GBP/USD weekly overiew

It was another choppy week for the pound/dollar cross as data in the U.S and UK led to big swings in the currency markets. Federal Reserve chief Ben Bernanke expressed a note of caution on the U.S economy early on in the week which pushed rates to their highest levels since November.

Mr Bernanke has indicated that more quantitative easing could be on the horizon if the U.S economy continues to come under increasing pressure. Further monetary stimulus would flood the market and make the U.S. dollar cheaper to purchase. This sent the GBP/USD cross towards the $1.60 mark and peaked at 1.5999.

These highs were short lived as sterling dropped by 0.7% against the dollar mid week. There is still a black cloud hovering over the UK economy which was reflected in the news that British house prices had dropped in March, their sharpest fall for over two years. UK mortgage approvals also unexpectedly fell for the month of February and are another reminder that the UK economy is still a long way from recovering.

However, with Friday bringing a close to the month, the quarter and financial year pound/dollar rates hit their highest levels for four months and broke the $1.60 barrier.

Sterling rose to $1.6034, it highest levels since November 14, largely thanks to a weaker dollar due to end of month and quarter rebalancing.

"The out performance in U.S. equities of late means portfolio rebalancing at month and quarter-end points to a weaker dollar. Everyone is looking for a softer dollar today and that's helped sterling get back above $1.60," said Ankita Dudani, currency strategist at RBS.

To put the movements into perspective, we have seen a 1.2% difference from the lows of the week to the high. This is a difference of $3700 on a £200,000 trade and shows how important it is to get the timing right for your currency exchange.

If you would like to discuss your options in more detail click here to send me a direct email or complete the contact form on the homepage of the blog.

Is the UK heading back into recession?

Thursday was a fairly stable day for the GBP/USD cross following the previous days loses, over the course of the morning rates fell by 0.5% to a low of $1.5863 before recovering back into the $1.59’s towards the end of the afternoon.

Data released on Thursday morning showed that British house prices had dropped in March, their sharpest fall for over two years. There was also news that UK mortgage approvals had unexpectedly fallen for the month on February. This pushed rates further away from the highs we saw on Tuesday and is another reminder the UK economy is still far from recovering.

This was highlighted by the Organisation for Economic Co-operation and Development (OECD) that the UK economy will contract in the first quarter of 2012, which will mean the country is back into recession.

However, many other analysts are still predicting growth in the first three months of 2012. Figures from the Office of National Statistics (ONS) on Thursday have shown the UK service sector has grown by 0.2% in January compared with December.

Based on the latest information Traders said sterling would struggle to sustain a move over $1.60. With rates still close to the highest we have seen since November it is still a very good time to buy dollars, with a Forward contract you can take advantage of the current highs and book your rate of exchange for up to two years in advance. If you would like to discuss Forward Contracts or any of the other options available to you click here to send me a direct email or use the contact form on the homepage of the blog.

Sterling drops by 0.7% against the dollar

After the four month highs we saw on Tuesday sterling fell sharply against the dollar on Wednesday. The GBP/USD cross dropped by 0.7% from 1.5960 to 1.5848 on the back of the latest Gross Domestic Product (GDP) data release.

Figures from the Office of National Statistics (ONS) have shown that the UK’s economic growth has been revised down to a 0.3% contraction for the last quarter of 2011. The original estimates had shown a contraction of 0.2%.

This has led to the 2011 annual figure for growth to be revised down to 0.7% from 0.8%. There was also a revision for the GDP figure for the three months from April to June 2011, which was revised from no change to a 0.1% contraction.  

Earlier in the year Bank of England chief Sir Mervyn King had said he expected the UK economy to zig-zag between growth and contraction in the coming months. Coupled with new fears of a flare up in the euro zone debt crisis it could lead to investors heading back to the safety of the US dollar, therefore dropping the dollar rate further.

To put this sudden fall into perspective a £200,000 trade on Tuesday would have seen you receive around $2,000 more compared to the same trade on Wednesday. This is why I always talk about timing being the most important factor and catching the market as close to a peak as possible.

To discuss your options in more detail click hereto send direct email or complete the contact form on the homepage of the blog.

Sterling hits a four month high against the dollar

Tuesday Morning saw Sterling hit its highest levels against the dollar since November 2011, with the GBP/USD cross briefly reaching $1.5999 before dropping back to the mid $1.59’s during the afternoon.

