Thursday, 18 June 2015

GBP/USD exchange rates break $1.59

Good morning,

Following the dovish comments from Fed Chair Janet Yellen last night, this morning has seen GBP/USD exchange rates climb to their highest level since November. In my last post I mentioned that the currency pair had climbed to a fresh one month high but this morning's move completely eclipses yesterday's rise.

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Speculation had been mounting that last night's FOMC meeting would provide us with a clear picture of when the Federal Reserve would raise interest rates. Ms Yellen said that the central bank could look to raise interest rates this year but it was the comments that followed that really impacted the value of the dollar.

It appears the central bank want further improvement in the labour market and are looking for inflation to return closer to the banks 2% target before increasing their benchmark rate. By not giving a definitive answer the dollar lost ground across the board, a move that has seen GBP/USD break through $1.59 this morning.

This latest move is excellent news for those of you looking to purchase dollars, converting £200,000 will see you receive over $8000.00 compared to the same trade last week.

I would say that the U.S is still in pole position to raise interest rates first but if the UK can tackle its inflation issue and the U.S. economic recovery starts to falter, the next few months could be very interesting for the GBP/USD cross.

If you have a requirement to buy or sell dollars in the coming months and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Wednesday, 17 June 2015

GBP/USD exchange rates climb to one month high

Good afternoon,

The pound received a massive lift this morning after figures revealed UK unemployment had fallen again, while wage growth had risen to its highest level in nearly four years.

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The unexpected news saw Sterling rise across the board and pushed GBP/USD to its highest level since 15th May. When markets opened this morning GBP/USD was sitting at 1.5632 but after a gaining three quarters of a per cent the currency pair reached the dizzy heights of $1.5752.

The latest move has now seen pound gain around 2.3% against the dollar in the last eight days, climbing from $1.5394 last Wednesday.

 

Good news for the UK economy


This morning's numbers showed the number of people out work had fallen by 43,000 between February and April, keeping the jobless rate at 5.5%. With wage growth climbing 2.7%, the biggest rise we have seen since August 2008 there is finally some positive news for what seemed to be a flagging economy.

What today's data releases have done is also bring the Bank of England back to the table in terms of interest rates. With wage growth rising and unemployment falling the only thing preventing the central bank from increasing their benchmark rate is the current UK inflation level.

It will be interesting to see if Bank of England Governor Mark Carneys drops any hints about interest rates when he speaks this evening, especially after what should be seen as a positive step for the UK economy.

Watch out for the FED.


After a two day meeting the U.S. Federal Reserve will deliver their eagerly anticipated economic projections and statement this evening.

If you are looking to buy or sell dollars it is worth keeping an eye on the announcements as they have the ability to sway the FX markets. While no one is predicting a rate rise this evening there is every chance Janet Yellen could give a definitive timeframe as to when the FOMC could start to act.

Any positive comments could easily wipe away the gains the pound has made during today's session which will be great news for those of you looking to sell dollars.

If you have an upcoming requirement and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Monday, 15 June 2015

GBP/USD exchange rates push towards $1.56

Good afternoon,

Some weaker than forecast U.S Industrial Production numbers helped push GBP/USD rates up today with the currency pair climbing from $1.5488 to 1.5569. The move leaves the cross at its highest level since the 22nd May and means the pound has clawed back almost four cents since the start of the month.

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With talks between Greece and its creditors breaking down after only 45 minutes on Sunday the pound initially dropped against the dollar during the early part of today's session. As we have seen on a number of occasions over the last few months negative news from the troubled Greeks often causes investors to seek the safety of the greenback and this morning was no different.

As markets reacted to the news GBP/USD fell nearly half a cent but with the U.S industrial figures coming in at -0.2% against a predicted level of 0.2% the dollar weakened over the course of the afternoon.

Despite the very brief spike over $1.58 back in May GBP/USD rates are very close to the best we have seen all year. The move we have seen in the last two weeks makes a huge difference to those of you looking to purchase dollars, $200,000 will now cost £3100 less than at the start of the month.

Will GBP/USD continue to rise?


As we have seen in the past month or so things can change very quickly when it comes to the currency markets. This week could see further volatility for the GBP/USD cross as we await the result of the latest Federal Reserve meeting.

Speculation is mounting that Fed Chair Janet Yellen could give a definitive time frame on when the central bank will look to raise interest rates.

Any positive comments from the Fed on Wednesday could see the dollar gain momentum and the gains made by the pound will be quickly wiped away. Some forecasts are suggesting that GBP/USD will be back in the 1.40's during Q3 and this will be based on the Fed starting to raise their benchmark rate in September.

Do you want the best exchange rate?


If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.  


Wednesday, 10 June 2015

GBP/USD exchange rates rise two cents

Good morning,

This morning has seen the pound gain around two cents against the dollar following comments from the Bank of Japan Governor Haruhiko Kuroda. GBP/USD exchange rates have climbed from $1.5275 to $1.5469 to give the pound some much needed breathing space.

