The pound starts to claw back some ground

Good afternoon,

Since my last post the pound has managed to put a stop to the dollars advances clawing back around two and a half cents. Today alone has seen the GBP/USD cross climb from $1.4176 to a session high of $1.4345 as the graph below shows.

For a free currency consultation click here.

GBP/USD graph

With little out in terms of eco-stats it seems the focus has now turned towards the two day U.S Federal Reserve meeting. Tomorrow at 0700 (GMT) Fed Chair Janet Yellen will announce the central banks latest interest decision, which will be closely followed by her statement.

It is highly unlikely we will see the Federal Reserve implement another rate hike so soon, however it will be the statement which has the potential to cause some volatility in the FX markets.

The U.S. dollar could easily move in either direction tomorrow evening depending on what Chair Yellen has to say.

If the FOMC show any signs of concern following the recent global turmoil, falling oil prices and the possibility of cooling inflation then the dollar's value could easily fall. It will leave the pound in a prime position to take advantage and could push the GBP/USD cross back towards $1.45.

On the other hand if Ms Yellen drops any hints about when the next rate hike might take place and puts a positive spin on the state of the U.S. economy then we could see GBP/USD test the $1.41 mark we witnessed last week.

Contact me today.

If you are thinking of buying or selling dollars in the near future the last few weeks have proved once again just how quickly things can change.

During these volatile times it is more important than ever to know what options are available to help you make the most from your transfer.

As a specialist currency broker I have a number of different tools at my disposal. I can help you target a specific rate or protect you from further adverse market movements. For more information about how I can help or to find out what rate 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 falls below $1.41

Good afternoon,

Today saw the GBP/USD cross drop below $1.41 for the first time since 18th March 2009 hitting a low of $1.4087. After dropping continuously since early December things are not looking great for the pound and with the UK economy coming under pressure there is definitely a chance things could get worse before they get better.
 
For a free currency consultation click here.

In the last six weeks the pound has lost nearly 7.5% against the greenback which can make a huge difference to your currency transfer. If we look at the move in monetary terms, converting £250,000 will now see you receive nearly $28,500 less compared to the same trade on 13th December.

Why could things get worse?

With so much uncertainty surrounding the global economy the dollar has strengthened massively over the past couple of months. Coupled with the Federal Reserve rate hike in December it has given investors an extra incentive to head into the U.S. dollar.

Although recent economic numbers suggest the U.S. economy might be slowing, the view within the market is that we will see at least one more rate hike by the Federal Reserve this year which could help strengthen the dollar even more.

With that in mind and the fact Mark Carney poured cold water on the Bank of England raising rates during his speech on Tuesday the door is wide open for the pound to sustain further losses across the board.

I for one would not be surprised if we saw the GBP/USD cross fall below the $1.40 barrier in the next few weeks. There are no positives on the horizon which I think will help the pound out of this current trend and if the currency pair falls into the $1.30's then it could take months before rates recover.

Do you have a dollar requirement?

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 transfer, contact me today for a free, no-obligation consultation.

Use the link below or call me directly on 0044 (0) 1442 892 065 to find out more.

Click here to complete the contact form.

   

The GBP/USD cross falls to its lowest levels for nearly seven years!

Good afternoon,

It was another torrid day for the pound, especially for those of you who are looking to purchase dollars in the coming weeks or months.

For a free currency consultation click here.

After a brief spike this morning following a better than forecast inflation reading the pound lost even more ground against the dominate U.S. dollar.

Earlier today the Office for National Statistics released the latest Consumer Price Index (CPI) report and there was some good news for the UK economy. Inflation in the UK nudged up from 0.1% to 0.2% and gave the pound a much need boost.

On the back of the CPI report GBP/USD rose around half a cent to reach a high of $1.4333 but to say the gains were short-lived would be an understatement.
 
So what caused the decline?

Sterling suffered on the back of comments made by Bank of England Governor Mark Carney, following his speech the pound went into free fall and lost ground against most of it's major counterparts.

Within a couple of hours the GBP/USD cross had lost the ground it had made during the early part of today's trading session and bottomed out at 1.4135, a loss of nearly 1.35% and the lowest we have seen the currency pair since March 2009.

GBP/USD graph

 

What did Mark Carney say?

Mr Carney has essentially ruled out an immediate rate hike because of the uncertainty and turmoil currently surrounding the global economy and UK growth.

Mr Carney said that with oil prices falling and an "unforgiving" global environment, tightening monetary policy in the UK was not necessary yet. This latest statement is another blow to the UK and pound as it was only during the summer of last year that Mr Carney said a rate rise was on the horizon.

Investors could not take any positives from the speech and quickly started dumping sterling in favour of other currencies, with the U.S. dollar and euro seemingly benefitting.

Do you need to buy dollars in the coming weeks?

