Pound Dollar exchange rates hit a 10 day high

Good afternoon,

With exchange rates falling to $1.5011 yesterday (Wednesday) Sterling managed to claw back some ground against the U.S dollar today to reach a high of $1.5218, the highest we have seen the cross since the 20th May. For more information on current rates of exchange click here.

 

With little data coming out of the UK this week there has been a lot of attention on the U.S and their economy. Today (Thursday) saw the States release Gross Domestic Product Price Index and Gross Domestic Product Annualised figures for Quarter One this year along with their latest jobless numbers.

If you are a business or private client looking for the best rate of exchange click here.

The Gross Domestic Product Price Index tries to gauge the change in prices for services and goods while the Gross Domestic Product Annualised figures show the monetary value of goods and services over a set period. The figures can have a big impact on the value of the dollar, if the reading comes in on or above forecast then you will see the dollars value increase but if the reading is negative or under the forecast then you can see the dollars value decrease.

This is exactly what we saw this afternoon, as soon as the figures were released the dollar started to lose ground against the pound pushing exchange rates up towards a 10 day high. The Gross Domestic Product Price Index  figures came in as expected at 1.2% while the Gross Domestic Product Annualised figures came in slightly under forecast at 2.4%.

Although the Annualised figures would have attributed to the dollar losing strength the main reason we saw rates move up today was down to the jobless numbers, Initial Jobless Claims in May increased by nearly 10,000 to 354,000 compared to figures released in April when it had actually been predicted that the number would fall by nearly 4,000.

So what can we expect in the coming weeks?

As I have said time and time again it is impossible to and predict which way the currency markets will move. One thing I can be sure of is that there will be a lot of attention on the Bank of England over the next few weeks. With Mark Carney due to take over from Sir Mervyn King at the beginning of July there has been talk that the new Governor will look to increase stimulus in the UK and devalue the pound.

In fact, one report I read this morning said we could see Mr Carney try and reduce Sterling's value by around 15% in an attempt to boost UK exports which would cause GBP/USD exchange rates fall towards $1.37. Although I don't think Mr Carney will take some drastic steps it does leave the door open for exchange rates to fall below the $1.48 we saw at the start of March.

If you own a business or are a private client looking to buy or sell dollars in the next few weeks contact me today by using the link below and completing the contact form for a free, no-obligation consultation. I can then run through the different options that can help you make the most from your currency transfer.

Click here to complete the contact form.

Pound dollar exchange rates fall to a 10 week low before recovering.

Good afternoon,

Since my last post Sterling continued it's slide against the U.S dollar falling to a fresh low of $1.5015. This is the lowest we have seen GBP/USD exchange rates since the 14th March with the decline mainly down to weak UK data. For more information on current exchange rates click here.

Following Tuesday's poor UK inflation numbers which triggered a drop for the GDP/USD cross, Wednesday was no better as negative UK Retail Sales also impacted Sterling's performance. Figures released by the Office of National Statistics showed sales in April came in 1.3% lower than in March to once again show just how fragile the UK economy currently is. The news prompted the pound to lose nearly a cent against the dollar over the course of trading.

For live rates of exchange click here.

Further loses were limited as the Bank of England released the minutes from their meeting at the beginning of May, the minutes showed there has been no change to the way policy makers had voted for more Quantitative Easing with the vote remaining at 6-3. Bank of England Governor was once again one the the MPC members to push for more stimulus and when they meet at the start of June he will have one last attempt to try and add to the £375 billion already pumped into the economy before stepping down.

The latest Inflation and Retail numbers could force the BoE into further action and if they were to act we could see the pounds value drop drastically in the coming weeks, with exchange rates dropping below the $1.4830 witnessed a couple of weeks ago.

Today has seen a brief revival for Sterling though with the GBP/USD cross managing to claw back some of yesterdays loses. At the time of writing this post cable had climbed back over $1.51 to reach a high of $1.5126.

The last 48 hours have shown just how unpredictable the currency markets can be and prove how important it is to get the timing right on your currency transfer. If you are a business or private client looking to buy or sell dollars use the link below to complete the contact form to see how much money I can save you and what options I can offer to ensure you make the most from your exchange.

Click here to complete the contact form.

 

Pound loses 1% against the dollar in less than 24 hours

Good afternoon,

After a brief recovery which saw exchange rates reach $1.5279, sterling continued it's recent trend and slipped further against the U.S dollar. Following some weak UK data this morning GBP/USD rates dropped to a low of $1.5113 which means we have seen a 1% decline in the last 24 hours. For more information on the exchange rates I can offer click here.

