Monday, 13 October 2014

GBP/USD exchange rates continue recent trend

Good afternoon,

The pound suffered across the board today as reports showed the UK economy is suffering from the slowdown in the Eurozone. Despite a market holiday in the U.S due to Columbus Day, GBP/USD fell from $1.6111 to $1.6052 as UK manufacturers start to feel the impact from a strong pound and worsening conditions with their largest trade partner.

For a free currency consultation click here.


With the pound and UK economy out performing many of its major counterparts over the past twelve months or so, Sterling has been on the march. This has been great for anyone looking to sell pounds and convert into another currency but for UK exporters the strain on their business is now starting to show.

A trend report from BDO, an accountancy and services group indicated that growth expectations among UK manufacturers had fallen at its fasted rate since May last year. The worry will be if UK exports continue to suffer then we could see a knock on effect for the rest of the economy. We have already seen the pound lose over 7% against the dollar in the last three months and with the U.S. economy picking up, Sterling could be set for further loses.

Can I protect myself from a falling pound?

Yes, as a specialist currency broker I have a range of contracts at my disposal to help protect you from adverse market movements. I can help secure a rate for up to two years into the future using a Forward Contract or use a Stop Loss order to act as a safety net, which will allow you to hold out for a better exchange rate and protect yourself from a sudden fall in the market.

If you have a requirement to buy or sell dollars in the coming weeks or months and would like to make 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.





Friday, 10 October 2014

GBP/USD exchange rates drops back again

Good afternoon,

It has been another difficult 48 hours for the pound with sterling continuing its recent downward trend against the dollar. Despite the U.S Federal Reserve indicating there is no rate rise on the horizon and the UK trade deficit narrowing, the pound still managed to lose the ground it made earlier in the week. The GBP/USD cross finished the day below $1.6050, a loss of over a cent during todays trading session.

For a free currency consultation click here.



Why has the pound weakened?

With UK inflation starting to ease the Bank of England may be in a position to keep interest rates lower for longer, which may have impacted investor confidence. The BoE decided yesterday to keep interest rates at their current level which came as no real surprise. However, in two weeks time the central bank will reveal the result of how the policy committee voted and if the number of members voting for a rate hike increases (two last month) the pound could stage a mini revival.

What next for GBP/USD?

The pound has lost over 7% against the dollar in the last few months and this has been mainly down to dollar strength rather the sterling weakness. If the BoE act before the FED in increasing interest rates we could see the pound fight back but with the results could be minimal, There is every chance a rate rise has already been priced into the market so even if the BoE make the first move I cannot see rates pushing back towards $1.70 in the near future.

What to do next

With the FX market impossible to predict, knowing what tools are available can help you get the timing right on your transaction and make the most from your transfer. If you need to buy or sell dollars in the coming weeks and want to ensure you are getting the best possible 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.



 

Wednesday, 8 October 2014

GBP/USD exchange rates back over $1.60

Good afternoon,

It has been a fairly choppy day for the GBP/USD cross with exchange rates jumping between $1.6050 and $1.6110 throughout today. The good news is the pound has managed to put a temporary halt to its decline against the dollar, gaining over a cent and a half over the past two trading sessions.

For a free currency consultation click here.

 
With the dollar gaining over 7% against the pound since July the greenback has been the dominant currency over the past couple of months. The U.S economy has bounced back from a difficult start to the year and with the U.S Federal in the processing of winding up their stimulus package the dollar has been on the march against a number of currencies.

After falling from $1.72 GBP/USD is now close to a one year low. While EUR/USD has dropped by nearly 10% since May leaving the currency pair at its lowest level for nearly two years, so if the dollar maintains its current position it seems set to be the currency of choice for 2014.

What could move rates in the coming days?

Investors and market players will be keeping a close on proceedings tomorrow as there are a number of key releases and speeches. The Bank of England will announce their latest interest rate decision followed by a Statement by Governor Mark Carney. There is also a speech from the European Central Bank President Mario Draghi and with the Eurozone struggling the pound and dollar could be set to for further gains.

We will also hear from Federal Reserve Governors Daniel Tarullo and Stanley Fischer which could cause some volatility in as FOMC engagements are often used to drop hints regarding future monetary policies.

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 for a free, no-obligation consultation.

Click here to complete the contact form.

Monday, 6 October 2014

GBP/USD continues to fall.


Good afternoon,

Since my last post things have gone from bad to worse for the GBP/USD cross. Since the 19th September sterling/dollar has dropped from $1.6487 to $1.5956 the lowest we have seen the currency pair for over a year.

For a free currency consultation click here.



What has caused the drop?

The recent decline for GBP/USD is mainly down to dollar strength rather than sterling weakness. While cable has dropping the pound has actually been gaining against most of the other major currencies, GBP/EUR is close to its highest level in six years!

The U.S. dollar has benefitted in recent weeks from a number of positive comments from the Federal Reserve and better than forecast economic numbers. The Federal Reserve have announced their stimulus package will be wound up by the end of October, which has helped strengthen the greenback and also switch the focus to a potential interest rate hike.

