Will the GBP/USD exchange rate continue to rise?

The pound has risen around half a cent against the dollar today, with the GBP/USD cross climbing back above $1.29 to hit an intraday high of $1.2910.

Sterling received a boost after the latest polls suggested that Theresa May is on course to record a landslide victory in the general election on the 8th June.

GBP/USD graph

 

Will the pound/dollar exchange rate break $1.30?

As things stand it is a real possibility, the GBP/USD cross has risen well over six per cent since the middle of March, and I believe there is scope for the exchange rate to climb even higher in the coming weeks.

A lot will depend on how the initial Brexit negotiations go, but if tomorrows Gross Domestic Product (GDP) reading is positive it will give the pound a solid foundation heading into the official divorce talks.

We also have to remember President Trump. Following Trumps surprise election victory, the dollar gained a huge amount of ground after he promised to increase fiscal spending and cut taxes in order to boost the U.S. economy.

However, investors are now becoming concerned that President Trump is not going to be able to deliver and if he struggles with his revised tax plan, we could see the dollar come under pressure.

 

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

As a specialist in currency exchange I have a range of tools at my disposal to help you maximise your return or protect you against adverse market movements.

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GBP/USD exchange rate still above $1.28, but for how long?

The GBP/USD cross continues to trade around $1.28 this morning, with the currency pair bouncing between $1.28 and $1.2840 for the third consecutive day.

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The week so far has been relatively subdued for the pound/dollar exchange rate, as markets instead focused on the result of round one of the French elections.

Sterling has dropped around a cent since Theresa May announced plans to hold a general election on the 8th June, as investors sit tight and wait for any developments of the UK's exit from the European Union.

GBP/USD graph

Since Theresa May invoked Article 50 last month, little has been done as EU negotiators wanted to wait until after the French elections.  However, things are now beginning to move forward and we could start to see some volatility for sterling pairs in the coming weeks as focus shifts back to the UK and Brexit.

On Saturday there will be an EU summit, which the markets will be watching closely as the initial draft guidelines for the Brexit negotiations will be finalised.

Theresa May is also set to meet with European Commission President Jean-Claude Junker and Michael Barnier, the EU's top Brexit negotiator next Wednesday.

Before that, we will have a key data announcement from the UK which could cause some heightened volatility for the pound. On Friday the Office for National Statistics will release the Preliminary Gross Domestic Product (GDP) reading for quarter one.

The GDP reading is the broadest measure of economic activity and is the main gauge of the UK economy's health.

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the coming weeks and are concerned about how the Brexit negotiations or this week's data could impact your transfer, contact me today for a free, no-obligation currency consultation.

As a specialist in currency exchange I have a range of tools at my disposal to help you maximise your return or protect you against adverse market movements.

For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by clicking on  the link below.

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Pound, dollar and euro exchange rate update

The GBP/USD cross has been relatively subdued today, with markets instead focusing on the result of the yesterday French elections.

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As you can see from the graph below the GBP/USD cross has spent the majority of today's session bouncing between $1.2780 and $1.2830.

GBP/USD graph

Although the pound has done very little, the euro has surged against the dollar since yesterday afternoon after Emmanuel Macron won the first round of votes, easing fears that Marine Le Pen will become the next President of France.

The euro touched on a five and a half month high against the dollar of $1.0938 last night, and although the euro has slipped slightly over the course of the day, the currency pair is still trading around 1.5% higher than on Friday afternoon.

EUR/USD graph

Markets now see Macron as the clear favourite for the second round of voting in two weeks' time, with some polls suggesting he will beat Le Pen by nearly 30%. Investors had been cautious about heading into the euro after the shock result of the UK referendum and Donald Trump's victory last year. However, with Macron holding such a big lead, it would appear markets are now prepared to start buying back into the euro.

With the first round out of voting out of way, it won't be long until attention turns back to the UK and the Brexit negotiations.

GBP/USD is still close to the highest levels we have seen since October, but once the official divorce talks get underway, we could easily see the pound come back under pressure.

Do you need to buy or sell dollars?

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

As a specialist in currency exchange I have a range of tools at my disposal to help you maximise your return or protect you against adverse market movements.

For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by clicking on the link below.

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GBP/USD exchange rate breaks $1.28

This morning saw the GBP/USD cross continue to rise with the currency pair climbing to a fresh six month high of $1.2873.

Although the pound has edged slightly lower over the course of today's trading session, the current rate of exchange is still around three cents higher than yesterday morning.
 
Sterling is still benefitting from Theresa May's surprise announcement to call a general election on the 8th June. However, with the official Brexit negotiations set to begin before the end of April we could easily see the pound come under pressure again and give up the ground it has made over the past two days.