It was the second day running that the dollar has lost ground against the pound following comments from the Federal Reserve chief Ben Bernanke on Monday.

Mr Bernanke has indicated that more quantitative easing could be on the horizon if the U.S economy continues to come under increasing pressure. Further monetary stimulus would flood the market and make the U.S. dollar cheaper to purchase.

The recent gains made by sterling over the dollar have led some currency strategists to believe that the pound could accelerate beyond the $1.60 barrier. This is good news if you are looking to buy dollars but bad news if you are looking to sell them.

With a black cloud still hovering over the UK economy there are still many people in the market that believe the GBP/USD cross is going to drop back towards $1.50 over the course of the year. If you are selling dollars it is worth considering a Limit Order that will allow you to take advantage if the market moves in your favour.

With a Limit Order you specify the exchange rate you are hoping to achieve, a price that may not be currently available. Your currency will automatically be purchased if the market exceeds this level and you'll get the rate you wanted. This type of contract is particularly useful when the markets are moving in a positive direction for you. 


If you would like to discuss a Limit Order or the other options available to you click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling reaches it highest levels for 3 weeks against the dollar.

Monday saw the pound reach its highest levels for more than three weeks against the U.S dollar as Federal Reserve chief Ben Bernake expressed a note of caution on the U.S economy.

The pound rose by 1 ½ points against the dollar to $1.5952, moving past the high of $1.5924 we saw last week.

"This is more of a dollar move than a sterling move. It feels like the market was slightly overdone in being long of dollars and it's time to unwind some of that," said Geoffrey Yu, currency strategist at UBS.

Some analysts believe that the gains made over last weeks highs could test the $1.60 mark, especially if Mr Bernanke’s speeches this week confirm the views he expressed early on Monday.

If you are looking to buy dollars over the coming months it is worth considering a forward contract that will allow you to fix your rate of exchange for up to two years in advance.

The view for the medium term is that sterling’s direction will be determined by the Bank of England and their asset purchasing scheme.

Over the last few weeks we have seen the pound drop a number of times against the dollar on the back weak data coming out of the UK. This has led to calls for the Bank of England to pump another 25 billion into the economy to help stimulate growth.

If the bank choose to extend their asset purchasing scheme we could see the gains made over the last couple of months slip away, it was only in January that we saw the GBP/USD cross back in the $1.52 region.

If you would like to discuss your options in more detail click here or complete the contact form on the home page of the blog.

Pound Dollar overview

After experiencing a seven week low in mid-march, the GBP/USD rate strengthened last Monday and crossed the $1.59 barrier (interbank) which was the highest level seen since the beginning of March.

In the early part of the week the GBP/USD remained flat as the markets awaited key data in the form of Bank of England minutes and the UK budget. The minutes showed a surprisingly negative slant as rate setters Adam Posen and David Miles pushed for more quantitative easing to try to stimulate the economy. Sterling subsequently slipped against the dollar with this news and is a stark reminder for investors that the British economy is still in a vulnerable position. 

"Sterling is being moved a lot more by what's going on elsewhere but I was shocked by the dovish nature of the minutes as most people thought more QE in May was off the table and this puts the risk of it back on," said Kathleen Brooks, research director at FOREX.com.

The following day the pound showed little reaction to what analysts and ratings agencies described as a fiscally neutral UK budget. Fitch ratings said finance minister George Osborne's proposals showed commitment to deficit reduction and would not impact the UK's AAA rating.  The outlook for sterling depends on the economy - it could take a long time for recovery to take root, and sterling probably will only rally when there are signs that's happening. “About the best you can say of the budget was that it won't hurt” said analysts at Societe Generale.

It was a busy week in the US for data with most of it having little effect on rates. But unemployment data released last week showed a drop to the lowest level in four years, reinforcing signs the U.S. labour market is picking up. Jobless claims also decreased by 5,000 to 348,000 which continue to keep rates at a decent level.

GBP/USD has been choppy recently with the mixed economic figures coming out of both countries. We continue to see the pair make moves in both directions and many analysts are torn over their forecast with some thinking that the cross will end up towards the $1.50 level within the next twelve months, and others believing firmly that the 1.60 barrier will be broken very soon. 

With so much volatility between the GBP/USD, it is integral to keep in touch, I can  help you make an informed decision as to when you buy or sell your dollars.  Click here to send me a direct email or use the contact form on the homepage of the blog.

