Thursday, 19 March 2015

Federal Reserve announcement has huge impact on GBP/USD exchange rates.


Good morning,

The past twenty four hours have been extremely volatile for GBP/USD exchange rates, with the currency pair moving within a near four cent range. Yesterday evenings statement from the U.S. Federal Reserve caused chaos on the currency markets and have shown once again just how unpredictable things can be.

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At 4pm yesterday the GBP/USD cross was sitting around $1.4650 but following the announcement by FED Chair Janet Yellen, exchange rates climbed to briefly break the $1.51 barrier before slipping back to $1.48 at the start of today's session.

To put the move into monetary terms, converting £200,000 would have seen a difference of around $8,500 between the high and the low of yesterday's session and underlines just how important it is to get the timing right on your transfer.

What did the FED say?

During yesterday's statement the Federal Reserve changed its stance on interest rates following their two day meeting. Interest rates in the U.S. have been at 0% since the 2008 financial crisis and there had been suggestions that Mrs Yellen could give an indication as to when the central bank will raise the bench mark level.... that didn't happen!

They FED did remove the word "patience" from their statement, the key word that has been used in recent months as an indication the bank would not be raising rates in the foreseeable future. However, Mrs Yellen went on to say the central bank would not be "impatient" and that "further improvement" was needed in the labor market before raising interest rates.

So why did this weaken the dollar?

Some investors had been hoping for a rate rise as early as June and it seems this had been priced into the market. With the FED holding off for the time being, the value of the dollar has been corrected and allowed the pound to claw back some of the ground it has lost over the past couple of weeks.

Get in touch

With Sterling set for a volatile few weeks in the run up to UK elections it is important to know what options you have in order to make the most from your transfer. As a specialist currency broker I have a number of contract options available to help protect you against adverse market movements or target a rate that might not be currently available.

For more information on the different ways to purchase your currency or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Wednesday, 4 March 2015

GBP/USD exchange rates fall over a cent

Good afternoon,

Sterling suffered against the dollar during today's trading session as a number of positive U.S. economic numbers helped strengthen the greenback. GBP/USD exchange rates fell over a cent from $1.5367 to $1.5257, which means the pound has now lost nearly 2% since last Thursday.

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Good news for the U.S. economy

The dollar received a boost this afternoon as Final Services PMI and Non-Manufacturing PMI numbers both beat expectations and coupled with this morning's UK Services sector numbers falling short of the predicted level, the dollar was able to make gains across the board.

EUR/USD and fresh 10 year low

Today's positive ecostats from the U.S. and the uncertainty surrounding the Eurozone left the EUR/USD at a fresh 10 year low today, The currency pair fell from 1.1180 to a low of 1.1064 this afternoon and with the U.S. leading the race to raise interest rates and the possibility of Greece leaving the Eurozone some forecasts are suggesting we could see EUR/USD exchange rates at parity by the end of 2015.

Protect yourself and make the most of your transfer.

If you have a requirement to buy or sell dollars in the next six months it is important to know what tools are available to help you make the most from your transfer. As a specialist currency broker I can secure rates for up to two years into the future, target a rate that might not be currently available or reduce your exposure to the ever changing FX market.

For more information on different types of market orders or to find out what rate of exchange I can offer, use the link below and complete the contact form for a free no-obligation consultation.

Click here to complete the contact form.

Tuesday, 3 March 2015

GBP/USD exchange rate update

Good afternoon,




After losing over one per cent against the dollar last week the pound received a boost during todays trading session after UK construction PMI figures beat expectations. The positive construction figures (which showed the sector had grown at its fastest pace in four months) helped push GBP/USD exchange rates back towards $1.54 after falling from $1.5553 last Thursday.




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Over the past month the pound has been one of the strongest performing currencies, with expectations of an interest rate rise in the next year helping to boost sterling's value. However, with the UK election just around the corner, the political uncertainty could cause sterling crosses to fluctuate over the next couple of months......just look at impact the Scottish referendum had on the currency markets.




Since the turn of the year we have seen a 4% swing for GBP/USD exchange rates which highlights just how unpredictable the currency markets can be, 4% might not sound like much but when converting large amounts it can make a huge difference. Put into monetary terms a £200,000 transfer would have seen a difference of nearly $12,000 between the highs and lows of the last few months and shows just how important timing can be when moving money overseas.




To find out more about how I can help with the timing of your transfer or for a live rate of exchange, use the link below to complete the contact form for a free, no-obligation consultation. Alternatively call me directly on 0044 (0) 1442 892 065.




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Thursday, 26 February 2015

GBP/USD exchange rates fall 1%

Good afternoon,

After opening near a fresh eight week high GBP/USD exchange rates fell nearly 1% as the uncertainty surrounding the Eurozone continues to dominate the news. The GBP/USD cross dropped from $1.5551 to $1.5399 during today's session despite figures supporting steady UK economic growth.

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The dollar also had a strong day against the euro, gaining around 1.5% against the single currency. With the cross falling from 1.1370 to 1.1211 it has left the currency pair within half a cent of the lowest trading levels we have seen over the past ten years.

Despite Greece agreeing a four month loan extension earlier in the week there are still concerns about how the new Greek government are going to deal with the underlying issues of the country. By the end of the March they need to raise around €4.3 billion in order to keep the country running but with a lack of investment talks of them leaving the euro bloc is still causing concerns for investors.

