GBP/USD exchange rate breaks $1.27 again.

This morning saw the GBP/USD exchange rate climb back over $1.27, hitting a high of $1.2722 just before 10am (GMT).

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The move so far today means the currency pair has now risen over one per cent since yesterday morning, and with the Federal Reserve interest rate decision due tomorrow, it will be interesting to see if the pound can hold onto the gains.

GBP/USD graph

 

Why has the GBP/USD cross risen?

The pound has been edging up against the U.S. dollar today after Chancellor Phillip Hammond stated last night that he supported the idea of a staggered transition period for the UK's exit from the European Union.

As well as backing the staggered approach he also mentioned the remaining EU countries would benefit from Britain's gradual withdrawal, raising investor's hopes the government will opt for a "soft Brexit" in order to maintain the UK's access to the single market.

What will the Federal Reserve do?

Much of the focus will be on the Federal Reserve and Chair Janet Yellen over the next couple of days. As I have mentioned before, the Fed are set to announce their latest interest rate decision tomorrow evening, and although the markets rate the chances of a rate hike at 100%, I still think we could see some movement for dollar crosses tomorrow.

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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 edging higher against the dollar.

The pound has edged up against the dollar this morning, with the GBP/USD cross rising from $1.2568 to its current level of $1.2612, putting a temporary stop to the decline we witnessed last week.

Looking for the best GBP/USD exchange rates? Click here.

Friday saw the pound end last week around 1.5 per cent down against the dollar, with the currency pair falling from $1.2761 to $1.2572, sterling's worst performance for nearly a month.

GBP/USD graph

Busy week for the central banks.

This week could be another volatile one for the pound and dollar, with key announcements coming the Federal Reserve and the Bank of England.

On Wednesday the Federal Reserve will deliver its latest interest rate decision and although the markets have already priced in a rate hike from the Fed, we could easily see some movement in the value of dollar if Chair Janet Yellen decides to take some action.

With the Bank of England likely to loosen monetary policy next year to help boost the UK economy, and the European Central Bank extending their stimulus programme last week, I wouldn't be surprised to see the dollar rise as investors opt for the safety of the greenback and a higher return on their investments.

Investors will also be keeping a close eye on the Bank of England meeting on Thursday. Although the BoE are unlikely to make any changes to its benchmark interest or its quantitative easing programme, we could see some movement for sterling crosses as markets digest Governor Carney's comments about the future of the UK economy.

 

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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.

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Why has the U.S. dollar strengthened?

The dollar has been gaining across the board since my post yesterday morning, after the European Central Bank (ECB) announced they will be extending their stimulus programme through to December 2017.

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On the back of the announcement investors have been flocking back to the safety of the U.S. dollar and as a result the GBP/USD cross fell over 1.2 per cent yesterday afternoon, with the currency pair dropping from $1.2701 to $1.2551.

GBP/USD graph.

However, the GBP/USD cross has rebounded slightly this morning after figures confirmed the UK's trade deficit narrowed more than expected for the month of October. The better than expected reading has helped GBP/USD rise back above $1.26 and at the time of writing is trading at $1.2610.

Focus on the Federal Reserve.

Next week will see the U.S. Federal Reserve announce their latest interest rate decision, with markets anticipating a rate hike for the first time since December 2015.

Although many believe the rate hike has already been priced into the price of the dollar, I personally believe that if Janet Yellen increases the central banks benchmark rate we will see the dollar gain against its counterparts on Wednesday evening.

With the uncertainty of the UK's exit from the European Union and the economic issues surrounding the Eurozone, investors will jump at the chance of a higher return and I can easily see GBP/USD losing another one or two per cent on the back of the news.

If that were to happen the GBP/USD cross could be trading back in the $1.23's by the middle of next week.

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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.

GBP/USD exchange rate climbing again.

The pound has started to recover some of the ground it lost against the dollar, with the GBP/USD cross rising around a cent since yesterday afternoon.

 

Looking for the best GBP/USD exchange rate? Click here.  

Sterling dropped across the board yesterday after parliament agreed to keep to Theresa May's Brexit timetable and weaker than forecast UK industrial production figures. However, after falling back to $1.2572 the GBP/USD cross is in touching distance of breaking the $1.27 barrier once again, with the pair currently trading at $1.2690.

GBP/USD graph.

Despite losing ground yesterday, the pound is still around 4.5 per cent up against the dollar since the beginning of November. With the Supreme Court ruling set for the start of 2017 and the UK government still to trigger Article 50, I am sure the pound will come back under pressure before to long, and could easily see sterling give up the gains it has made over the past six weeks.

