GBP/USD exchange rate hits a fresh seven week low

The pound has lost more ground against the U.S dollar over the course of today, with the currency pair falling to another fresh seven week low of $1.2141. 

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

As you can see from the graph below, Chancellor Philip Hammond's 2017 budget did provide the pound with a small amount of support early this afternoon, however, the gains were quickly wiped out after the U.S. posted a huge employment change figure, which helped strengthen the dollar.

GBP/USD graph

Despite Philip Hammond increasing growth forecasts for the current year and reducing the predicted rates of public debt from his November forecasts, it was not enough to help pound as Brexit and the potential interest rate hike from the Federal Reserve continue to weigh heavily on the GBP/USD cross.

Rate hike on the cards

This afternoon's U.S. employment change report has also helped cement investors' hopes the Federal Reserve will increase interest rates at their meeting next week. If Friday's non-farm payroll jobs figure backs up today's employment reading it should all but guarantee the U.S. central bank will take some action next Wednesday.

If that is the case it leave the door open for the dollar to make further gains against the pound and it is just possible it could force GBP/USD towards $1.20.

Do you need to buy or sell dollars?

 If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on 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.

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GBP/USD exchange rate drops under $1.22

Today has seen the pound lose more ground against the U.S. dollar as investor continue to bank on the Federal Reserve increasing their benchmark interest rate next week.

As a result of the dollar strengthening the GBP/USD cross dipped to a low of $1.2171 this afternoon, the lowest we have seen the currency pair since the 17th January.

For the best GBP/USD exchange rates click here.

With today's drop, it means pound/dollar has fallen over three per cent in the past two weeks. Which if we look at in monetary terms, means a transfer of £300,000 into USD today, would achieve around $12,000 less than it did on the 24th February.

GBP/USD graph

When will the pound recover?

It is impossible to say at the moment as we are still in uncharted waters. Even without the prospect of another rate hike from the Federal Reserve, the GBP/USD cross would still be suffering.

Brexit continues to weigh heavily on the value of the pound and until the markets receive some sort of clarity it will be difficult to see the pound clawing back the ground it has lost.

We are still waiting for Article 50 to be triggered, but even once Theresa May gives the go-ahead to leave the EU, we are going to enter into a two year negotiation period and that is also going to cause a huge amount of uncertainty for investors.

 

Do you need to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on 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.

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GBP/USD exchange rate falls again

The GBP/USD cross has fallen even further today, with the currency pair dropping to $1.2230 this afternoon. After rising to $1.23 during the early hours of this morning's trading session, the pound/dollar exchange has lost over half a per cent throughout today's London session as you can see from the graph below.

For the best GBP/USD exchange rates click here.

GBP/USD daily graph

Why has the GBP/USD lost ground?

Today's move has been largely down to the U.S. dollar strengthening. Investors seem to be banking on the Federal Reserve increasing interest rates next week, while the dollar has also gained momentum due to the developments in the French elections.

During times of uncertainty the U.S. dollar is often seen as a safe-haven for investors and that is exactly what we have seen today. Former French Prime Minister Alain Juppe, today ruled out running in the upcoming elections, which has been seen as boosting the stock of anti-EU candidate Marine Le Pen.

A poll released last week showed that if Alain Juppe replaced Francois Fillon, he would win the first round of elections with Emmanuel Macron coming in second, ending Le Pen's chances of making it through to the next round.

However, today's developments have ended that theory and following Brexit and Donald Trump, investors are acting on the side of caution and have headed to the safety of the dollar.

Are you looking to buy or sell dollars?  

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit, the Federal Reserve rate hike or the French elections could have on 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.

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Pound/dollar exchange rate falls to six week low

Today has seen the pound fall to a fresh six week low against the U.S. dollar, with the currency pair hitting a low of $1.2260 this afternoon.

The decline means the GBP/USD cross has dropped almost 2.5 per cent in the last week, as the pound continues to be weighed down by talk of Brexit, while the dollar is strengthening as investors focus on the potential interest rate hike in the U.S.

 

For the best GBP/USD exchange rates click here.

Although the drop is not ideal for those of you looking at purchasing U.S. dollars, it will come as welcome news for those who are looking to sell and move your funds back into sterling.