Weaker UK data sees the pound fall against the dollar

The pound slipped against the dollar on Thursday morning after weaker than expected UK retail sales data have shown that volumes dropped by 0.8% in February compared with January. The pound/dollar cross fell by a point from 1.5880 to 1.5775 before recovering back to 1.58 over the course of the day.

The latest data release will add to the concerns of a lack of growth in the UK economy, prompting speculation of further quantitative easing (QE) from the Bank of England. More QE will be seen as a negative for the pound/dollar rates as the Bank pump more money to into the economy to help stimulate growth.

Although the latest retail figures show the decline was bigger than expected, sales volumes over the last three months were still 1.7% higher compared to the same period last year.

"With consumer spending staying sluggish, government spending contracting and firms reluctant to invest our sub-consensus GDP view for 2012 still holds with the prospect of further QE from the Bank of England remaining in place," said James Knightley, UK economist at ING.

Many analysts still forecast that the GBP/USD cross will end up towards the $1.50 level within the next twelve months, so if you need to buy or sell dollars in the coming months contact me today to discuss your options in more detail. You can complete the contact form on the homepage of the blog or send me a direct email by clicking here.

The pound continues to gain against the dollar

Monday afternoon saw the GBP/USD cross break the 1.5903 barrier, its highest levels since the beginning of March. A recent run of improved data from the UK was helping support the pound, with investors expecting less dovish Bank of England minutes on Wednesday and few negative surprises in the annual UK budget.

"There could be a slightly less dovish tinge to the MPC (monetary policy committee minutes) and in the budget there is no real reason to downgrade growth again. We have got stability coming through in the data released this year," said Jane Foley, senior currency strategist at Rabobank.

Less dovish BoE minutes could lower expectations that the BoE will resort to another round of asset purchasing to boost the UK economy. Further quantitative easing (QE) would be seen as a negative for sterling as it involves flooding the economy with cash in an attempt to stimulate growth.

The pound's rally extended gains from Friday when softer-than-expected U.S. inflation data boosted the pound against the dollar. With the gains the pound has been making over the last few days we could see rates reach $1.60 for the first time since November.

If you need to buy or sell dollars in the coming weeks contact me using the contact form to discuss your options in more detail.

GBP/USD weekly roundup

Last week saw the pound fall to its lowest levels against the greenback in seven weeks as continued optimism over the U.S. economy helped boost the dollar. The GBP/USD cross dropped to $1.5603 at the start of the week, the lowest we have seen since the end of January but were mainly due to a stronger dollar rather than a weaker pound. However things were soon to change, as by the end of the week GBP/USD rates had staged a remarkable recovery.

It was another choppy week for the pound as data releases from the UK and U.S started to have more of an effect on rates rather than the recent problems in the Euro zone. Rates broke the $1.57 barrier as news that the UK trade gap was less than expected in January, largely thanks to strong exports of cars to Russia, the US and China.

This was seen as good news for the pound and the UK economy as it shows exports are growing faster than imports and could reduce the chance that the UK will head back into a recession. However, some analysts still believe the pound is vulnerable against the dollar as it is widely expected that the U.S Federal Reserve will hold off from further monetary stimulus for the economy.

The gains were short lived as sterling slipped back after the UK unemployment data release and the news that the Fitch Credit ratings agency has revised Britain’s status to negative from stable, as mentioned in our Euro report. Other UK data showed that the number of people out of work increased by 28,000 to 2.67 million during the three months to January. Again, as outlined in the Euro report, while this was high, it was not as high as expected, hence the Sterling strength it caused.

On Friday we saw another shift in momentum as Sterling hit a one week high against the dollar, softer than expected US inflation and CPI data pushed rates back into the $1.58’s and peaked at $1.5850. It means we have seen a 1.5% rise in the dollar rates over the last 5 days, to put that into perspective a £200,000 trade would see you receive $5,000 more now than at the start of the week.

This is another example of how important timing can be when it comes to exchanging currency, if you need to buy or sell dollars in the next few months click here to send me a direct email or complete the contact form on the homepage of the blog.

Possible credit rating downgrade weakens the pound.

Sterling slipped back further against the dollar yesterday after the Fitch credit ratings agency put the UK’s AAA rating on “negative outlook”. Fitch has joined Moody’s in warning that Britain’s triple-A rating could be downgraded.

The revised outlook has seen Britain’s status change to negative from stable on the basis the country does not have the resources to recover from further adverse economic shocks. On the back of the latest data release the GBP/USD cross dropped back towards $1.5630 before recovering back into the 1.57’s by the late afternoon.

