GBP/USD exhange rate remains flat

Since my last post the GBP/USD exchange has remained relatively flat, with the currency pair still trading in the $1.23's.

 

For the best GBP/USD exchange rate click here.

Over the past twenty-four hours the pound has been trading between $1.2320 and $1.2390, as you can see from the graph below.

GBP/USD graph

Thin pre-Christmas trade and the lack of any major economic announcements, the trend we have witnessed over the past couple of sessions looks likely to continue for the rest of the week.

With little to report I thought I would take the opportunity to remind you of the different ways you can purchase you currency.

Ways to buy currency

The Spot Contract is the quickest, easiest and most popular way to buy currency. You simply buy or sell one currency in exchange for another, whenever you need it. You have two days to send us the money and as soon as your funds are cleared, we will forward the currency to the account of your choice.     

The Forward Contract can help you take advantage of current exchange rates. You can fix the price now for a transaction that will take place up to two years in the future. You secure the Forward Contract with a deposit 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.              

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 level and you'll get the rate you wanted. This type of contract is particularly useful when the markets are moving in a positive direction for you.          

A Stop Loss Order will instruct your broker to buy if the currency goes down to a pre-determined level. When combined with a Limit Order you can hold out for a better exchange rate and still protect yourself from a sudden fall in the market.

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.

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 rates hold around $1.23

The GBP/USD exchange rate has been sitting in the $1.23's for the past twenty-fours hours, with the currency pair bouncing between $1.2320 and $1.2380.

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

Although this morning's UK Public Sector Net Borrowing figures confirmed that government borrowing had fallen last month to £12.6 billion, the reading published by the Office for National Statistics did little to impact the value of the pound.

Why is the pound falling?

The last week has seen the pound lose around three per cent against the dollar, with the exchange rate dropping from $1.2725 to its current level of $1.2360.

GBP/USD one week graph

This has been largely down to the Federal Reserve (Fed) increasing interest rates last week, and announcing a possible three additional rate hikes next year. Markets had only been anticipating two hikes in 2017, so the Feds decision to announce of three has seen the dollar rise across the board.

Sterling has also been effected by continued talk of Brexit, with traders and investors still concerned about the long term economic impact and what type of approach Prime Minister Theresa May will take when negotiations finally get underway.

 

Will the pound rise next year?

At the moment I think it will be difficult for the pound to make any serious ground against the dollar while the uncertainty of Brexit is still hanging over the UK.

If the government opt for a softer approach to negotiations and the Supreme Court rule that parliament must have say in the exit strategy, then we could see some confidence return to the pound. However, a "Hard Brexit" could easily see investors start selling off the pound, which in turn could see the GBP/USD cross test the $1.20 levels we witnessed at the start of October.

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.

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 still losing ground

The GBP/USD cross has edged lower this morning as the uncertainty over the UK's exit from the European Union continues to weigh down the value of the pound.

For the best GBP/USD exchange rate click here.

After dropping over one per cent during yesterday's trading session, the pound has dipped again and has left GBP/USD trading at $1.2350 at the time of writing.

GBP/USD two day chart

This afternoon could see the pound come under even more pressure as markets wait to hear from Prime Minister Theresa May and Scottish First Minister Nicola Sturgeon.

With May set to face questions by a parliamentary committee at 2pm (GMT) and Sturgeon set to lay out her plans for Scotland to maintain ties with the EU after Brexit, traders and investors will be listening closely for clues on how the government plan to tackle negotiations with their European counterparts.

If May hints at a harder approach towards leaving the EU, then it is likely we will see the pound lose ground across the board and could push GBP/USD back into the $1.22's for the first time since 2nd November.

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.

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 falls to one month low.

Today has seen the GBP/USD exchange rate fall one per cent, as Brexit once again hit the headlines and caused the pound to fall across the board.

Looking for the best GBP/USD exchange rate? click here

After opening this morning's London session at $1.25, the pound slipped to a one month low of $1.2375 against the dollar, as uncertainty mounted over how the UK will assist businesses during the country's exit from the European Union.

GBP/USD graph

Speaking on Sunday, Trade minister Liam Fox hinted that the UK will probably need a transitional agreement in order to help firms during negotiations with the Union. However he did state Britain should avoid buying back into many of the EU's regulations.

Investors also seem to have reacted to a report published by the Financial Times yesterday, which mentioned that the EU negotiators are insisting the UK agree to its divorce settlement before any deal is offered by Brussels.

