GBP/USD exchange rates start to slide

Good afternoon,

Since my last post GBP/USD exchange rates have fallen by around 1% after the U.S. Federal Reserve announced they will trim another $10 billion off of the current stimulus package. On Wednesday evening FED policy makers announced they will reduce their bond buying programme from $75 billion to $65 billion a month.

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It is the second consecutive month the FED have announced a cut and the dollars value immediately increased on the back of the news. Since Tuesday GBP/USD exchange rates have fallen form $1.6621 to a low of $1.6446, To put the move into monetary terms, $200,000 would now cost nearly £1300 more than it would have done on Tuesday afternoon.

The FED have now demonstrated that they are serious about tapering their quantitative easing programme and if it continues we could see all stimulus wound up by the end of the year.



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With no data releases coming out of the UK tomorrow the pound could be open to further losses against the dollar. The U.S, have a string of data releases due out tomorrow afternoon and if they beat expectations it is likely we will see the dollar claw back some of the ground it has lost over the past few months.

If you need to buy or sell dollars in the coming weeks and don't want to be caught out by the sudden movements we have witnessed over the past few weeks, I have a number of tools available to help you make the most from your currency transfer.

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GBP/USD exchange rates recover

Good afternoon,

Over the last 48 hours Sterling has managed to claw back the losses it sustained on Friday afternoon following comments from Bank of England (BoE) governor Mark Carney. GBP/USD exchange rates hit a peak today of $1.6621, meaning the cross has gained around 1% since trading closed on Friday.

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So why has Sterling recovered?

Quite simply it is down to the strength of the UK economy and the vulnerability of the U.S. economy. Sterling suffered last week as Mr Carney began to talk down the pound in an attempt to boost UK exports. The BoE are concerned that the UK's recovery is going to hinder UK businesses as products start to become more expensive as the pound continues to grow in value.

It did not take long for the pound to shake last weeks comments as the provisional figures for Q4 GDP were released this morning and came in exactly as forecast. This is excellent news for the UK economy as it shows the recovery is moving inline with analyst predictions.

Across the pond is a different story however, yesterdays New Home Sales missed the predicted figure by 43,000. This latest number highlights the issues the Federal Reserve (FED) currently face as they attempt to boost a flagging economy. It may also have an effect on their plans to cut back the on-going stimulus programme.

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Last month the FED announced they will trim the $85 billion they are currently being pumping in the U.S. economy by $10 billion. There had been hopes that future improvements in the economy would allow another cut back when FED officials meet later this week.

Unfortunately for the FED, since tapering was announced in December the U.S. has had a string of poor data releases and in certain circles there has even been talk that we could see the FED unwind part or all off the recent cutback, pushing the stimulus package back to $85 billion per month.

Although unlikely, it can't be completely ruled out and if it were to happen the result could be disastrous for the value of the dollar. Only last week we saw GBP/USD sitting at its highest level for 2 and half years ($1.6664) and if the FED do decide to increase the stimulus payment it is possible we could see GBP/USD exchange rates push to a fresh high.

But lets not get to carried away, Mr Carney is due to give another speech tomorrow and it gives the BoE governor another opportunity to try and talk down the pound. It looks as though the rest of the week could provide some volatility for GBP/USD and I of course will look to keep you posted of any major developments.

In the meantime, 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 for a free, no-obligation consultation.

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GBP/USD exchange rates lose two cents

Good afternoon,

The pound lost almost two cents against the dollar during trading today as comments from Bank of England (BoE) governor Mark Carney sparked a huge sterling sell off. When trade opened this morning GBP/USD exchange rates were sitting at a two and half year high of $1.6664 but following the comments from Mr Carney sterling plummeted to leave the cross sitting at $1.6483 at the time of writing.

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So what did Mr Carney say and why?

Since March last year sterling has gained around 12.5% against the dollar and most of the gains can be put down to the upturn in the UK economy. The revival has lead to the pound rising against all of the major currencies and this is one off the issues for the central bank.

With GBP/EUR reaching its highest level for over 12 months Mark Carney has deemed it necessary to dampen the pounds recent surge. The UKs largest trade partner is the Eurozone and the BoE do not want UK exports to be affected by the rising cost of the pound. By saying that sterling's strength could harm the UK recovery Mr Carney has pledged to keep interest rates on hold to help improve economic conditions.

