learn who voted for the base rate to stay unchanged.

Today at 1.30pm UK time sees the release of the US non farm payroll data. This data release can be extremely volatile for the Greenback. We have seen the currency pair move by several cents on the back of the release in the past.

If you have a currency requirement to buy or sell US Dollars please feel free to make contact with us and we can talk you through the mechanics of achieving better rates of exchange than your high street bank would offer. Just fill in the form on the side of this page and one of our experienced brokers will be in contact.

We look forward to hearing from you.

Sterling Exchange rate update and what we can offer!!

By

Daniel Wright

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7th October 2010

Sterling exchange rates have had a very mixed day. The pound recently hit a two month high against the USD hitting just over 1.60. Against the Euro before the interest rate decision the pound hit a low of 1.1359 levels that we have not seen for months. This was on the back of some bad data out of the UK housing market.

The Authors of this site are specialists in foreign exchange and we help save private and corporate clients thousands of pounds on the currency exchange. Below I have outlined a few points that could help us to help you save on your exchanges should you contact us.

Every company or individual that trades across the globe can be at risk from adverse market movements no matter how large the transactions may be. The movement of exchange rates can have a significant impact on profit margins for overseas trade. Poundsterlingforecast.com can help you manage and control your exposure in the foreign exchange markets. We offer various tools and mechanisms to assist you in risk aversion and forward planning.

• Dedicated Dealing Team – You will be assigned a dedicated account manager who will be on hand to deal with your requirements whenever you need them. We will keep you informed of daily market movement helping you to make the most informed decision.

• Forex Risk Management – Trading with us includes numerous options helping you mitigate the risks while planning for up to two years ahead. Our forward contracts give you peace of mind and mean that you do not need to worry about exchange rate fluctuations. We can place limit orders and stop losses to maximise your exchange.

• Time Saving – With same day transfers and simple, one-off account registration process it gives you more time to focus on your core business.

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.

Two sides of the coin for the pound

By

Daniel Wright

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6th October 2010

One side of the coin Sterling exchange rates has had a dire day against most of the majors. Against the Euro the pound has been trading at its lowest level for around 4 months. At 16:52 we were at a low of 1.1420.

With such a pessimistic outlook for the UK, economists are stating that it is more and more likely that the MPC will introduce QE2 for the UK. As mentioned previously on this site that there is a chance that sterling exchange rates could suffer if there are decisions to extend the programme. Tomorrow is certainly going to be a very interesting and volatile day for the pound.

On the other side of the coin sterling exchange rates are at a two month high against the US Dollar with levels hitting a high of 1.5937 today. The greenback seems to be in a world of trouble itself. With fears of a double dip recession there has been lots of talk of QE being extended there too. On the back of this the US Dollar has also weakened to its lowest level against the Euro for Four months.

My predictions are that the pound could fall down by 3-4% if QE does get introduced in the UK and expect a similar impact if the US follow suit.

Further Sterling weakness against most major currencies in early morning trading

By

Daniel Wright

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6th October 2010

Investors still appear to be concerned about the U.K and indeed the Pound as the announcement of spending cuts approaches rapidly along with the uncertainty over whether or not we will once again see QE from the Bank of England.

Last year every time QE (Quantitative Easing) was merely mentioned, let alone put into place the Pound generally lost value rapidly, as printing more money essentially means there are more Pounds available which means Sterling is effectively worth less.

I highly doubt we will now see a change in interest rates until quite a way into next year, so the biggest potential leader to Pound strength (an interest rate hike) appears to have now been put on hold – many major analysts had been expecting a hike before the end of 2010 – unfortunately that is now highly doubtful.

We also see a flurry of impotant U.S unemployment data over the next few days so expect some volatility against the U.S Dollar – especially on Friday as Non Farm Payroll Data is released at lunchtime and this can be a major market mover.

If you are worries about rate movements then feel free to contact me directly, I work for one of the top foreign exchange brokerages in the country and we specialise in geting you better rates than the high street banks, whilst offering a great personalised service to make the whole process smooth and simple.

I’m afraid we do not deal with travel money and we are an execution only service so we will only but currency for a client as and when they request it, asking for no money up front however settlement within two working days, and all of our clients money are kept in seperate client transaction accounts for your peace of mind.

If you are buying or selling a property abroad, have business transactions to carry out or simply 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.

Sterling weakness

Ahead of spending cuts later today Pound Sterling makes minor losses against most major currencies – Pound Sterling against Euro, Dollar and all major currencies

Sterling forecast exchange rates

Savings on your currency transfer

Sterling weakness

Sterling losing momentum. Will the slide continue?

Federal Reserve give the go ahead on QE – USD Weakness – Pound generally makes losses against the majority of majors

Sterling hit an 8 month high against the USD

Sterling Exchange rate update and what we can offer!!

Two sides of the coin for the pound

Further Sterling weakness against most major currencies in early morning trading

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