GBP/USD exchanges rates start to lose ground

Good afternoon,

Despite breaking through $1.57 last week Sterling has struggled over the past few days with GBP/USD exchange rates falling to a low of $1.5483 this afternoon. In todays post I will take a closer look into what has impacted the rates and what we can expect over the next few days. For more information on live market prices click here.

Since Mark Carney took over as Governor of the Bank of England (BoE) the UK economy has been on a road to recovery. This was confirmed on Friday as the UK GDP figures for Q2 were revised up from 0.6% to 0.7% which was mainly down to all four of the sectors that make up the bulk of the economy improving in recent months. Coupled with the BoE issuing Forward Guidance there a now clear boundaries in place regarding interest rates which has made Sterling a much more attractive option for investors.

Although last week was fairly quite in terms of data releases the pound did manage to break through $1.57 for the first time since June 16th, the gains, however even with the improvement in the GDP figures the pound quickly lost ground and dropped nearly a cent against the dollar as the U.S Federal Reserve (FED) released the minutes from their June meeting. There has been a lot of speculation recently as to when Ben Bernanke and the other FED officials will begin to cut back on the $85 billion they are currently pumping into the U.S economy to stimulate growth, and as a result the minutes were being closely watched for any clues as to when the tapering may begin.


For commercial rates of exchange click here.

Although the minutes did not give any clear start time, a few of the FED officials were keen for action to be taken sooner rather than later, the news strengthened the dollar almost immediately and gave an insight to what we can expect when Mr Bernanke actually gives the go ahead. Once the FED start to wind up the stimulus package the dollar will continue to strengthen which in turn will drive down the GBP/USD cross.

So what happened today?

Following the Bank Holiday in the UK there were no data releases of any note, yet the pound continued to slide across the board. Sterling dollar fell from $1.5591 to $1.5483 and is likely to be down to the markets pricing in what they think will happen when Mr Carney gives his speech tomorrow (Wednesday). Although the UK economy is improving there are still people calling for the Bank of England to add to their existing Quantitative Easing programme and if there is any hint of this tomorrow there is the potential for the pound to fall even further.

 If you need to buy or sell dollars in the coming weeks or months it is important to know what options are available to help you make the most from your currency transfer. With a range of currency contracts at my disposal I can help you target a rate that might not be currently achievable or protect you against any adverse market movements. There is rarely a quite time in the FX markets and getting the timing right on your transaction can potentially save you thousands. If you would like to know more use the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates hit 2 month high

Good afternoon,

Sterling/dollar exchange rates have continued to move in a positive direction since my last post. The mid-market price climbed today to reach a high of $1.5670 meaning the pound has now gained 3.75% since the start of the month. To put that into monetary terms a £200,000 trade into dollars will now see you receive around $11,300 more than the same trade booked at the beginning of August. For live rates of exchange click here.

The latest move is great news for anyone looking to purchase dollars as the GBP/USD cross is now sitting at its highest level for two months. It is not so positive for those looking to sell dollars though, since the 10th July the mid-market price has rocketed from a low of $1.4859 as sterling claws back some of the ground it has lost since the start of 2013.

So what can we expect in the coming weeks?

I for one have been surprised at how quickly the pound has risen against the greenback, it was only a couple of weeks ago I posted that one of my brokers had revised their long term forecast for GBP/USD to $1.41. Over the last few days that has become increasingly unlikely, especially as the markets have reacted very positively to the Bank of England (BoE) issuing 'Forward Guidance'. The UK seems to have turned a corner recently and a run of positive data releases and if that continues we could well see exchange rates climb even higher.

For commercial rates of exchange click here.

One of the reasons why my broker thought Sterling/dollar would fall to $1.41 was down to all the talk surrounding the U.S Federal Reserve (FED) and their stimulus package. Speculation had been mounting that the FED were looking to start reducing the amount they are injecting into the U.S economy (currently $85 billion per month). However, with a fall in the number of jobs being created and a string of poor data releases it seems FED Chairman Ben Bernanke will have to wait a little longer before he can begin winding up the programme.

The pound has benefited massively because of the recent dip in the U.S economy but it is still only a matter of time until the FED issue the green light to being tapering and when they do we should start to see the dollar strengthen. The difference between now and a few weeks ago is that the UK economy and the pound are now in a much stronger position, so when the dollar does start to strengthen it means there is more of a cushion in place and that any immediate danger of the GBP/USD cross falling back below $1.50 seems to have past (for the time being!).

So with things looking more positive and exchange rates at a fresh high now is a good time to look at buying your U.S dollars. For those of you looking to sell, looking at Stop and Limit orders can help you target a lower rate of exchange but at the same time protect you against anymore adverse market movement.

