Friday, 24 February 2017

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.

Thursday, 23 February 2017

GBP/USD exchange rate hits two week high


The GBP/USD cross rose to $1.2555 this afternoon, the highest we have seen the currency pair since the 9th February after the U.S. dollar lost ground against a basket of currencies.

For the best GBP/USD exchange rates click here.


After spending the majority of yesterday's trading session bouncing between $1.2470 and $1.2430 the pound has been able to take advantage of the weakening dollar, as you can see from the graph below.

GBP/USD graph




Why has the dollar weakened?


The dollar's value started to fall following the release of the Federal Reserve meeting minutes on Wednesday evening. Although the minutes stated a March interest rate hike is still on the cards, investors were left disappointed because of the lack of urgency shown from the voting members.

Markets had been hoping the minutes would provide a clear insight as to when the Federal Reserve would increase their benchmark rate and back up the recent hawkish comments from Fed Chair Janet Yellen. 

The dollar has also been hurt by the lack of progress from some President Trump proposed policies. Since his initial announcement, Trump has failed to provide any further information about his "phenomenal" tax reform, which has caused investors to hold back from heading into the U.S. dollar.

 

Do you need to buy or sell dollars?

 
If you are looking to buy or sell dollars in the weeks 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 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.





 

Wednesday, 22 February 2017

GBP/USD exchange rate falls ahead of Fed meeting minutes

Good afternoon,

After nudging over the $1.25 mark in the early hours of this morning, the GBP/USD has fallen around half a per cent to leave the currency pair trading back in the mid $1.24's.

 

For the best GBP/USD exchange rates click here


The dollar has been gaining momentum over the course of today as investors wait for this evenings release of the latest Federal Reserve meeting minutes, which should provide us with some clues over the pace of future interest rates, and the because of the growing political uncertainty in France.

GBP/USD graph




Several Fed officials have recently stated they could open to raising interest rates at the banks next meeting, which is set to take place on the 14th and 15th March.

Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker have both hinted at a potential rate increase next month, with Mester saying she would be comfortable hiking rates as long as the U.S. economy continued on its current path.

If tonight's meeting minutes back up the recent hawkish comments we could see the dollar gain even more ground against its counterparts.

As I mentioned above the U.S. dollar has also been benefitting from the political unrest in France.
The latest opinion polls have shown that anti-EU candidate Marnie Le Pen has moved ahead of her rivals Francois Fillion and Emmanuel Macron in the build up to the first round of elections.

Are you looking to buy or sell dollars?  

 
If you are looking to buy or sell dollars in the 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 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 clicking on the link below.

Click here to complete the contact form.








Tuesday, 21 February 2017

Pound to U.S dollar exchange rate forecast

Good afternoon,

Over the course of this morning we saw the pound give up the ground it made against the U.S. dollar throughout yesterday's trading session, with the GBP/USD cross falling over three quarters of a cent from $1.2480 to $1.2402.

For the best GBP/USD exchange rate click here.


The pound fell against the dollar as markets braced themselves for the Bank of England inflation report hearing, with Governor Mark Carney and a number of the Monetary Policy Committee (MPC) testifying in front of the Treasury Select Committee.

However, the dip for Sterling has been short-lived, as this afternoon has seen the GBP/USD cross recover, rising back above $1.2470.

GBP/USD graph




Will GBP/USD go up or down?


It is a question I have been asked repeatedly over the last few months and a lot will depend on how markets react to Theresa May triggering Article 50.

I have been hearing from multiple sources in recent weeks that the pound will drop drastically the moment the government invoke Article 50 and begin official divorce proceedings. Forecasts have ranged from a five to ten per cent drop in the value of the pound, which would force GBP/USD to a fresh three decade low.

However, in my opinion I don't think the pound will lose that kind of ground. We have known for months the government plan to trigger Article 50 by the end of March, and we also know Theresa May plans to give up the UK's access to the single market and push ahead with a "hard" Brexit.

I believe both of these scenarios have already been priced into the market, and unless we get some breaking news I actually think Article 50 will be a bit of a non-event.

