Sterling hits 4 month low versus the dollar on the back of rising borrowing costs in Spain

A run of positive UK data on Wednesday could not save sterling from falling to its lowest levels for more than four months. Worries over Spain’s rising borrowing costs and banking sector once again caused the value of the greenback to increase as investors headed back to the safe haven dollar. Rates fell by over a cent during the course of the day and hit a low of $1.5524 which means we have seen the pound/dollar cross fall by nearly eight cents in the last three weeks.

With so much talk in recent weeks regarding quantitative easing, Wednesday’s data will have given the pound some much needed breathing space. UK Mortgage Approvals for April came in higher than expected along with UK Consumer Credit which is released by the Bank of England (BoE) and shows the amount of money borrowed by private individuals. The higher figure for both data releases could be seen as positive for the UK economy; it can be seen as growth which in turn will reduce calls for more monetary stimulus from the BoE.

Even with the positive news sterling continued to fall against the dollar as Spain’s borrowing costs reached dangerously high levels, prompting fears that a bailout could be on the cards. For the second day running data released from the U.S came in weaker than expected, today was Pending home sales that came in at -5.5%. As the U.S economy is seen as a sensitive factor to the U.S economy a negative figure can generally cause some volatility to the USD. But with so much uncertainty coming from the UK and Euro-zone today’s data had no impact on the dollars value.

If you need to buy dollars in the next few months contact me for a free consultation to make the most from your currency transfer. To put the recent movements into perspective a £200,000 trade performed today will see you receive around $15,600 less than the same trade performed just three weeks ago. It shows you how quickly things can change and why it is important to protect yourself from adverse movements. Click here to send me a direct email or complete the contact form on the homepage of the blog

Sterling falls towards $1.55 over Spanish banking fears

Despite some positive news from the UK on Tuesday, cable slipped back towards $1.55 as mounting worries over Spain’s banking sector caused investors to seek the safety of the U.S dollar. Rates fell from $1.5715 at the start of the day to $1.5617 at the time of writing, taking us close to a seven cent drop in a matter of weeks.

Unexpectedly, Retail Sales Figures in May came in higher than forecast this morning (Tuesday) but did little to boost the pounds value against the greenback. Figures indicated that 21% of retailers reported an increase in sales compared to this time last year.

It seems even a run of positive data from the UK will not see sterling strengthen against the dollar, as events from the Euro-zone continue to reduce investor appetite for riskier currencies. In yesterdays blog I mentioned that JP Morgan had revised there forecasts and were now predicting that the GBP/USD will drop to $1.54 by the middle of the year and with nearly three weeks until the Greek elections I think the pound/dollar cross will continue to come under pressure.

In the US, consumer confidence fell to its lowest levels in eight months as fears over the global economy caused unrest. The Consumer Confidence Index fell from 68.7 in April to 64.9 its lowest levels since October 2011. Consumer spending currently makes up around 70% of the U.S economy activity so the figures are watched closely, but even with the announcement the dollar continued to gain strength over the course of the day.

With so many problems hanging over the UK and Euro-zone I believe it is likely we will see rates fall further over the next few weeks. To protect you from adverse market movements click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling rises against the dollar, but what about the long term future of pound/dollar rates?

It has been a quiet start to the week due to Memorial Day in the states and the bank holiday across Europe, a lack of data releases meant markets remained relatively flat compared to recent weeks. We did see sterling gain slightly against the greenback and nudge back over the $1.57 mark largely thanks to some positive vibes coming from Greece.

Polls in Greece showed that the pro-bailout party is currently leading the way in recent opinion polls, easing concerns that Greece will leave the single currency. This increased appetite for riskier currencies, investors left the U.S dollar and headed back to UK and Euro, pound dollar rates to a high of $1.5715.

However, banks revised their forecast for cable as concerns continue to grow over the troubled Euro-zone, JP Morgan now predict that rates will slip back to $1.54 by the middle of the year. This is positive news for clients looking to sell U.S dollars and bringing their money back to the UK, but if you are looking at buying dollars, booking a rate of exchange using a forward contract will protect you from these adverse movements.

