Why is the pound falling?

This morning has seen the GBP/USD cross fall nearly a cent and we are only one hour into the London trading session. As it stands the pound is trading down at $1.2400 having opened this morning around $1.25, as the graph below shows.

Do you want the best GBP/USD exchange rate? click here.

GBP/USD graph.

What has happened?

Earlier this morning the BBC and Telegraph published a leaked memo, which suggested the UK government does not have an overall plan for Brexit.

The memo is said to be from an un-named consultant and was given the title "Brexit Update". The document suggests it will be another six months before the UK government decides on what they hope to achieve from leaving the European Union. The memo also touches on what it calls "divisions within the cabinet" over the direction of the upcoming Brexit negotiations.

As the news broke the pound lost ground across the board, with the GBP/USD cross slipping from $1.25 to $1.2439.

Things then got even worse for the pound as the latest inflation reading (CPI) has come in under the predicted level of 1.1%. Figures produced by the Office for National Statistics (ONS) showed inflation in the UK had dropped from 1.0% to 0.9% year on year, and reduces the chances of the Bank of England raising interest rates in the near future.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the weeks or months 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

Click here to complete the contact form.

Why has the dollar strengthened?

This morning has seen the pound the give up some of the ground it made against the U.S. dollar, with the GBP/USD cross slipping around two cents from Friday's high.

To find out what GBP/USD rate I can offer, click here.

As you can see from the graph below the currency pair dropped back below $1.25 earlier today, hitting a low of $1.2466, after reaching a fresh week high of $1.2673 on Friday afternoon.

GBP/USD graph

Why has GBP/USD fallen?

The move is down to dollar strength. The dollar has been climbing against all of its counterparts this morning as markets have anticipated the U.S. economy will see a rise in inflation following Trumps shock win in last weeks election.

What next for the pound?

The pound finally seems to have found some support after months of uncertainty following Britain's decision to leave the European Union.

Many within the market now believe that Trumps presidency could boost the UK's hand when negotiations begin with its European counterparts over the country's exit from the Union.

Attention is also being diverted to the upcoming elections in Italy, France and Germany, so for the time being at least, we could see the pound build on the gains it has made against the dollar and euro over the past few weeks.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the weeks or months 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

Click here to complete the contact form.

Why is the pound going up against the dollar?

What a forty-eight hours it has been for the GBP/USD cross. Sterling is surging across the board, with the pound currently sitting at a fresh five week high against the U.S. dollar.

For the best GBP/USD exchange rates click here.

The currency pair is currently trading at $1.2660, a level not witnessed since before the flash crash at the start of October. The gains the pound has made across the board over the past two days is nothing short of remarkable, especially when you consider the uncertainty that has been surrounding the UK and its exit from the European Union.

Since Wednesday morning the GBP/USD cross has risen over two per cent and now means purchasing $300,000 is over £5,000 cheaper than it was two days ago.

GBP/USD two day graph

Why has the pound risen? 

I haven't been able to say this for months, but it is actually down to sterling strength. As you all know the pound has taken a beating since the referendum result back in June, as investors have been betting against the pound and selling Sterling over the uncertainty of the long term future of the UK economy.

However, we are now starting to see those same investors reverse their positions against the pound and it is giving all sterling crosses a huge boost. The concerns over fallout from the U.S. presidential elections appear to be mounting and markets are also starting to focus on the upcoming European political events.

With attention being diverted from the UK and the pound, there is now a real possibility we will see the pound continue to rise over the next couple of weeks.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the weeks or months 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

 

Click here to complete the contact form.

Pound/dollar exchange rate climbs over a per cent.

Since my post this morning the pound has rising against a basket of currencies with the GBP/USD cross climbing over one per cent this afternoon.

For the best GBP/USD exchange rates click here

Over the past few hours the pound has been fighting back against the U.S. dollar, with the currency pair breaking the $1.25 barrier a short time ago.

So far today we have seen the GBP/USD cross jump from $1.2380 to its current level of $1.2520, and leaves the pound within touching distance of its highest level against the dollar since 6th October.

GBP/USD graph.

 

Why is the pounds value increasing?

As I mentioned earlier, the economic concerns over Trump becoming the next President of the United States could be a positive thing for the UK and the pound.

