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.

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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.

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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.

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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.

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Thursday, 12 February 2015

GBP/USD exchange rates receive a boost following inflation report

Good afternoon,

Following the Bank of England (BoE) inflation report this morning GBP/USD exchange rates climbed to their highest level since the 1st January. The pound got a real boost during Mark Carneys press conference which allowed Sterling to climb across the board, pushing GBP/USD exchange rates to a high of $1.5388, a rise of over 1% for the day.

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What did Mr Carney say?

Despite Governor Carney saying inflation in the UK could turn negative over the next few months the underlying tone of his speech was pretty upbeat. Mr Carney indicated inflation could turn negative because of falling oil and energy prices but expects prices to rebound by the end of the year, which would not mean the economy had entered deflation.

Mr Carney added that inflation figures were currently obscuring the economic recovery and that wage growth in the UK was on the way up.

The central bank revised up their growth forecasts for the next two years and were hopeful inflation in the UK would return to 2% sometime in 2017. If this is the case it should allow the BoE to start raising interest rates in 2016, great news for investors and is the reason we have seen the pound rise against the majors during today's session.

If you have a requirement to buy or sell dollars in the coming weeks and want the best exchange rate for 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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Wednesday, 11 February 2015

GBP/USD exhange rates unable to sustain gains

Good afternoon,

It's been a game of two halves for the GBP/USD cross today, with the pound gaining around half a cent this morning before dropping nearly three quarters of a cent over the course of this afternoon. As you can see from the graph below GBP/USD exchange rates came close to breaking through the $1.53 barrier around midday but ended the day closer to $1.52 as investors get set for tomorrow's inflation report from the Bank of England.

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Since my post on Monday the UK economy and the pound had benefitted from some stronger than forecast manufacturing figures but with investor focus now switching to Thursdays inflation report any gains we have seen for Sterling have been quickly erased.

Depending on the result of tomorrow's report from Mark Carney we could see investors revise their expectations of when the Bank of England could raise interest rates. We have already seen the central bank move the goal posts a number of times over the past six months in regards to a rate hike and there is every chance we will see the same again tomorrow.

If this is the case then we could see the pound lose ground across the board and I wouldn't be surprised if rates fell back towards $1.51 over the course of tomorrows trading session.

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

As a specialist currency broker I have a range of contract options at my disposal that can help you secure a rate of exchange for up to two years into the future, target a rate that might not be available or protect you against adverse market movements.

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Monday, 9 February 2015

GBP/USD exchange rate Monday update

Good afternoon,

The pound dipped around half a cent against the dollar today as investors turn their attention to Thursdays Bank of England inflation report, while the dollar continues to benefit from the uncertainty surrounding Greece. GBP/USD exchange rates fell from $1.5265 to a low of $1.5203 during today's session, wiping off some of the gains Sterling made against the dollar last week.

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On Thursday morning Bank of England Governor Mark Carney will hold a press conference regarding the central bank's quarterly inflation report. It is likely the report will support last weeks decision to keep interest rates at 0.5% and could give us an indication that interest rates will remain at the current level for longer.

The pound has fallen around 12% against the dollar since July last year as expectations of a rate hike keep getting pushed back. The dollar is also benefitting from the recent global uncertainty with Greece currently dominating the headlines. With Greece on the verge of defaulting and talk of the country leaving the Eurozone, investors have been seeking the safety of the dollar which in turn has made it more expensive to buy.

I will keep you updated with the week's events as they unfold.

If you have a requirement to buy or sell dollars in the coming weeks and want to make sure 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.

I can also explain the different ways to buy or sell your currency to help you target a rate that might not be currently available and protect yourself from any adverse market movements.

Click here to complete the contact form.