Tuesday, 23 May 2017

Pound dollar update and forecasts

Following last night's tragic events in Manchester, the pound dropped around half a cent against the dollar and opened this mornings London session at $1.2959.

The pound also suffered after concerns over the Conservatives Party's campaign for Junes election began to mount.

For the best dollar exchange rates click here.


Weekend polls showed that Labour are beginning to gain ground against the Conservatives, halving Theresa Mays lead. With the polls narrowing Theresa May has been forced to backtrack on one of her main pledges (increasing the amount the elderly pay for social care) as it was seen as alienating a key section of Conservative voters.

GBP/USD graph





However, this afternoon saw the pound recover the lost ground, with the GBP/USD cross rising over half a per cent, to hit a session high of $1.3030.

What can we expect over the next couple of week's.


With the political uncertainty in the States, the upcoming UK elections and Brexit negotiations we could be set for a volatile few weeks for the pound and dollar.

The GBP/USD cross seems to have settled around the $1.30 mark, but if the dollar continues to suffer at the hands of Donald Trump and the Federal Reserve decided against another rate hike next month, then the currency pair could rise another couple of per cent, pushing rates up towards $1.33.

On the other hand, if Labour continue to fight back in the polls and the Brexit negotiations don't go smoothly, we could easily see GBP/USD slip back towards $1.25.

Are you looking to buy dollars?


If you have an upcoming requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, contact us today for a free consultation.

As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.


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Monday, 22 May 2017

GBP/USD still above $1.30....Will it last?

The pound has risen over half a cent against the dollar today, pushing the currency pair back above $1.30. The GBP/USD cross hit an intraday high of $1.3040 before slipping back, as you can see from the graph below.

GBP/USD graph




Over the past week the dollar has lost ground against most of the other major currencies, largely down to the political turmoil currently surrounding President Donald Trump. Despite the possibility of another interest rate hike from the U.S. Federal Reserve next month, the dollar is struggling to find any real momentum, and this has been highlighted in the gains we have seen for the GBP/USD cross.

For the best dollar exchange rates click here.


Since the middle of March the pound has risen around 7.5% against the dollar, leaving the cross close to the highest levels we have seen since the 22nd September 2016.

Investors and market players are growing increasingly concerned about Trump following last weeks leaked memo and talk of the President discussing classified information with the Russian foreign minister. There has been mounting speculation about impeachment and if that kind of talk continues then the dollar is likely to remain under pressure for the foreseeable future.

The dollar has given up all of the gains it made following Trumps election victory, and even the uncertainty over the upcoming Brexit negotiations are having little impact on value of the GBP/USD cross.

However, that's not to say the pound will continue to rise over the next few months. Over the past week sterling has lost ground against nearly all of the other majors, so it is safe to say the recent revival is mainly down to dollar weakness rather than sterling strength.

Should I buy dollars now?


If you are thinking of buying dollars in the coming weeks, I think it is worth taking advantage of the recent and unexpected gains. Converting £200,000 into dollars today, will achieve you around $18,000 more than it did two months ago, and if the Brexit negotiations suddenly have an impact we could easily see GBP/USD drop back down to $1.25.

 

Contact me today if you are looking to buy dollars.


If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for nearly eight months, contact me today for a free consultation.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.

This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.


Click here to complete the contact form.

 

Thursday, 18 May 2017

GBP/USD finally breaks $1.30....Will it keep going?

In the last few minutes the GBP/USD cross has broken through the $1.30 barrier for the first time since 22nd September, with the currency pair currently sitting at $1.3043.


For the best dollar exchange rate click here.


The pound has risen across the board this morning after the latest UK retail sales figures came in much higher than forecast.

Markets were expecting an improvement after last month's reading came in at -1.8%, with forecasts suggesting sales will increase by 1.2%. However, the actual retail sales reading (produced by the Office for National Statistics) smashed the predictions, coming in at a whopping 2.3%.

As you can see from the graph below, the data which was released at 0930 BST has given the pound an immediate boost and will come as welcome news for dollar buyers, who have endured a torrid time since the referendum result in June.

GBP/USD graph




This latest move adds to the gains we have seen for the GBP/USD cross, and since mid-March the currency pair has now risen almost 7.5%.

We will have to see if the pound can hold onto the gains this morning, as often a sudden spike can lead to some profit taking by investors. But if the dollar continues to lose ground at the hands of Donald Trump and the UK economy keeps producing positive economic data we could see the GBP/USD cross keep rising now that it has broken through the latest level of resistance.

Contact me today if you are looking to buy dollars.


If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for nearly eight months, contact me today for a free consultation.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.

This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange. 

 

Click here to compete the contact.

Wednesday, 17 May 2017

Dollar hit after memo leak.


The U.S. dollar lost ground against a basket of currencies today, as once again President Trump hit the headlines for all the wrong reasons.

For the best dollar exchange rates click here.


