Retail figures help the pound

Good morning,

The pound lost over two cents against the dollar yesterday following the latest FOMC meeting but did manage to recover some of the lost ground this morning after UK retail sales figures smashed expectations.

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During yesterday's conference Fed Chair Janet Yellen announced the Federal Reserve will would be "patient" when deciding to raise interest rates. Previously the Fed had stated that interest rates would remain low for a considerable amount of time, so this change in stance helped strengthen the dollar, with GBP/USD exchange rates dropping from $1.5777 to a low of $1.5548.

Mrs Yellen went on to stay there would be no immediate rate hike and that being "patient" meant the central bank was unlikely to raise rates for at least a couple of meetings.

Retails figures trigger recovery.

The pound did manage to claw back some of ground it lost last yesterday after UK retails figures rose at their fastest pace in more than a decade. It seems Black Friday helped boost sales in November after figures released by the Office of National Statistics showed sales climbed by 1.6% month on month, the forecast had only been for a 0.3% rise.

The release had an immediate impact on the currency markets with the pound gaining ground against most of its major counterparts. The GBP/USD cross rose almost a cent climbing from $1.5555 to $1.5648 bringing back into the range we have witnessed for the last few trading sessions.

If you have a requirement to buy or sell dollars in the coming weeks and want to make the most of your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Bank of England comments help boost the pound

Good afternoon,

The pound had an unexpected boost this morning following a surprise announcement from the Bank of England. The central bank's annual survey of household finances showed that the majority of people with mortgages in the UK would be able to cope if the BoE raised interest rates by 2.5%. The news helped Sterling climb against most of its major counterparts, pushing GBP/USD up nearly a cent from $1.5543 to a high of $1.5642.

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Although today's announcement is a positive sign, it does not mean we are likely to see the BoE raise interest rates in the immediate future, I think the central bank will wait until after the UK elections before taking any action.

What today's announcement has done is remove some of the uncertainty surrounding what kind of impact an interest rate rise will have on the UK economy. This has given investors some added confidence and if the BoE continue to drop hints like today the pound might be able to put a stop to its demise against the dollar.

Since the end of June GBP/USD exchange rates have fallen around 9% and although it's highly unlikely we will see the currency pair push towards $1.70 anytime soon, positive comments from the Bank of England, coupled with some solid economic numbers from the UK could see exchange rates push back towards $1.60.

If you have an upcoming requirement to buy or sell dollars and want to ensure you are making the most from your transfer it is important to know what options are available to you. As a specialist currency broker I have a range of currency contracts at my disposal, by using these tools you can protect yourself against adverse market movements or target a rate that might not be currently available.

To find out more 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 suffer after disappointing data.

Good afternoon,

The gains we witnessed yesterday were quickly wiped out during today's trading session as the GDP/USD cross fell nearly a cent after the UK's construction sector expanded at is slowest pace since October 2013.

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The Markits Construction PMI figures, which were released at 9:30 this morning fell to 59.4 from 61.4 in October, causing GBP/USD exchange rates to drop from $1.5731 to $1.5636 over the course of the day.

Although the construction index was comfortably above the 50.0 growth threshold, the upcoming UK elections are starting to cause some uncertain times for the UK economy and it seems business confidence is starting to suffer. If other sectors start to follow suit, the next couple of months could have a severe impact on the value of the pound.

What to look out for tomorrow.

After today's disappointing construction number all eyes will turn to tomorrow as Chancellor George Osborne delivers his Autumn Statement. So why could this impact the currency markets? Well, government spending and borrowing can have a huge impact on the economy, if the government are spending more they generate extra work for contractors which in turn creates extra jobs. If Mr Osbornes comments are positive tomorrow we could see the pound claw back some the ground it lost against some of its major counterparts today.

If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer contact me today for a free, no-obligation consultation.

By using the link below to complete the contact form, I can explain about the different types of currency contracts that are available to help you reduce your exposure to the ever changing FX market.

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GBP/USD exchange rates climb over a cent

Good afternoon,

The pound had a decent run against the U.S dollar during today's session as the GBP/USD cross climbed over a cent to reach its best trading level since the 12th November. Some positive economic data releases from the UK and some weaker figures from the U.S. helped the currency pair rise from $1.5680 to a high of $1.5795, moving the pound away from the 14 month lows we have witnessed over the past few weeks.

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The pound got off to a solid start today as the second UK GDP estimate for Q3 came in as predicted at 0.7% and Index of Services numbers beat expectations by 0.1% coming in at 0.8%. The figures helped the pound climb against most of the other major currencies, pushing GBP/USD above $1.57.

The pound was then given another boost this afternoon after today's U.S. data releases failed to impress. Core durable goods orders contracted, unemployment claims rose, personal spending & income fell and new home sales missed target by 13,000, leaving the pound on the brink of breaking through $1.58.

With the Bank of England and U.S. Federal Reserve battling it out to be the first central bank to raise interest rates, Mark Carney and Janet Yellen will be looking for signs their respective economies are improving. Just as you think one economy is performing better than the other, they have a terrible run of economic numbers, just like the U.S had today and will once again raise fresh doubts about who will actually be in a position to act first.

If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, it is important to know what tools are available to help. For more information on the different types of currency contracts or to find out what rates of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Positive day for the pound

Good afternoon,

As I mentioned in yesterday's post today was fairly heavy on the data front and as a result the releases led to another choppy day for the GBP/USD cross.

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After opening today's session at $1.5637 the pound got off to a good start as French, German and Euro Manufacturing all missed target, with the news sending sterling/dollar up around a quarter of a cent. The pound was then given another boost as UK retail figures came in at 0.8% against a predicted level of 0.4%, giving the pound some much needed support following last week's inflation report.