If you would like more information on how I can help you make the most from your currency transfer then use the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchange rates rise again

Good afternoon,

The pounds performance was boosted today following positive unemployment figures from the UK. The GBP/USD cross gained just over a cent throughout trading today (Wednesday) to reach a high of $1.5543, which takes as back to the same levels we witnessed towards the end of last week. For more information on live market rates click here.

Figures released this morning by the Office of National Statistics (ONS) showed unemployment in the UK had fallen by 4,000 and that 29,000 fewer people are now claiming Job-Seekers Allowance. The reports had an immediate impact on exchange rates with Sterling gaining nearly 75pips (3/4 of cent) against the dollar to take the mid-market price from $1.5425 to just under $1.55

Although many would have been hoping for a bigger drop in the unemployment figures I think todays report will still be seen as a major plus for the UK economy. The last thing we would have wanted to see was a rise in the number of people out of work, especially as it was only a week ago Mr Carney delivered his long term plans for unemployment to fall to 7% before the central bank looks to change interest rates.

For the best rate of exchange click here.

There were further gains for Sterling in the afternoon as the U.S released a string of poor PPI data which pushed exchange rates up again with the mid-market price climbing towards $1.5550. The Producer Price index month on month and year on year came in well under forecast which weakened the dollars value making it cheaper to purchase. These figures will again dent the hopes of the U.S Federal Reserve as they look for improvements in the U.S economy before cutting back their on going stimulus package. 

With the UK economy showing continued signs of improvement and the U.S not performing the way the FED would like, there is a good chance we could continue to see the pound make further advances against the dollar. If things carry on improving it may not be unrealistic to think we could see GBP/USD rates push back over $1.60 in the coming months.

If you have a requirement to buy or sell dollars 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 rate update

Good afternoon,

Since last Wednesday, when GBP/USD exchange rates reached a high of $1.5515 we have not seen massive amount of movement for the cross. The pound did gain a little more ground against the dollar on Thursday when rates very briefly edged over $1.5550 but since that point the pound has dropped slightly back below $1.55. With a lack of key data releases at the start of the week in todays post I will take a quick look at what we can expect for the GBP/USD cross over the next few days. For more information on live market prices click here.

With the Bank of England (BoE) having now issued 'Forward Guidance' any UK data releases may now have a bigger impact on the UK economy and the FX markets. The first major data releases (since Mark Carney said interest rates will remain on hold) will come on Wednesday in the form of UK unemployment figures and the BoE minutes from the monthly meeting.

Usually the BoE minutes are highly anticipated as it shows how the MPC members voted in regards to Quantitative Easing (QE) and interest rates. This time round there hasn't been much speculation as we now know what the BoE's plans are and the minutes shouldn't through up any surprises but if the report shows another 9-0 vote in favour of no QE then we may see the pounds value increase across the board.

For commercial rates of exchange click here.

Any major movement will come from the unemployment figures, last week Mr Carney stated the central bank will not look to increase interest rates until unemployment in the UK falls to 7%. Unemployment currently stands at 7.8% and the initial forecasts are for that number to remain the same. However, nothing is ever certain and if the number of people out of work has increased we will move further away from the 7% threshold and could lead to some the gains sterling has made against the dollar being wiped out.

I will of course keep you updated with how Wednesday's news impacts exchange rates but if you need to buy or sell dollars in the coming weeks it is worth contacting me to discuss your options. With a range of currency contracts at my disposal I can protect you against any adverse market movements as well as help target a rate that might not be currently available. Use the link below and complete the contact form for a free, no-obligation consultation.

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GBP/USD exchnage rates jump over 3 cents

Good afternoon,

The pound rose by three cents against the dollar today as the markets reacted positively to the Bank of England (BoE) Quarterly Inflation report. Exchange rates climbed from $1.5215 to reach a high of $1.5515, the highest the GBP/USD cross has been since the 21st June and means Sterling has gained 2.65% against the dollar in less than a week. To put the move into perspective a £200,000 trade will now see you receive nearly $8,100 more compared to the same trade booked on the 2nd August.    For more information on live market prices click here.

The pounds value increased as BoE Governor Mark Carney gave his speech this morning. The FX markets have been waiting in anticipation for todays announcement and Mr Carney used the opportunity to set out some guidelines of what the central banks future plans are.

Mr Carney and his fellow MPC members said they will not consider increasing interest rates until the unemployment figure in the UK has fallen to 7% or lower, unemployment currently sits at 7.8% and to bring the rate down to 7% would require around 750,000 jobs to be created. This does not mean that rates will automatically increase if the figure is reached but would be a point at which the Bank of England would re-examine interest rates.

The idea of Forward Guidance is basically a promise not to surprise the markets and with the boundaries now in place it will give investors and market players something to work with. As I said in my last post if what was said to today is taken as positive we could see GBP/USD exchange rates push back towards $1.55 and that is exactly what we have seen over the course of trading today.