Fitch warned on Wednesday that they could downgrade the UK rating within the next couple of years if the government does not control public debt. The warning comes just a week before Chancellor George Osborne delivers this year’s budget.

"The Fitch warning is weighing," said Adrian Schmidt, FX strategist at Lloyds TSB. "Sterling has broadly outperformed other currencies against the dollar in the past few days, so there is a chance that cable could play catch up and ease towards $1.55."

In the last week we have seen the dollar has rise against most major currencies after the Federal Reserve appeared less dovish than expected at their regular monetary policy meeting. Coupled with this week’s poor UK data rates have fallen from the highs we saw a few weeks ago.

 If you need to buy or sell dollars click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling drops against the dollar after Tuesday’s gains

Sterling dropped by half a point against the dollar on Wednesday morning due to the UK unemployment data release. Tuesdays gains against the greenback were short lived as the UK unemployment data has shown that the number of people out of work increased by 28,000 to 2.67 million during the three months to January.  

The number of people claiming Jobseeker’s Allowance also increased by 7,200 to 1.61 million for the month of February, which was slightly higher than the 7,000 predicted and caused the GBP/USD cross to drop from $1.5750 back towards $1.57

The pound had gained strength recently with improvements in UK economic data, including house prices and retail sales and the recent positives have reduced the risk of the UK falling back into recession and of further quantitative easing by the Bank of England.

However, with continued concerns that the euro-zone debt crisis could spread beyond Greece investors headed back towards the safe haven status of the US dollar. Wednesday afternoon saw rates continue to fall and at the time of writing was sitting at $1.5663.

With Tuesdays gains there were a number of Limit Orders placed as clients looked to make the most from the market. Limit orders were placed with our brokers for $1.60 as clients looked for the gains to continue. When placing a Limit Order it is always worth looking at a Stop Loss order as well. This will protect you from any adverse movements and the gains you have already made.

If you are looking at buying or selling dollars in the coming weeks click here to send me direct email or complete the contact form on the homepage of the blog.

The pound gains strength against the dollar

After Monday’s lows, the pound gained some ground against the dollar on Tuesday afternoon. Rates broke the $1.57 barrier as news that the UK trade gap was less than expected in January, largely thanks to strong exports of cars to Russia, the US and China.

This is good news for the pound and the UK economy as exports are growing faster than imports, this will reduce the chance that the UK will head back into a recession.

Some analysts still believe the pound is vulnerable against the dollar as it is widely expected that the U.S Federal Reserve will hold off from further monetary stimulus for the economy. If the Federal Reserve hold off from further stimulus we could see the dollar strengthen and push the GBP/USD cross below the 1.5603 we saw on Monday.

As I have said before when you are exchanging currency it is all about timing, one of the best ways to ensure you are catching any rise in the market is to look at a Limit Order.  With a Limit Order you specify the exchange rate you are hoping to achieve, a price that may not be currently available. Your currency will automatically be purchased if the market exceeds this level and you'll get the rate you want. To discuss Limit Orders in more detail click here to send me a direct email or use the contact form on the homepage of the blog.

Sterling falls to it's lowest levels in 6 weeks

Yesterday saw the pound fall to its lowest levels against the greenback in 6 weeks as continued optimism over the U.S. economy helped boost the dollar.

The GBP/USD cross dropped to $1.56 during the afternoon before recovering back to $1.5627 at the time of writing. These rates are the lowest we have seen since the end of January and are due to a stronger dollar rather than a weaker pound.

Friday’s positive jobs data in the U.S. has reduced the chance of the Federal Reserve pumping more money into the economy to stimulate growth and with a lack of data from the UK meant the pounds performance was driven by events elsewhere.

At the start of the day the GBP/USD rate was sitting close to the $1.57 mark but throughout the day levels dropped by 0.5% to the six week low. Although half a percent does not seem like a huge amount, to put it into perspective a £200,000 trade would have seen you receive $2,000 less in the afternoon than you would have got first thing in the morning.

This is another example of how important timing can be when it comes to exchanging currency. Click here to send me a non obligation email or complete the contact form on the homepage of the blog so we can look at your requirements in further detail.