It has been a week to forget for Donald Trump. Following the sacking of FBI director James Comey and reports of the President disclosing sensitive information to the Russian foreign minister, markets were rocked again today by news of leaked memo from the former FBI director.

The memo stated that Trump had asked Mr Comey to end the FBI's investigation into ties between Russia and the former National Security Advisor Michael Flynn during a meeting in February.

As the media broke the news the dollar immediately lost ground, with safe-haven currencies like the Japanese Yen and Swiss Franc rising in value.

The pound was also able to take advantage of a weakening dollar, with the GBP/USD cross rising to $1.29855 the highest we have seen the pair since the 28th September.

GBP/USD graph




This latest scandal (although not proved), has increased speculation that Trump could be facing impeachment, with certain circles now saying it is unlikely the President will see out his first term.

The U.S. dollar has now given up all of the gains it made following Trumps election, and represents an excellent opportunity for those of you looking at buying the greenback.


Are you looking to buy dollars?


If you have an upcoming requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, contact us today for a free consultation.

As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.


Click here to complete the contact form.



Tuesday, 16 May 2017

Pound/dollar exchange rate update

It has been a mixed day for the GBP/USD cross, with the currency pair bouncing between $1.2950 and $1.2870.

For the best dollar exchange rates click here.


This morning saw the pound take full advantage of the latest news surrounding President Donald Trump, with the GBP/USD cross rising around half a per cent.

GBP/USD graph




Media reports stated that President Trump had disclosed sensitive data during a meeting with the Russian foreign minister last week, something the White House quickly dubbed as fake news.

Fears within the market are starting to mount that Trump may not see out his first term, and it is starting to impact the value of the dollar.

Since Trump won the election in November the dollar's value has soared, after he promised to boost economic growth and cut taxes. However, since taking office Trump has been unable to deliver any of his major campaign promises, and if he continues to make the headlines for the wrong reasons we could easily see the dollar give up even more ground.

Inflation hurting the pound


As you can see from the graph above, the pound suffered a sudden drop this morning after the latest UK inflation figures were released.

Figures produced by the Office for National Statistics showed inflation had risen to 2.7%, up from 2.3% last month.

A rising inflation reading would usually help strengthen a currency, but with the Bank of England set to let inflation continue to sit above their 2% target, and an interest rate hike unlikely to come during the Brexit negotiations, the pound fell against a basket of currencies.

Contact me today if you are looking to buy dollars.


If you have an upcoming requirement to buy dollars and want to take advantage of the best exchange rate for seven months, contact me today for a free consultation.

A popular tool for clients with an upcoming transfer is a ‘Forward Contract’. This allows you to secure the current exchange rate for up to 2 years, by lodging 10% of the total you need to convert.

This protects you against the rate moving against you, and also allows you to budget effectively.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

Click here to complete the contact form.

Monday, 15 May 2017

GBP/USD exchange rate rises again.


It has been a positive day for the GBP/USD cross, with the rate of exchange climbing back above $1.29, hitting an intraday high of $1.2939.

For the best dollar exchange rates click


For once the move was not down to a political statement or a single piece of economic data, but what seems like a shift in confidence.

GBP/USD graph



The pound benefitted from figures that showed investors and market players had reduced their bets against the currency by the most in over a year.

Since the result of Junes referendum there has been a grey cloud hanging over the pound, as concerns rose over how the UK economy will be effected after the country's exit from the European Union.

However, with the economy still showing its resilient side and Theresa May's decision to hold a general election on the 8th June, the storm now seems to be passing and the pound is suddenly back in favour.

Do you need to buy or sell dollars?

If you have an upcoming requirement to buy or sell dollars in the coming weeks or months and want to ensure you are making the most from your transfer, contact us today for a free consultation.

As specialists in currency exchange we have a range of tools available to help protect you against adverse market movements, or target a rate that might not be currently available.

We also offer significantly better exchange rates than high street banks offer, meaning you could save thousands on your currency exchange.

Click here to complete the contact form.



Thursday, 11 May 2017

GBP/USD exchange rate falls around a cent.

The pound has lost ground this afternoon, with the GBP/USD cross falling around a cent after the latest Bank of England (BoE) interest rate decision and inflation report.

 

For the best GBP/USD exchange rate click here.


The currency pair opened today's session around $1.2950 but shortly after the announcement from the UK's central bank sterling/dollar hit an intraday low of $1.2852.

GBP/USD graph




Why did the pound weaken?


As expected Governor Mark Carney and the Monetary Policy Committee kept interest rates on hold at 0.25%.

However, Mr Carney remained cautious by stating we could see a squeeze on consumer spending over the course of 2017 because of inflation rising and wages falling.

He said, this year will be "a challenging time for UK households" and that "wages will not keep up with rising prices".

Those comments won't have helped the pound, but it was the fact the Bank of England cut its economic growth forecast for 2017 from 2% to 1.9% that dented the pounds value.

Are you looking to buy or sell dollars?


If you have a requirement to buy or sell dollars in the coming 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 you maximise your return or protect you against adverse market movements.
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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