So if you are looking at buying or selling dollars in the next couple of months contact me for a free consultation to ensure you are making the most from your currency transaction. As I have said before rates have fallen by over 4% in recent weeks and in my view will continue to fall while the Euro-zone struggles. click here to send me direct email or complete the contact form on the homepage of the blog.

Sterling/dollar rate weekly overview.

Last week we saw the pound fall to its lowest rate against the dollar since March 2012. The week started off with sterling sitting around the 1.58 mark against the dollar, but with all the issues in the Euro zone and the UK we have seen sterling fall back against the strengthening greenback.

At present investors are in limbo as we wait for the Greek elections on the 17^th of June. The uncertainty surrounding the euro zone has caused investors to return to the safe haven US dollar, giving it strength and making it more expensive to purchase. This is one of the main factors as to why we have seen the rate fall by 4% in the last few weeks. Rates fell to a low of 1.5639 at the end of last week due to investor confidence and a run of poor data in the UK.

In the UK we had the Bank of England policy meeting minutes, showing  that the committee voted 8-1 against any QE, although the vote could have gone the other way as it was “finely balanced” which has left the door open for more monetary stimulus in the future, weakening the Pound.  Also weighing on Sterling was the revised GDP figures, that showed that the UK economy shrank by 0.3% which was not the 0.2% first thought; this was the second quarter in a row that the economy shrank, confirming that the UK has entered recession.

So in summary, the Pound is getting weaker while the Dollar is getting stronger, pulling rates down. With all of the problems in the euro zone and the uncertainty surrounding Greece, this could well continue. If you are thinking about buying or selling dollars in the coming months please contact me by clicking here to sent me a direct email or complete the contact form on the homepage of the blog,

Sterling continues to fall as the data confirms the UK is in recession

Sterling continued to fall against the dollar on Thursday as the revised Gross Domestic Product (GDP) data released by the office of National Statistics (ONS) confirmed that the UK is back in recession. The pound/dollar cross hit a low of $1.5639 on the back of the news and coupled with concerns over Greece’s future in the Euro continued to push investors towards the safe haven U.S dollar.

Last months estimate showed the UK economy had shrunk by 0.2% but revised figures released this morning indicated the contraction was more than forecast at 0.3%. It is the second consecutive quarter that the UK economy has contracted; in the last three months of 2011 the economy shrank by the same margin. It is the first time in a year and half we have seen the economy shrink for two consecutive quarters.

On the back of the poor Retail Sales data released on Wednesday, today’s confirmation that the UK is back in recession will have added to the speculation the Bank of England (BoE) will enter into another round of monetary stimulus. If the BoE go down the Quantitative Easing (QE) route it will reduce the value of the pound and we could see the GBP/USD cross drop even further.

Over the course of the day we did see a small recovery as rates pushed back towards $1.57 on the back of poor data in the U.S. Manufacturing slowed in May mainly due to weakening exports, the purchasing managers index (PMI) fell to 53.9 compared to 56.0 in April and although a reading over 50 indicates growth it will be seen as a backwards step for the economy.

Over the next few weeks it will be a testing time for cable as troubles in the Euro-zone and the UK struggling to grow could lead to rates falling even further back. If you are thinking of buying or selling dollars in the coming months click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling falls to it lowest levels for two months against the dollar, could there be more QE from the Bank of England?

Wednesday saw sterling fall to its lowest levels against the greenback for two months as investors pulled out of the pound and single currency (euro). For the second consecutive Wednesday all eyes were focused on the UK as the Bank of England released the minutes for their most recent meeting, we also had Retail Sales figures due which are a good indicator to how the UK economy is shaping up.

There was a sharp decline in pound/dollar rates as the minutes and sales data was released, rates fell to $1.5683 the lowest since mid-march as investors headed back to the U.S dollar.

The minutes from the Bank of England’s (BoE’s) policy meeting indicated that members voted 8-1 against further monetary stimulus. With only one policy member voting for another round of quantitative easing (QE) initial thoughts would have been that the vote was not very tight, but a closer look would reveal the decision was ‘finely balanced’ for a number of the committee members. This has left the door open for further stimulus and as a result did not lend as much support to the pound as perhaps could have been.