If we look at the move in monetary terms, converting $300,000 back into pounds will today achieve you around £6000.00 more than it did on the 24th February.

GBP/USD one week graph

Why is the pound falling?

As I mentioned above, talk of Brexit is still dragging the pound down. With so much uncertainty surrounding Article 50, the two year negotiation period and the future of the UK economy, investors are wary about moving funds into the country.

Data is also starting to suggest the UK economy is slowing. Since the referendum result Britain's economy has been showing its resilient side. However, following a raft of weaker eco-stats over the past couple of weeks, there are signs consumers and businesses are becoming increasing concerned.

When you add into the mix a potential rate hike for the Federal Reserve this month (which is likely to increase the dollar's value further), we easily see the GBP/USD cross test the $1.20 barrier in the coming weeks.

 

Are you looking to buy or sell dollars?

If you have a requirement to buy or sell dollars in the weeks or months and are worried about the impact Brexit or the Federal Reserve rate hike could have on 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 complete the contact form.

 

 

GBP/USD exchange rate dips as the dollar surges.

Sterling has fallen almost a cent and a half against the U.S. dollar since yesterday afternoon, with the currency pair falling from $1.2475 to $1.2330.

For the best GBP/USD exchange rate click here.

The move means the GBP/USD cross has fallen to its lowest level since the 20th January this morning, after the dollar gained ground across the board.

GBP/USD graph

Why has the dollar strengthened?

There are two reasons behind the dollar's rise. Firstly, President Trump surprised markets yesterday evening when he gave his first major speech in front of Congress.

Trump stated that he was open to an immigration reform, which would seem him move away from his harsh stance on illegal immigration, something that has dominated the news since he got into office.

The dollar then received another boost this morning after two of the Federal Reserve's policymakers hinted another rate hike is on the horizon.

President of the San Francisco Fed, John William said that a rate rise was on the table for consideration at the central banks meeting in March because of accelerating inflation and full employment.

William Dudley, New York Fed President was also in a hawkish mood, saying the case for tightening monetary policy "has become a lot more compelling".

Will GBP/USD recover?

It is almost impossible to say at the moment. If the Fed do increase interest rates in a couple of week's time it is likely the dollar will gain even more ground against its counterparts.

We are also getting closer to the UK government triggering Article 50. With investors still uncertain about the impact leaving the EU will have on Britain's economy, plus Nicola Sturgeon planning a second Scottish independent vote, the pound looks set to remain under pressure in the coming weeks.

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.

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 complete the contact form,   

GBP/USD exchange rate recovers lost ground

Over the course of today we have seen a 0.65% swing for the GBP/USD cross. During the early hours of the Asian trading session the U.S. dollar started to gain across the board as investors positioned themselves ahead of President Trumps first major policy address in front of Congress on Tuesday.

For the best GBP/USD exchange rates click here.

Markets had hoped Trump would take the opportunity to provide some details of his proposed "tax reform" and fiscal spending, and as we approached the opening of the London session the GBP/USD fell back to $1.2388, the lowest we have seen the currency pair since the 7th February.

However, the dollar has been unable to hold on the gains that it made this morning and at the time of writing the pound/dollar exchange rate has risen back towards $1.2470, as you can see from the graph below.

GBP/USD

Despite Treasury Secretary Steven Mnuchin stating yesterday that Trump would use his speech to preview some of his plans, the dollar started to lose ground as investors became concerned that Trump might not provide the finer details of his economic plan. 

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 clicking on the link below.

Click here to complete the contact form.

GBP/USD exchange rate update.

After climbing to a fresh one week high of $1.2569 this morning, the GBP/USD has dipped over the course of the afternoon with the currency pair now trading at $1.2488.

As you can see from the graph below the pound lost around half a cent against the U.S dollar within a couple of minutes. With no major data releases coming from the UK or U.S or any political announcements, it would seem the decline was sparked by investors profit taking ahead of the weekend.

For the best GBP/USD exchange rate click here.

However, despite the drop the GBP/USD cross is still on course to finish the week around a cent higher from Monday's open.

GBP/USD

Apart from this afternoon's dip there has been very little to report, so not wanting to sound like a broken record by talking about Brexit, Trump and the political uncertainty around Europe, I thought I would take the opportunity to explain the different ways you can purchase your 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 clicking on the link below.

Click here to complete the contact form.