GBP/USD exchange rates continue to fall.

Good afternoon,

After what seems like a brief recovery, Sterling lost further ground against the dollar today as exchange rates once again slipped back below $1.63. When I arrived at the office this morning GBP/USD exchange rates we sitting close to $1.6330 but after some weak economic data from the UK and some positive numbers from the States the pound continued to slide against the improving dollar. At the time of writing GBP/USD had fallen by over a cent to reach a low of $1.6225.

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Todays decline means the pound has lost nearly 1.35% against the dollar in just over a week. It might not sound very much but in monetary terms it can make a massive difference. If you were converting £250,000 into dollars today, the drop in exchange rates would mean you receive almost $5,700 less compared to the same trade secured at last weeks high.

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The positive data releases that came out of the States this afternoon will fuel speculation that the U.S. economy is starting recover. If the economy is seen to be improving it could also heighten expectations the U.S Federal Reserve will start to cut back their on-going stimulus package. With  FED officials currently holding a meeting there is an outside chance we may get an idea of there tapering plans as early as tomorrow.

I think it is unlikely that tapering will being tomorrow, but if the FED come out and say they will look to start reducing the amount they injecting into the economy in January, the dollar could quickly start to gain momentum against most of its major counterparts.

If you are thinking of buying or selling dollars in the coming weeks and would like to take the element of doubt and risk out of your currency transfer, there are a number of tools I have at my disposal to help you make the most from your money. Use the link below or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.

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GBP/USD exchange rate update

Good afternoon,

Sterling lost more ground against the dollar today (Friday) to bring an end to a disappointing week. The decline in exchange rates means the pound lost around 1.2% against the greenback since the highs we witnessed at the start of the week.

From Tuesdays high of $1.6463 cable fell to a low of $1.6266 by Friday afternoon, the first time the GBP/USD cross has dipped below $1.63 since 27th November.

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So what does this mean in monetary terms?

To put the move into perspective a £200,000 trade will now see you receive around $3,950 dollars less compared to the same trade secured at Tuesdays high.

Should I wait for the rate to move back up to $1.64?

It is a risky business waiting to see if the markets move in your favour. For those that are thinking of buying dollars and missed the chance to take advantage of the weeks high, it is still an excellent time to think about converting your funds.

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Exchange rates are still 10% higher than earlier in the year and with the increasing prospect that the U.S. Federal Reserve (FED) will start to cut back their stimulus package as early as next week, we could see exchange rates fall even further.

If FED chairman Ben Bernanke does opt to start tapering next week then we should start to see the dollar strengthen as soon as an announcement is made. How far rates would fall would depend how much is trimmed off the current $85 billion per month payment, but if exchange rates are still sitting around their current level we could easily see the cross drop back below $1.60.

If you need to buy or sell dollars in the coming weeks and want to ensure you are making the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.

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Dollar starts to gain against the pound

Good afternoon,

GBP/USD exchange rates fell away from their recent highs as U.S government officials agreed to ease spending cuts and reduce their ever growing budget deficit. Sterling lost over a cent against the dollar falling from $1.6464 to a low $1.6324 before recovering back towards $1.64 at the time of writing.

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The agreement reached by U.S. officials yesterday (Tuesday) is a big boost to the American economy, as it greatly reduces the risk of another government shutdown and a potential breach of the debt ceiling when the existing deal expires in February.

It also adds to speculation the Federal Reserve could look to start cutting back its $85 billion stimulus programme as early as December. This could be a major breakthrough for the dollar which has lost so much ground against most of its major counterparts in recent times.

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All eyes will now be firmly on the FED meeting next week and it could be the perfect Christmas present for those looking to sell dollars. With exchange rates moving against them for the last 4 months, there is now a real possibility we could see GBP/USD drop below $1.60 for the first time since mid-November.

The next week could see some real swings in the FX markets, especially in the run up to the FED meeting. Remember, exchange rates move on rumours just as much as fact,  so as tongues start to wag and we get closer to the meeting I would expect to see big movements in cables performance.

If you have a requirement to buy or sell dollars now is the time to get in touch. If you are buying, it worth considering a forward contract to secure your rate close to the two year high, if selling a limit order could help you target a rate that is not currently available.

For more information use the link below to complete the contact form or contact me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.

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GBP/USD exchange rates break $1.64 again

Good afternoon,

Sterling has lost a bit of momentum since my lost post as rates dropped back below $1.6350 towards the end of last week. Trading today though has seen the pound claw back over half a per cent against the dollar, which has seen the GBP/USD cross break through $1.64.

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In terms of data releases it has been a very slow day on both sides of the pond. Neither the UK or U.S produced any figures of note which left both Sterling and dollar at the mercy of events elsewhere. The pound faired well during early trading today as GBP/USD rates rose from $1.6320 to just below $1.6390 by mid-day and as the UK markets wound up business for the day cable pushed through $1.64 to reach a high of $1.6413.

Will rates continue to rise?