The gains for sterling did not stop there though as this afternoon saw a number of key releases from the States. To start we had U.S. unemployment claims and core CPI figures. Unemployment claims came in 5K higher than forecast and there was no change to the CPI numbers which came in on forecast at 0.2%. The weaker figures had an immediate impact on the dollar's value and pushed GBP/USD exchange rates over $1.57 for the first time since Monday, reaching a high of $1.5731.

However, any gains for the pound were extremely short-lived as later this afternoon saw the release of the Philly FED Manufacturing index. The manufacturing sector is seen as leading indicator of overall economic health and with today's figure coming in at 40.8 against a predicted level of 18.9 the dollar was able to fight back and push exchange rates back below $1.57, settling around $1.5680 at the time of writing.

The UK and U.S. economies seem to be neck and neck at the moment and unless something drastic happens it is difficult to see rates moving massively in either direction. As I have said before I think a lot will depend on which central bank acts first in regards to interest rates but that won't be until the middle of 2015 at the earliest. As a result we may see GBP/USD rates bounce between $1.56 and $1.59 for the next few week's, reacting to the daily economic data releases just like today.

If you have a requirement 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.

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Bank of England minutes save Sterling

Good afternoon,

It looked like Sterling was in for another difficult trading session this morning as GBP/USD exchange rates hit a fresh low of $1.5593 in the build up to the release of the Bank of England meeting minutes.

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Fortunately for Sterling the minutes showed that two of the Monetary Policy Members (MPC), Ian McCafferty and Martin Weale, voted to raise interest rates in the UK for the third straight month. The announcement had an immediate impact on the currency markets and helped push the GBP/USD cross up by a cent over the course of the day, reaching a high of $1.5694 before settling around $1.5670.

As I mentioned yesterday, if there had been a change to the overall vote the knock-on effect to Sterling could have been huge. Over the last three months the vote on interest rates has remained at 7-2 in favour of keeping interest rates at their current level.  Those two votes to raise interest rates have given the pound a boost in recent months and if this morning's minutes had shown Mr McCafferty or Mr Weale had jumped back on the bandwagon to keep rates on hold, the pound would have suffered massively.

What could impact exchange rates tomorrow?

Tomorrow is pretty heavy on the data front with a number of economic data releases coming from either side of the pond. In the UK we will see the latest retail figures, while from the U.S. we will get manufacturing numbers, inflation figures, unemployment claims and existing home sales. There are also a number of manufacturing numbers coming from the Eurozone. All of the above the ability to cause some volatility in the currency markets depending on the results.

If you have a requirement to buy or sell dollars and want to ensure you are making the most of your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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GBP/USD avoids further losses.

Good afternoon,

With UK inflation figures coming in higher than forecast this morning the GBP/USD cross finally put a stop to its recent decline. Over the past week the pound has lost over 2% against the dollar with exchange rates sliding from 1.5932 to 1.5609 but with CPI figures coming in 0.1% higher than anticipated at 1.3% there was finally some good news for the UK and Sterling.

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As you can see from the graph above today's trading session has been fairly choppy with GBP/USD exchange rates bouncing between $1.5635 and 1.5680. The pound initially found some support following the UK inflation figures but was unable to sustain the gains throughout the afternoon as the U.S produced some positive economic figures to help boost the value of the dollar.

Better than forecast PPI month on month, Core PPI and an improvement to the NHAB housing market index, meant the gains made from by the pound this morning were quickly wiped out.

What could impact rates tomorrow?

It is another big day for the UK and Sterling tomorrow as the Bank of England release the minutes from their MPC meeting two weeks ago. We know the central bank left interest rates at 0.5% but if there is any change to the 7-2 vote we have seen over the last few months we could witness some volatility to the currency markets.

I think its unlikely we will see any change to the number of MPC members voting in favour of rate hike, especially after Mark Carneys comments last week. However, if the vote changes to 8-1 or 9-0 in favour of keeping rates on hold the pound could come under some serious pressure tomorrow morning.

If you have a requirement to buy or sell dollars in the coming weeks or months 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.

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Sterling still dropping

Good afternoon,

Since my post on Thursday the pound has continued to fall against the U.S. dollar leaving the cross hovering around $1.5650. The Bank of England's inflation report last week is still having an impact on Sterling's value and it could get worse tomorrow morning when the UK's latest inflation figures are released.

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At 9:30 GMT tomorrow the office of National Statistics will release the latest CPI (Consumer Price Index) year on year figures. Over the past few months inflation in the UK has been steadily declining, putting an end to any chance of an interest rate rise from the BoE in the immediate future. All eyes will be on tomorrow's inflation number and the UK will be looking to avoid a decline for the fourth straight month.

Inflation in the UK currently stands at 1.2%, 0.8% off of the BoE target figure of 2% and if we see a drop tomorrow the value of pound is going to be seriously affected. Last week BoE Governor Mark Carney hinted the central bank are anticipating that inflation will drop below 1% in the next six months so a drop could be partly priced into the market already. The danger for Sterling though is if we see inflation below 1% less than a week after Mr Carney's comments, the pound could easily go into free fall.

If you are thinking of buying or selling dollars in the coming weeks and are worried about economic events impacting the value of your transfer get in touch today for a free, no-obligation consultation. We can then put in place a strategy to protect you against adverse market movements and target a rate that might not be currently available.

To contact me today use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Sterling still reeling from Bank of England annocument

Good afternoon,

It has been another difficult day for Sterling with the pound still feeling the force of yesterdays inflation report and comments from Bank of England Governor Mark Carney. Since my post yesterday the GBP/USD cross has fallen another cent and this afternoon reached a low of $1.5702, the lowest we have seen the currency pair since the 10th September 2013.

