Sterling dollar exchange rates start to fall

Good afternoon,

With exchange rates sitting around $1.54 for most of the weekend, the GBP/USD cross dipped during trading today with the mid-market price falling to a low of $1.5329. For more information on live market prices click here.

It has been a relatively quite day in terms of data coming out of the UK with the only real data of note coming in the form of UK Mortgage Approvals released first thing this morning. It had been forecast that 59,500 new mortgages were approved in June but the actual figure came in slightly under at 57,667. Mortgage Approvals are seen as a key indicator into how the UK housing market is performing and a low reading can have a negative effect on the pound.

This would have been one of the reasons why we have seen exchange rates drop during business today but another reason would have been the market players and investors turning their attention to the Bank of England (BoE) meeting on Thursday.

For the best rates of exchange click here.

Since Sir Mervyn King stepped down as BoE governor he has left behind a level of uncertainty and it is still unclear as to how his successor Mark Carney is going to tackle the issues currently surrounding the UK economy. Until we get a clear understanding about what Mr Carney and his fellow policymakers plan to do the more damaging it could be for Sterling as investors look to put their money into safer assets.

This has been reflected in some of the long term forecasts I have received from my brokers, with one of them now thinking we will see GBP/USD fall as low as $1.41 within the next 12 months. This is only one brokers view but it shows that despite the UK posting some positive data over the last few months the long term future of the economy is still under threat. If rates were to fall back to $1.41 it would mean a staggering 8% drop from where we are currently sitting and is a difference of $24,600 on a £200,000 trade booked today.

It shows how important it is to get the timing right on your currency transaction because just waiting to see what happens could end up costing you thousands. If you would like more information on how I can help you make the most from your currency requirement click on the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates suffer temporary dip.

Good morning,

Sterling-dollar exchange rates unexpectedly fell yesterday despite a second consecutive quarter of growth for the UK economy. Exchange rates briefly fell to a low of $1.5269 as markets reacted to the latest news and prompted market players to sell out of their Sterling positions. The decline did not last for long though as weak data from the States and dovish comments regarding the FED's stimulus programme pushed rates back over $1.54 this morning. For more information on live rates of exchange click here

So why did positive UK data prompt a downturn in rates?

Yesterday's UK Gross Domestic Product (GDP) figures came in exactly as forecast at 0.6%, It meant it was the second quarter running that the UK economy had grown following the 0.3% growth we witnessed in Q1 and you would think this positive news would have lent further support to the pound.

If you want a commercial rate of exchange click here.

In actual fact the figures had the opposite effect and this was down to a couple of factors. A lot of investors would have been hoping for stronger growth and when this didn't happen it led to them selling out of their positions which dropped the pounds value. Coupled with the fact  the Bank of England (BoE) will look to keep their aggressive monetary policy in place to help maintain the UK recovery over the next couple of quarters, Sterling suffered a surprise fall against most of the major currencies before recovering against the dollar over the course of the afternoon and this morning..

So what next?


All attention will now turn to the BoE meeting on the 1st August and the UK inflation report on the 7th August. Although all nine MPC members voted against more quantitative easing at the start of this month it has been stated that they will look at other alternatives. It is expected that the BoE will look to start issuing 'Forward Guidance' in the next few weeks, Forward Guidance is essentially a promise not to surprise the markets and in this case the BoE will look at short term interest rates. This should help stabilise the markets in the short to medium term and if acting upon should see the pound climb against a basket of currencies.

If you need to buy or sell dollars in the coming weeks knowing what options are available could make or save you thousands. For a free, no obligation consultation use the link below and complete the contact form to take the next step to making the most of your currency.

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GBP/USD rates continue to rise

Good afternoon,

Firstly let me apologise for not posting recently, I have been out of the office for the past few days. In today's post I will briefly cover what has impacted the GBP/USD cross and what we can expect over the next 24 hours.

Since my last update Sterling has continued it's recent revival against the dollar, exchange rates reached a high of $1.5380 this morning before dropping back over the course of trading. It means the pound has now gained around 3.75% against the dollar since the 9th July when rates were sitting at a low of $1.4830. To put the move into monetary terms, a £200,000 trade into dollars will now see you receive nearly $11,000 more compared to the same trade booked only two weeks ago. For more information on live market prices click here.