That question seems to be on everyone's tongue at the moment. Unfortunately I don't have a crystal ball but if we look at what has caused GBP/USD
to jump over 5% since September it is mainly down to dollar weakness. Yes the pound and the UK economy have been performing well but with all the issues that have come out of the United States in the last few months it is hardly surprising the dollars value has dropped so much.

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 However, speculation seems to be mounting that the U.S. Federal Reserve are on the brink of reducing its on-going stimulus package. Following Fridays positive job numbers and a reduction in the unemployment rate some market experts are predicting we could see tapering begin as early as 18th December. If that were to happen I would expect the dollar to instantly strengthen, what impact it has on exchange rates will depend on amount the stimulus package is reduced by.

If you are thinking of buying dollars it is certainly a good time to do so, even if you don't need the funds straight away you can secure your rate of exchange for up to two years into the future. For more information on how to take advantage of the current rate use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065 for a free, no-obligation consultation.

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GBP/USD exchange rates start to slide

Good afternoon,

The last 48 hours have been fairly volatile, which has seen GBP/USD exchange rates fluctuate by nearly a cent. Since my last post on Monday the pound has almost gone in a full circle, exchange rates  moved from Mondays low of $1.6346 to a high of $1.6425 yesterday (Tuesday) before falling back to $1.6329 during trading today (Wednesday).

Todays post will take a quick look at why Sterling could not hold above $1.64 and what the rest of the week could hold for the GBP/USD cross.

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Sterling was unable to maintain the gains it made against the dollar on Tuesday following some weaker than forecast UK Services PMI data and some better than expected numbers from the States.

Services PMI plays a major role in the UK economy as it gives a good indication of business conditions which include production, employment, new orders and prices. It was forecast we would see a score of 62.1 but with the actual number only coming in at 60.0 it meant things were not as great as everyone had hoped. The news caused Sterling to weaken almost immediately and after the States produced better than expected non-farm employment change and new home sales figures, GBP/USD fell to its lowest level since the 29th November ($1.6329).

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The rest of the week is going to be interesting as Thursday and Friday will bring some of the most important reports and data releases for the month of December. The Bank of England will give their latest interest rate and monetary policy decision on tomorrow (Thursday). While across the pond we get the latest non-farm job numbers which nearly always cause some big movements in the FX market.

Rate Forecast

Now and again I like to keep you informed with what some of my brokers are thinking. This morning I received a very interesting email with a revised forecast. It was predicting GBP/USD exchange rates will be as low as $1.52 within the next 12 months.

This may seem a little hard to believe at the moment, especially considering how well the UK economy is performing., but what the forecast will be taking into account is the U.S Federal Reserve completely winding up their on-going stimulus package.

The dollar has lost a lot of ground against the pound and euro during 2013 but if the FED do start to cut back in the coming months should start to see the dollar recover, which in turn will see GBP/USD and EUR/USD rates start to retract.

If you are thinking of buying or selling dollars over the next few months and want to ensure you are making the most from you transfer, I have a number of tools available which can help. I can look at holding a current rate of exchange for up to two years or help you target a rate which might not be currently available. For more information use the link below and complete the contact form or call me directly on 01442 892 065 for a free, no-obligation consultation.

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GBP/USD exchange rate update 02/12/2013

Good afternoon,

Since my last post Sterling has made some decent strides against the U.S dollar, over the weekend the GBP/USD cross reached its highest level for over two years as exchange rates pushed towards $1.6450. 

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It looked as though rates may push even higher this morning, once again the UK underlined its status as the best performing Western economy in 2013, with the UK Manufacturing sector producing its strongest performance for almost 3 years.

We did initially see a brief rise after the data release (as the graph above shows) but Sterling was unable to hold onto the gains and started to run out of steam by mid-morning. At the time of writing exchange rates had fallen by nearly 0.5% and at its lowest left cable trading at $1.6346.

So why did rates starts to fall?

Todays move was not really down to Sterling weakness but dollar strength. Following a relatively quite few days in the States, largely due to Thanksgiving, the U.S. had a number of important data releases this afternoon and they did not disappoint.

The U.S. also released its latest Manufacturing numbers for November and just like the UK, had better than expected results. The Final Manufacturing PMI came in at 54.7it highest level for over 18 months, a number over 50 indicates growth in the sector.

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What could move rates this week?

It could be a very volatile week for the GBP/USD cross with a number of highly important data releases due over the next few days.


From the UK we will see the latest retail sales numbers, Construction PMI and Services PMI. We will also get the latest figures from the Bank of England regarding interest rates and quantitative easing.

The U.S. will release their latest unemployment numbers, non-manufacturing PMI, preliminary GDP figures and on Friday the eagerly anticipated non-farm job numbers which normally cause some major swings in the FX market.

I will keep you updated over the course of the week about how the above moves exchanges rates but in the meantime if you are thinking of buying or selling dollars in the coming weeks and want to know how to make the most from your transfer, use the link below to complete the contact form all call me directly on 0044 (0) 1442 892 065.

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