The UK retail sales data released today will have also given BoE chiefs further food for thought. Sales volumes fell by 2.3% in April according to the Office for National Statistics (ONS), though some analysts feel the figures were distorted by April’s record rainfall and the sale of fuel dropping by 13.2% on the back of drivers panic buying in March over the threat of strike.

Another reason for exchange rates hitting a two month low is the concerns surrounding Greece and their potential exit from the euro-zone. With just under a month until the Greek elections investors are caught in two minds so currently see the U.S dollar as the safest place for their money, and while the uncertainty remains it is unlikely we will see GBP/USD push back towards the $1.60 mark.

If you need to buy or sell dollars in the coming months don’t hold off from discussing your options to see how you can make the most from your currency transaction. Click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling continues to slide against the dollar, could we see more QE in the UK?

Sterling continued its recent decline against the dollar as rates slipped towards $1.5760 on Tuesday, inflation data released early in the day was weaker than expected and will add to speculation that the Bank of England (BoE) could add to their Quantitative Easing (QE) programme to help stimulate the UK economy.

A recent run of poor data from the UK has led to BoE governor Sir Mervyn King and other policymakers to discuss the possibilities of further monetary stimulus to help push growth in the UK. A move which combined with the issues surrounding the Euro-zone has seen the GBP/USD cross fall by nearly 3.5% in three weeks.

Investors would have also taken on board comments made by The International Monetary Fund (IMF) President Christine Lagarde that the economic weakness surrounding the UK means the Monetary Policy Committee (MPC) should consider another round of QE and even cut interest rates from the current level of 0.5%. If the Bank of England opts for further stimulus it will be seen as negative for sterling and we could see the pound lose ground against a basket of currencies.

Sterling’s fortunes were not helped by the Existing Homes Sales data which was released in the U.S. Figures came in stronger than forecast with 200,000 more sales in April than had been predicted. The Existing Home Sales provide an insight to housing market conditions, which is considered to be a sensitive factor to the U.S economy. Today’s data will have been seen as positive news for the greenback and rates reflected this by falling by half a point in the afternoon.

With such volatile market conditions it is imperative you are aware of the options that are available in order to make the most from your currency transaction. If you are thinking of buying or selling dollars in the next six months send me a direct email by clicking here or complete the contact form on the homepage of the blog to discuss these options in more detail.

What will happen to the GBP/USD over the next week?

It was another quite Monday in terms of data releases which have resulted in the pound/dollar cross sitting around $1.58 mark. It seems the currennt issues in Greece and Eurozone have now been priced into the market, with the Greek elections on the 17^th June now the key date.

In the UK all eyes will again be focused on the Bank of England as their minutes from the last meeting will be released on Wednesday and the report will give us a clear indication to how the policymakers voted in favour of more quantitative easing. Only last week BoE policy maker Adam Posen said he been a bit premature in changing his stance regarding further QE. Mr Posen had recently backed away from his call for further asset buying, which lent huge support to sterling’s value.

As I have mentioned in my previous posts continued talk of QE and investors favouring the safe haven status of the U.S dollar has seen rates steadily drop over the last three weeks. A run of poor data from the UK will add to the calls for the Bank of England to look at another round of monetary stimulus and we could see rates head back towards the $1.52 mark witnessed back in January 2012.

Over the next few days there are a number of key data releases that could have a say into cables fortunes.

Tuesday - we will see UK mortgage approvals, Consumer Price Index, Housing Prices, Retail Sales and Public Sector borrowing. This will give us a good barometer of the UK economy so could affect exchange rates, In the U.S we will see Home Sales and Manufacturing data in the afternoon.

Wednesday – As already mentioned we will see the Bank of England release its minutes from their last meeting, News from the BoE last week saw the pound drop in value so investors will be watching closely. In the U.S we will see Home Sales Measures.

Thursday – Late morning will see further Retail Sales data released in the UK along with GBP figures and business investment, stateside we have Jobless Claims and Durable Goods orders.

Over the course of the week I will keep you posted on how the data affects the GBP/USD exchange rate, but if you are thinking of buying or selling dollars in the next couple of months the best thing you can do during this uncertainty is to contact me for a free consultation. You can do that by clicking here to send me a direct email or by completing the contact form on the homepage of the blog.