What has contributed to Sterling's gains against the dollar?

Earlier in the week figures released by the National Association of Realtors showed existing U.S home sales unexpectedly fell by around 1% in June, causing the dollar to fall against the pound and the euro. We also saw some more positive news for the UK which boosted the pounds performance, UK export activity climbed to the kind of levels we have not seen since the financial crisis started in 2008 and will add to the belief the UK economy could be turning a corner.

For the best rates of exchange click here.

So what can we expect for the rest of the week?

Tomorrow is a big day for the UK with the Gross Domestic Product (GDP) figures for quarter two due to be released at 9.30 (BST). so what is GDP?

GDP is probably one of  the most important statistics for the UK as it captures the state of the economy in one reading. if the GDP figures are positive for the previous three months, the economy is growing. If it is negative it means the economy is contracting.

 

It is forecast that the UK economy grew by 0.6% for the months April to June and as we have seen in the past the GDP figures usually cause some movement in the currency markets. If the figures come in at the predicted rate or above we could see Sterling-dollar push back towards $1.55 but if the figures unexpectedly show contraction we could quite easily see rates fall back towards $1.51.

 

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GBP/USD exchange rates continue to rise

Today saw more positive gains as Sterling-dollar broke through $1.5250 to reach the highest levels we have seen since the 4th July. Exchange rates hit $1.5261 after the Bank of England (BoE) minutes were released at 9.30 this morning and now means we have seen the pound gain nearly 3% against the dollar in just over a week. For more information on live exchange rates click here.

Sterling climbed after the minutes from July's BoE meeting showed all nine MPC members voted in favour of keeping the current quantitative easing (QE) programme at its existing level (£375 billion).
The pound climbed a cent and a half against the dollar on the back of the news but to be honest it all came as a bit of a surprise, this was the first meeting for new BoE governor Mark Carney and many (including myself) thought he may push for further stimulus from the outset.

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I still think we could see Mr Carney look to de-value the pound over the next few months and if he does we can expect to see GBP/USD exchange rates start to fall, in the mean time we will just have to wait and see which route the central back look to explore and if you are looking to buy dollars take advantage of any current gains.


The pounds performance was also boosted today after better than forecast unemployment and claimant numbers, figures released by the Office of National Statistics showed that the number of people now out of work fell by 57,000 for the three months running up to May and the number of people claiming Jobseekers fell by just over 21,000.


So what next?

With the BoE now looking at other alternatives it should give the pound a bit more breathing space. A run of positive data could see temporary gains and the pound push back up towards $1.55, though any improvement in the U.S jobs sector could see the Federal Reserve look to cut back on their current QE programme which in turn would mean GBP/USD rates slide. The next U.S job report will be released on the first Friday of August and I for one will be watching very closely.

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GBP/USD exchange rate update

Good afternoon,

The Sterling/dollar cross pushed back over $1.51 this afternoon following some weaker than forecast Retail Sales figures from the States. Sterling climbed to a high of 1.5110 following the data release after early trading saw exchange rates hovering around $1.5050. For more information on live market prices click here.

Just after lunchtime today (Monday) figures released by the U.S Census Bureau showed the retail sector had grown in June but not at the predicated rate, forecasts had been for the sector to grow by 0.8% but the actual number came in at 0.4%.

These latest figures may just keep the U.S Federal Reserve guessing as to when would be the best time to start winding down it current stimulus package, it was said last week they would not look to faze out the QE programme until there is a market improvement in the U.S jobs sector but if the rest of the economy starts to falter then it might take more than a few extra jobs. The longer they hold off the more chance we have of seeing GBP/USD rates recovering, although any gains we do see could well be short lived.

For the best rates of exchange click here.

Last week was a relatively quite one for the UK in terms of data releases but this week is a little busier, on Wednesday the Bank of England release the minutes from their latest meeting and it has the potential to cause some volatility in the currency market. Although Interest rates and QE were kept on hold this month we may see some movement depending on how policymakers voted.