Part of the reason the dollar has had such a strong day will be down to investors seeking the safety of the greenback. Even though the pound lost ground against the dollar it was able to gain around a cent against the euro taking the GBP/EUR cross to a fresh seven year high of €1.3760. This shows investors are pulling out of riskier assets such as the euro and looking for safer alternatives.

If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you are making the most of your transfer, contact me today for a free consultation. Not only can I achieve you a better rate of exchange than those offered by banks, I can help you get the timing right on your transfer and also look to protect you from adverse markets movements.

For more information on the different ways to buy currency or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892065.

Click here to complete the contact form.   

Monday, 23 February 2015

GBP/USD exchange rates push towards $1.55

Good afternoon,

It has been another positive day for the pound with the GBP/USD cross rising nearly one per cent during today's trading session. Sterling/dollar exchange rates climbed from $1.5333 this morning to $1.5472 midway through this afternoon, moving the currency pair to within touching distance of $1.55, a price we have not seen since the turn of the year.

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As I mentioned in my last post the UK economy is still performing well and if it wasn't for the low inflation reading we could have seen an interest rate rise already. Last week the minutes from the Federal Reserve's January meeting showed officials were unlikely to raise interest rates in the U.S anytime soon, despite the economy growing at a healthy pace.

It seems that Janet Yellen and the FOMC members are concerned with slower wage growth and the current level of global uncertainty, and by raising rates early they could actually impact economic growth in the U.S.

To find out what rate of exchange I can offer click here.

The news from the Federal Reserve last week seems to have taken the wind out of the dollars sails and gives the pound some extra breathing space. Since GBP/USD exchange rates dropped under $1.50 in January the pound has been gaining steadily and is close to gaining 3.5% in the last month.

However, with Greece and the Eurozone still dominating the headlines the volatility we have seen over past few weeks could be set to continue. The Greeks only have a few hours left to present their new proposal to its creditors and if an agreement cannot be reached, the loan extension that was agreed on Friday will collapse and revive fears that Greece will default and leave the euro.

A Greek default could plunge the FX markets into disarray and could leave investors looking for safer options. The U.S dollar in renowned for its safe-haven status and any uncertainty surrounding Greece could see the U.S. dollar benefit, wiping out the gains the pound has made over the past month.

If you have a requirement to buy or sell dollars in the coming weeks or months and are worried what impact global events will have on your currency 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, 18 February 2015

Why has the pound gone up against the dollar today? 18/02/2015

Good morning,

The pound had an unexpected bonus this morning with news the that UK unemployment now stands at 5.7%. The unemployment rate had been forecast to remain at 5.8% but with the number of people out of work falling by 97,000, coupled with a drop in the number of people claiming job-seekers allowance and average earnings also increasing the value of the pound received a welcome boost.

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As the graph above shows this morning's news had an immediate impact on the GBP/USD cross with the currency pair gaining over three quarters of cent. GBP/USD exchange rates jumped from $1.5350 to a $1.5439 on the back of this morning's data releases.

Bank of England minutes.

This morning also saw the release of the minutes from the Bank of England's meeting earlier in the month. Unsurprisingly there was no change to the central banks stance on interest rates or monetary policy but the minutes did show the MPC members expect inflation in the UK to bounce back from its current record low level, something Mark Carney highlighted in his inflation report last week.

Sterling push.

Today's figures show the UK recovery is still very much on track and that the current inflation reading is masking what is a solid foundation. In the last four weeks GBP/USD has climbed over 3% with exchange rates rising from $1.4976 to their current level. The question now will be whether Sterling can continue to rise, with so much uncertainty still surrounding Greece, events in the Eurozone could start to impact the UK and the pound.

Get in touch.

If you have a requirement to buy or sell dollars in the coming weeks, it is important to know what options are available to help you make the most from your transfer. As a specialist in currency exchange I can help protect you against adverse market movements, while at the same time achieving you a rate of exchange up to 5% better than those offered by your high street bank.

For more information on the different types of currency tools or to find out what rate of exchange I can offer, 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, 16 February 2015

GBP/USD exchange rates drop after last weeks gains.

Good afternoon,

Since my last post on Thursday GBP/USD exchange rates continued to rise reaching a high of $1.5439 first thing this morning, with the pound still finding support following last weeks inflation report. However, sterling could not hold onto the gains during today's session with the currency pair falling nearly a cent to $1.5355, a loss of 0.55%.

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Why has the pound lost ground?

The main force behind GBP/USD rates falling today will be down to the on-going uncertainty surrounding Greece. The second round of talks between Greece and its creditors started today and with neither party seemingly prepared to compromise the value of the euro continues to come under pressure.

This has led to investors to seeking the safety of the U.S. dollar which in turn is making it more expensive to buy. Despite falling a cent against the dollar today the pound was actually up around half a cent against the euro this afternoon.

What could impact exchange rates this week?

There are a number of key releases which could impact the pound and dollar this week and cause some market volatility. From the UK we will have the latest retail figures, claimant count change and unemployment rate, we will also see the Bank of England minutes from their meeting at the start of the month.

From the States some of the key releases include the latest Building Permit number, PPI month on month and the Philly Fed Manufacturing Index.

All have the potential to cause rates to move and I will keep you updated as events unfold. In the meantime if you have a requirement to buy or sell dollars and want to ensure you are getting the best possible exchange rate, 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.