The main driving force behind today's decline can be put down to a surprise fall in UK inflation. Figures released by the Office of National Statistics showed inflation fell to 2.4% in April from 2.8% in March and could prompt the Bank of England (BoE) to look into ways to help boost the UK economy. This mornings news led to the pound losing ground against a basket of currencies with the pound/dollar cross falling to it's lowest levels since the 3rd of April.
 
There is also the potential for further movement tomorrow as Wednesday is another important day for the UK in terms of data. In the morning the BoE release the minutes from their latest meeting, they always tend to cause some movement in the FX markets as it gives us an insight to how policymakers voted in terms of more Quantitative Easing (QE).

If you want the best exchange rates click here.

Over the last few months three out of the nine MPC members have voted for more QE and if tomorrows minutes show a change in attitude we could see the exchange rates move in either direction. If the voting shows a fourth member wanted further stimulus for the UK we could see the pound lose more ground but if the vote stayed at three or reduces then the pound could claw back some of the losses we have seen today.

There are still a number of forecasts that are predicting that we will see exchange rates drop even further, with some predicting we could see cable fall as low as $1.47 in the next three months. A run of poor data from the UK or an announcement from the U.S that they have cut back on the amount they are pumping into their economy could well see rates fall back to the lows we saw at the begining of  March.

If you are a business or private client looking to buy or sell dollars in the coming weeks or months removing the risk element from your currency transfer could potentially save you thousands. With a number of currency contracts at my disposal I can help you target a rate of exchange that may not be currently available or protect you against any adverse market movements. If you would like more information on how I can help or would like to know what exchange rates I can offer use the link below to complete the contact form for a free, no-obligation consultation.

Click here to complete the contact form.

GBP/USD exchange rates lose 4 cents in a week

Good afternoon,

I have been away from the office for the last few days so todays post will give you a summary of events that have impacted sterling and the dollar in the last 72 hours and what we can expect over the next few weeks.

The last couple of days have seen Sterling drop against the U.S dollar with GBP/USD exchange rates falling to their lowest levels since the 4th April, hitting a low of $1.5175 on Friday afternoon. It now means the pound has lost nearly 4 cents against the dollar in just over a week. For more information on the exchange rates I can offer click here.

So what has caused the decline in rates?

It has been a mixed few days for the UK economy and the pound, earlier this week the Bank of England released their latest Inflation Report and there was some positive news for the UK with BoE Governor Mervyn King saying "a recovery was in sight" and that inflation in the UK should fall to the targeted 2% within the next two years. The BoE also increased their growth forecast by saying that economic growth in 2013 should now be greater than 1% compared to the previous estimate of 0.9%.

Want to see how much I can save you on your transfer? Click here

Despite the positive news any gains Sterling could have made were soon cancelled out by the news that UK unemployment has increased by 15,000 between January and March this year, with 2.52 million people now out of work.

There was also more positive news for the United States economy, figures released yesterday (Thursday) showed that inflation is currently running at 1.1% against a target of 2%, coupled with the talk that the U.S Federal Reserve (FED) may reduce it's on-going stimulus package the dollar has strengthened massively in the last few days, wiping out the gains the pound has made against the greenback since April.


What does this mean in monetary terms?

On the 1st of May I posted that GBP/USD exchange rates were close to breaking through $1.56 and the drop in rates we have seen since have not really helped anyone looking to purchase U.S dollars. A £200,000 trade today will now see you receive nearly $8,500 less compared to the start of the month. However, one mans loss is another mans gain so if you are selling dollars it is certainly looking a little brighter, converting $200,000 dollars back into sterling would now get you an extra £3500 compared to the same deal booked on the 1st of May.

How to make the most of your transfer

While know one can predict which way the currency markets will move there are a number of steps you can take to either protect yourself from adverse market movements or take advantage of any sudden spikes. If you would like more information on the different types of currency contracts I can offer or would like to know how much money I can save you, use the link below and complete the contact form for a free, no-obligation consultation.

Click here to complete the contact form.

Exchange rates fall by 2% in less than a week

Good afternoon,

The last couple of days has seen Sterling lose more ground against the U.S with exchange rates falling to their lowest levels since 24th April. GBP/USD rates fell to $1.5234 which now means the cross has now dropped by over 2% since the 9th May. For more information on exchange rates click here.