Looking at the gains in monetary terms, converting £300,000 today will see you receive around $16,000 more compared to the same trade on the 1st November, and in my opinion represents an excellent opportunity for those of you looking at purchasing dollars in the next few weeks.

How can I take advantage of the recent gains?

You can secure a rate of exchange today for a transaction that will take place up to two years into the future by using a forward contract.

A forward contract is a great way of protecting yourself against adverse market movements and is extremely useful for managing your budget. It allows you to secure the exact value of the currency to be paid, removing the uncertainty of the currency markets.

You can secure the forward contract exchange rate with a margin payment of 10% of the total value to your transaction, and then pay the remaining 90% at anytime before the contract expires.

For more information on forward contracts click here.

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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 dropping against the U.S. dollar?

The pound has taken a hit over the past twenty-four hours with the GBP/USD exchange rate falling nearly two cents since my post yesterday morning.

Looking for the best GBP/USD exchange rate?

In my last post I mentioned the pound was sitting at a fresh two month high against the dollar, hitting $1.2771. However, as we all know the currency markets can change in a blink of eye, and this morning the GBP/USD cross has fallen back below $1.26 and is currently trading at $1.2588.

GBP/USD graph

Why is the pound falling?

After climbing steadily over the past few weeks, the pounds value has dropped after talk of Brexit once again hit the headlines.

The pound started losing ground yesterday afternoon as news broke the UK government had requested that parliament respect their timetable for leaving the European union, reducing investors' expectations that the UK's exit from the bloc could be delayed.

The government announced they had accepted a call from the Labour party to outline their exit plan before official negotiations get underway, although did state that parliament will need to get behind Theresa May's plan to trigger Article 50 early next year, and also accept the result the referendum held back in June.

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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.

The pound is still rising against the U.S. dollar

The pound has continued to climb against the dollar over the past couple of days, adding to the gains we witnessed at the back end of last week.

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This morning saw the GBP/USD cross rise to a fresh two month high, with the currency pair hitting $1.2771, a level we have not seen since the beginning of October.

GBP/USD graph.

Why is the pound rising against the dollar?

With little data coming out to support either currency, the reason behind the move can only be put down to investor confidence.

Over the past few months the dollar has gained massively because of its status as a safe-haven currency, and on expectations the Federal Reserve will raise interest rates before the end of the year.

The UK's exit from the European Union and the Eurozone's long term economic future have all played a major part in the dollar's rise. However, with the UK economy still exceeding expectations, and the chances of a hard Brexit beginning to fade, traders and investors are beginning to move back towards riskier assets such as the pound and euro.

There was evidence of this yesterday following the result of the Italian constitutional referendum, which was held on Sunday. Despite Prime Minister Matteo Renzi losing the vote and the prospect of an early election in 2017, many analysts and investors are taking the view a temporary government will be put in place until the official election in 2018.

Since the Italian referendum result the dollar has lost over one per against the pound and over two per cent against the euro. With rumours a rate hike from the Federal Reserve is already priced into the market, there could be further scope for the GBP/USD cross to rise even higher over the next couple of weeks.

 

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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.

GBP/USD exchange rate continues to rise.

The pound benefitted from yesterday's Italian referendum with the GBP/USD cross rising to a high of $1.2738 this morning, the first time the currency pair has broken the $1.27 barrier since the 6th October.

With investors focusing on the troubles and uncertainty over in the Eurozone rather than the UK's exit from the European Union, the pound has been unable to take full advantage, climbing around five per cent against the dollar since the beginning of November.

For the best GBP/USD exchange rate click here.

If we look at the move in monetary terms, purchasing $300,000 this morning now costs over £11,000 less than it did five weeks ago, and represents an excellent opportunity for those of you looking to buy dollars in the coming weeks.

GBP/USD graph.

Should I wait to see if the pound climbs even further?

Waiting and hoping the rate improves can be a dangerous game to play, especially when you consider what is just around the corner.

Next week the U.S. Federal Reserve will announce their latest interest rate decision and at the moment it looks very likely the FOMC will hike rates for the first time since December 2015. Many with in market are expecting an increase and a rise has probably been largely priced into the value of the dollar already.

However, if Fed Chair Janet Yellen confirms a rate hike next Wednesday, I still think the dollar will benefit and we could easily see a per cent or so wiped off the value of the GBP/USD cross.

We also have to remember the UK government still need to trigger Article 50 to begin official divorce proceedings with the EU. Although Brexit talk has taken a back seat over the past few weeks I have no doubts the pound will come back under pressure when talks get underway.

 

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and want to make sure 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.