If you have a requirement to buy dollars and are concerned about where the currency pair is heading, it vital to know what options you have available. As a specialist currency broker I have a number of tools available to help you make the most from your transfer and protect yourself against further adverse market movements.

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 back over $1.44.....but for how long?

Good afternoon,

Well, it wasn't all doom and gloom for the pound today, the release of the Bank of England minutes and rate decision actually helped the pound......only slightly though.

For a free currency consultation click here.

For the sixth straight month the Monetary Policy Committee (MPC) voted 8-1 in favour of keeping interest rates on hold. However it was the one vote from Ian McCafferty that helped push the pound back over $1.44 today.

As I have mentioned a couple of times the issues in China and poor UK economic have been weighing heavily on the pound in recent weeks. As a result there was a chance Mr McCafferty would change his stance and vote for rates to remain at the current level.

Fortunately for the pound and all GBP crosses that didn't happen and as the vote and minutes were released GBP/USD climbed from $1.4366 to $1.4444.

But let's not carried away, today's events are not going to push GBP/USD back towards the $1.50 mark. There is still more scope for the pounds value to drop even further and if the Federal Reserve look at raising rates again in the coming months the dollar could easily strengthen.

The UK economy is not out of the woods yet and the UK's inflation is figure is still miles away from the Bank of England's target of 2%.

Today's meeting minutes showed the central bank believe it will take longer than originally thought for the inflation figure to reach the required level and indicated that inflation was likely sit around 0.5% for a number of months this year.

Based this information I think we can safely say we won't see any action from the Bank of England this year, with many analysts predicting a rate hike will now come in the early part of 2017.

As we all know it is impossible to predict which way the markets will move but have seen in the last month how quickly things can change.

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.

Click here to complete the contact form.

GBP/USD exchange rates recover slightly

Good afternoon,

After a frantic start to the year today has seen the FX markets return to some kind of normality. After falling to a fresh low against the dollar yesterday afternoon the pound managed to claw back some ground during Wednesday's session after tensions eased in China.

For a free currency consultation click here.

Despite a lack of eco-stats the pound was able to climb back over the $1.44 barrier and reached a high of $1.4474, putting an temporary stop to proceedings which have seen the pound lose around 3% since the start of 2016.

GBP/USD graph

What has helped the pound today?

Last week saw investors pour into the U.S. dollar after growing concerns in China, helping the greenback gain across the board. However better than forecast Chinese data today helped to ease fears over the globes second biggest economy, giving the pound a chance to stage a mini revival.

 

So will we see rates push back towards $1.50?

Not at the moment, as I mentioned yesterday there is more scope for the GBP/USD to fall further rather than climb back to the levels we witnessed before Christmas.

Now that the Federal Reserve have raised interest rates and the potential for further hikes this year, the dollar has the potential to gain in value even more in the coming months. Coupled with the fact that the Bank of England are unlikely to increase their benchmark rate this year, the outlook for the pound does not look great.

All eyes in the UK are now focusing on the Bank of England rate announcement and minutes tomorrow afternoon. The result should give us a clear indication to the central banks views on the current state of the UK economy and I for one are not expecting them to paint a pretty picture.

I wouldn't be surprised to see the GBP/USD cross test the lows we saw yesterday and if the MPC vote 9-0 in favour of keeping rates on hold we could see the currency pair fall back towards the $1.42 mark.

 

Contact me today.

If you have an upcoming currency requirement and are concerned about how the pound is performing or want to know how 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 rate falls to fresh low

Good afternoon,

Well that didn't last very long did it!...In yesterday's post I mentioned that the pound had managed a slight recovery against the dollar but twenty four hours later it seems normal business has resumed.

For a free currency consultation click here.

GBP/USD fell again during today's session with the currency pair falling to a near seven year low.

The pound dropped from $1.4537 to $1.4360, a level not seen since April 2009. It now means GBP/USD has fallen nearly 6% in the last month, which can have a huge impact on your future requirements.

To put the last months drop into monetary terms, converting £250,000 into USD will now see you receive around $21,575 less compared to trade in mid-December.

GBP/USD graph

 

Why has the pound fallen today?

The pound lost ground across the board today after weaker than forecast UK industrial production and manufacturing numbers. Figures released by the Office for National Statistics showed that industrial output had it sharpest fall since the start of 2013, while the manufacturing figure came in at -0.4% after a predicting reading of 0.1% growth.

Will GBP/USD recover?

At the moment there is very little evidence that the pound will start to recover. If anything there is more scope for the rate to carry on falling.

Events in China have caused investors to seek the safety of the U.S. dollar, especially as they now get a higher yield following the Federal Reserve rate hike last month.

We have also seen investors dumping the pound over the past couple of weeks as there is little chance we will see the Bank of England hiking interest rates anytime soon. In fact there have been rumours we won't see the BoE raise their benchmark rate until 2017.

So with the UK economy faltering and chances of a rate rise fading quickly we could see GBP/USD test the $1.40 barrier sooner rather than later.