Sterling hits two month low against the U.S Dollar

Last week saw sterling continue to fall against the safe haven U.S dollar, as rates slipped to their lowest levels for two months. Cable has been on the decline since rates hit an eight month high of $1.6304 only three weeks ago. In this week’s report we will take a closer look at what has been responsible for driving the rates down.

It was a relatively quiet start to the week in terms data releases in the UK and the U.S as all eyes were focused on Wednesday as we had unemployment data and the Bank of England (BoE) inflation report, with both potentially having an impact onto the value of the pound.

As the results surfaced Sterling fell to its lowest levels for more than a month as the report fuelled speculation that more quantitative easing could be on the horizon. Rates fell sharply on the back of the data release reaching a low of $1.5889 before recovering briefly back to $1.59.

Bank of England Governor Mervyn King indicated that the UK could be vulnerable from the growing issues surrounding the Euro-zone which prompted investors to sell the pound and return to the U.S dollar.

Talk of a Greek default has surfaced yet again and policymakers are concerned that Greece leaving the Euro will have a knock on effect for the British banks. This in turn could affect the UK recovery and result in the BoE adding to their asset purchasing scheme by pumping more money into the UK economy to stimulate growth.

No-one is 100% sure what will happen with exchange rates should Greece default and leave the Euro. There are arguments for both sides, could trimming off the dead wood make the Euro stronger or will it have a knock of effect and lead to Spain, Italy, Portugal and Ireland looking to follow suit. So while the uncertainty surrounding the single currency continues it is unlikely we will see the pound gain strength and push back towards the $1.63 mark.

One of the only positives for the UK came in the form of the unemployment figures that showed the number of people out of work and claiming for unemployment fell at it quickest pace for nearly 12 months.

On Thursday and Friday there were no data releases from the UK so sterling was at the mercy of events in the U.S and Euro-zone. A run of poor data from the US on Thursday saw a small change to Sterling’s fortunes. Initial Jobless Claims, Continuing Jobless Claims and the Philadelphia Fed Manufacturing Survey all came out weaker than expected and put a temporary halt to the decline.

But as is the case when the markets are so volatile it wasn’t long before more negative data from the Euro-zone increased investor appetite for the greenback and the dollar was back on the march. A cut in Greece’s credit rating and a number of downgrades to Spanish banks caused pound dollar rates to slip to $1.5732; their lowest levels since March, and a 3.5% decrease in just three weeks.

If you need to convert currency and want to achieve the best pound/dollar exchange rates it is vital you know what options are available. You can protect yourself against rates moving the wrong way, trying to guess which way the market is going to move and leaving your transaction to the last minute could prove very costly. You can contact me by clicking here to send me a direct email or by completing the contact form on the homepage of the blog.

Sterling hits its lowest levels against the dollar since mid April 2012

Thursday has been a quite in terms of data releases in the UK so the GBP/USD cross has been driven by events elsewhere. Over the course of the day rates dropped by over a cent and briefly touched the $1.57 before recovering back over $1.58. Over the last few weeks there has been a growing demand for the U.S dollar as concerns in the Euro-zone escalate.  

With Greece currently without a government and with all parties seemingly apposed to the austerity measures set out by Euro-zone chiefs it looks more and more likely we could see the Greeks leave the single currency. Trading levels reflected the uncertainty as the pound lost ground against the dollar throughout the day until negative data from the U.S in the form of Initial Jobless Claims, Continuing Jobless Claims and the Philadelphia Fed Manufacturing Survey put a halt to the decline.

At the moment it is hard to see a quick return to the highs of $1.63 we saw a few weeks ago, especially after the Bank of England (BoE) announcement yesterday and the dark cloud once again hanging over the UK economy. This is great news for people looking to sell their dollars but for anyone looking to buy the greenback your money is not going to go as far.

With no data due for release tomorrow (Friday) once again sterling will be tested by events in the Euro-zone and U.S.  In the short term a run of negative data coming from the Euro could see rates continue to fall, medium to long term I wouldn’t be surprised if rates pushed back towards the $1.52 that we witnessed back in January.

If you need to convert currency and want to achieve the best pound/dollar exchange rates it is vital you know what options are available. You can protect yourself against rates moving the wrong way, trying to guess which way the market is going to move and leaving your transaction to the last minute could prove very costly.

