What might affect exchange rates this week?

Monday 9th December 2013 
Today has been relatively quiet, and not much has changed since my last post in which I outlined why Pound/Euro rates had fallen below €1.20. On Friday last week we did see the Pound/Euro rate slip back a little further, and today GBP/EUR rates are stable in the mid €1.19’s, and Pound/Dollar rates just below $1.64. Later today we have a speech by the Bank of England governor Mark Carney and it will be interesting to see how his comments affect the Pound. 

As the market is quite stable, today I am going to list the week’s economic data releases that I think will have an effect on exchange rates. 

• Are you interested to know how the below data could affect your currency requirement? 
• Do you have an upcoming transfer to make? 
• Looking for the best exchange rates? 
• Want to discuss what is happening with exchange rates? 
• Would like to know whether to fix a rate now or hold off? 

Make a free enquiry with me today and have a free consultation. I can discuss your requirement in detail, explain what is happening with exchange rates, and help you to decide when to go ahead and fix your rate. When you want to go ahead and fix a rate I can help you achieve commercial levels that are up to 5% better than banks and other financial institutions can offer. 

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This weeks economic data that could affect exchange rates

Monday 9th December 2013 

This morning we had some minor EU data from Greece along with EU investor confidence data and GDP numbers from Portugal. The numbers were slightly worse than forecast, but had no real effect on exchange rates. 

The main factor for exchange rates today will be a speech by the Bank of England governor Mark Carney. Usually his comments are positive and so send the Pound higher, so it will be interesting to see the effect of his words at 17:15pm this afternoon. 

Tuesday 10th December 2013 

There are various UK releases today that could affect Sterling: House Prices, Trade Balance figures, Industrial & Manufacturing Production are all released at 09:30am. Later in the afternoon we have a GDP estimate by the National Institute of Economic and Social Research (NIESR). In my view the GDP estimate could cause some volatility with Pound/Euro rates. 

Elsewhere we have a speech by the European Central Bank (ECB) president Mario Draghi. The last time he spoke his comments were positive for the Euro causing Pound/Euro rates to drop away. 

Wednesday 11th December 2013 

There are no UK releases of note today so I expect a quiet day on the currency markets. The only data of note is an interest rate decision and press conference from the Reserve Bank of New Zealand, which could cause some volatility for GBP/NZD rates. There is also a budget statement from the Federal Reserve that could cause changes in the GBP/USD rate. 

Thursday 12th December 2013 

Unusually for a Thursday it’s quite quiet today with nothing of note from the UK. We do have some EU Industrial Production numbers and a monthly report from the ECB. Most data today is from the United States: Jobless Claims, Retail Sales, and Business inventories. 

Friday 13th December 2013 

Relatively quiet again, with the only UK data of note a speech by BoE member Mr Dale; his comments could cause volatility with the Pound. Elsewhere we have some EU employment figures, and some inflation data from the United States. 

Looking for the best exchange rates?

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I look forward to hearing from you.

Alastair Archbold 

Sterling hits €1.21 but falls back away....

Monday 2nd December 2013 
Good afternoon. Well in my post late on Friday I highlighted the spike in Pound/Euro rates. This actually continued over the weekend, and when I arrived on the trading floor at 08:00am this morning mid-market levels were at an astonishing €1.2100, which is a remarkable run for this currency pair. The question is, will it last...?

Pound/Euro sustained above €1.20, for now...

As you can see from the chart showing todays movements, the market opened at €1.21. The levels were not to be sustained for long however, and throughout the day we saw the Pounds gains becoming eroded, and exchange rates have slipped away throughout the day. 

 

The market is still above the €1.20 mark however. The fact it has broken through this level has surprised many in the market, myself included, who did not expect rates to break €1.20 this year. I did however state in a recent post  that while I didn’t expect it to break through €1.20, if it did it would likely continue rising significantly above it, and that’s what we have seen happen.

What will happen moving forwards depends on this week’s economic data releases. Now levels are above €1.20 I expect them to be supported at that level, unless we get any suprises with the week's economic data.

In today’s post I’ll simply give a brief outline of different strategies you can consider if you are converting foreign currency and need the best rates. In tomorrow’s post, I’ll list the week’s economic data releases that I think will affect exchange rates this week. 

Click here to have a free consultation for your requirement.  

Do you need to buy Euros at the best rates? 

Rates are very good indeed, and the best they’ve been since January; however seem to rise before dropping back away.

If I needed Euros I would place a Stop Loss order to fix a rate should it drop below a pre-agreed level. This means if rates continue to rise you can still take advantage of further gains, but not risk losing out on the 5% gain in rates we have seen in recent months. 


Click here to get a Pound/Euro quote

Perhaps you want to maximise a Euro to Pound transfer?

Rates have been steadily moving against you. It’s impossible to predict where things will go, so in the current climate a Stop Loss again is a very useful tool. 

This fixes your rate if it gets worse than a pre-agreed rate that you can decide, giving you some control over currency markets which are very volatile. 

I can also source Limit Orders, Forward Contracts, and Spot contracts at rates significantly better than banks and other financial institutions. 

Click here to get quote for selling Euros

Other Currencies 

Sterling is currently at the best level in many years against lots of major currencies, including the US Dollar, Euro, and also the antipodean currencies such as the Australian Dollar and New Zealand Dollar. 

If you are looking for the best exchange rates for any major currency, or have a foreign currency you want to convert back to Sterling, then I can help you. 

In addition to the rates I can source that are up to 5% better than the banks, I have extensive knowledge of the currency markets, and various contract types that can protect you against rates moving the wrong way, and help you to budget. Very useful if you are buying or selling property abroad, or buy and sell goods in the Eurozone for example. 

Click here to send me a free no obligation enquiry today. 

I look forward to hearing from you.

Alastair Archbold