Thursday, 28 August 2014

GBP/USD remains range bound

Good afternoon,

Since my post on Tuesday the GBP/USD cross has been relatively stable with the currency pair remaining within a 40 pip range over the past two trading days. A lack of economic numbers from either side of the pond has meant this week has been one of the most subdued I have seen in recent times. Could this be the calm before the storm?

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I would expect to see more volatility in the currency markets next week as the start of a new month will see a number of key data releases from the UK and U.S. The Bank of England will give their latest interest rate decision which I am sure will be heavily scrutinised following the MPC's split decision a couple of weeks ago.

Following the UK economies recent performance I still think it is unlikely we will see any movement by the BoE but the pounds value will probably fluctuate in the build up to the announcement as the markets move just as much on rumours as they do facts.

At the end of next week we will get the latest U.S. job numbers and as my regular readers will know usually cause some big swings for the GBP/USD cross. The numbers are impossible to predict but with the U.S. economy performing well in recent weeks, a positive reading could see the dollar make further inroads into the pound.

Remove the risk.

If you have a requirement to buy or sell dollars in the coming months it is important to know what options are available. I have a range of currency contracts at my disposal which can remove the risk element from your transfer, give you peace of mind or even target a rate that might not be currently available.

For more information use the link below or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

Tuesday, 26 August 2014

GBP/USD continues to slide.


Good afternoon,

I hope you all enjoyed the bank holiday weekend.

Since my last post the pound has lost over a cent against the dollar, leaving the GBP/USD cross at its lowest levels since 25th March 2013. After a brief recovery following the Bank of England minutes last week the pound has carried on its recent trend by dropping against the dollar and with GBP/USD now sitting at $1.6567, it now means Sterling has lost nearly 4% since the start of July.

Click here for a free currency consultation.

What can we expect for the pound in the coming weeks?

With two of the Bank of England's MPC members voting for a rate hike in the UK there had been renewed optimism we could see a rate rise this year. However, with UK economic data repeatedly missing target and Fed Chair Janet Yellen being extremely positive about the state of the U.S. economy during the weekends Jackson Hole meeting, we could be set for further loses for GBP/USD.

Do you need to buy dollars?

With the GBP/USD cross in free fall, just waiting to see if the rate recovers could prove to be very costly. If you thinking of buying dollars in the next six months, a popular option at the moment is a Forward Contract.

A Forward Contract can help you take advantage of current exchange rates. You can fix the price now for a transaction that will take place up to two years in the future. You secure the Forward Contract with a deposit of 10% of the total value of your transaction and then pay the balance before the contract expires. Once secured the agreed exchange rate will apply for the duration of the contract.             

For more information on the different types of contract or to find out what rate I can offer, use the link below or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

 



Wednesday, 20 August 2014

Bank of England minutes help pound recover

Good afternoon,

Sterling managed to stage a mini revival today after the Bank of England meeting minutes surprised us all. For the first time in three years we witnessed a split decision from the MPC with two of its nine members voting in favour of a rate hike.

How did this impact GBP/USD?

After a dismal run which has seen the pound lose around 3.5% against the dollar in the last five weeks, GBP/USD gained around 0.4% today, rising from $1.6606 to a high of $1.6664 to move us away for the four month low I mentioned in yesterdays post.


Does todays news mean we will see interest rates rise?

Not straight away, with UK inflation sitting at 1.6% we are still some way of the central banks 2% target and with wage growth also slowing there is still spare capacity in the economy which the BoE will look at before raising the base rate.

What today has shown is that there has finally been a change in mentality in the ranks of the MPC after months of will they won't they. The minutes showed that even though wage growth had slowed Mr McCafferty and Mr Weale felt that the UK's falling unemployment rate made in more likely salaries would start to improve in the near future.

If that is the case and a couple of the other MPC members join the bandwagon the talk of an interest rate rise before the end of the year could resurface despite Mr Carneys recent comments.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the coming months and want 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 for a free, no-obligation consultation.

I can then talk you through the different types of contracts that are available which are designed to give you peace of mind and protection from adverse market movements

Click here to complete the contact form.

Tuesday, 19 August 2014

GBP/USD drops to a fresh 4 month low

Good afternoon,

After a brief recovery yesterday which saw GBP/USD climb back above$1.67, the pound suffered yet again as UK posted weaker than forecast inflation figures at 09.30 this morning. The news had an instant impact on Sterling's value with the currency pair dropping from $1.6726 to $1.6644 in a matter minutes. There was more bad news for the pound this afternoon as positive building permit numbers from the U.S. prompted another drop, leaving GBP/USD exchange at a fresh four month low of $1.6610.

For a free currency consultation click here.



What does the inflation figure mean for my currency purchase?

This mornings inflation reading of 1.6% takes us further away from the Bank of England's target of 2%. The central bank were looking for inflation to reach 2% before they looked at raising interest rates, however, coupled with the drop in wage growth we witnessed last week todays news has led investors and market players to believe we will not see a rate hike this year.

As a result the pound has continued on its downward spiral, losing around 3.5% against the dollar since the beginning of July. If the UK recovery continues to stutter and the U.S. economy continues to play catch up then we are facing the real possibility of GBP/USD exchange rates falling back towards $1.60 over the next few months.