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What does todays move mean for my transfer?

A cent drop might not sound like much but it can certainly make a big difference to your transfer, especially if you are purchasing dollars. To put the move into monetary terms a transfer of £200,000 will now see you receive around $1,900 less compared to the same trade 24 hours ago.

With exchange rates now sitting at their lowest level for fourteen months it is also a great opportunity for anyone looking to sell dollars, since the end of June rates have fallen from $1.72 which now means converting $200,000 back into Sterling will see you receive over £11,000 extra.

Unfortunately no one has a crystal ball when it comes to the currency markets and the last few months have shown just how quickly things can change. The one thing I try to tell people who are thinking or buying or selling dollars is - make sure you know what tools are available to help you make the most from you transfer.

So in today's post I am going to give you a run down of the different types of currency contract that could help save you thousands of pounds.

1. Spot contract

The spot contract is the quickest, easiest and most popular way to buy and sell currency.  You simply exchange one currency for another, whenever you need it.

2. Forward contract

A forward contract can help protect you from market volatility and is useful for managing your budget.  You can set the price now for a transaction that will take place up to two years in the future, allowing you to fix the exact value of the currency to be paid regardless of market fluctuations.

3. Limit order

With a limit order you specify the exchange rate you are hoping to achieve – a price that may not be currently available.  Your currency will automatically be purchased if the market exceeds this rate, meaning you get the price you want.

4. Stop loss order

A stop loss order instructs your broker to buy if the exchange rate goes down to a pre-determined level.  When combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market.

For more information about the types of contract or to find out what rates of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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GBP/USD exchange rates drop to fresh low

Good afternoon,

Following comments this morning from Bank of England (BoE) Governor Mark Carney the pound fell across the board and left the GBP/USD cross at its lowest level since September 2013. During this mornings quarterly inflation report Mr Carney announced the BoE expect inflation in the UK to drop below 1% in the next six months and gave a three year window for inflation to get back to their target level of 2%.

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The news has an immediate impact on the currency markets with GBP/USD falling nearly a cent and half and to leave the currency pair trading at $1.5812 the lowest we have seen exchange rates for well over a year.

Sterling could have suffered from further loses had it not been for some positive news in relation to wage growth and employment numbers in the UK. For the first time in five years growth in pay for the UK workforce overtook inflation and with unemployment down by 115,000 on the previous quarter it may give the BoE the support it needs to justify an interest rate rates at some point next year.

With GBP/USD dropping today it means the pound has now lost around 8% against the dollar in the past few months which is great news for anyone looking to convert dollars back into Sterling. The next few months are going to be very interesting for GBP/USD as investors try to gauge who out of the BoE and Federal Reserve will raise interest rates first.

I am sure we are going to see some swings in the exchange rate until a rate hike is announced, so if you are thinking of buying or selling dollars in the coming months it is important to know what your options are. To ensure you are making the most from your transfer and protecting yourself against adverse market movements, 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 remain close to one year low

Good afternoon,

It has been a quiet start to the week in terms of economic data releases and as a result there were no major surprises in the currency market today. However, that didn't stop the dollar gaining against the pound and over the course of today's session GBP/USD exchange rates fell over half a cent, leaving the currency pair perilously close to a fresh one year low.

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What to watch out for this week.

There are a number of key releases and speeches later in the week that could have an impact on the value of the pound and dollar. The first release of any real note will come from the UK on Wednesday when we see the Bank of England (BoE) inflation report and a speech from BoE Governor Mark Carney.

The inflation report will be monitored closely as it provides the BoEs projections for economic growth and inflation for the next two years and ultimately influences their interest rate decision. With the UK's last inflation reading coming in at 1.2% we have already seen a potential rate hike pushed back until the middle of next year but if Mr Carney provides any clues on Wednesday about when the rate rise will take place it could give the pound a little push.

Over in the States, the first real data of note comes on Friday in the form of manufacturing and core retail sales, both have ability to sway the value of the dollar and with improvements expected in both sectors we could see the dollar make further gains against the pound.

If you have a requirement 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.

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GBP/USD falls again

Good afternoon.

After a brief recovery yesterday afternoon the GBP/USD cross fell to a fresh one year low during today's session, following comments made by the European Central Bank (ECB) President Mario Draghi at the central banks monthly press conference.

As markets opened this morning Sterling/dollar was sitting just below $1.60 but during today's press conference Mr Draghi announced the ECB will do everything within the banks mandate to aid the flagging Eurozone. Mr Draghi went on to say the central bank will start purchasing asset backed securities for the next two years, which is essentially another form of quantitative easing and led to GBP/USD falling by a cent and a half to a low of $1.5851.

So why has this impacted GBP/USD?

Quantitative Easing (QE) is used by central banks to pump money into underperforming economies, which is what the Federal Reserve have been doing for the past six years. The problem with QE is that the central banks are printing money which in the end starts to devalue a currency, in this case the euro. This leads to uncertainty, which in turn leads to investors looking for safer options and that is exactly what we witnessed today.

The U.S. dollar has always been seen as a safe-haven currency and with the so much uncertainty hanging over the Eurozone the dollar seems to have become the currency of choice for market players and investors.

Expect more volatility tomorrow.

As I mentioned in yesterdays post, Friday will see the U.S. release their latest non-farm job numbers. This is a highly anticipated piece of data and always seems to cause a fair amount of market volatility. If the numbers of jobs created comes in higher than the forecasted level then we could see the dollars value increase again tomorrow, so don't be surprised if rates drop below $1.58.