If you need to buy or sell dollars in the next 12 months, you can send me a no obligation enquiry now. I can then provide you with market information and the options available to help you make the most from your currency transfer. Click here  to send me a direct email or complete the contact form on the homepage of the blog.

Sterling falls to its lowest levels for more than four weeks on the bank of BoE report

Sterling fell to its lowest levels for more than a month on Wednesday, as the Bank of England inflation report fuelled speculation that more quantitative easing could be on the horizon. Rates fell sharply on the back of the data release reaching a low of $1.5889 before recovering back to levels above $1.59.

Bank of England Governor Mervyn King indicated that the UK could be vulnerable from the growing issues surrounding the Euro-zone which prompted investors to sell the pound and once again choose the safe haven U.S dollar.

With Greece coming under increasing pressure, talk of a default has surfaced again and policymakers are concerned that Greece leaving the Euro will have a knock on effect for the British banks. This in turn could affect the UK recovery and result in the BoE adding to their asset purchasing scheme by pumping more money into the UK economy.

Know one is 100% sure what will happen with exchange rates should Greece default and leave the Euro. There are arguments for both sides, could trimming off the dead wood make the Euro stronger or will it have a knock of effect and lead to Spain, Italy, Portugal and Ireland looking to follow suit.

There was some positive news for the UK today though as unemployment figures released showed that the number of people out of work and claiming for unemployment fell at it quickest pace for nearly 12 months.    

What is clear is just how volatile the currency markets are at the moment, if you are looking to buy or sell dollars in the coming weeks holding off could end up costing you thousands. To protect yourself from adverse market movements and to make the most out of your currency transaction click here to send me a direct email or complete the contact form on the homepage of the blog.

The Euro causes investors to head back to the U.S dollar

Monday was a relatively quite day in terms of data releases both in the UK and the U.S; as a result pound/dollar exchange rates remained within a 50 pip range. As I mentioned last week, due to the problems in the euro-zone rates have slipped over the last couple of weeks and this morning hit a low of $1.6055.

The most common question from clients at present seems to be, do you think rates will go up in the next couple of week? It is very hard to predict which way the market will move especially taking into account the global economic crisis. Once again it is Greece taking all the headlines and if they fail to form a coalition government there has been talk of them leaving the Euro and if that happens we could see the GBP/USD cross come under pressure.

The U.S dollar has always been seen as a safe haven currency by investors and the recent uncertainty surrounding the Euro-zone has seen appetite for riskier currencies fall. When investors leave the single currency and head back to the greenback it strengthens the dollar meaning it is more expensive to purchase. This has gone a long way to help those looking to sell dollars as they are currently getting more pounds for their money.

In the UK this week all eyes will be focused onto Wednesdays data releases as this could have some bearing onto the pound/dollar rates. Over the course of the day we will see unemployment data and the Bank of England (BoE) inflation report, with both potentially having an impact onto the value of the pound.

In the U.S  the main data releases are Jobless claims and a FED speech. This could give us an indication on how the U.S economy is fairing and could also cause a swing in rates. I will keep you posted on how the data affects the rates over the coming days,

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

What has happend to pound/dollar exchange rates over the last 7 days?

Sterling has suffered against the dollar over last week as the continued political uncertainty surrounding the Euro-zone caused rates to fall away from the eight month highs that we recently witnessed. In this weeks dollar report we will take a look at the events that caused the GBP/USD cross to fall to its lowest levels for nearly three weeks.

On Wednesday rates slipped by nearly a cent from $1.6160 to $16070 as analysts and investors tried to predict the results of the Bank of England (BoE) interest rate and quantitative easing (QE) decision. It was forecast that interest rates will remain on hold but there mixed feelings over the QE programme, would the BoE add to the £325 billion that had already been pumped into the UK economy?

The markets waited in anticipation on Thursday morning for the data release, as news broke sterling rallied against the dollar and pushed back to $1.6180. The BoE had kept interest rates on hold and decided not to extend its asset purchasing scheme for the time being, though if the UK continues to move in and out of growth we could see policy maker’s vote in favour of another round of monetary stimulus.

Further gains for cable may be limited over the coming weeks as concerns over the stability of the euro-zone continue. With so much uncertainty hanging over the Greek government, euro-zone chiefs last week held back the latest instalment of the countries bailout package, lending further support to the pound following the Bank of England decision.