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Today's move all but wipes out the gains we witnessed on Wednesday following the UK unemployment figures and means we have seen a 1.5% swing in GBP/USD exchange rates this week.
Today has also shown how quickly things can change in the FX market, sterling seemed to be on the march this week and with the UK economy continuing to over perform most people would have thought rates would continue to rise.

Maybe the BoE were of the same opinion and were concerned sterling will continue to out perform its major counterparts. They have used the only tool available to them at the moment and that is to try and talk down the pound.

I think the pound has the ability to fight of the comments from Mr Carney today, especially if UK data figures continue to beat expectations. If that is the case though it won't be long until the BoE again come out to try and limit the currencies performance.

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

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GBP/USD exchange rates rise yet again

Good afternoon,

More positive new for the UK economy this morning helped the pound rise by over cent against the dollar during trading today. As I mentioned in Mondays post all eyes were going to be focused on this mornings UK unemployment figures and the numbers did not disappoint.

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Figures released this morning by the Office of National Statistics showed that unemployment in the UK has now fallen to 7.1% and the news had an immediate impact on the FX markets. GBP/USD exchange rates rose from $1.6450 to $1.6584, taking us the highest we have seen the cross since the 2nd of January. It also means Sterling has gained over 1.5% in the last five days which is great news for dollar buyers, £200,000 now achieves an extra $5,000 more compared to the same trade booked on the 17th January.

This mornings positive unemployment figures came as a bit of a surprise, the initial forecast had only been for the number to fall by 0.1% to 7.3% but this latest report takes us to the brink of the Bank of England target rate of 7% and a potential interest rate rise.

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As I have already said this latest movement for GBP/USD is excellent news for anyone looking to buy dollars, but with any positive there will always be a negative and for those looking to sell dollars this latest rise will come as bitter blow.

Dollar sellers have had a rough ride over the last few months and unless there is a dramatic change in the U.S. economy or the Federal Reserve decide to speed up tapering things could get worse before they get better.

If you are looking at selling dollars the one thing I would say is not to get caught chasing your tail. If the UK continues to improve at its current pace we could quite easily see rates continue to rise, which means that when/if the dollar does start to strengthen exchange rates may only come down to the levels we are seeing now.

As a currency broker I have a range of currency contracts available, if you are selling dollars I can help protect you against any adverse movements or if you are buying I can help secure your rate for up to two years in the future to take advantage of this recent rise.

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

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GBP/USD exchange rate update

Good afternoon,

It has been a quite day for the GBP/USD cross due to the bank holiday in the States. With markets closed in the U.S Sterling dollar exchange rates remained in a 30 pip range, hitting a high of $1.6452 just after trade opened this morning.

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With little data coming from U.S. the UK and Sterling will have a chance to flex it muscles, Wednesday will be the key day for the UK with the latest unemployment figures being released by the Office of National Statistics and the Bank of England providing the minutes from their monthly meeting.

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With the UK seeming to be well on the road to recovery and the BoE issuing forward guidance in relation to interest rates it is unlikely we will see any major movement in the FX markets when the minutes are released. Any move for GBP/USD will probably come as the unemployment figures are issued.

The BoE are looking for unemployment levels to drop towards 7% before they revisit the subject of raising interest rates. UK unemployment has improved dramatically over the past few months and a positive reading on Wednesday could see the pound strengthen even further.

I will of course keep you posted, in the meantime if you have a requirement to buy or sell dollars in the coming week and want to make the most from your currency 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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GBP/USD exchange rates rise again

Good afternoon,

Sterling recovered against the U.S. dollar today following better than expected retail sales figures for December. GBP/USD exchange rates were hovering just over $1.63 this morning but after the numbers were released at 9.30 (GMT) the pounds value quickly increased and pushed rates above $1.6450, the highest we have seen the cross since Monday morning.

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Todays retail numbers came just at the right time for the pound, earlier this week I mentioned the pound had lost a bit of ground as investor appetite for Sterling had dampened. but this mornings numbers will have gone a long way to boost investor confidence that the UK recovery is firmly on track.

Decembers retail numbers came in over 2% higher than the projected figure. It had been forecast we would see a rise of 0.5% from November but the actual figure came in much higher and showed a rise of 2.6%.

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The news had an immediate impact on exchange rates and caused the GBP/USD cross to rise from $1.6312 to a high of $1.6456.

This week has once again shown just how volatile the FX markets can be, we have seen over a 1% swing in exchange rates over the last five days which can make a massive difference when you are looking to make an overseas payment.

If you are looking to buy or sell dollars in the coming months it is important to know what tools are available to help you make the most from your currency transfer.