It was Mark Carney's first meeting as BoE Governor and if the minutes show he was keen to add to the £375 billion the central bank has pumped into the UK economy we could see Sterling's value start to slide across the board.

There have been various reports and interviews in recent months that have said Mr Carney will de-value the pound. If his first meeting as governor shows he voted for further stimulus it will give us an insight to what his future plans are and it is quite possible we could see GBP/USD fall back below $1.50 on the back of the news.

If you need to buy or sell dollars in the coming weeks and want to ensure you are making the most from your currency transfer use the contact link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates start to rise

Good afternoon,

Sterling recovered some of the lost ground against the dollar today with exchange rates climbing back over $1.50 to reach a high of $1.5187. It means we have now seen GBP/USD rates increase from $1.4817 in just three days as markets reacted to the latest minutes from the U.S Federal Reserve. For more information on live rates of exchange click here.













Last night saw the U.S Federal Reserve release the minutes from it's latest policy meeting with the news causing an unexpected drop in the dollars value. The minutes showed that members of the Fed want further evidence that the U.S jobs sector is improving before cutting back on the $85 billion they are currently pumping into the U.S.

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The U.S dollar has been climbing against the pound ever since Fed Chairman Ben Bernanke said he was planning to faze out the stimulus programme and bring it to an end by mid 2014, this was one of the reasons we have seen exchange rates fall from $1.57 in recent weeks. I think the gains sterling has made against the dollar today could well be short lived though, as it is only a matter of time until the Fed do reduce the amount of QE and when they do act it is likely we will see rates fall again.

Next week also sees the release of the minutes from the Bank of England meeting at the start of the month. Although no action was taken by the MPC to move interest rates or increase the existing QE package, if the report shows that new BoE governor Mark Carney voted for further stimulus we could well see the markets reacted and the pounds value drop against a basket of currencies.

If you need to buy or sell dollars in the coming weeks and want to make the most from your currency transfer use the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates recover slightly

Good afternoon,

Sterling recovered slightly during trading today with exchange rates climbing by nearly a cent to reach a high of $1.4946. For more information on live market prices click here.

Following the drop we witnessed last week where sterling lost over four cents in two days, the gains we have seen today at least put a temporary halt to proceedings. It is going to be a very quite week for the UK in terms of data releases with the only data of note being Industrial and Manufacturing figures and a GDP estimate all released on Tuesday.

For commercial rates of exchange click here.

It means the pound will be at the mercy of events elsewhere and any positive news from the States or negative news from the Eurozone could see GBP/USD exchange rates fall even further. Positive news from the U.S could strengthen the dollar, especially with the prospect of the U.S Federal Reserve tapering the existing Quantitative Easing programme and negative data from the Eurozone could lead to an increase in safe-haven flows into the greenback which would also see the dollars value rise.

Now that Mark Carney is running the Bank of England I think it is unlikely that we will see exchange rates push back towards $1.60, in fact I would not be surprised to see rates fall closer to $1.40 in the next few months. We all saw what happened on Thursday and Mr Carney had only been in his new role for four days! If the rumours of the MPC members de-valuing the pound are correct I think sterling is in for a tricky ride for the rest of 2013.

If you need to buy or sell dollars in the next few weeks I can offer a variety of currency contracts to help you make the most from your currency transfer. I can help protect you against any adverse market movements or help you target a rate that might not be currently available. For more information use the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates continue to fall

Good afternoon.

Sterling/dollar exchange rates have dropped nearly 4 cents in the last 24 hours following an announcement from the Bank of England (BoE) and a positive jobs report from the States. This afternoon saw GBP/USD rates fall to $1.4868, the lowest level we have seen since June 2010, before recovering slightly. For more information on live market prices click here.

Yesterdays BoE did not raise any eyebrows initially, with interest rates kept at 0.5% and the current quantitative easing package being held at £375 billion. Normally you would expect the pound to gain a little strength, especially after the positive data we have had this week from the UK Manufacturing and Services sectors. However, following the announcement the BoE warned markets they would not look to raise interest rates anytime soon which caused Sterling to drop around two and half cents against the greenback over the course of the afternoon.

For the best rates of exchange click here.