With recent talk of the Fed reducing the $85 billion they are currently pumping into the U.S economy we have seen the greenback strengthen massively since last week. Since last Thursday exchange rates have fallen from $1.5580 to their current level ($1.5234) which has had a major impact for those looking to buy U.S dollars. To put the movement into monetary terms a £200,000 trade will now see you receive nearly $7,000 dollars less compared to trade last week.

Want ensure you are getting the best exchange? click here.

It is not only talk of the Fed reducing its current Quantitative Easing (QE) package that has caused the dollar to strengthen, the U.S also witnessed better then forecast Retail Sales figures for April this week. Figures released by the Commerce Department showed that sales rose by 0.1% last month compared to the 0.5% contraction we saw in March which was enough to cause a half point drop in exchange rates on Monday afternoon.

It has been a relatively quite week so far in terms of data releases but that will all change tomorrow. Wednesday brings a number of key releases from the UK and Euro-zone which could all cause some major movements in the currency markets. From the UK we have the latest unemployment figures, a speech from Bank of England (BoE) Governor Mervyn King and the Bank of England Quarterly Inflation report.


Any negativity from the BoE or poor unemployment figures could mean we see exchange rates fall even further tomorrow, saying that if unemployment figures are positive and the BoE don't try and talk the pound down we may see sterling recover some of the lost ground we have seen over the past few days.

However, it is not only events in the UK that could impact exchange rates tomorrow, Europe release their latest GDP figures and the results could quite easily have an impact on the Sterling/dollar cross. A negative result could cause investors to seek the safety of the greenback, which would strengthen the dollar and bring rates down. A positive result may prompt a change in risk appetite, this would see investors leave the safety of the dollar, weaken the currency and mean exchange rates increase.

If you need to buy or sell dollars in the coming weeks knowing what options are available can help make the most from your currency transfer. If you would like to know how you can protect yourself from adverse market movements or how to get the best rates of exchange, use the link below to complete the contact form for a free, no-obligation consultation.

Click here to complete the contact form

Pound/dollar rates fall despite postive UK data

Good afternoon,

Despite positive news coming out of the UK this morning, GBP/USD exchange rates fell by nearly a point in the afternoon as better than expected Jobless Claims in the States strengthened the U.S dollar. For more information on the exchange rates I can offer click here.

First thing this morning there was more good news for the UK economy, Industrial and Manufacturing Production numbers beat initial expectations to strengthen claims the UK maybe on the road to recovery. Industrial Production rose by 0.7% when the forecast had been for the sector to grow by 0.3% and with Manufacturing Production performing even better (a rise of 1.1% against the forecast of 0.4%) the pound gained nearly half a point against the dollar to push exchange rates towards $1.5585.

Are you looking for the best exchange rates? click here

In what was a busy day in terms of data releases for the UK, the Bank of England (BoE) announced that interest rates will remain at 0.5% and will keep it's Quantitative Easing (QE) programme unchanged at £375 billion. The announcement from the BoE came as no real surprise and didn't cause any real movement in the currency markets. Last month's GDP figures, which showed the UK economy grew in quarter one have reduced the need for the BoE to step in to try and boost growth.

However, the gains sterling made this morning were soon wiped out as positive news from the states in the form of Initial Jobless and Continuing Jobless Claims strengthened the dollar. Initial Jobless Claims fell by 12,000 and Continuing Claims fell by 15,000 and the figures had an instant impact on the market as exchange rates fell from $1.5580 to $1.5487.

The last few weeks have been particularly choppy for cable with positive news from the UK and U.S causing some big swings in exchange rates. We have already seen sterling gain nearly 5% against the dollar since the start of March but it seems the pound may have run out of steam as exchange rates struggle to break through $1.56. Some analysts are still predicting we will see the pounds value fall over the course of the next few months with forecasts for Sterling/Dollar to drop back towards $1.47 in the next six months.

Whether you are a business or a private client looking to buy or sell dollars in the coming weeks, the one thing that will help you make the most from your currency transfer is getting the timing right on your transaction. By using the different tools that are available I can help you target a rate that might not be currently available or put a safety net in place to protect you from any adverse market movements. For more information on how I can save or make you money click on the link below and complete the contact form for a free, no obligation consultation.

Click here to complete the contact form

GBP/USD exchange rates lose a cent

After the gains we have seen over the last few week's, Sterling lost ground against the dollar today to fall away from the 10 week high we saw last Friday. Trading opened today with Cable sitting around $1.5550 but as the day went on and the U.S markets opened the pound lost nearly a cent against the dollar to fall back towards $1.5450 (the lowest we have seen since April 26th). For more information on the exchange rates I can offer click here.