Six consecutive months of Jobs Growth in the US economy

Sterling edged up after hitting a 2 week low against the dollar last week, but remained vulnerable along with other riskier currencies due to uncertainty over Greece's progress in completing a debt restructuring deal. With a surprise fall in UK house prices and a sluggish retail sales report adding to a global drop in demand for perceived riskier currencies on Tuesday Sterling retreated back towards the 2 week low.

An absence of UK data mid-week kept GBP/USD rates open to swings in risk sentiment but fortunately rates remained relatively flat. Analysts suggested that cable’s 1.60 level looked like the peak of the recent recovery and risk is now building for a deeper break to the downside, Positive data surprises from the UK have provided some support of late but the domestic economic picture could start to run out of steam and sterling may be back under pressure.

To end the week the Dollar climbed against Sterling to levels last seen in early to mid February after key U.S. jobs data (Non-Farm Payrolls) beat expectations with 6 consecutive months of jobs growth, providing a further sign that the recovery of the world's biggest economy is becoming more sustainable. This also suggested there would be less need for further monetary stimulus from the Federal Reserve which raised hopes that an improving U.S. economy will boost the global economic outlook.

So far the key driver in the GBP/USD rates of late has been risk sentiment. Worries over Europe and its ability to deal with its massive debt problems have never really left the headlines but another factor to consider is the developments in the Middle East in particular the standoff with Iran. Oil prices have risen over 7 per cent in a very short space of time due to the tensions in the region, although historically USD/Oil have an inverse relationship (higher Oil price- weaker USD, and vice-versa) the solid economic results from the US and Europe’s debt issues have driven risk aversion with larger flows into the dollar keeping it supported against its counterparts including Sterling.

There are several volatile factors, economic and otherwise influencing GBP/USD rates, if you have an impending currency requirement the best tool at your disposal to navigate the uncertainty is to contact me using the contact form on the homepage of the blog or click here to send me a direct email.

The latest GBP/USD exchange rate news

Thursday saw the GBP/USD cross open in the low $1.57’s as the markets anticipated news from Greece regarding the debt swap deal. As the day progressed we saw a 0.7% increase in dollar exchange rates as investors became increasingly hopeful a deal will be struck.

If a deal is completed it will mean the bailout package that was provisionally agreed in February will save Greece from defaulting and go along way to helping the Eurozone. This will see investors return to the single currency and we could see GBP/USD rates push back towards the $1.60 barrier.

News from the Bank of England (BoE) that interest rates will remain at 0.5% and MPC members not making any changes to their quantitative easing programme did little to impact (as forecast) sterling’s performance.

"Sterling's movements in the near term will be more the result of euro/dollar ... The euro has been rallying as there is a more optimistic feeling about Greece and Draghi was more neutral with no suggestion of an imminent rate cut," said Audrey Childe-Freeman, EMEA head of currency strategy at JP Morgan Private Bank.

If you need to buy or sell dollars in the coming weeks click here to send me direct email or use the contact form on the homepage of the blog. By using a Stop Loss or Limit Order you will be able to protect yourself from adverse movements as well as target a rate of exchange that might not be available.

Tuesdays Pound Dollar Rate Forecst

Tuesday morning saw sterling lose further ground against the greenback as investors look to head back to the safety of the US dollar. As we head closer to Thursday there are still growing concerns that a deal with Greece’s private creditors will not be agreed and they will end up defaulting on their mounting debt levels. This prompted the GBP/USD cross to fall back into the mid $1.57s, a 1.4% drop on the highs we saw on Friday afternoon.

UK data released on Tuesday has shown that British House prices have dropped 0.2% more than predicted and Monday afternoon’s news that US service sector had grown at its fastest rate since February 2011, would have given added incentive for investors to head back towards the safe haven currency.

If problems in the Eurozone continue we could see the rate fall further despite the recent upturn in UK data. Forecasts have suggested we could see the pound/dollar rates fall back towards $1.55 within the next three months. However if a deal is not struck between Greece and its private creditors on Thursday, it might be a case of sooner rather than later that we see the rates reduce further.

With all the uncertainty surrounding the currency markets it is all about timing to ensure you are getting the most from your currency exchange. Click here to send me a direct email or use the contact form on the homepage of blog to discuss the different options available to you.

Sterling loses ground against the dollar

Monday saw the pound fall to a two week low against the dollar, as uncertainty surrounding the Greek bailout package continued. There was also a down turn for the pound as UK services sector data came back lower than expected.