For the best rates of exchange click here.

With Forward Guidance now in place it could make the FX markets a little easier to read. Any positive data out of the UK should now help boost the pounds performance while any negative data will mean rates start to fall. I know this sounds simple but it has not been the case in recent weeks. There has been so much speculation surrounding the BoE and whether they will look to increase the existing QE programme or interest rates that the positive data we have seen for the UK has had little or no impact on Sterling's performance.

The door is now open and if the UK continues to show signs of improvement the GBP/USD cross may carry on rising. However, lets not forget the U.S are still planning to reduce their own stimulus package and once the U.S Federal Reserve give the green light we can expect to the dollar to strengthen quickly and could easily wipe out any gains the pound has made.

If you need to buy or sell dollars in the next few months then I would recommend contacting me for a free, no-obligation consultation. I can talk you through the different options that are available to help you make the most from your currency transfer. Simply use the link below and complete the contact form and I will be in touch as soon as I can.

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Sterling dollar exchange rates rise again

Good afternoon,

The pound continued its recent revival against the dollar today with exchange rates rising over a cent to reach a high of $1.5375 before falling back over the course of trading today. Sterling has now gained around 1.75% against the greenback since the 2nd August following more positive news for the UK economy this morning. For more information on live rates of exchange click here.

After the better than expected UK Construction figures on Friday (see Fridays post) todays boost for cable came after the UK Services Sector beat economists expectations. The Services Purchasing Managers Index (PMI) increased to 60.2 in July compared to 56.9 in June (a reading over 50 indicates growth) which meant the sector grew at its fastest pace for over six and a half years. GBP/USD exchange rates reacted to the positive reading by climbing from $1.5266 to $1.5375 to once again show that the UK recovery is starting to gather pace.

For commercial rate of exchange click here.

All eyes will now turn to Wednesday's Bank of England Quarterly Inflation report were it is expected the MPC members will start to issue some Forward Guidance. If the markets react well to the report it is possible we could see exchange rates push back towards $1.55, especially as it seems more and more unlikely the U.S Federal Reserve will look to start tapering the $85 billion they are currently injecting into the U.S economy anytime soon.

With the potential to see some big swings in the GBP/USD cross in the coming weeks it is important to know what tools are available to help you make the most of your currency transfer, whether you are buying or selling dollars I have a range of currency contracts at my disposal to either protect you against adverse market movements or help achieve a rate of exchange that might not be currently achievable. For 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 after weak U.S job numbers

Good afternoon,

Sterling climbed by nearly 1.15% against the dollar today as strong UK construction data and weaker than forecast U.S job numbers helped exchange rates push back over $1.5270. The pound had started the day sitting just over $1.51 but by the end of lunch rates had risen to a high of $1.5171 to claw back some of the lost ground we seen through out this week. For more information on live rates of exchange click here.

The pound was buoyed early on Friday after the release of the better than expected UK construction figures, the official numbers released by Markit showed the sector grew to 57.0 in July compared to 51.0 in June (any number over 50 shows the sector has expanded). It had been forecast we would only see a rise to 51.7, so with these figures coming in much higher it is another boost for the UK economy and is further proof that things seem to be improving.

Click here for the best rates of exchange.

The major movement of the day came at 13:30 (BST) as the U.S released its latest job numbers. It had been predicted that 184,000 jobs were created last month but the actual figure missed expectations and came in at 162,000 (compared to the 195,000 jobs created in June), the lowest number of new jobs we have seen since January. As the figures were released the dollar weakened significantly and pushed the GBP/USD cross up by over a cent to reach the high of the day.

These latest job numbers will come as a major blow to Ben Bernanke and the U.S Federal Reserve (FED) as they had been looking for the jobs sector to keep on improving before starting to cut back on the $85 billion currently being pumped into the U.S economy.

With the jobs sector seeming to falter it could mean we will have to wait even longer before we see the FED take any action. This could be good news for the pound, if the UK economy keeps performing well and we see some positive moves by the Bank of England (BoE) in the coming weeks it is just possible we could see Sterling-Dollar exchange rates push back towards the $1.57 mark we witnessed in the middle of June.

As I said earlier in the week one of the forecasts I received from my brokers had revised the 12 month GBP/USD rate to $1.41 and following today's poor U.S data it might mean I will see these figures changed again in the coming weeks. I will of course let you know if anything happens.

With so much potential volatility in the FX markets it may be worth looking at Stops and Limit Orders if you are thinking of buying or selling dollars in the coming months. These contracts can protect you against adverse market movements and help target a rate that might not be currently available. For more information on the types of contract I can offer click here or if you would like to discuss your options in more detail then use the link below and complete the contact form for a free, no-obligation consultation.

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