In terms of data it is going to be a relatively quite week and todays loses could be down to a couple of factors. Around 2pm (BST) the latest IBD/TIPP Economic Optimism figures were releases in the U.S with the numbers coming in much lower than forecast at 45.1. The IBD/TIPP Economic Optimism survey is conducted across the States by one thousand adults and asks them for their economic outlook for the next two quarters and their opinion on the FED's policies. If the reading comes in above 50 it indicates optimism, while a reading under 50 will show pessimism.

If you want a better rate of exchange click here.

In one of my posts last week I mentioned we witnessed a change in risk appetite and that investors were leaving the safe-haven of the dollar and looking into riskier assets, as today's figures from the states were negative it may have triggered investors to seek the safety of the dollar once more and strengthen the greenback causing exchange rates to fall.

The decline in today's rates could also be down to the markets pricing in what the Bank of England (BoE) may do when they meet on Thursday. The BoE policymakers are due to meet for their monthly meeting to discuss interest rates and Quantitative easing (QE). There have been some calls for the BoE to add to the £375 billion they have already pumped into the UK economy, if they were to look at another round of QE it would devalue the pound and could cause exchange rates to fall.

The FX markets move on rumours as much as fact so if there is chance of further stimulus you often see the exchange rates move in the run up to the announcement. In my opinion I think it is unlikely we will see a rate cut or more QE from the BoE on Thursday and if that was the case I wouldn't be surprised to see the pound claw back todays fall.

If you need to buy or sell dollars in the coming weeks and want to achieve the best possible rate, use the link below to complete the contact form for a free, no-obligation consultation.

Click here to complete the contact form

GBP/USD exchange rates improve again

Good afternoon.

Today has seen Sterling make further gains against the U.S dollar as rates pushed towards $1.56 (the highest level we have seen the GBP/USD cross since 14th February). Better than expected UK Manufacturing numbers were the key driver behind the movement and in a matter of minutes exchange rates had jumped by over half point to reach a high of $1.5594. For more information on the exchange rates I can offer click here. 

UK Manufacturing PMI figures released this morning (Wednesday) came in at 49.8 (anything over 50 indicates growth) which showed only a small contraction for the sector in April, it had been forecast that today's figures would come in at 48.5 so this mornings positive reading added some extra support to the pound and pushed exchange rates up across the board.

Want to see how much I can save you against your bank? Click here

The UK Manufacturing sector plays a major role in the overall picture of the UK economy and the positive manufacturing data could reduce the chances of the Bank of England looking at further stimulus when policymakers meet next week. If MPC members opt to keep the current quantitative easing package on hold we may see sterling climb even higher against the Greenback.

Another reason we have seen exchange rates climb over the last 48 hours is down to some positive date coming out of the U.S. Yesterday saw the States release it's latest Consumer Confidence numbers and the news was far better than anticipated.

But how can positive U.S data weaken the dollar?

The U.S is often seen as a safe-haven so when there are issues in the euro-zone or UK investors will head to the safety of the worlds largest economy. Yesterdays positive U.S data will have prompted a change in risk appetite, when the U.S is performing well it can lead to investors looking into riskier assets, which is exactly what we witnessed yesterday afternoon. Although the pound gained against dollar it actually fell against the euro as investors headed towards the single currency.

So what could impact exchange rates over the next few days?

This evening will see the FED announce the latest interest rate decision, although it is forecast that rates will remain on hold a surprise announcement could cause some movement in the currency markets.

Tomorrow will see the latest European Central Bank (ECB) interest decision, it has been rumoured that the ECB may look to cut rates tomorrow and if that is the case we could see the Euro weaken and safe haven flows increase into the dollar which in turn would bring down the GBP/USD exchange rate.

Friday sees the latest U.S non-farm payroll numbers. The figures show how may jobs have been created in the U.S outside of the farming sector and in the past couple of months have caused some major movements in the currency markets. The number are impossible to predict and I would expect the markets to react instantly on the back of the data release.

If you want to protect yourself from any adverse market movement click here

I will of course keep you updated with how the next couple of days pan out. In the mean time if you have a requirement to buy or sell dollars in the coming weeks and want to make sure you have all the tools available, use the link below and complete the contact form for a free, no-obligation consultation.

Click here to complete the contact form