This Thursday is the deadline for Greece to complete its bond exchange with private creditors and if a deal cannot be reached there is a chance it could affect the recently agreed bailout package. This could push Greece towards a catastrophic default and cause investors to head back towards the safe haven dollar.

The UK's service sector continued to grow in February, but not as quickly as had been forecast. Despite seeing a small drop, the latest data release confirmed the service sector is still moving in the right direction adding to signs that a double-dip recession will be avoided. This reduced the pound falling further but according to some analysts the outlook for the pound will be determined by the outlook of the Euro.

With all the uncertainty, the GBP/USD cross dropped into the $1.57 range early yesterday, it’s weakest since the 24th Feb before slowly recovering to the mid $1.58’s by the afternoon.

It shows how quickly the rates can move as only last week we saw the dollar rates hit their highest since November 2011. If you want to take advantage of the highs and protect yourself from adverse movement you can look at a Forward contract. A forward contract allows you to book rates of exchange for up to two years in advance and will give you the piece of mind that your money is safe. If you want to discuss forward contracts or the other options that are available click here to send me a direct email or complete the contact form on the home page of the blog.

Pound Dollar Rate Forecast weekly overview

At the start of the week a lack of data releases from the US prompted a more stable feeling to the market compared to recent weeks with rates sitting around the $1.58 Interbank mark.

We did see a small recovery for the dollar on Tuesday on the back of an announcement that Greece had their credit rating downgraded, and the CBI data release in the UK which showed Britain’s service sector had weakened. This prompted a flight to safety as investors left the UK and single currency.

Tuesdays CBI data release has shown Britain’s service sector has weakened, this covered the three months ending the 31st January. In the report consumer and business services saw a drop in activity, but in both cases it was not as much as first feared.

Towards the end of the week we saw rates hit their highest since November 2011. This was mainly down to GBP strength rather than dollar weakness, with Sterling shaking off slightly weaker-than-expected UK manufacturing data, and reduced bets on further quantitative easing.

In recent weeks we have seen better data coming out of the UK, and as a result it has shifted expectations that the Bank of England will pump more money into the economy to stimulate growth. BoE governor Mervyn King has said the bank will be guided by upcoming data when deciding whether to print more money.

With Fridays mornings Purchasing Managers' Index (PMI) for construction showing a rise to 54.3, up from 51.4 in January, it was more good news for the pound. Strength in the construction industry could help the UK avoid a double-dip recession, after the economy shrank during the last three months of 2011.

With the sudden move in rates it is another indication of just how volatile the markets can be. Last week the interbank was down in the $1.56 region, which means we have seen rates move by nearly 2% in the last seven days.

With forecasts still showing a mixed feeling about the GBP/USD cross it’s important to make sure you have the necessary precautions in place. Depending on where you look you could see predictions for pound/dollar exchange rates ranging from 1.55 to 1.59 for the next 3 months.  A £200,000 trade could mean a difference of 8,000 dollars. Click here to send me a no obligation email or complete the contact form on the home page of the blog. 

How will the ECB stimulus help the GBP/USD cross?

What a difference a day can make. In my last post I said that things have been quieter for the dollar exchange rate over the last couple of days.

Rates had been sitting around the $1.58 mark at the start of the week, but with the European Central Bank (ECB) announcement on Wednesday that they have provided a further 530bn euros in low interest loan we saw a steady rise for GBP/USD cross.  At the time of writing the mid-market rate has risen to $1.5950, this is the highest we have seen rates since November 2011.

This is the second time the ECB have offered low interest loans in the last few months. In December banks from around Europe borrowed 489bn euros and there was no shortage of takers this time round, with a number of British banks confirming that they have taken up the option of cheap borrowing.This helped strengthen the pound on the basis it will help the British banks improve their liquidity.

The loans are also aimed to help the eurozone battle the ongoing debt crisis. As confidence grows investors will leave the safety of the US dollar and return to the UK and the Euro which in turn will weaken the dollar and make it cheaper to buy.

This is another indication of just how volatile the markets can be. Last week the interbank was down in the $1.56 region, which means we have seen rates move by nearly 2% in the last seven days.  This was good news for clients that had Limit Orders in place.

With a Limit Order you specify the exchange rate you are hoping to achieve, a price that may not be currently available. Your currency will automatically be purchased if the market exceeds this level and you'll get the rate you wanted.

If you need to buy or sell dollars in the coming weeks or would like to discuss a Limit order, you can use the contact form on the blog home page or click here to send me a direct email.