However, the gains were short lived as pound fell against the dollar on Friday after JP Morgan (one of the biggest banks in the U.S), reported a $2 billion trading loss,  The news wiped out Thursdays gains as appetite for riskier currencies lowered and caused a flight to safety as investors headed back to the safe haven U.S dollar.   

"The market has reacted negatively to the news JP Morgan has sustained these losses but the market will move on and start focusing on Greece where we are moving towards a second ballot," said Gavin Friend, currency analyst at National Australia Bank.

As we have said before trying to predict which way the market is going to move can be a risky business, trying to squeeze a little bit more from the market could end up costing you thousands of pounds. In the last couple of weeks, pound/dollar rates have dropped by 1.5% from 1.6304 to 1.6062 at the time of writing, this is a difference of nearly $5,000 on a £200,000 trade. So If you are thinking of buying or selling dollars in the next 6 months click here to send me a direct email or complete the contact form on the homepage of the blog to discuss the different options available to you.

Bank of England keep interest rates on hold and no more QE

Sterling gathered pace on Thursday after the Bank of England kept its quantitative easing program unchanged and interest rates on hold, pound/dollar rates pushed back to $1.6180 after the announcement after briefly dropping back into the high $1.60’s.

Some analysts had thought the BoE could add to the 325 billion pounds that has already been pumped into the UK economy in order to stimulate growth, especially after the U.K slipped back into recession on the back of poor Gross Domestic Product (GDP) data. Had the BoE increased their asset purchasing program we could well have seen rates fall further from the eight month highs of last week.

Further gains for cable may be limited over the coming weeks as concerns over the stability of the euro-zone continue. With so much uncertainty surrounding the Greek government, euro-zone chiefs today held back the latest instalment of the countries bailout package. This has led to investors pulling out of the single currency and head back to U.S dollar.

If you want to achieve the best exchange rates for your currency transfer click here to send me no obligation email or complete the contact form on the homepage of the blog,

Investors head back to the safe haven dollar before BoE decision

Sterling slipped below $1.61 on Wednesday as the issues in the euro-zone push investors back towards the safe haven U.S dollar. Rates slipped from $1.6160 to $1.6070 (their lowest for two weeks) amid the uncertainty surrounding Greece and the Bank of England interest rate and Quantitative Easing programme due out tomorrow.

Any talk of the BoE extending their asset purchasing scheme could see rates continue to fall away from the 8 month highs we saw at the start of last week. The run of poor UK data seen over the last few days may prompt policymakers to add to the existing 325 billion pounds already pumped into the UK economy.  

If unchanged there is room for sterling to claw back the losses seen over the last few days and potentially push back towards the $1.6304 seen a week last Monday.

As I have said before trying to predict which way the market is going to move can be risky, looking for the market to move a fraction in your favour could end up costing you thousands of pounds. If you are thinking of buying or selling dollars in the coming months you can click here to send me a direct email or complete the contact form on the homepage of the blog. We can then discuss the different options available to protect yourself from any adverse market movements.

GBP/USD Exchange rate overview

Sterling broke through the $1.63 last week and peaked at $1.6304, an eight month high against the U.S dollar. Investors still view sterling as the best of a bad bunch as the single currency (Euro) and the U.S dollar continue to come under increasing pressure.

Last week saw Aprils UK purchasing manager’s index data (PMI) for the construction, manufacturing and the dominant service sector. All indicated growth had slowed compared to figures released in March, however, sterling’s loses were reduced amid the continued uncertainty surrounding the single currency.  Although growth had slowed there are still positives to be taken from the data as it shows the UK economy is still growing. 

As the week continued stronger data from the US helped the dollar claw back ground against Sterling.  US manufacturing unexpectedly advanced in April easing concerns that the US economic recovery is flagging. There was more positive news for the dollar in the form of initial jobless claims and continuing jobless claims. Both came in lower than forecast and could be seen as a sign the U.S economy is growing.

On Friday the non-farm payroll figures were released, the figures came in well under the predicted level of 170K, The US only created 115K new jobs in the month of March, This caused a small rise in the markets but data released soon after showed that the U.S unemployment rate had fallen unexpectedly and caused rated to fall from 1.62 back to 1.6137.