We also have to remember President Trump. His recent comments and tweets, along with some of his recent policies have cast a cloud of uncertainty over the U.S and could prevent the dollar making any serious gains, despite the prospect of additional interest rates rises from the Federal Reserve.

The next few months are certainly going to be interesting and I will of course keep you updated with any news and views that could impact the value of the GBP/USD cross.

Do you need to buy or sell dollars?

 
If you are looking to buy or sell dollars in the weeks 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 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.



Monday, 20 February 2017

The pound rises against the dollar

The pound has gained over half a per cent against the U.S dollar over the course of the day, with the currency pair rising from $1.2410 to a high of $1.2480.

For the best GBP/USD exchange rates click here.


Sterling fell over 1.2 per cent against the dollar last week after a number of data releases suggested the UK economy is showing signs of slowing. Friday's retail figures showed that sales had unexpectedly fallen in January, with the Office for National Statistics confirming volumes had dropped by 0.3% last month, well under the 0.9% increase that had been predicted.

The retail figures followed a disappointing wage growth reading on Wednesday, and for the first time since the referendum result it looks as though we are starting to see the impact of Brexit.

GBP/USD chart.




However, despite its recent woes, the pound has regained some of the lost ground today as markets brace themselves for another week dominated by talk of Brexit.

The House of Lords are due to start debating the bill which will open the door for the government to trigger Article 50, and begin official talks for Britain to leave the European Union.

The opposition party are looking to make some amendments to the bill which will force the government to secure the rights of EU citizens currently living in the UK and provide regular updates about how the negotiations are progressing.

Do you need to buy or sell dollars?

 
If you are looking to buy or sell dollars in the weeks 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 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.

Wednesday, 15 February 2017

GBP/USD exchange rate falls again.

The pound has slipped further against the dollar since my post yesterday morning, with the currency pair now trading at $1.2419.

For the best GBP/USD exchange rates click here.


Following yesterday morning's we weaker than forecast UK inflation reading, the GBP/USD cross fell further in the afternoon after Fed Chair Janet Yellen hinted at a possible rate hike at one of the Federal Reserve's upcoming policy meetings.

While testifying in front of the Senate Banking Committee, Chair Yellen stated that it could soon be "appropriate" for the bank to raise interest rates, and delaying an increase would be "unwise" because it could lead to the Federal Reserve having to move too quickly later on, and could push the U.S. economy into a recession.

GBP/USD graph




This morning's UK economic data has also added to the pounds woes, with figures showing wage growth dipped in quarter four of 2016. Average weekly earnings rose 2.6% but missed economists' predictions of 2.8% and caused the GBP/USD cross to fall around 0.4%.

With wage growth falling and inflation rising, it could become a worrying time for consumers. If inflation moves higher than wage growth over the next few months, it will mean people will be worse off and could also lead to the pound losing more ground against its counterparts.

Do you need to buy or sell dollars?

 
If you are looking to buy or sell dollars in the weeks 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 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.



 

Tuesday, 14 February 2017

UK inflation figure causes the pound to fall.

The GBP/USD cross climbed to $1.2547 in the early hours of this morning, as markets reacted to the news the President Trumps national security advisor had resigned following his dealings with Russia.

The dollar had also been edging lower as investors wait to hear from Fed Chair Janet Yellen this afternoon, when she testifies in front of the Senate Banking Committee for the Semi-annual Monetary Policy Report.

 

For the best GBP/USD exchange rate click here.


Markets will be listening for clues about the Fed's plans for future rate hikes. After stating the U.S. central bank will look to raise interest rates three times this year, there are concerns that Trumps policies could prevent the Fed from taking action as quickly as everyone had hoped, which if happens could start to see the dollar give up some ground.

However, the gains the pound made this morning have been completely wiped out following the release of the latest UK inflation reading.

 

GBP/USD chart




Figures released by the Office for National Statistics showed that inflation rose from 1.6% in December to 1.8% in January, but fell short of the expected 1.9%.

The news caused the pound to fall across the board, with the GBP/USD cross dropping over 0.5% to leave the currency pair trading at $1.2465, as the lower inflation number could prevent 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 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 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.