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.

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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.

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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.

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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.

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Wednesday, 10 September 2014

Sterling falls to fresh 10 month low.

Good afternoon,

It has been a quite day in terms of economic data releases but that didn't stop the pound losing more ground against the U.S. dollar. The GBP/USD cross fell to a fresh 10 month low this morning with the currency pair falling as low $1.6057 before staging a mini revival.

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The news has been dominated of late with the upcoming Scottish referendum and the uncertainty surrounding the potential breakup has caused the pounds value to fall dramatically in the past few days. Talk of a possible "Yes" vote contributed to the pounds demise again this morning with Sterling/dollar falling nearly a cent from $1.6150 to $1.6057.

The decline was short lived though and the pound managed to wipe away the days losses after a number of the UK's largest companies voiced their concerns over Scottish independence. Standard Life warned that in the event of a "Yes" vote they would shift large parts of its operations from Edinburgh to England, while BP also jumped on the band-wagon by backing comments from a key figure within the oil industry who said the Scots were being misled by predictions of a oil boom.

Will the pound drop further?

The uncertainty over the referendum is certainly causing a lot of volatility for all Sterling crosses at the moment and I am sure it will continue until the vote on the 18th. If we were to see a "Yes" vote the impact on the pound would be huge and I wouldn't be surprised if GBP/USD fell towards $1.50.

If you have a requirement to buy dollars in the coming weeks and are worried about the future of the pound it is important to know what tools are available. As a specialist currency broker I can help reduce your exposure to the ever changing currency market and even secure a rate of exchange for up to two years into the future.

For more information 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, 8 September 2014

Sterling slips to 10 month low against the dollar


Good afternoon,

Sterling continued is recent demise against the U.S. dollar today as the Scottish referendum continued to play havoc for the pound. GBP/USD exchange rates plummeted to $1.6118 this morning, the lowest we have seen the currency pair since November 2013.

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The latest poll, released yesterday (Sunday) showed the Scottish National Party (SNP) now have a 1% lead in the vote for independence which is due to take place on the 18th September. The SNP have managed to claw back a deficit of around 22% in the last couple of weeks and the latest numbers are rocking investor confidence.

This recent move has meant to the pound losing over ten cents against the dollar since the start of July and if Scotland vote "Yes" on the 18th the pound could be set for even bigger losses. Some reports are suggesting that if Scotland decide to breakaway the knock on effect for the UK economy could be catastrophic which would lead to the pound potentially losing a further 5% against other major currencies.

If that were to happen it would leave GBP/USD exchange rates hovering around $1.53 and would pretty much wipe out all the gains Sterling has made over the past twelve months.

What do I do if I need to sell Sterling?

As a specialist currency broker I have a range of currency contracts at my disposal to reduce your exposure to the ever changing currency markets. Forward Contracts, Stop and Limits orders are all designed to give you piece of mind and remove the risk element to your transfer, while at the same time maximising your return.

If you have a requirement to buy or sell dollars in the coming weeks and would like to know more about the different options that are available, 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, 3 September 2014

GBP/USD exchange rates drop to seven month low


Good afternoon,

It has been another torrid few days for the pound leaving the GBP/USD cross at its lowest levels since February this year. Since my post on Monday Sterling has fallen by almost two cents against the dollar leaving the currency pair hovering around $1.6450 as the graph below shows.

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So what has caused the drop?

Despite the UK posting positive construction and services PMI numbers over the last two days the pound has weakened against most of the other majors, as investors agonised over a potential ''Yes'' vote in the upcoming Scottish referendum.

A poll released earlier in the week showed the pro-independence camp were now only 3 percentage points shy of a ''Yes'' vote in the poll due to take place on the 18th September.

If Scotland were to vote ''Yes'' and become independent the effect on the UK economy could be huge. The potential breakaway is already having a negative impact on investor confidence and if the "Yes" vote is confirmed in a couple of weeks' time the pound could be set for some heavy losses.

Can I protect myself against a falling pound?

If you have a requirement to buy dollars in the next couple of months getting the timing right on your transfer will be crucial. As a specialist currency broker I have a range of tools at my disposal to limit your exposure to the every changing FX market.

A popular option at the moment is a Forward Contract, it allows you to secure your rate at today's level and hold it for up to two years into the future, protecting yourself from adverse market movements.

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 all call me directly on 0044 (0) 1442 892065.

Click here to complete the contact form.

Monday, 1 September 2014

GBP/USD exchange rates climb half a cent

Good afternoon,

Despite the UK manufacturing sector growing at its slowest rate for 14 months in August Sterling still managed to climb against the U.S. dollar today. It seems the markets are starting to price in the European Central Bank introducing another round of monetary stimulus to help the struggling Eurozone, which in turn boosted the pounds value against a number of its major counterparts.

The GBP/USD exchange rates rose from 1.6590 to a high of $1.6644 during trading today but with the U.S. markets closed for Labor Day the gains made by the pound could be quickly wiped out when the markets reopen tomorrow.

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What can we expect this week?

We could be set for a volatile few days for Sterling crosses as this week sees a number of key economic data releases from the UK and U.S. From the UK we have the construction and house price figures as well as the latest Bank of England rate decision and statement.

All eyes will be focusing on the Bank of England announcement on Thursday as investors and market players look for clues about when the central bank will raise interest rates, especially as two of the nine committee members voted to increase rates last month.

From the U.S we will see the latest manufacturing, trade balance, unemployment and non-farm payroll numbers. All have the potential to swing exchange rates and those of you selling dollars will be hoping the U.S economy continues its recent upturn to drive down GBP/USD exchange rates.

I will of course keep you up to data with how the week unfolds. In the meantime, if you are looking to buy or sell dollars in the coming months and want to make the most from your currency transfer contact me today for a free, no-obligation consultation.

For information on the different types of currency contracts 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.

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.