This week has once again indicated just how volatile the currency market can be. To put the week’s movements into perspective a £200,000 trade performed on Monday would have seen you receive $3260 more than the same trade performed on Friday. If you need to buy or sell dollars in the coming weeks click here to ensure you are making the most of your currency transaction.

Cable remains flat despite more negative UK data

It was a quieter day in terms of data releases in the UK on Thursday which led to cable remaining relatively flat. Rates dipped just below $1.62 for the second day running and hit a low of $1.6171 as poor service sector data kept rates in a 35 pip range (as the graph below shows). Further losses were reduced as fears over the economic state of the euro-zone continued to push investors towards the safety of the pound.

Growth in the UK's service sector slowed down in April but remained "solid", according to figures. The Purchasing Managers index (PMI) slipped to 53.3 in April compared to 55.3 in March. A number above 50 indicates growth. As I mentioned earlier in the week PMI data indicated growth had also slowed in both the manufacturing and construction sectors.

In the states there was some more positive news in the form of initial jobless claims and continuing jobless claims. Both came in lower than forecast and could be seen as a sign the U.S economy is growing. This could lend support to the dollar and ease fears of further monetary stimulus from the Fed.

While the UK seems to bouncing between positive and negative data releases it is hard to see which way the markets will move. If you are thinking of buying or selling dollars STOP and LIMIT orders can help you take advantage of any positive market movements but at the same time protect you if rates suddenly fall away. 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.

Sterling loses ground against the dollar as further Euro-zone issues cause investors to head back to the safe-haven dollar.

After yesterdays poor UK manufacturing data there was some positive news for the pound on Wednesday, UK construction data released in the morning was better than expected, however, with euro-zone unemployment rising and the manufacturing sector contracting it meant the GBP/USD cross fell below $1.62.

The data led to the pound/euro rate to push towards a 22 month high, but as the dollar is seen as a safe haven for investors pound/dollar rates suffered. Euro-zone jobless rates reached a record high as 17.4 million people are now looking for work.

UK construction slowed in April from the 21 month high we saw in March, the construction purchasing managers’ index fell to 55.8 from 56.7. Although the data release showed the sector has slowed down it is still growth and that leant support to the pound along with the news UK mortgage approvals came in higher than expected.

Even with positive news coming from the UK, today has shown just how fragile the markets can be and how the euro-zone can play such a big part in dollar exchange rates. As I have said before it is impossible to predict which way the market will move but there are tools available to you so that you can protect yourself from adverse movements. To discuss these in more detail click here to send me a direct email or complete the contact form on the homepage of the blog.

Sterling losses ground against the dollar due to poor UK data

Sterling lost ground against the dollar on Tuesday as data releases from the UK and U.S brought rates down from the eight month highs seen yesterday. In the morning UK manufacturing data showed growth had slowed in April which caused the GBP/USD cross to drop by nearly half a point to $1.6192. Over the course of the day rates recovered before U.S manufacturing data indicated a rise in April and caused rates to fall away to a low of $1.6188.

The purchasing managers index (PMI) dropped to 50.5 in April from 51.9 in March, although it shows the manufacturing sector slowed we can still take some positives away, any figure over 50 on the index indicates growth and this is the fifth straight month the sector has grown. This will have limited sterling’s loses and the fact the pound is still seen as good alternative to the troubled single currency (Euro) meant rates soon recovered back over $1.62.

As I mentioned in yesterdays blog this week is a busy one in terms of U.S data releases and U.S manufacturing released today was stronger than forecast in April which is a good sign for the U.S economy. The institute for Supply and Management (ISM) said its manufacturing index increased to 54.8 in April compared to 53.4 in March. This caused a sudden fall of half a cent for pound/dollar rates and dropped to a low of $1.6188.  The data will have eased fears after recent reports have suggested that the U.S economy could be slowing.

These two data releases have again indicated just how volatile the currency market can be. To put today movements into perspective a £200,000 trade performed at the low of the day would have seen you receive €1,140 less than the same trade performed just before the U.S data release. If you need to but or sell dollars in the coming weeks you can click here to send me a direct email or complete the contact form on the homepage of the blog.