GBP/USD exchange rates rose to their highest level for a month today with the currency pair briefly breaking through $1.53 during today's session. It is the first time since 5th January Sterling/dollar has broken the 1.53 barrier and means the cross has now gained over 2% in past 48 hours.
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As you can see from the graph above the pound has managed to bounce back after dipping below $1.50 earlier in the week. A run of positive economic data releases from the UK have helped boost the pound, while events in the U.S. have caused the dollar to weaken.
The gloss seems to have been removed from the U.S. recovery recently and could push back the chance of an interest rate rise before the summer. That being said, I would still bet on the U.S. Federal Reserve raising interest rates before the Bank of England and this seems to be the view of some of my brokers. One of the forecasts I received this morning showed the GBP/USD cross would fall back below $1.50 by the end of the quarter two and with budget and elections in the UK just around the corner, I would expect the volatility we have seen over the last few months to continue.
Save money on your transfer and reduce your exposure
Using a specialist currency broker like myself will not only get you a better rate of exchange but also reduce your exposure to the ever changing currency markets. With a wide range of currency tools at my disposal I can help you take advantage of the current market price, even if you don't need your currency straight away and at the same time protect you against adverse market movements.
Ways to buy currency
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. You have two days to send us the funds and, as soon as your funds are cleared, we will forward the currency to the account of your choice.
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.
You secure the forward contract with a margin of 10% of the total value of your transaction (you’ll need to pay this within two working days of agreeing the contract) and then pay the balance before the contract expires. Once secured, the agreed exchange rate will apply for the duration of the contract.
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. This type of contract is particularly useful when the markets are moving in a positive direction for you.
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 on the different ways to buy your currency 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.
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