GBP/USD dropping with $1.70 seemingly a distant memory.

Good Afternoon,

As Aretha Franklin famously sang "What a difference a day makes" and this was certainly the case for sterling as it suffered is biggest loss against the Greenback in over 3 months.

A busy 24hour period in which we saw some key data releases from the states began yesterday with Non-Farm Employment figures. Although these missed expectations the miss was marginal and therefore had little impact.

The real market mover and the reason behind Cables drop from 1.70 to 1.6866 is courtesy of much better than expected GDP figures for the US as anticipated in Tuesday's post. The US GDP figures showed their economy grew by an impressive 4% in the 2nd quarter of 2014 in sharp contrast to a negative -2.9% retraction in the first quarter. As was well documented in both the media and several of my posts in previous months this was largely down to the harsh winter weather and the government shut down.

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Upcoming Data

To close the week we have three major pieces of data, one from the UK and two from across the pond. First, at 9:30am we have UK manufacturing figures which are expected to be slightly worse than previous, no fireworks expected there then. However, at 1:30pm we have US non-farm employment figures and unemployment figures. With both sets of figures being notoriously difficult to predict any figure either side of expectations can cause some market volatility.

So What Should I Do? If you have a dollar requirement, whether immediate or longer term we have various tools and an in-depth market knowledge to help maximise your currency. Please feel free to contact me on 01442 892 060 for a free, no obligation consultation.

 

GBP/USD hits resistance at $1.70

Good Morning,

We have seen a couple of flat days for the GBP/USD cross since rates dropped back into the high 1.69's. The current lull is purely down to a lack of data from both sides of the pond and provided the dollar with a welcomed break from the pounds recent march against the Greenback, in which we have seen it lose over 18 cents and hit a 6 year high.

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Today starts a busy few days for USD data releases starting at 3:00pm BST in the form of  a 'Consumer Confidence' survey. A nice way to ease GBP/USD into tomorrow when we will see the main market moving data released.  

Wednesday's Data Releases

Wednesday's raft of data starts just after lunchtime when the change in non-farm employment is announced, this usually important data releases is likely to be overshadowed however, as analysts and investors look towards the US's 2nd quarter GDP figures. A huge improvement is expected for the states as forecasts expect a 3.1% expansion, a sharp contrast to the 2.9% retraction we saw last quarter.

So What Should I Do?

If you have a dollar requirement, whether immediate or longer term we have various tools and an in-depth market knowledge to help maximise your currency. Please feel free to contact me on 01442 892 060 for a free, no obligation consultation.

GBP/USD drops back below $1.70

Good afternoon,

It has been another disappointing day for the pound with the GBP/USD cross dropping back below $1.70 for the first time in nearly a month. Weaker than forecast UK retail figures contributed to Sterling falling for the second consecutive day against the dollar with the currency pair reaching a low of 1.6966 this afternoon.

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Todays move means the pound has now lost over 1.2% since the GBP/USD cross came close to a six year high a few weeks ago. This may not sound like much but in monetary terms can make a big difference, to put the move into perspective, converting £200,000 into dollars will now see you receive around $4,220 less compared to three weeks ago.

Will the pound recover?

It is difficult to say, yesterdays Bank of England minutes seem to have poured cold water over an interest rate rise taking place this year. This has given the dollar some much needed breathing space and if the Federal Reserve continue to be hawkish with their comments regarding monetary policy there is every chance the dollar will start to strengthen.

One of the forecasts I receive from my brokers is indicating we could see GBP/USD fall over the next few months, with a predicted level of $1.67. This is probably based on the Federal Reserve bringing an end to their stimulus package in October which if happens will lend some extra support to the greenback.

If you are thinking of buying or selling dollars in the coming 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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GBP/USD exchange rates drop again

Good afternoon,

Despite a brief recovery over the past 48 hours Sterling again dropped against the dollar following the release of the Bank of England minutes. GBP/USD fell from $1.7092 to a low of $1.7023, the lowest we have seen the currency pair since July 27th.

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Why did exchange rates drop?

The Bank of England minutes which were released at 9.30 (GMT) this morning showed there had been no change in stance by the MPC members. Over the past few weeks a number of the nine committee members had indicated that the UK recovery was becoming more balanced which could prompt a rise in interest rates.