The decline did not stop there though as Fridays positive non-farm jobs report from the States came in much higher than forecast, it had been predicted that 165K jobs were created in June but when the figures were releases at lunchtime today the actual figure came in at 195K. This caused the dollar to strengthen almost immediately and push the GBP/USD cross down another cent and a half in a matter of seconds.

It now means we have seen Sterling lose over 5% against the dollar in just over two weeks and there is every chance we will see rates continue to fall over the next few months. To put the recent decline into monetary terms a £200,000 trade will now see you receive nearly $16,600 less compared to a fortnight ago.

It shows just how quickly things can change in the currency markets and how important it is to get the timing right on your transfer. With a range of currency contracts available I can help you make the most from your transaction as well as protect you against any adverse market movements. If you need to buy or sell dollars in the coming months and would like more information on how I can help use the link below and complete the contact form for a free, no-obligation consultation.   

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GBP/USD exchange rates climb over a cent

Good afternoon,

GBP/USD exchange rates rose by over a cent and a half today after better than expected UK Services Sector figures released this morning (Monday). Sterling started the day sitting at 1.5132 against the dollar but following the data release exchange rates climbed to reach a high of 1.5283. For more information on live rates of exchange click here.

The figures released by Markit showed the UK's Services Sector grew at its quickest rate for over two years and because the sector accounts for around 75% of the UK economy the pound strengthened across the board. This mornings Services numbers, coupled with the positive Manufacturing figures which I mentioned on Monday have once again shown that the UK economy seems to have turned a corner and is starting to recover.

For the best rates of exchange click here.

The pound has been in free fall against the dollar recently with exchange rates falling from $1.57back to $1.51 in just over two weeks, this latest spike has clawed back some of the lost ground but with Mark Carney due to hold his first meeting as Governor of the Bank of England tomorrow the gains could well be short lived.

As I have mentioned a few times in recent weeks it has been rumoured that Mr Carney will look to devalue the pound over the coming months, but following the positive data this week I think he will have a tough time trying to convince the other MPC members. Mr Carneys predecessor Sir Mervyn King had been pushing for more quantitative easing right up to his last meeting at the start of June but was unable to secure the majority vote needed which would have enabled him to add to the £375 billion that the BoE have already pumped into the UK economy to try and stimulate growth.

If you need to buy or sell dollars in the coming months and would like to protect yourself against any adverse market movements then contact me today for a free, no-obligation consultation. By using the link below and completing the contact form I can talk you through all the different contract options that will help you make the most of your currency exchange.

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GBP/USD exchange rate update

Good afternoon,

Sterling-dollar broke it's recent trend with exchange rates staying within a 30 pip range throughout most of trading today. Early this morning saw a brief blip with rates dropping to a low of $1.5184 before recovering almost immediately with better than expected UK Manufacturing figures boosting the pounds performance across the board and pushing GBP/USD back over $1.5230. For more information on live rates of exchange click here.

This mornings data releases added further support to the UK economy with the UK Manufacturing sector growing at its fastest pace for over two years. The figures showed the sector had beaten original forecasts and could cast some doubts that the UK economy will require further stimulus from the Bank of England. The current stimulus package currently sits at £375 billion and if the BoE were to add to this figure it could cut the pounds value and would mean exchange rates would fall.

If you want the best exchange rates click here.

The UK economy has been performing well over the last few months and todays manufacturing figures, coupled improving mortgage approvals could sway policy makers to keep the existing quantitative easing programme on hold for the time being. There has been a lot of talk recently that the new BoE governor Mark Carney will look to devalue by the end of the year but following this mornings positive news he may struggle to convince the other eight MPC members.

With the BoE due to hold their first monthly meeting on Thursday with Mr Carney at the helm it will be interesting to see what actions the central bank take and how markets react.

With so much uncertainty currently surrounding the FX markets it is important to know what options are available to help you make the most of your currency transfer. In the last few weeks we have seen GBP/USD exchange rates fall from $1.57 back to $1.52 and if Mr Carney gets his way we may well see rates fall even further.

If you have a requirement to buy or sell dollars use the link below and complete the contact form for a free no-obligation consultation.

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