What next for GBP/USD?

The move we have witnessed today means the GBP/USD cross has now fallen nearly three per cent since Wednesday evening, which in monetary terms means converting £300,000 into dollars now returns around $11,500 less than it did last week.

With the pound likely to come under even more pressure in the coming weeks we could see things get even worse for the GBP/USD cross.

The Supreme Court ruling and the UK Government triggering Article 50, are both likely to add to the pounds woes as uncertainty increases, and I wouldn't be surprised to see GBP/USD test the $1.20 before too long.

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.

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 morning update

After all of the excitement of the Federal Reserve raising interest rates on Wednesday and the U.S dollar surging throughout yesterday, this morning has been a lot quieter, with the GBP/USD cross trading within a 30 pip range.

Would you like to know what exchange rate I can offer? Click here.

So far this morning GBP/USD has been bouncing between $1.2420 and $1.2450 and with little economic data due out today, we could see the currency pair continue on its current path.

 

GBP/USD morning chart.

At one point yesterday the GBP/USD cross was down almost three per cent from Wednesday mornings week high of $1.2725, reaching a low $1.2379. Despite the pound clawing back a small amount of ground this morning, the move we have witnessed over the course of this week has made a huge amount of difference to any potential transfer.

If we look at the move in monetary terms, converting £300,000 into dollars today will see you receive around $9,000 less compared to the same trade on Wednesday morning. The move once again highlights how quickly things can change in the currency market and proves how important it is to have a specialist currency broker like myself on your side.

As well as being able to achieve you a better rate than those offered by the high-street banks or other financial institutions, I can also help you with the timing of your transfer or protect you against adverse market movements.

 

Are you thinking of buying or selling 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.

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 falls after Federal Reserve rate hike

The GBP/USD cross has fallen over 1.5 per cent since yesterday evening after the U.S. Federal Reserve announced an increase to its benchmark interest rate of 25 basis points.

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

Although the hike was largely priced into the market, it didn't stop the U.S. dollar gaining across the board last night, with the GBP/USD dipping from $1.2725 to $1.2520 this morning.

GBP/USD graph.

The dollar was also helped by comments from Fed Chair Janet Yellen, after she hinted the U.S. central bank could look at multiple rate hikes in 2017.

The announcement that interest rates were likely to rise another three times next year came as welcome news to investors, and immediately saw an increase in flows to the U.S, helping to drive up the value of the dollar.

Yesterday's Fed meeting was their first since Donald Trump won the U.S. presidential election, and with markets anticipating him to boost the U.S. economy by cutting taxes, deregulation and spending the Fed have decided now is the time to take some action.

Are you thinking of buying or selling 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 falls despite postive job numbers.

After starting the day trading around $1.2650, the pound received a small boost this morning after figures confirmed the UK's jobless rate had fallen yet again.

For the best GBP/USD exchange rate click here.

The news allowed the GBP/USD cross to climb to $1.2682, however the gains have been short-lived as markets await the result the Federal Reserve announcement this evening, and at the time of writing GBP/USD is trading back $1.2630.

GBP/USD graph

Unemployment still falling.

Figures produced by the Office for National Statistics this morning confirmed that UK unemployment had dropped by 16,000 to 1.62 million for the three months to October, while the unemployment rate remained unchanged at 4.8 per cent.

Average earnings, which excludes bonuses increased by 2.6 per cent in the year to October, beating forecasts and is slightly higher than last month's reading.

This morning's news is another positive for the UK economy, although it is widely anticipated the unemployment rate will increase next year as British companies will hold off from hiring while the uncertainty of Brexit hangs over the country.

 

Federal Reserve set for hike.

This evening will see the Federal Reserve announce its latest interest rate decision, with investors banking on Janet Yellen & Co raising the benchmark rate for the first time since December 2015.

With markets pricing in a 100 per cent change of a rate hike this evening, all eyes and ears will be on the announcement and the subsequent FOMC statement for clues about future hikes through 2017.

When the Fed raised rates last year they said there would be another four hikes throughout 2016, those hikes never materialised and I don't think Fed Chair Yellen will want to make the same promises this time round.

If Yellen takes a dovish stance about the Feds actions for next year we could see the dollar weaken, which in turn will push GBP/USD up. However, if she does announces plans for multiple rate rises in the New Year we could see the dollar strengthen across the board, forcing GBP/USD down in the process.

Are you thinking of buying or selling 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.

To complete the contact form click here.