If you have a requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from you transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Sterling recovers after falling to one year low

Good afternoon,

It has been a turbulent day for the currency markets especially for the GBP/USD cross. After UK Services PMI missed its forecast this morning the pound fell a cent and a half against the dollar, leaving the currency pair at a one year low. When trading opened this morning GBP/USD was hovering around $1.6025 but soon after the services numbers were released exchange rates dropped to a low of $1.5880.

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However, this afternoon saw the pound recover some of the ground it had lost in the early part of the days session as demand for the pound increased. Sterling's recovery came after news broke that Yildiz Holding, which is the largest food group in Turkey, were set to take over UK based United Biscuits....Who knew biscuits could influence the currency markets!

What to watch out for this week.

It is going to be a busy end to the week in terms of data releases and key speeches. Tomorrow will see the Bank of England and European Central Bank announce their latest interest rate and monetary policy decisions.

It is unlikely we will see any major surprises from Mark Carney or the Bank of England but if Mario Draghi and the European Central Bank drop any hints about stimulus we could see some volatility for the GBP/USD cross as investors leave the single currency.

On Friday the U.S. will release their latest non-farm job numbers which my regular readers will know usually impact the dollars value, so do not be surprised if we see a cent movement in either direction when the figures are released at 13:30 GMT.

If you have a requirement to buy or sell dollars in the coming weeks and want to ensure you are making the most from your currency, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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Fed annoucnement forces GBP/USD exchange rates back under $1.60

Good afternoon,

After six years of quantitative easing (QE) the U.S. Federal Reserve (Fed) announced last night they would be bringing an end to their stimulus programme. With economic conditions improving the Fed are confident the U.S. economy no longer needs their support and the announcement had an immediate impact on the dollars value.

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As the news broke at 6pm (GMT) the GBP/USD cross dropped from $1.6128 to $1.6014 and over the next few hours continued to slide until the currency pair reached a low of $1.5968 as the graph below shows.

What next for the U.S?

Now that the Fed have ended their bond buying programme the focus will now turn to interest rates, although it is unlikely we will see any hike in the immediate future. With inflation in the U.S. still well below the target level and concerns hovering over the labour market I don't think we will see any knee jerk reactions from Janet Yellen.

The U.S are now in a similar position to the UK and if the both economies continue to improve there will be calls for interest rates to rise. Whoever moves first out of the Fed and Bank of England could lead to a surge for the relevant currency, so expect the volatility we have seen for the GBP/USD cross to continue over the next few months.

If you are looking to buy or sell dollars in the coming months and want to ensure you are making the most from your transfer, it is important to know what tools are available (unless of course you have a crystal ball!).

For more information on the different types of currency contract or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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GBP/USD exchange rates push towards $1.62

Good afternoon,

The pound had another boost this afternoon after the U.S. posted some weaker economic numbers for the second day running. After dipping back below $1.61 this morning Sterling gained nearly a cent during today's session, reaching a of $1.6182 immediately after the U.S. data releases.

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Today's figures from the U.S. came in the form of Core Durable Goods Orders, which are a good indicator of production. A positive figure signals a rise in the number of orders received by manufacturers and therefore increases activity. It was widely anticipated the figures rise by 0.1% to 0.5% from the previous month but with the actual figure coming in at -0.2% the dollars value again dropped against the pound and euro.

The last couple of days will not be great news for the U.S. Federal Reserve (FED), especially in the run up to their statement tomorrow. Despite the poor figures over the past few days we should still see the FED bring an end to their stimulus programme tomorrow and there is every chance the dollar will claw back the ground it has lost over the course of today.

Even with the pound gaining ground over the last 48 hours the long term forecast for GBP/USD is still not looking particularly rosy. If the FED do wind up the stimulus programme tomorrow all focus will then shift to when the central bank will look to raise interest rates. With the Bank of England moving the goal posts on what seems like a daily basis there is now a real possibility we could see a rate hike in the States before we see one in the UK.

If you are looking to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer it is vital you are aware of the different tools that are available. For more information on the different types of currency contracts or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

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GBP/USD back over $1.61 but will it last?

Good afternoon,

It has been a slow start to the week but GBP/USD has managed to climb back over $1.61 during today's trading session. The currency pair opened around $1.6090 and rose to a high of 1.6144 this afternoon following some weaker than forecast numbers from U.S. This small rise is the highest we have seen the GBP/USD for a week but that could all change over the next few days.

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What caused todays move?

Before the economic data releases from the U.S. the Sterling/dollar had been hovering around $1.61 and had remained within a 20 pip range all morning. This afternoons Flash Services PMI and Pending Home Sales numbers from the States both disappointed with both coming in under the predicted level.

The Pending Home Sales numbers will have had a bigger impact on the FX markets as they are a good indicator of overall economic health. This is because the sale of a home can trigger a number of other services which can boost an economy and with today's figure coming out at 0.3% against a predicted level of 1.1% the dollar lost ground against the pound and euro.

What to watch out for this week.

Although it has been a quiet start the rest of the week will see a number of key data releases from the UK and the U.S. The one that stands out though is the U.S. Federal Reserve (FED) meeting and statement on Wednesday. It is widely expected that the FED will finally bring an end to their stimulus package which they have been reducing since January of this Year.

If it is confirmed and the final $15 billion is wound up then there is every chance we will see the dollar have a bit of a surge on Wednesday evening. The announcement could easily bring the GBP/USD cross down and I wouldn't be surprised if I came in on Thursday to see the cross back below $1.60.

The only saving grace for those of you looking to buy dollars is that the cut in stimulus could already be priced into the market as the FED have been talking about finishing the programme in October for some time.

If you need to buy or sell dollars in the coming days 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.