The U.S. economy has also seen an upturn over the last few months, last week's jobs numbers are a prime example of how the economy seems to have turned a corner. On Friday figures showed 248,000 jobs were created in September, the 5th time in six months the figure has been over 200,000 and with other sectors also performing well it seems as the dollar's gains could be here to stay.

I am not the only one to have this line of thought, one of the forecasts I received this morning showed the GBP/USD cross could be as low as $1.57 within the next twelve months, despite a potential interest rate hike from the Bank of England coming in the next few months.

If you have an upcoming requirement to buy or sell dollars and want to ensure you are making the most from your transfer it is important to know what tools are available. As a specialist currency broker I can help protect you against adverse market movements or target a rate that might not be currently available.

For more information 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, 24 September 2014

GBP/USD exchange rate update

Good afternoon,
 
Looking towards the next few weeks, the question on everyone’s lips is will the pound continue its run of good form and maintain its momentum against the other major currencies? Sterling has moved a long way in the last week which is unusual considering the recent uncertainty surrounding the UK economy, interest rates and of course the Scottish referendum, which I’m sure everybody is fed up of hearing about!
 
 
 

Since the start of July the GBP/USD cross has dropped from $1.72 to below $1.61, a fall of 6.5%. Over the past few days Sterling/dollar seems to have stabilised with exchange rates sitting between $1.64 and $1.63, however, with all the turmoil in the Middle East and the U.S military carrying out new strikes in Syria and Iraq, investors could be tempted to seek the safety of the U.S dollar which in turn could see GBP/USD exchange rates fall below $1.60.

Last week also saw the Federal Reserve announce another cut to their stimulus package which now stands at $15 billion and it looks as though the programme will be completely wound up by the end of October. This could potentially give the dollar another boost as focus turns to when the Fed will raise their own benchmark rate.

If you are looking to buy or sell dollars in the coming weeks or months it is important to know what tools are available to help make the most of your transfer. As a specialist currency broker I have a range of currency contracts at my disposal which can help remove the risk element to the ever changing FX markets. For more information on the types of contract 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.

To complete the contact form click here.

Wednesday, 17 September 2014

GBP/USD exchange rates climb a cent ahead of referendum

Good afternoon,

Sterling rose over a cent during trading today as weaker than forecast U.S economic figures helped boost the pounds value ahead of tomorrows make or break referendum. The GBP/USD cross climbed from $1.6251 to a high of $1.6354 after U.S consumer prices fell in August, the first decline since April 2013.

For a free currency consultation click here.


Fed announcement.

This evening will see the U.S. Federal Reserve release a statement following their latest meeting. It is likely policymakers will provide some insight into further tapering of their on-going stimulus programme, as well as a potential interest rate rise.

If the Fed decide to drop some positive hints then we could easily see the dollar claw back the ground it has lost to the pound over the course of the day.

Big day for Britain.

The next couple of days could be extremely volatile for the UK and pound as it finally comes to the crunch for Scottish voters. Over the past few weeks the news has been dominated by the Scottish referendum and whether we see a "Yes" or "No" vote tomorrow the value of the pound is likely to be affected.

If the Scots decide to go it alone we could easily see the pound nosedive against most of its major counterparts, with some forecasts suggesting we could see as much as 8% wiped off of Sterling's value. If that were to happen it would leave GBP/USD sitting just over $1.50, wiping out all the gains the pound has made over the past 14 months.

If you have an upcoming requirement to buy or sell dollars and would like to know how to protect yourself again the ever-changing FX markets, 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, 15 September 2014

Sterling recovers ahead of Scottish vote.

Good afternoon,

Since my post last week Sterling has clawed back some of the ground it lost against the dollar when the GBP/USD cross fell to its lowest levels in 10 months. The latest Scottish independence polls now show the "No" voters are just ahead which has lent a small amount support to the pound ahead of the final vote on Thursday.

In the space of a week GBP/USD exchange rates have climbed nearly two cents, pushing the mid-market level back towards $1.6250 and if Scotland decides stay as part of the UK on Thursday we may see some investor confidence return to the faltering pound, which could potentially push Sterling/dollar a little higher.

For a free currency consultation click here.


 
Will GBP/USD push back towards $1.70?

The most common question I get asked at the moment is will GBP/USD exchange rates get back to the levels we witnessed a couple of months ago when rates were sitting above $1.70. Unfortunately for those of you looking to purchase dollars I don't see this happening in the near future.

There are a number of factors that I think will prevent this, even if the Scots vote "No" on Thursday. It looks as though the Bank of England will not be raising interest rates until next year and with the U.S. Federal Reserve on track to wind up their stimulus package by the end of October it seems there is more scope for the dollar to strengthen ahead of the pound.

Looking to buy dollars?

If you have an upcoming requirement to buy dollars in the next few days and are worried about the future value of the pound I have a range of currency options which can help.  Forward Contracts, Stop Loss and Limit orders all designed to help reduce your exposure to the ever changing FX markets.

For more information use the link below to complete the contact form all call me direct on 0044 (0) 1442 892065.

To complete the contact form click here.