Get in touch.

If you are looking at buying or selling dollars in the coming weeks or months and want to ensure you are making the most from your currency transfer, it is important to know what options are available. As a specialist currency broker I have the tools to protect you against adverse market movements, secure a rate of exchange for up to two years into the future or target a rate which might not be currently available. 

For more information on the types of currency contracts or to find out what rates 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.

Friday, 15 August 2014

GBP/USD exchange rate update, Friday 15/08/2014

Good afternoon,

After all of the commotion on Wednesday it has been a relatively quite couple of days for the GBP/USD cross with the currency pair staying with a 20 pip range throughout trading today. Despite the second UK GDP estimate coming out as expected this morning the pound has been unable to recover from Mark Carneys comments earlier in the week and remained under $1.67.

For a free currency consultation click here.


 Weekly summary.

It has been a difficult week for the pound and the dollar has taken full advantage with GBP/USD exchange rates falling to their lowest level in just over four months. This week has seen the pound drop by nearly 1% against the greenback as rates fell from $1.6826 to a low of $1.6665, which means Sterling has now lost almost 3% in the last five weeks alone.

At the start of July we witnessed GBP/USD coming very close to a six year high but since then the pound has almost been in free fall as the UK economic recovery begins to slow. The spare capacity in the UK economy, which Mark Carney talked about on Wednesday, has dampened expectations that an interest rate rise will take place this year and has meant investors and market player have now started to look elsewhere.

So what does this fall mean for my currency purchase?


A 3% drop might not sound like a huge amount but put into monetary terms makes for some grim reading if you are looking to purchase dollars. Had you secured your rate five weeks ago £200,000 would have seen you receive around $343,000, now though, that same £200k will see you receive around $10,000 dollar less.

However, with every negative there must be a positive and for those of you looking at selling dollars the last month will have come as a breath of fresh air. With the UK recovery running out of steam and with the prospect of the U.S. Federal Reserve wrapping up their stimulus programme in the next couple of months we could see the dollar take even more out of the once dominant pound.

Get in touch.

If you are looking to buy or sell dollars and want to ensure you are making the most of your currency transfer, use the link below and complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.

Have a great weekend.

Click here to complete the contact form.




Wednesday, 13 August 2014

GBP/USD exchange rates fall to four month low

Good afternoon,

I said in Mondays post that today had the potential to cause some volatility in the currency markets and that was certainly the case, with the GBP/USD cross falling by over a cent to take the currency pair to its lowest level since April this year.

For a free currency consultation click here.


After a brief rally this morning, which took Sterling/dollar back above $1.68 the tables quickly turned as comments from Bank of England Governor Mark Carney caused the pound to drop across the board. GBP/USD fell from a high of $1.6827 to a low of $1.6687 which now means the pound has now nearly five cents against the dollar on the last six weeks.

So what did Mark Carney say?

Mr Carney has lowered the Bank of England's forecast for UK wage growth from 2.5% to 1.25% for the current year after figures showed wages grew at their slowest rate since records began in 2001. The move from the central bank has dampened expectations that an interest rate rise will take place this year and left investors looking for other alternatives.

Will rates recover?

After todays comments from Mr Carney it looks unlikely we will see GBP/USD exchange rates push back towards $1.70 in the short term unless something drastic happens to the U.S. economy. However, with U.S economy improving and the Federal Reserves looking to wind up their stimulus programme sometime in October there seems to be more scope for the dollar to strengthen rather than the pound.

Do you need to buy or sell dollars?

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 it is vital you know what tools are available. As a specialist currency broker I have a wide range of contracts at my disposal to help protect you against adverse market movements or help target your chosen rate.

For more information on the different types of currency contract or to find out what rates 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, 11 August 2014

GBP/USD exchange rates remain range bound

Good afternoon,

It has been a quite day in terms of economic data releases, which has been reflected within the currency markets with the GBP/USD cross remaining within a 20 pip range throughout trading today. After Fridays decline the currency pair remained under $1.68, trading between $1.6775 and $1.6795 and with a busy week ahead Sterling could be set for a volatile few days.

For a free currency consultation click here.


What could impact exchange rates this week?

Although today has been quite on the data front, this week will see a number of key releases that could impact the value of Sterling and the dollar. All eyes will be focusing on Wednesday as the UK release the latest claimant count and unemployment figures, there is a speech from Bank of England Governor Mark Carney and the central bank also release their latest inflation report. From the States we will see the latest retail sales figures and there is a speech from FOMC member William Dudley.

All of the above have the potential to cause some movement in the FX market. If the UK releases fail to meet expectations or Mr Carney is dovish about a potential interest rate hike, we could see the pound lose further ground against the dollar and move further from the six year high we witnessed only a few weeks ago.

Are you looking to buy or sell dollars?

If you have an upcoming requirement to buy or sell dollars in the coming weeks it is important to know how you can make the most from your transfer. As a specialist currency broker I have a range of currency contracts at my disposal, designed to give you peace of mind and protect you against adverse market movements.

For more information on the types of contract or to find out what rates 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.