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.

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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.

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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.

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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.

GBP/USD exchange rate update, Friday 15/08/2014

Good afternoon,

After all of the commotion on Wednesday it has been a relatively quite couple of days for the GBP/USD cross with the currency pair staying with a 20 pip range throughout trading today. Despite the second UK GDP estimate coming out as expected this morning the pound has been unable to recover from Mark Carneys comments earlier in the week and remained under $1.67.

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 Weekly summary.

It has been a difficult week for the pound and the dollar has taken full advantage with GBP/USD exchange rates falling to their lowest level in just over four months. This week has seen the pound drop by nearly 1% against the greenback as rates fell from $1.6826 to a low of $1.6665, which means Sterling has now lost almost 3% in the last five weeks alone.

At the start of July we witnessed GBP/USD coming very close to a six year high but since then the pound has almost been in free fall as the UK economic recovery begins to slow. The spare capacity in the UK economy, which Mark Carney talked about on Wednesday, has dampened expectations that an interest rate rise will take place this year and has meant investors and market player have now started to look elsewhere.

So what does this fall mean for my currency purchase?


A 3% drop might not sound like a huge amount but put into monetary terms makes for some grim reading if you are looking to purchase dollars. Had you secured your rate five weeks ago £200,000 would have seen you receive around $343,000, now though, that same £200k will see you receive around $10,000 dollar less.

However, with every negative there must be a positive and for those of you looking at selling dollars the last month will have come as a breath of fresh air. With the UK recovery running out of steam and with the prospect of the U.S. Federal Reserve wrapping up their stimulus programme in the next couple of months we could see the dollar take even more out of the once dominant pound.

Get in touch.

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

Have a great weekend.

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GBP/USD exchange rates fall to four month low

Good afternoon,

I said in Mondays post that today had the potential to cause some volatility in the currency markets and that was certainly the case, with the GBP/USD cross falling by over a cent to take the currency pair to its lowest level since April this year.

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After a brief rally this morning, which took Sterling/dollar back above $1.68 the tables quickly turned as comments from Bank of England Governor Mark Carney caused the pound to drop across the board. GBP/USD fell from a high of $1.6827 to a low of $1.6687 which now means the pound has now nearly five cents against the dollar on the last six weeks.

So what did Mark Carney say?

Mr Carney has lowered the Bank of England's forecast for UK wage growth from 2.5% to 1.25% for the current year after figures showed wages grew at their slowest rate since records began in 2001. The move from the central bank has dampened expectations that an interest rate rise will take place this year and left investors looking for other alternatives.

Will rates recover?

After todays comments from Mr Carney it looks unlikely we will see GBP/USD exchange rates push back towards $1.70 in the short term unless something drastic happens to the U.S. economy. However, with U.S economy improving and the Federal Reserves looking to wind up their stimulus programme sometime in October there seems to be more scope for the dollar to strengthen rather than the pound.

Do you need to buy or sell dollars?

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 it is vital you know what tools are available. As a specialist currency broker I have a wide range of contracts at my disposal to help protect you against adverse market movements or help target your chosen rate.

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 or call me directly on 0044 (0) 1442 892 065.

Click here to complete the contact form.

GBP/USD exchange rates remain range bound

Good afternoon,

It has been a quite day in terms of economic data releases, which has been reflected within the currency markets with the GBP/USD cross remaining within a 20 pip range throughout trading today. After Fridays decline the currency pair remained under $1.68, trading between $1.6775 and $1.6795 and with a busy week ahead Sterling could be set for a volatile few days.

For a free currency consultation click here.

What could impact exchange rates this week?

Although today has been quite on the data front, this week will see a number of key releases that could impact the value of Sterling and the dollar. All eyes will be focusing on Wednesday as the UK release the latest claimant count and unemployment figures, there is a speech from Bank of England Governor Mark Carney and the central bank also release their latest inflation report. From the States we will see the latest retail sales figures and there is a speech from FOMC member William Dudley.

All of the above have the potential to cause some movement in the FX market. If the UK releases fail to meet expectations or Mr Carney is dovish about a potential interest rate hike, we could see the pound lose further ground against the dollar and move further from the six year high we witnessed only a few weeks ago.

Are you looking to buy or sell dollars?

If you have an upcoming requirement to buy or sell dollars in the coming weeks it is important to know how you can make the most from your transfer. As a specialist currency broker I have a range of currency contracts at my disposal, designed to give you peace of mind and protect you against adverse market movements.