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Since the 14th May the pound had been on a downward trend against the dollar with exchange rates falling from $1.5802 to $1.5195, a drop of over 3.75%.

As regular readers will know the U.S. dollar is seen as a safe-haven for investors and with the troubles surrounding Greece, the UK economy underperforming and talk of the U.S. Federal Reserve raising interest rates, the dollar has been able to take full advantage against most of its major counterparts.

So why did the dollar weaken this morning?


The Bank of Japan (BoJ) have been undertaking a huge quantitative easing programme in order to tackle the countries deflation issue which in turn has weakened the Yen. At a meeting last night BoJ Governor Kuroda essentially said enough is enough, the Yen is already very weak.

The announcement caught investors by surprise and prompted a massive dollar sell off, weakening the greenback across the board.

Volatile Markets


With Greece still dominating the headlines the volatility in the FX market is bound to continue in the coming weeks.

If the Greek government can reach an agreement with its creditors we could see investors return to riskier assets such as the euro which in turn could see GBP/USD push back towards the $1.58 level we witnessed last month.

On the other hand, if an agreement cannot be reached and talk of a Greek default resurfaces then the dollar could easily claw back the ground it has lost this morning.

Best GBP/USD exchange rates


If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are getting the best possible rate of exchange, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

Monday, 1 June 2015

GBP/USD exchange rates drop again.


Good afternoon,

Sterling slipped to a fresh three week low against the dollar today with GBP/USD exchange rates falling to $1.5173. The currency pair lost around a cent during the day's session and the move has now seen all of gains made by the pound since the UK Election result completely wiped away.

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Since the 15th May GBP/USD has dropped over 4% following a run of weaker than forecast data releases and unfortunately for the UK economy today was no exception.

Figures posted this morning showed the UK manufacturing sector expanded at a slower pace than predicted in May and is another blow following last week's GDP result.

The poor manufacturing number has added to investor belief that the Bank of England will keep interest rates at the current level for longer.

With expectations of a rate hike from the Bank of England dwindling the long term forecast for the pound has been dragged down, leaving the dollar in a position to take full advantage.

Despite a run of awful economic numbers coming from the U.S over the past few months there are still calls for the Federal Reserve to raise interest rates. Bets are still being taken on the central bank raising rates in September and if events continue on their current path GBP/USD could potentially fall even further.

A few weeks ago I thought we could see GBP/USD push towards or even break through $1.60. With the way the UK economy has been performing and events in Greece still helping the dollar I think GBP/USD will be lucky to hold above $1.50 in the coming month.

If you have requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from you transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Thursday, 28 May 2015

GBP/USD exchange rate drop to three-week low.


Good afternoon,

GBP/USD exchange rates slipped to a three-week low during today's session as figures this morning confirmed the UK economy only grew 0.3% during the first quarter.

The GBP/USD cross fell from $1.5381 to $1.5264 on the back of the announcement, the lowest we have seen the currency pair since the 7th May.

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Since the UK Election results the pound had been performing reasonably well, however, today's growth figure seems to have removed some of the confidence surrounding the future of the UK economy.

The revised Gross Domestic Product (GDP) figure of 0.3% was largely down to a rise in UK imports and further damages the UK's net trade position.

The UK's trade deficit increased by £3.6bn in the first quarter, which the Office of National Statistics said wiped off 0.9% from the GDP rate.

If exports do not pick up it could continue to effect economic growth, which in turn may hinder the Bank of England raising interest rates anytime soon.

With U.S. Federal Reserve pulling further ahead in the race to raise interest rates the pound could come under increased pressure in the coming months, so if you have an upcoming requirement to buy dollars it is more important than ever to understand what options are available.

Contact me today.


If you want the best rate of exchange and want to ensure you are making the most from your transfer contact me today using the link below or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.


Tuesday, 19 May 2015

GBP/USD exchange rates fall after poor inflation reading


Good afternoon,

After briefly breaking through $1.58 last week the pound has suffered against the U.S. dollar with GBP/USD exchange rates dropping to $1.5452 during today's session.

The pound fell across the board this morning following the latest UK CPI reading with figures showing that UK inflation has now fallen into a negative state for the first time since 1960.

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However, it is not all doom and gloom for the UK as Bank of England governor Mark Carney still expects the inflation figure to improve and push towards the central bank's target of 2% over the course of the year.

With the current inflation level still seen as only a temporary dip, it shouldn't have much of an impact on investor confidence and if we see some positive numbers from other sectors within the UK, we could easily see the pound recover the ground it has lost over the past few days.

Despite the recent drop for GBP/USD the pound has recovered remarkably well in the last month with rates climbing from $1.45 in April.

In recent weeks most of the gains can be put down to dollar weakness, if the U.S. economy continues to underperform, which in turn pushes back the chances of the Federal Reserve raising interest rates this year I still believe we could see GBP/USD climb back towards the $1.60 mark.

Contact me today.


If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact from.