However, this mornings release showed that all nine members had voted in favour of keeping rates at 0.5% for the time being and caused the pound to weaken slightly. The minutes went on to show that despite UK unemployment falling well below the central banks target rate of 7%, the MPC members are still concerned about the fragility of the UK recovery and surprisingly weak wage growth.

It looks like a number of investors were anticipating at least one member of the committee to vote in favour of rate rise but the news of a 9-0 vote has taken some of the wind out of Sterling's sails and caused the pound to drop across the board.

What could impact rates over the next couple of days?

Tomorrow sees some key releases from both sides of the pond. In the UK we will get the latest retail sales figures, while the U.S release their latest unemployment claim numbers and existing home sales figures. All have the potential to have an impact on the FX markets so if you are thinking of buying or selling dollars it is important to know the best way of securing your rate of exchange.

As a specialist currency broker I have a range of currency contracts at my disposal, for more information on the different types of 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.

GBP/USD nears 3 week low.

Good afternoon,

It has been another quite day in terms of the economic data releases with no figures coming from the UK or the U.S. Despite the lack of numbers the dollar continued to rise against the pound with the GBP/USD cross falling back to $1.7056, taking us close to the lowest level we have seen for three weeks.

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Why has the dollar been strengthening?

It seems as though the dollar is still being driven by the comments made by Fed Chair Janet Yellen last week. During her two day testimony in from of the Senate banking committee Mrs Yellen indicated a rate rise could come sooner than markets anticipated if the labour market continues to improve.

Will the GBP/USD cross recover the lost ground?

Potentially yes, but there a number of factors to take into account. It now looks as though a interest rate rise in the UK has been priced into the market but we are still waiting to hear when the first hike will take place. If we get a clear indication from the Bank of England about when it will take place we could see the pound start to strengthen.

What to look out for?

Any announcements from the Bank of England or the U.S Federal Reserve. This week we will see the minutes from the BoE monthly meeting, which will give us an insight to how the MPC members are voting. If we see a change in stance from any of the committee members we could see the pound rise across the board.

What to do if you are buying or selling dollars.

If you are thinking of buying or selling dollars in the coming weeks or months and want to ensure you are making the most from you transfer, it is important to know what all of your options are. As a specialist currency broker I have a range of currency contracts available to ensure you are protected against adverse market movements or in a position to target a higher rate.

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

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GBP/USD exchange rates push towards 6 week high.

Good afternoon,

It has been an excellent day for the pound and dollar buyers as Sterling rose to a six year high against the greenback as British inflation figures increased unexpectedly. Following this mornings data release the GBP/USD cross managed to claw back the ground it lost yesterday by climbing from $1.7061 to a high of $1.7184.

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Figures released this morning by the Office of National Statistics showed UK inflation had risen to 1.9% against a predicted figure of 1.6%. This latest reading has pushed us closer to the Bank of England's target rate of 2.0% and will again lead to speculation as to when the central bank will raise interest rates.

Todays inflation figures have come as big surprise, especially as last months inflation reading was down at 1.5%. Junes inflation numbers had given the BoE some much needed breathing space, allowing them to hold off raising the base rate despite the UK economy performing so well. 

If the UK continues to perform well and inflation reaches 2.0% next month I don't think it will be long until the BoE have to act. A rise interest rates will make the pound more attractive to investors and strengthen the currency across the board and potentially pushing GBP/USD higher.

If you have a requirement to buy or sell dollars in the coming months and want to ensure you are making the most from your transfer, there are a number of different contract options to help you.

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 falls to two week low

Good afternoon,

It has been a quite day in terms of economic data releases today but that hasn't stopped the dollar gaining ground against the pound. The GBP/USD cross fell by 0.4%, leaving exchange rates at their lowest level for two weeks. When trading opened this morning Sterling/dollar was sitting just above $1.7140 but steadily dropped over the course of the day reaching a low of $1.7071 as the graph below shows.

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Although it has been a quite start to the week there is plenty coming up over the next couple of days which is likely to cause some volatility in the currency markets. This week will see key speeches from the Bank of England Governor Mark Carney and Fed Chair Janet Yellen, with the later due to testify on the Semi-annual Monetary Policy report in front of the Senate Banking Committee in Washington.

How could this impact exchange rates?

The testimony is usually delivered in two parts which will begin with Mrs Yellen reading a prepared statement highlighting the Feds thoughts and plans. The statement is then followed by a question and answers session which is held by the committee, this usually leads to some heavy market movements as the questions aimed at Mrs Yellen are not known before hand and are designed to put the Fed Chair under the spotlight.