Trumps election could divert attention away from Britain and its upcoming exit from the European Union. With concerns now mounting over a potential shift towards further populist voting across Europe, it would seem investors have already started to turn back towards risker assets, and could be why the pound has surged this afternoon.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the weeks or months 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

 

Click here to complete the contact form

What next for GBP/USD exchange rates?

With markets still digesting Trumps surprise victory yesterday, the GBP/USD cross has edged lower during the first few hours of today's London trading session. So far the pound has lost around three quarters of cent against the dollar, with the currency pair slipping from $1.2453 to $1.2378 as you can see by the graph below.

To find out what GBP/USD rate I can offer, click here.

GBP/USD graph

Will the dollar continue to strengthen?

Potentially yes....Now that markets have had a chance to reflect on yesterday's election outcome, some forecasts are now suggesting the dollar will continue to strengthen over the next few months.

The dollar's value could increase because of a number of factors, rising inflation and a higher return on investments being one, while we have to remember that during uncertain time's traders and investors view the dollar as a safe-haven currency.

The dollar could also receive a boost if the U.S. Federal Reserve raise interest rates at their next meeting on the 14th December.

However, there are still concerns over the long term impact Trumps victory will have on the U.S. economy. Fears over some of Trumps policies could actually be a good thing for the pound, as it takes some of the focus away from the UK and its exit from the European Union.

The UK's vote to leave the EU has seen the pound decline across the board, and as it stands sterling is down around seventeen per cent against the dollar since June.

If markets take the view that Britain's exit is the start of global shift towards more right wing voting, then we could see the pound start to claw back some of the ground it has lost against it counterparts over the last five months.

Do you need to buy or sell dollars?

If you are looking to buy or sell dollars in the weeks or months 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

 

Click here to complete the contact form.

U.S. dollar recovering after Trumps shock win

This afternoon has seen the GBP/USD cross dip below $1.24 with the dollar still clawing back the ground it lost overnight.

To find out what exchange rate I can offer. Click here

Investors were caught short this morning after pricing in a Clinton victory and as a result the GBP/USD cross climbed to a high of $1.2545. However, with markets still unclear on the impact Trumps presidency will have on the currency, the dollar has begun to fight back and has left GBP/USD trading at $1.2380 at the time of writing.

GBP/USD graph

Trumps victory speech seems to have helped calm investors nerves, as he didn't mention about renegotiating or scraping the North America Free Trade Agreement (NAFTA) with Canada and Mexico or this highly controversial boarder wall.

What next?

It will take a few days for the drama of the election to pass and I am sure we will continue to see some heightened volatility for dollar crosses over the coming weeks and months.

Once traders and investors get over today's shock, their attention is sure to turn back to the U.S. Federal Reserve and their proposed interest hike in December. There had been concerns that if Trump won it could delay Janet Yellen & Co raising interest rates next month, and if that turns out to be true the dollar could quickly give up any gains that it makes.

 

Are you thinking of selling or buying dollars?

If you are looking to buy or sell dollars in the coming days or 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 wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

Click here to complete the contact form

How will Trumps victory effect the pound dollar exchange rate?

This morning has seen Donald Trump become the next President of the United States and so far the markets have not reacted in the way that I and many had expected.

For the best GBP/USD exchange rates click here.

While the world comes to terms with one of the biggest political upsets of all time the FX markets have been somewhat subdued but that could all change very quickly

So what has happened to the GBP/USD cross?

As the results of the election started to trickle in during the early part of the Asian trading session, the GBP/USD cross rose over two cents, hitting a high of $1.2545 as Trump took an early lead.

However, rather surprisingly the dollar then started to strengthen as it became clear Trump was going to win. At the moment the markets are still taking stock of what has happened this morning but it would seem investors are seeking the safety of the U.S. dollar in these uncertain times.

At the time of writing the GBP/USD cross has slipped back to $1.24, giving up most of the ground it made overnight.

GBP/USD graph

The theory the dollar would plummet in value if Trump was elected has so far been proved wrong, but as the dusts settles it will be interesting to see how the FX markets react to this morning surprise result.

Are you looking to buy or sell dollars?

If you are looking to buy or sell dollars in the coming days and are worried about the impact the election result could have on your transfer, contact me today for a free, no-obligation currency consultation.

As a specialist in currency exchange, I have a wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.

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

 

Click here for a free currency consultation.