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The pound drops after Bank of England minutes

Good afternoon,

Sterling lost ground against the dollar today following the release of the Bank of England minutes from their October meeting. Trading opened this morning with the GBP/USD cross sitting above $1.6125 but after the minutes were released the pound slipped to a low of $1.6018 before recovering slightly this afternoon.

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For the third month running the Bank of England's Monetary Policy Committee (MPC) voted to keep interest rates in the UK at the current level of 0.5%. The minutes indicated there was "insufficient evidence" to warrant a rate rise, though two of the MPC members again voted to raise rates.

The fact two of the nine MPC members voted to raise rates came as bit of a surprise this morning. For the last two months the vote has been 7-2 in favour of keeping rates on hold and with consumer spending dropping I thought the vote could have changed to 8-1, especially as the Bank of England had access to Septembers inflation figures before they met.

With UK inflation currently standing at 1.2%, its lowest levels since 2009, any chance of a rate rise before the elections in spring now seem remarkably slim. The U.S. economy is still showing signs of recovery and if the Federal Reserve do wind up their stimulus package at the end of the month the GBP/USD cross could be open for further losses.

If things continue on this current path then I don't think it will be long until we see GBP/USD exchange rates drop and remain under $1.60 for a sustained period of time. One of the forecasts I received this morning showed GBP/USD could be down as low as $1.56 in the next 6 months which would take Sterling's losses against the dollar to around 9% since July.

If you have a requirement to buy or sell dollars in the coming weeks or months 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.

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GBP/USD exchange rates continue recent trend

Good afternoon,

The pound suffered across the board today as reports showed the UK economy is suffering from the slowdown in the Eurozone. Despite a market holiday in the U.S due to Columbus Day, GBP/USD fell from $1.6111 to $1.6052 as UK manufacturers start to feel the impact from a strong pound and worsening conditions with their largest trade partner.

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With the pound and UK economy out performing many of its major counterparts over the past twelve months or so, Sterling has been on the march. This has been great for anyone looking to sell pounds and convert into another currency but for UK exporters the strain on their business is now starting to show.

A trend report from BDO, an accountancy and services group indicated that growth expectations among UK manufacturers had fallen at its fasted rate since May last year. The worry will be if UK exports continue to suffer then we could see a knock on effect for the rest of the economy. We have already seen the pound lose over 7% against the dollar in the last three months and with the U.S. economy picking up, Sterling could be set for further loses.

Can I protect myself from a falling pound?

Yes, as a specialist currency broker I have a range of contracts at my disposal to help protect you from adverse market movements. I can help secure a rate for up to two years into the future using a Forward Contract or use a Stop Loss order to act as a safety net, which will allow you to hold out for a better exchange rate and protect yourself from a sudden fall in the market.

If you have a requirement to buy or sell dollars in the coming weeks or months and would like to make the most from your transfer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

GBP/USD exchange rates drops back again

Good afternoon,

It has been another difficult 48 hours for the pound with sterling continuing its recent downward trend against the dollar. Despite the U.S Federal Reserve indicating there is no rate rise on the horizon and the UK trade deficit narrowing, the pound still managed to lose the ground it made earlier in the week. The GBP/USD cross finished the day below $1.6050, a loss of over a cent during todays trading session.

For a free currency consultation click here.

Why has the pound weakened?

With UK inflation starting to ease the Bank of England may be in a position to keep interest rates lower for longer, which may have impacted investor confidence. The BoE decided yesterday to keep interest rates at their current level which came as no real surprise. However, in two weeks time the central bank will reveal the result of how the policy committee voted and if the number of members voting for a rate hike increases (two last month) the pound could stage a mini revival.

What next for GBP/USD?

The pound has lost over 7% against the dollar in the last few months and this has been mainly down to dollar strength rather the sterling weakness. If the BoE act before the FED in increasing interest rates we could see the pound fight back but with the results could be minimal, There is every chance a rate rise has already been priced into the market so even if the BoE make the first move I cannot see rates pushing back towards $1.70 in the near future.

What to do next

With the FX market impossible to predict, knowing what tools are available can help you get the timing right on your transaction and make the most from your transfer. If you need to buy or sell dollars in the coming weeks and want to ensure you are getting the best possible rate, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

 

GBP/USD exchange rates back over $1.60

Good afternoon,

It has been a fairly choppy day for the GBP/USD cross with exchange rates jumping between $1.6050 and $1.6110 throughout today. The good news is the pound has managed to put a temporary halt to its decline against the dollar, gaining over a cent and a half over the past two trading sessions.

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With the dollar gaining over 7% against the pound since July the greenback has been the dominant currency over the past couple of months. The U.S economy has bounced back from a difficult start to the year and with the U.S Federal in the processing of winding up their stimulus package the dollar has been on the march against a number of currencies.

After falling from $1.72 GBP/USD is now close to a one year low. While EUR/USD has dropped by nearly 10% since May leaving the currency pair at its lowest level for nearly two years, so if the dollar maintains its current position it seems set to be the currency of choice for 2014.

What could move rates in the coming days?

Investors and market players will be keeping a close on proceedings tomorrow as there are a number of key releases and speeches. The Bank of England will announce their latest interest rate decision followed by a Statement by Governor Mark Carney. There is also a speech from the European Central Bank President Mario Draghi and with the Eurozone struggling the pound and dollar could be set to for further gains.

We will also hear from Federal Reserve Governors Daniel Tarullo and Stanley Fischer which could cause some volatility in as FOMC engagements are often used to drop hints regarding future monetary policies.

If you have a requirement to buy or sell dollars in the coming weeks or months 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.

Click here to complete the contact form.

GBP/USD continues to fall.

Good afternoon,

Since my last post things have gone from bad to worse for the GBP/USD cross. Since the 19th September sterling/dollar has dropped from $1.6487 to $1.5956 the lowest we have seen the currency pair for over a year.