For more information on 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.

Click here to complete the contact form.

GBP/USD falls below $1.68

Good afternoon,

It has been another difficult day for Sterling which has seen the pound fall against most of its major counterparts. The GBP/USD cross moved under $1.68 for the first time since 11th June, reaching a low of $1.6786, a drop of 0.3% over the course of trading today.

Todays move now means the pound has lost around 2.3% against the dollar in the past month. It may not sound like much but on a £200,000 trade you would now receive around $7,800 less compared to the same trade secured at the start of July.

For a free currency consultation click here.

Will the pound recover?

It is difficult to say but at the moment the momentum seems to be with the dollar. Over the past twelve months the UK economy has recovered quicker than anyone predicted and left the U.S. economy trailing.

This was one of the reasons GBP/USD exchange rates rose from $1.48 to $1.71 in the space of a year but that all seems to changing. The UK recovery now seems to be running out of steam and with the U.S. economy gradually improving and the Federal Reserve winding up their stimulus programme it looks as though the dollar is in a prime position to start eating into the pounds gains.

If you are looking to buy or sell dollars in the coming months and want to ensure you are making the most of your transfer, it is important to know what tools are available to maximise your return.

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.

Click here to complete the contact form.

Sterling suffers another setback

Good afternoon,

After climbing back towards $1.69 yesterday the pound once again suffered from some weaker than forecast UK data this morning. UK manufacturing numbers took the wind out of Sterling's sails after yesterdays positive services sector reading and caused the pound to slip from $1.6870 to a low of $1.6823.

For a free currency consultation click here.

This mornings manufacturing numbers have added to speculation the UK recovery may be slowing. It had been forecast the manufacturing sector would grow by 0.7% in July but with the actual figure coming in at 0.3% the pound quickly lost the ground it made against the dollar during trading on Tuesday. The pound has now lost over 2% against the dollar in the last month and if the U.S. economy continues to play catch up we could be set for further losses.

Tomorrows data releases.

We could be set for another volatile day in the currency markets tomorrow as there are a number of key data releases. The Bank of England will give us their latest update on monetary policy and interest rates. It is highly unlikely we will see a rate hike but if Mark Carney or any of the MPC members drop any hints it could effect the pounds value. The European Central Bank will also deliver their monthly statement and Mario Draghi's comments usually have some kind of impact.

In the afternoon the States will provide us with the latest unemployment claim numbers and if the figure comes out lower the predicted level of 305k we could see the dollar strengthen.

What to do if you are thinking of buying or selling dollars.

If you an upcoming requirement to buy or sell dollars in the coming weeks or months it is important to know what tools are available to help you make the most from your transfer. As a specialist currency broker I have a range of currency contracts at my disposal which can help you secure a rate for up to two years into the future, protect yourself against adverse market movements or target a rate that might not be currently available.

If you would like more information on the types of currency contracts or would like to know 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 comes close to 2 month low.

Good afternoon,

Sterling recovered slightly during trading today with the GBP/USD cross climbing from $1.6815 to $1.6844. Despite the rise today it has been a disappointing couple of days for the pound, the dollar has continued to benefit from the positive U.S jobs report released on Friday and coupled with the U.S. Federal Reserve again trimming their stimulus package the dollar finally looks like it has turned the corner.

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Today's level of $1.6815 is the lowest we have seen the currency pair since the 12th June and with UK house prices starting to fall it seems the pound may be running out of steam. The drop in house prices has again given the Bank of England some breathing space in terms of raising interest rates, though there is sure to be some speculation when the central bank meet on Thursday.

I am sure there will be calls for the Bank of England to raise rates as soon as possible but with wages not rising as quickly as Mark Carney had hoped and the new mortgage lending rules seemingly working I don't think we will see a rate rise until early next year.

This could mean the pound starts to suffer, especially if investors start to look elsewhere and if the U.S. economy continues to grow there is every chance the dollar will start making some inroads into the pounds gains.

A few weeks ago I talked about one of the forecasts I received from one of my brokers which indicated that GBP/USD could be down towards $1.63 in a few months time. If the Bank of England decide not to raise rates in the short term and the U.S. economy continues to go from strength to strength then it may not be long before the forecast becomes a reality.

If you need 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.

To complete the contact form click here.