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.

Click here to complete the contact form.

 

A slight recovery for GBP/USD

Good afternoon,

After Friday's positive jobs reading helped boost the dollar further against the pound, Sterling managed to claw back a bit of ground over the course of today. During Asian trade GBP/USD fell as low as $1.4491 but recovered to $1.4597 during the London session to lift some of the weight off the pounds shoulders.

For a free currency consultation click here.

GBP/USD graph.

Not much to write home about!

2016 has not been kind to the pound and it is difficult to see things improving anytime soon. I know we are only eleven days in but the pound is currently one of worst performing currencies of the year.... Not exactly what everyone had been expecting!

With China rocking the boat again and the Federal Reserve increasing their benchmark rate, there is a grey cloud starting to form over the UK which shows no sign of disappearing. It could also get worse on Thursday when the Bank of England release their latest interest rate decision.

I don't think anyone is expecting the UK's central bank to raise interest rates this week so I doubt we will see any positive moves on the back of the announcement. However, we could see some movement on the back of BOE's minutes from the meeting which are released shortly after the rate decision.

The minutes will give us an insight to how the nine MPC members voted and if there is any change we could see some volatility in the market. For the past few months one member of the MPC has been voting to hike rates but if that changes and all nine members vote in favour to keep rates on hold we could easily see the pound weaken.

How far the pound will fall is anyone's guess but a change in mentality from the Bank of England would not send a positive message and I wouldn't be surprised if GBP/USD fell below $1.44.

If you have a requirement to buy or sell dollars in the coming weeks or months and are worried about adverse market movements, 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 falls again.

Good afternoon,

The pound lost more ground against the dollar during Thursday's session with the currency pair falling to its lowest levels since June 2010. Despite the Federal Reserve's December meeting minutes showing that some policymakers were worried about the level of inflation in the U.S the pound continued to slide against the greenback during the early hours of today.

For a free currency consultation click here.

After falling to $1.4602 yesterday GBP/USD reached a low of $1.4533 before recovering slightly in the afternoon as the graph below shows. Weaker than forecast unemployment claims in the U.S. help put a temporary stop to the pounds woes, pushing the cross briefly back over $1.46.

Why has GBP/USD continued to fall?

It is mainly down to dollar strength, with fresh concerns mounting over the state of China's economy and the Chinese central bank looking to devalue its currency to help the country's exports investors are looking for safer options.

In times of uncertainty currencies such as the U.S. dollar and Japanese yen are seen as a safe-haven. This is exactly what we have seen over the past twenty four hours, with investors seeking the safety of the dollar and in turn making it more expensive to buy.

Will GBP/USD improve?

At the moment it is difficult to see the pound gaining any major momentum against the dollar. We might see some short term gains but at present I cannot see GBP/USD climbing back towards $1.50 anytime soon.

If the level of global uncertainty continues and the Federal Reserve look to increase interest rates again in the near future it is possible we could see GBP/USD fall even further.

As I mentioned yesterday I wouldn't be surprised if cable fell below $1.45 by the end of the week, especially if the U.S. have a positive jobs reading tomorrow and if things don't improve in the UK we could see the currency pair test the $1.40 level in the coming weeks.

 

Do you have any upcoming requirement?

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 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 rate falls to six year low!

Good afternoon.

The New Year has not started well for the pound especially against the U.S. dollar. Since the Federal Reserve raised its benchmark rate last month GBP/USD has been on a downward trend which at the moment shows no signs of stopping.

For a free currency consultation click here.

During today's session the GBP/USD cross fell to its lowest levels since 2010 with the currency pair falling as low as $1.4602. It means the pound has now lost over 4% against the dollar since the 13th December when the mid-market price was sitting at $1.5232 as the graph below shows.

Why has the GBP/USD rate fallen today?

The dollar added to its recent gains today after a private report from the U.S. showed that companies had added the most jobs in year last month. ADP a payrolls processor said that employment in the private-sector has risen by 257,000 in December, the sectors largest gain since December 2014.

The report lends extra support the U.S. Federal Reserve will continue raising interest rates throughout 2016 and with the central bank set to release the minutes from their December meeting later this evening the dollar could be set for further gains.

If the minutes give any indication of when the next rate hike may take place we could see investors head towards the dollar in preparation of any announcement.

Jobs day!

On Friday the U.S. will release the official job numbers know as non-farm payroll. The job numbers usually cause a fair amount of volatility in the FX market. So if Friday's reading backs up the job report today we could also see the dollar benefit.

If there is a hawkish tone to the meeting minutes and positive jobs number on Friday I for one would not be surprised to see GBP/USD fall below $1.45 by the end of the week. At the moment I cannot see the pound recovering in the short term so unless something drastic happens we could GBP/USD remain in the $1.40's for some time.

Do you have an upcoming requirement?

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 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.