For a free currency consultation click here.

What has caused the drop?

The recent decline for GBP/USD is mainly down to dollar strength rather than sterling weakness. While cable has dropping the pound has actually been gaining against most of the other major currencies, GBP/EUR is close to its highest level in six years!

The U.S. dollar has benefitted in recent weeks from a number of positive comments from the Federal Reserve and better than forecast economic numbers. The Federal Reserve have announced their stimulus package will be wound up by the end of October, which has helped strengthen the greenback and also switch the focus to a potential interest rate hike.

The U.S. economy has also seen an upturn over the last few months, last week's jobs numbers are a prime example of how the economy seems to have turned a corner. On Friday figures showed 248,000 jobs were created in September, the 5th time in six months the figure has been over 200,000 and with other sectors also performing well it seems as the dollar's gains could be here to stay.

I am not the only one to have this line of thought, one of the forecasts I received this morning showed the GBP/USD cross could be as low as $1.57 within the next twelve months, despite a potential interest rate hike from the Bank of England coming in the next few months.

If you have an upcoming requirement to buy or sell dollars and want to ensure you are making the most from your transfer it is important to know what tools are available. As a specialist currency broker I can help protect you against adverse market movements or target a rate that might not be currently available.

For more information use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.  

GBP/USD exchange rate update

Good afternoon,

 

Looking towards the next few weeks, the question on everyone’s lips is will the pound continue its run of good form and maintain its momentum against the other major currencies? Sterling has moved a long way in the last week which is unusual considering the recent uncertainty surrounding the UK economy, interest rates and of course the Scottish referendum, which I’m sure everybody is fed up of hearing about!

 

For a free currency consultation click here.

 

 

Since the start of July the GBP/USD cross has dropped from $1.72 to below $1.61, a fall of 6.5%. Over the past few days Sterling/dollar seems to have stabilised with exchange rates sitting between $1.64 and $1.63, however, with all the turmoil in the Middle East and the U.S military carrying out new strikes in Syria and Iraq, investors could be tempted to seek the safety of the U.S dollar which in turn could see GBP/USD exchange rates fall below $1.60.

Last week also saw the Federal Reserve announce another cut to their stimulus package which now stands at $15 billion and it looks as though the programme will be completely wound up by the end of October. This could potentially give the dollar another boost as focus turns to when the Fed will raise their own benchmark rate.

If you are looking to buy or sell dollars in the coming weeks or months it is important to know what tools are available to help make the most of your transfer. As a specialist currency broker I have a range of currency contracts at my disposal which can help remove the risk element to the ever changing FX markets. For more information on the types of contract or to find out what rate of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

To complete the contact form click here.

GBP/USD exchange rates climb a cent ahead of referendum

Good afternoon,

Sterling rose over a cent during trading today as weaker than forecast U.S economic figures helped boost the pounds value ahead of tomorrows make or break referendum. The GBP/USD cross climbed from $1.6251 to a high of $1.6354 after U.S consumer prices fell in August, the first decline since April 2013.

For a free currency consultation click here.

Fed announcement.

This evening will see the U.S. Federal Reserve release a statement following their latest meeting. It is likely policymakers will provide some insight into further tapering of their on-going stimulus programme, as well as a potential interest rate rise.

If the Fed decide to drop some positive hints then we could easily see the dollar claw back the ground it has lost to the pound over the course of the day.

Big day for Britain.

The next couple of days could be extremely volatile for the UK and pound as it finally comes to the crunch for Scottish voters. Over the past few weeks the news has been dominated by the Scottish referendum and whether we see a "Yes" or "No" vote tomorrow the value of the pound is likely to be affected.

If the Scots decide to go it alone we could easily see the pound nosedive against most of its major counterparts, with some forecasts suggesting we could see as much as 8% wiped off of Sterling's value. If that were to happen it would leave GBP/USD sitting just over $1.50, wiping out all the gains the pound has made over the past 14 months.

If you have an upcoming requirement to buy or sell dollars and would like to know how to protect yourself again the ever-changing FX markets, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892065.

Click here to complete the contact form.

Sterling recovers ahead of Scottish vote.

Good afternoon,

Since my post last week Sterling has clawed back some of the ground it lost against the dollar when the GBP/USD cross fell to its lowest levels in 10 months. The latest Scottish independence polls now show the "No" voters are just ahead which has lent a small amount support to the pound ahead of the final vote on Thursday.

In the space of a week GBP/USD exchange rates have climbed nearly two cents, pushing the mid-market level back towards $1.6250 and if Scotland decides stay as part of the UK on Thursday we may see some investor confidence return to the faltering pound, which could potentially push Sterling/dollar a little higher.

For a free currency consultation click here.

 

Will GBP/USD push back towards $1.70?

The most common question I get asked at the moment is will GBP/USD exchange rates get back to the levels we witnessed a couple of months ago when rates were sitting above $1.70. Unfortunately for those of you looking to purchase dollars I don't see this happening in the near future.

There are a number of factors that I think will prevent this, even if the Scots vote "No" on Thursday. It looks as though the Bank of England will not be raising interest rates until next year and with the U.S. Federal Reserve on track to wind up their stimulus package by the end of October it seems there is more scope for the dollar to strengthen ahead of the pound.

Looking to buy dollars?

If you have an upcoming requirement to buy dollars in the next few days and are worried about the future value of the pound I have a range of currency options which can help.  Forward Contracts, Stop Loss and Limit orders all designed to help reduce your exposure to the ever changing FX markets.

For more information use the link below to complete the contact form all call me direct on 0044 (0) 1442 892065.

To complete the contact form click here.

 

Sterling falls to fresh 10 month low.

