Wednesday, 21 June 2017

The pound recovers some ground


Today has seen the pound claw back some ground against the U.S. dollar, with the GBP/USD cross rising over a cent to briefly break the $1.27 barrier.

 

For the best dollar exchange rates click here.


Sterling lost ground yesterday following Bank of England Governor Mark Carney's speech at Mansion House, when he indicated that "now was not the time to increase interest rates". However the pound rebounded this afternoon after Bank of England Chief Economist Andy Haldane hinted that he could look to vote in favour of a rate hike during the second half of 2017.

Mr Haldane was not one of the three Monetary Policy Committee (MPC) members to vote for an immediate hike last week, but his comments today have given investors extra hope of a rate hike before the end of the year.

GBP/USD graph




Despite Mr Haldane's comments today, in my opinion I think it is unlikely we will see the Bank of England take any action in the near future, and with Brexit negotiations now in full swing, the pound will probably remain under pressure.

With that in mind, the rise we have seen for the pound today could well be temporary and we could easily see GBP/USD drop below $1.25 in the coming weeks.

Are you thinking of buying or selling dollars?


If you have a requirement to buy or sell dollars in the coming days and want to ensure you are making the most from your transfer, contact us today for a free currency 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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Tuesday, 20 June 2017

The pound continues to lose ground against the dollar

After falling around a cent yesterday, the GBP/USD cross has continued to lose ground this morning following Bank of England Governor Mark Carney's speech at Mansion House.

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With the official Brexit negotiations finally getting underway yesterday, the pound started to fall across the board, as investor appetite for the UK currency weakened due to the uncertainty of Britain's exit from the European Union.

Sterling then dipped suddenly this morning, with the GBP/USD cross losing around three quarters of a cent as Mr Carney stated that the time is not right for an interest rate hike, despite three members of the Monetary Policy Committee (MPC) voting in favour of an increase last week.

GBP/USD graph


What did Carney say?


During his speech Mr Carney said that due to the mixed signals on consumer spending and business investment, and given the subdued inflationary pressures, in particular wage growth, now is not yet the time to begin increasing interest rates.

Carney also highlighted the impact of Brexit on the UK economy is still unclear, and was another reason why he would not consider a rate hike at the moment.

Are you looking to buy or sell dollars?


If you have a requirement to buy or sell dollars in the coming months and are concerned about the impact the Brexit negotiations could have on your transfer, contact us today for a free currency 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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Friday, 16 June 2017

GBP/USD exchange rate update.

A lot has changed since my post yesterday.......

After writing about how the pound had fallen against the dollar following the Federal Reserve's decision to raise interest rates. The pound received a unexpected boost yesterday afternoon as the Bank of England rate votes showed that three of the eight Monetary Policy Committee members had voted in favour of an immediate rate hike.

For the best dollar exchange rates click here.


The surprise announcement caused the pound to rise across the board, with the GBP/USD cross rising over a cent to hit $1.2792, allowing sterling to claw back most of the ground it lost on Wednesday evening.

GBP/USD graph


 

So far today the pound has been able to hold onto the recent gains, and even manage to briefly break the $1.28 barrier this afternoon. However, the rise we have witnessed over the past twenty-four hours could well be short-lived.


Come Monday morning, focus is sure to turn back to the UK and Brexit with official negotiations due to begin. Investors and market players will be listening closely for any clues to how the divorce talks are proceeding.

Do you need to buy or sell dollars?


If you have a requirement to buy or sell dollars in the coming days and are concerned about the impact the Brexit negotiations could have on your transfer, contact us today for a free currency 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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Thursday, 15 June 2017

Why has the pound fallen against the U.S. dollar?

The pound finds itself around a cent lower against the dollar this morning, with the currency pair slipping from $1.2810 to $1.2705.

Sterling has lost ground after the U.S. dollar strengthened overnight following the Federal Reserves (Fed) decision to increase its benchmark interest rate by 0.25 per cent yesterday evening.

For the best dollar exchange rates click here.


As many expected, Fed Chair Janet Yellen announced the U.S. central bank had increased interest rates for the second time this year, with policymakers voting in favour of hiking rates to a range of 1% to 1.25%.

The decision leaves U.S. interest rates at its highest level since 2008, and gives the dollar a much needed boost after it lost ground yesterday afternoon following weaker than forecast inflation and retail sales figures.

GBP/USD graph




Along with the interest rate rise the Fed also announced they would start to look at reducing its $4.2 trillion bond portfolio. The Federal Reserve currently hold $4.2 trillion of mortgage-back securities and Treasury bonds, which were purchased following the financial crisis.

What else could impact the GBP/USD exchange rate today?