With GBP/USD currently trading at its highest level for over six months and with so much uncertainty over the impact Brexit talks will have on the UK economy, if you have a requirement to buy dollars then it could be worth taking advantage of the recent gains.

We have seen the GBP/USD cross climb rise over six per cent since the middle of March, and the recent move has made quite a difference to the cost of a transfer. Converting £250,000 in dollars today will now achieve you around $18,000 more than a month ago.

GBP/USD graph

Contact me today if you are looking to buy dollars.

If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for over six months, contact me today for a free consultation.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.
This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

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The pound hits six month high against the U.S. dollar.

Today has seen the pound rise to its highest level against the dollar since the 4th October, with the currency pair hitting $1.2763.

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The pound received an unexpected boost after UK Prime Minister Theresa May shocked the markets by announcing plans to hold a general election on the 8th June.

As you can see from the graph below, the pound surged on the back on the news with the GBP/USD cross rising from $1.2523 to $1.2763.

GBP/USD graph

 

Why has the announcement caused the pound to rise?

Theresa May's plans to hold a general election have been seen as a positive by the markets, largely because of the lead she currently holds in the opinion polls.

Figures released over the weekend showed that the Conservative Party currently hold a 21 point lead over Labour and it would seem Theresa May believes that now is the time to strike.

By holding the general election now it will also allow Theresa May to see the Brexit negotiations through to the end, another positive in these uncertain times.

Contact me today if you are looking to buy dollars.

If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for over six months, contact me today for a free consultation.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.
This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

Click here to complete the contact form.

GBP/USD exchange rate hits fresh high

The GBP/USD cross rose to its highest levels since the 27th March this morning, with the currency pair hitting $1.2573 following comments from President Trump yesterday evening.

The move means the pound has now risen around two cents since the start of the week, pushing the GBP/USD exchange rate away from the three week low we witnessed on Monday morning.

GBP/USD graph

What did Trump say?

The dollar has fallen across the board after President Trump spoke to the Wall Street Journal, telling them that he thought the U.S. dollar was "getting too strong" and if continued it would end up hurting the U.S. economy. He also said he would prefer the Federal Reserve to keep interest rates low.

Trumps comments have come as a huge surprise to the markets, it is unusual for the President of the United States to talk about the value of the country's currency and monetary policy.

Both are normally left to the Federal Reserve, but it would appear Trump still has his own agenda, with markets taking the comments as a fresh reminder of his protectionist trade stance, a stance that has been hurting the dollar for the last few months.

Do you need to buy or sell dollars?

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

 For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by clicking on the link below.

Click here to send an enquiry and receive your free quote.

GBP/USD holds above $1.24.

As I mentioned in my post yesterday, this morning saw the UK release its latest inflation figure. However, with the reading remaining unchanged at 2.3% it has so far done very little to impact the GBP/USD cross.

As you can see from the graph below we saw a small spike as the data was released, with the currency pair climbing around 30 pips to hit $1.2439. Some forecasts had suggested we would see inflation fall slightly to 2.2%, which if had happened could have caused the pound to lose ground as it would reduce the chances of a rate increase from the Bank of England.

GBP/USD graph.

World events holding back the U.S. dollar.

Despite Fed Chair Janet Yellen reinforcing the U.S. central banks stance that additional rate hikes are on the horizon, the dollar is being weighed down by the events in Syria and North Korea.

Investors have readjusted their positions after President Trump ordered the strikes in Syria last week, and with the possibility of U.S military action against North Korea, the dollar is struggling to find any momentum and fell against a basket of currencies during the Asian trading session.

Contact me today if you are looking to buy or sell dollars.

With so much uncertainty around the globe, it would be a good idea for anyone looking to buy or sell U.S. dollars to get in touch and discuss the tools we have available to protect you against adverse market movements.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.
This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

To make a free enquiry click here and complete the contact form.

GBP/USD exchange rate climbs back above $1.24

The pound edged up against the dollar today, with the GBP/USD cross climbing back above $1.24. There is very little to report as we have had been no major data releases from the UK or U.S today, although Fed Chair Janet Yellen is due to speak at the University of Michigan this evening and her comments could cause some volatility for dollar pairs.

As you can see from the graph below the pound/dollar exchange rate has risen around half a cent over the course of today's session, despite some evidence UK consumers are starting to reduce their spending.

According to Visa, monthly spending dropped in March, and they also reported the lowest quarterly rate for nearly four years.

GBP/USD graph

Key data tomorrow.

There are a number of key eco-stats being released from the UK tomorrow (Tuesday) that could have an impact on the value of the pound.

The main one being the latest CPI (Consumer Price Index) reading, which is published by the Office for National Statistics. The reading is considered the UK most important inflation data, as it's used by the Bank of England's inflation target.