Good afternoon,

It has been a quite day in terms of economic data releases but that didn't stop the pound losing more ground against the U.S. dollar. The GBP/USD cross fell to a fresh 10 month low this morning with the currency pair falling as low $1.6057 before staging a mini revival.

For a free currency consultation click here.

The news has been dominated of late with the upcoming Scottish referendum and the uncertainty surrounding the potential breakup has caused the pounds value to fall dramatically in the past few days. Talk of a possible "Yes" vote contributed to the pounds demise again this morning with Sterling/dollar falling nearly a cent from $1.6150 to $1.6057.

The decline was short lived though and the pound managed to wipe away the days losses after a number of the UK's largest companies voiced their concerns over Scottish independence. Standard Life warned that in the event of a "Yes" vote they would shift large parts of its operations from Edinburgh to England, while BP also jumped on the band-wagon by backing comments from a key figure within the oil industry who said the Scots were being misled by predictions of a oil boom.

Will the pound drop further?

The uncertainty over the referendum is certainly causing a lot of volatility for all Sterling crosses at the moment and I am sure it will continue until the vote on the 18th. If we were to see a "Yes" vote the impact on the pound would be huge and I wouldn't be surprised if GBP/USD fell towards $1.50.

If you have a requirement to buy dollars in the coming weeks and are worried about the future of the pound it is important to know what tools are available. As a specialist currency broker I can help reduce your exposure to the ever changing currency market and even secure a rate of exchange for up to two years into the future.

For more information use the link below to complete the contact form or call me directly on 0044 (0) 1442 892065.

Click here to complete the contact form.

 

Sterling slips to 10 month low against the dollar

Good afternoon,

Sterling continued is recent demise against the U.S. dollar today as the Scottish referendum continued to play havoc for the pound. GBP/USD exchange rates plummeted to $1.6118 this morning, the lowest we have seen the currency pair since November 2013.

For a free currency consultation click here.

The latest poll, released yesterday (Sunday) showed the Scottish National Party (SNP) now have a 1% lead in the vote for independence which is due to take place on the 18th September. The SNP have managed to claw back a deficit of around 22% in the last couple of weeks and the latest numbers are rocking investor confidence.

This recent move has meant to the pound losing over ten cents against the dollar since the start of July and if Scotland vote "Yes" on the 18th the pound could be set for even bigger losses. Some reports are suggesting that if Scotland decide to breakaway the knock on effect for the UK economy could be catastrophic which would lead to the pound potentially losing a further 5% against other major currencies.

If that were to happen it would leave GBP/USD exchange rates hovering around $1.53 and would pretty much wipe out all the gains Sterling has made over the past twelve months.

What do I do if I need to sell Sterling?

As a specialist currency broker I have a range of currency contracts at my disposal to reduce your exposure to the ever changing currency markets. Forward Contracts, Stop and Limits orders are all designed to give you piece of mind and remove the risk element to your transfer, while at the same time maximising your return.

If you have a requirement to buy or sell dollars in the coming weeks and would like to know more about the different options that are available, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

GBP/USD exchange rates drop to seven month low

Good afternoon,

It has been another torrid few days for the pound leaving the GBP/USD cross at its lowest levels since February this year. Since my post on Monday Sterling has fallen by almost two cents against the dollar leaving the currency pair hovering around $1.6450 as the graph below shows.

For a free currency consultation click here.

So what has caused the drop?

Despite the UK posting positive construction and services PMI numbers over the last two days the pound has weakened against most of the other majors, as investors agonised over a potential ''Yes'' vote in the upcoming Scottish referendum.

A poll released earlier in the week showed the pro-independence camp were now only 3 percentage points shy of a ''Yes'' vote in the poll due to take place on the 18th September.

If Scotland were to vote ''Yes'' and become independent the effect on the UK economy could be huge. The potential breakaway is already having a negative impact on investor confidence and if the "Yes" vote is confirmed in a couple of weeks' time the pound could be set for some heavy losses.

Can I protect myself against a falling pound?

If you have a requirement to buy dollars in the next couple of months getting the timing right on your transfer will be crucial. As a specialist currency broker I have a range of tools at my disposal to limit your exposure to the every changing FX market.

A popular option at the moment is a Forward Contract, it allows you to secure your rate at today's level and hold it for up to two years into the future, protecting yourself from adverse market movements.

For more information on the different types of currency contract or to find out what rates of exchange I can offer, use the link below to complete the contact form all call me directly on 0044 (0) 1442 892065.

Click here to complete the contact form.

GBP/USD exchange rates climb half a cent

Good afternoon,

Despite the UK manufacturing sector growing at its slowest rate for 14 months in August Sterling still managed to climb against the U.S. dollar today. It seems the markets are starting to price in the European Central Bank introducing another round of monetary stimulus to help the struggling Eurozone, which in turn boosted the pounds value against a number of its major counterparts.

The GBP/USD exchange rates rose from 1.6590 to a high of $1.6644 during trading today but with the U.S. markets closed for Labor Day the gains made by the pound could be quickly wiped out when the markets reopen tomorrow.

For a free currency consultation click here.

What can we expect this week?

We could be set for a volatile few days for Sterling crosses as this week sees a number of key economic data releases from the UK and U.S. From the UK we have the construction and house price figures as well as the latest Bank of England rate decision and statement.

All eyes will be focusing on the Bank of England announcement on Thursday as investors and market players look for clues about when the central bank will raise interest rates, especially as two of the nine committee members voted to increase rates last month.

From the U.S we will see the latest manufacturing, trade balance, unemployment and non-farm payroll numbers. All have the potential to swing exchange rates and those of you selling dollars will be hoping the U.S economy continues its recent upturn to drive down GBP/USD exchange rates.