So what next for the GBP/USD cross.

As I mentioned last week it seems the pounds gains against the dollar are starting to run out of steam. With it looking likely the U.S. Federal Reserve will have wound up their stimulus package by October there has been growing speculation the dollar will start to strengthen over the coming months.

If you need to buy dollars in the coming weeks or months and want to take advantage of the current rate (which is still close to the highest trading levels for six years), there are a number of different options available to help you make the most from your transfer.

For more information on the types of currency contracts that are available 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.

Sterling starts to fall against the dollar

Good afternoon,

It seems Sterling's recent push against the dollar has started to run out steam. After reaching a high of $1.7170 the pound has gradually slipped against the greenback during trading today, with the GBP/USD cross dropping to a low of $1.7112.

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So why have exchange rates dropped.

It looks like the potential interest rate hike in the UK has now been priced into the market. I still think we will see the first move coming from the Bank of England but over the past few days there has been growing speculation that the U.S. Federal Reserve will have to look at raising rates as well.

This has given the dollar some much needed support and has been highlighted in one of the forecasts I received this morning. The short term projection was relatively unchanged with GBP/USD increasing slightly, pushing towards $1.73 in the next few months. The big change came from the long term forecast, it showed the GBP/USD exchange rates would be down towards $1.60 within twelve months, excellent news for those of you selling dollars!

This shows that analysts and market players are expecting the dollar to lead a fight back as the FED continue to wind up their stimulus package and calls for a rate hike increase.

If you are looking to buy or sell dollars in the coming weeks and want to ensure you are making the most from you transfer it is important to know all the options that are available. As a specialist currency broker I have a range of currency contracts at my disposal to help you target a specific rates or protect you against adverse market movements. I can even hold a rate of exchange for up to two years into the future.

For more information on the different 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.

Click here to complete the contact form.

GBP/USD exchange rate Friday update

Good afternoon,

It has been a very quite day in the currency markets today due to Independence Day in the States. As a result of the market holiday GBP/USD has remained in a 20 pip range throughout trading today with the cross hovering between $1.7130 and $1.7150.

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The GBP/USD cross has managed to hold above $1.71 throughout this week which has left the currency pair sitting very close to a six year high. Not even the better than expected U.S. job numbers could help the dollars cause yesterday and leaves the pound sitting in a very strong position.

It is an excellent time to purchase dollars and if you have an upcoming requirement you may wish to take advantage of the current high. If you wanted to see if the rates push even higher it may be worth considering putting a Stop Loss order in place to protect you against any adverse market movements, the Stop Loss with act as a safety net and give you a 'worse case scenario' so you don't end up gambling away your gains.

For more information on the different types of currency contracts or to find out what rates I can offer, use the link and the bottom of this page to complete the contact form or call me directly on 0044 (0) 1442 8920 065.

What could impact rates next week?

The main release coming out of the UK next week is the Bank of England interest rate decision. It is unlikely we will see a rise in rates next week but the meeting will be monitored closely for any hints of when a hike may take place.

From the States we will get the minutes from the Federal Reserves latest minutes which will give us an indication of what the council are discussing.

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GBP/USD exchange rates close in on 6 year high

Good afternoon,

Since my last post GBP/USD has risen over 1% and is now within touching distance of the highest levels seen since October 2008. The currency pair has climbed over half a cent during trading today rising from $1.7095 to $1.7155 as the UK posted better than forecast manufacturing numbers.

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The pound has been benefitting from strong economic data releases over the past few months and today was no different as the UK manufacturing PMI figures showed the sector had grown at its fasted pace for seven months in June.

The figures also support claims the UK recovery is becoming more balanced and will again raise the question 'when will the Bank of England raise interest rates?' We may get further clues when the central bank hold their monthly meeting next week so we could be set for some volatility in the build up to the meeting.

As I have said before it is more than likely we see the BoE act before the Federal Reserve and if that happens you would imagine Sterling will strengthen against the dollar. If the UK economy continues to perform well and the U.S continue to stumble there is every chance we could see GBP/USD push towards $1.75 over the coming months.

This is not great news for anyone looking to sell dollars, in the past 12 months GBP/USD exchange rates have risen over 13% against you and it is difficult to see how the dollar is going to make any significant gains against the pound.

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

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