To find out more about how I can help use the link below to complete the contact form or call me directly on 01442 892 065 for a free, no-obligation consultation.

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Sterling dollar exchange rate update

Good afternoon,

After a brief recovery GBP/USD fell to it lowest levels for nearly three weeks today. This morning saw cable trading close to $1.6450, which was a marked improvement from the levels we witnessed on Monday. The gains were shorted lived though as during trading today exchange rates fell to a low of $1.6323, a level we have not seen since Christmas day.

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Over the past few weeks we have seen this kind of movement a few times, rates climbing towards $1.6450 then quickly falling away. The uncertainty which has surrounded the U.S. economy in recent months has contributed to the dollars value dropping and coupled with the fact the UK is performing well have meant GBP/USD exchange rates have remained over $1.60 since mid-November.

With both the U.S and UK economies starting to stabilise, what we are seeing now in exchange rate movement is the result of daily economic data releases. If the UK produces positive figures in the morning rates are climbing but are quickly counteracted by the U.S. producing positive numbers of their own in afternoon.

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It is likely this will continue until the Federal Reserve wind up their stimulus package or something major comes out of the woodwork in the UK. It is impossible to predict which way exchange rates will move and no one has a crystal ball but most market players and investors believe we will start to see the dollar gain some momentum during 2014.

I think it is likely we will see GBP/USD rates start to fall during the year but exactly when and by how much is difficult to predict. If the FED continue to reduce their stimulus package it could only be a matter of time until we see rates back below $1.60.

If you need to buy or sell dollars in the coming months and want to ensure you are making the most from you transfer there are a number of tools available. By using the link below and completing the contact form I can help you make an informed decision about the best time to complete your transfer. alternatively you can call me directly on 0044 (0) 1442 892 065 for a free, no-obligation currency consultation.

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GBP/USD exchange rates fall by over a cent

Good afternoon,

Well, what a difference a day makes! Following Fridays positive run Sterling has been unable to sustain its gains against the U.S. dollar with exchange rates falling today by nearly a cent and a half.
When I sat at my desk this morning GBP/USD was sitting around $1.65 but by the middle of the afternoon rates had fallen to a low of $1.6354. So what caused todays movements? With no major data releases out of the UK or the U.S todays post will take a closer look at why the pounds value suddenly dropped.

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Today (Monday) saw the pound loss ground against most of its major counterparts, so it wasn't only the dollar that benefitted during trading today. After a run of weaker than forecast data releases over the past few days some of the gloss has been taken off of sterling's recent positive run.

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It now looks as though expectations have shifted slightly over any upcoming data releases for the UK which in turn have dampened investor demand for the pound. All eyes will be focused on this weeks CPI and PPI releases along with retail sales figures for December, if the numbers are positive we should see the pound claw back some of the ground it has lost over the last 24 hours.

What to look out for.

At the end of the month we will see the FED hold their next meeting and at the top of the agenda will surely be the topic of tapering. Last month FED officials announced their plan to reduce their hefty stimulus programme by $10 billion, but with Fridays extremely poor job numbers showing the U.S. economy may not be as strong as first hoped, it may lead to further cuts to the programme being delayed.

If there is any dovish talk from the FED about the economy or when further cuts will take place there is every chance we could see the dollar weaken and push exchange rates even higher.

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

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GBP/USD exchange rates climb by 1%

Good afternoon,

It has been a positive week for the GBP/USD cross as rates climbed just over 1%. From Mondays low of $1.6350 Sterling had the edge over the dollar and by Friday afternoon had reached $1.6514, the highest we have seen exchange rates since the 2nd Jan. This is great news for anyone looking to purchase U.S. dollars and once again highlights how important it is to get the timing right on your currency transfer.

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Most of this weeks gains for Sterling actually came this afternoon, following the highly anticipated U.S. job numbers. The non-farm payroll figures usually cause a fair bit of volatility in the FX markets and today was no exception.

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It had been forecast that 196k would have been created in December but when the actual number came in at only 74K the dollar quickly lost ground as markets reacted to the disappointing reading.

The U.S. economy had seemed to be performing well over the past few weeks and this was underlined when the U.S. Federal Reserve (FED) recently announced they would begin cutting back its existing stimulus programme by $10 billion per month.

Todays job numbers will come as a bitter blow to the FED and may lead to officials having to rethink how quickly the stimulus programme can be wound up.

If you need to buy or sell dollars in the coming weeks and want to ensure you are making the most from your currency transfer use the 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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