In recent months there have been calls for the Bank of England to raise interest rates to combat the rising inflation figure. Last month inflation rose above the central bank's target of 2%, hitting 2.3%.

However, tomorrow's reading is expected to show that inflation has dropped back to 2.2%, which if confirmed could see the pound fall across the board as it would reduce the charges of a rate hike in the near future.

Do you need to buy or sell dollars?

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

For more information about how I can help or to find out what rate of exchange I can offer, complete the contact form by clicking on the link below.

Click here to send an enquiry and receive your free quote.

 

GBP/USD rates fall as economy slows

Pound/Dollar rates have fallen away from the recent highs today, due to data from the UK and USA. The rate started to fall this morning at 09:30am when a raft of UK data was released that was worse than forecast. Industrial and Manufacturing both showed a decline, House prices didn’t rise and Trade balance numbers were also worse than expected. All of this combined to weaken the Pound and pull GBP/USD lower. It shows that perhaps the economy isn’t quite as resilient as many think, and with Brexit negotiations due to begin within a few weeks, there’s every chance that the Pound will weaken further.

Will Pound rise or fall against US Dollar?

Sterling had been doing quite well over the last few weeks, but most forecasts seem to suggest that GBP/USD rates will fall. On the one hand, the Pound isn’t likely to strengthen much until it becomes clear what kind of deal we’ll get with the EU. Also the US are expected to raise interest rates 3 more times this year, and if they do it should strengthen the US Dollar and make it more expensive to buy. Also with events in Syria escalating from a proxy war to direct intervention by the USA, investors may move to safe haven currencies like the USD strengthening it further.

Getting the best GBP/USD exchange rates

With so much going on, it would be prudent for anyone that needs to buy US Dollars to get in touch to discuss the tools we have available to protect you against the rate dropping. The most popular tool for clients purchasing property overseas is a ‘Forward Contract’. This allows you to freeze the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert. This protects you against the rate falling, and allows you to budget effectively. We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

Click here to send an enquiry and get a free quote

GBP/USD moves higher after strong UK services data

 

Pound/Dollar rates rose this morning to $1.25 following a strong UK PMI services reading. The number came in above forecast helping to push Sterling higher against the US Dollar. There is also uncertainty surrounding how soon the US Federal reserve will raise interest rates again, removing some of the recent Dollar strength helping to push rates higher.

With Brexit negotiations not due to start for some time, it seems the pressure on the Pound has been removed, helping it rise against other currencies. Certainly for the next few weeks it's going to be economic data that drives GBP/USD rates in the short term.

Need to buy or sell US Dollars?

 

Friday will be important as we have a raft of US data including Non-Farm Payrolls. This is a measure of how many new jobs have been created, excluding the agricultural sector due to its seasonal nature. Markets expect 180,000 new jobs, but the figure is notoriously difficult to predict. If the actual number is higher than this, then the Dollar will strengthen and push GBP/USD lower again.

We provide very competitive rates for GBP/USD and USD/GBP. Our typical clients include private individuals buying and selling property, and business clients that need to make payments in Dollars, to China for goods for example. Our rates are up to 3% better than your bank may offer, and we have never had an issue beating rates provided by other brokers. If you would like to find out what rate we can offer you and how much you could save, get in touch today for a free quote.

GBP/USD close to 3 month high

Sterling/Dollar rates rose over the weekend close to the best we've seen all year. GBP/USD approached 1.26 before dropping back away today. After the invocation of Article 50 last week, it seems that for the most part, all the negativity surrounding Brexit had already been priced into the rate, with investors seeing little reason to continue hammering the Pound.

Will GBP/USD keep rising?

It's impossible to predict of course, but given we've approached these levels several times this year and each and every time it's dropped back again, the trend would suggest otherwise. Indeed the USA are still forecast to raise interest rates several times this year, and higher US rates would strengthen the Dollar and make it more expensive to buy. With regards to Sterling, for the moment focus has shifted elsewhere now that the Brexit negotiations can begin.

As more detail is known about what kind of deal the UK will get, it's likely to start affecting Sterling. Put simply, anything that is perceived as good for the UK should strengthen the Pound, and any indication that the UK will struggle to get a good deal should weaken the Pound.

What could affect rates this week?

From the UK this week, the most important releases are: Trade Balance figures and a GDP estimate on Friday. If the numbers differ from forecast then Sterling could be affected. From the USA the most important things to look out for are: the FOMC minutes on Wednesday, that may shed more light on when the USA will raise interest rates again. Also on Friday we have the all important Non-Farm payroll numbers, that often cause large movements for GBP/USD as they are so hard to forecast.

If you need to buy or sell USD at the best exchange rates, why not click here to get in touch for a free quote.