I will of course keep you up to data with how the week unfolds. In the meantime, if you are looking to buy or sell dollars in the coming months and want to make the most from your currency transfer contact me today for a free, no-obligation consultation.

For information on the different types of currency contracts or to find out what rates of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

GBP/USD remains range bound

Good afternoon,

Since my post on Tuesday the GBP/USD cross has been relatively stable with the currency pair remaining within a 40 pip range over the past two trading days. A lack of economic numbers from either side of the pond has meant this week has been one of the most subdued I have seen in recent times. Could this be the calm before the storm?

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I would expect to see more volatility in the currency markets next week as the start of a new month will see a number of key data releases from the UK and U.S. The Bank of England will give their latest interest rate decision which I am sure will be heavily scrutinised following the MPC's split decision a couple of weeks ago.

Following the UK economies recent performance I still think it is unlikely we will see any movement by the BoE but the pounds value will probably fluctuate in the build up to the announcement as the markets move just as much on rumours as they do facts.

At the end of next week we will get the latest U.S. job numbers and as my regular readers will know usually cause some big swings for the GBP/USD cross. The numbers are impossible to predict but with the U.S. economy performing well in recent weeks, a positive reading could see the dollar make further inroads into the pound.

Remove the risk.

If you have a requirement to buy or sell dollars in the coming months it is important to know what options are available. I have a range of currency contracts at my disposal which can remove the risk element from your transfer, give you peace of mind or even target a rate that might not be currently available.

For more information use the link below or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

GBP/USD continues to slide.

Good afternoon,

I hope you all enjoyed the bank holiday weekend.

Since my last post the pound has lost over a cent against the dollar, leaving the GBP/USD cross at its lowest levels since 25th March 2013. After a brief recovery following the Bank of England minutes last week the pound has carried on its recent trend by dropping against the dollar and with GBP/USD now sitting at $1.6567, it now means Sterling has lost nearly 4% since the start of July.

Click here for a free currency consultation.

What can we expect for the pound in the coming weeks?

With two of the Bank of England's MPC members voting for a rate hike in the UK there had been renewed optimism we could see a rate rise this year. However, with UK economic data repeatedly missing target and Fed Chair Janet Yellen being extremely positive about the state of the U.S. economy during the weekends Jackson Hole meeting, we could be set for further loses for GBP/USD.

Do you need to buy dollars?

With the GBP/USD cross in free fall, just waiting to see if the rate recovers could prove to be very costly. If you thinking of buying dollars in the next six months, a popular option at the moment is a Forward Contract.

A Forward Contract can help you take advantage of current exchange rates. You can fix the price now for a transaction that will take place up to two years in the future. You secure the Forward Contract with a deposit of 10% of the total value of your transaction and then pay the balance before the contract expires. Once secured the agreed exchange rate will apply for the duration of the contract.             

For more information on the different types of contract or to find out what rate I can offer, use the link below or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

 

Bank of England minutes help pound recover

Good afternoon,

Sterling managed to stage a mini revival today after the Bank of England meeting minutes surprised us all. For the first time in three years we witnessed a split decision from the MPC with two of its nine members voting in favour of a rate hike.

How did this impact GBP/USD?

After a dismal run which has seen the pound lose around 3.5% against the dollar in the last five weeks, GBP/USD gained around 0.4% today, rising from $1.6606 to a high of $1.6664 to move us away for the four month low I mentioned in yesterdays post.

Does todays news mean we will see interest rates rise?

Not straight away, with UK inflation sitting at 1.6% we are still some way of the central banks 2% target and with wage growth also slowing there is still spare capacity in the economy which the BoE will look at before raising the base rate.

What today has shown is that there has finally been a change in mentality in the ranks of the MPC after months of will they won't they. The minutes showed that even though wage growth had slowed Mr McCafferty and Mr Weale felt that the UK's falling unemployment rate made in more likely salaries would start to improve in the near future.

If that is the case and a couple of the other MPC members join the bandwagon the talk of an interest rate rise before the end of the year could resurface despite Mr Carneys recent comments.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the coming months and want to make 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.

I can then talk you through the different types of contracts that are available which are designed to give you peace of mind and protection from adverse market movements

Click here to complete the contact form.

GBP/USD drops to a fresh 4 month low

Good afternoon,

After a brief recovery yesterday which saw GBP/USD climb back above$1.67, the pound suffered yet again as UK posted weaker than forecast inflation figures at 09.30 this morning. The news had an instant impact on Sterling's value with the currency pair dropping from $1.6726 to $1.6644 in a matter minutes. There was more bad news for the pound this afternoon as positive building permit numbers from the U.S. prompted another drop, leaving GBP/USD exchange at a fresh four month low of $1.6610.

For a free currency consultation click here.

What does the inflation figure mean for my currency purchase?

This mornings inflation reading of 1.6% takes us further away from the Bank of England's target of 2%. The central bank were looking for inflation to reach 2% before they looked at raising interest rates, however, coupled with the drop in wage growth we witnessed last week todays news has led investors and market players to believe we will not see a rate hike this year.

As a result the pound has continued on its downward spiral, losing around 3.5% against the dollar since the beginning of July. If the UK recovery continues to stutter and the U.S. economy continues to play catch up then we are facing the real possibility of GBP/USD exchange rates falling back towards $1.60 over the next few months.

Get in touch.

If you are looking at buying or selling dollars in the coming weeks or months and want to ensure you are making the most from your currency transfer, it is important to know what options are available. As a specialist currency broker I have the tools to protect you against adverse market movements, secure a rate of exchange for up to two years into the future or target a rate which might not be currently available. 

For more information on the types of currency contracts or to find out what rates I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.