This afternoon we will hear from the Bank of England (BoE) and Governor Mark Carney. The BoE are set to announce their latest interest rate decision, monetary policy summary and how the Monetary Policy Committee (MPC) voted.

It is highly unlikely the BoE will take any action today, as they have repeatedly stated they will not look at raising interest rates until after the UK has left the EU.

However, with figures confirming UK inflation had risen to 2.9% earlier in the week, some of the other MPC members could be swayed into voting in favour of a hike.

Over the last few months one member of the MPC (Kristen Forbes) has been voting for an immediate increase, if an extra one or two members now feel the same we could see the pound strengthen in the next couple of hours.

Are you thinking of buying or selling dollars?


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

Wednesday, 14 June 2017

GBP/USD exchange rate breaks $1.28

This afternoon has seen the pound continue to claw back the ground it lost against the dollar following last week's shock UK election result, with the GBP/USD cross rising back above $1.28.

For the best dollar exchange rates click here.


However, the pound did not start the day well. Figures released this morning showed that wage growth in the UK had dipped in the three months to April, meaning the amount workers are taking home is falling as inflation is rising.

The news caused the pound to lose around half a cent against the dollar, with the currency pair falling from $1.2790 to $1.2740, as you can see from the graph below.

GBP/USD graph




So why did GBP/USD rise?


The rise was actually down to dollar weakness rather than sterling strength. The dollar fell across the board after the U.S posted weaker than forecast inflation and retail sales numbers.

Figures showed that retail sales in May suffered their biggest fall in sixteen months, while consumer prices also unexpectedly dropped.

It meant the pound was able to take full advantage and allowed GBP/USD to hit an intraday high of $1.2815, the highest we have seen since the 8th June.

Do you have a requirement to buy or sell dollars?


If you have an upcoming requirement to buy dollars and want to ensure you are making the most of your transfer, contact me today for a free 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 help target a rate that might not be currently available.

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.

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Tuesday, 13 June 2017

Pound rising against the dollar

Today has seen the pound regain some lost ground against the dollar, with the currency pair so far rising over a cent.

During the course of the trading session the GBP/USD cross has risen from $1.2643 to $1.2746, after the latest UK inflation reading helped lift sterling across the board.

 

For the best dollar exchange rates click here.


Following last weeks shock UK election result the pound fell against all of its major counterparts, with GBP/USD dropping three cents to a two month low of $1.2632 on Friday afternoon.

However, today's inflation figure gave the pound a much need boost, with figures confirming inflation had risen to 2.9% against a forecast of 2.7%, increasing speculation the Bank of England will need to raise interest rates sooner rather than later.

 

GBP/USD graph




Attention will now move away from the UK's political uncertainty and Brexit negotiations for the time being, with markets and investors now focusing on tomorrow's Federal Reserve monetary policy announcement.

Over the past few weeks markets have been pricing in the Fed hiking rates this month, although recently there have been indications Janet Yellen & Co could hold fire because of the uncertainty surrounding President Trump.

If the Fed do not raise their benchmark interest rate tomorrow, it is likely we will see the dollar weaken, and the GBP/USD cross could push back above $1.28.

 

Do you have a requirement to buy or sell dollars?


 If you have an upcoming requirement to buy dollars and want to ensure you are making the most of your transfer, contact me today for a free 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 help target a rate that might not be currently available.

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.

Friday, 9 June 2017

Hung parliament causes the pound to fall.

Well that wasn't the outcome many had predicted.......

After a disastrous night for Theresa May in the polls, this morning we find the UK facing a hung parliament, and it has certainly taken the wind out of the pounds sails. 

 

For the best dollar exchange rates click here.


After the Tories fell short of a majority the pound has suffered across the board, with the GBP/USD cross falling over three cents since yesterday evening. Following the release of the exit polls at 10pm last night Sterling dropped two cents from $1.2950 to $1.2750, and as the results started to come through the pound continued to lose ground.

As the London session opened this morning the GBP/USD cross had fallen further, and a one point had slipped to $1.2639. However, we have seen a slightly recover over the past couple of hours with the cross climbing back above $1.27.

 

GBP/USD graph




What next for the pound?


A hung parliament is not ideal, especially with Brexit negotiations due to start on the 19th. It has created even more uncertainty and uncertainty is the one thing investors and the markets hate.

Unless a coalition is formed quickly it is possible the pound will fall even lower in the coming days. Theresa May will now be working franticly to try and put a deal together with another party, and in the last few minutes we are already starting to hear from the media that May has already struck a deal with the DUP.

The DUP currently hold ten seats and if a deal has been agreed, it will give Theresa May enough to carry on as Prime Minister.

Do you need to buy or sell dollars?


If you have an upcoming requirement to buy or sell dollars in the coming days and are worried about the impact the UK election result will have on 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.