Different ways you can get the best exchange rates

Thursday 8th October 2015 
The currency markets have been calmer this week, with not as much fluctuation a we have seen in recent weeks. In the chart below, you can see that the Pound/Euro rate in particular has remained range-bound between 1.3550 and 1.3650 in recent days: 

The reason rates are relatively stable is that economic figures have been roughly as expected. UK GDP is around 0.5% which is about what the markets thought. German Exports were down but it didn’t really weaken the Euro much. The Bank of England (BoE) have kept interest rates on hold as expected, and the speeches by the central bank governors didn’t really give any surprises. It’s still the case that the BoE will likely raise rates halfway through 2016 and I don’t expect much Sterling strength until then. 

How to buy currency at the best exchange rates 

Given the relative calm in the markets, I thought today would be a good opportunity to outline the various contracts that I can offer to help you get the best exchange rates and protect you against adverse movements in currency prices. I can source you rates up to 5% better than banks and other brokers may offer, so if you have a currency transaction and would like a quote to compare, then get in touch for free here. 

Here are the main contracts I can offer for currency exchange: 

Spot Contract (Buy your today) – This is the most popular way to buy currency. You fix a rate over the telephone, settle within 2 days, and your currency is transferred by priority transfer to the account of your choice. The rate varies throughout the day as we buy live from the market, and can be up to 5% better than your bank or existing broker may offer. 

Forward Contract (Fix into the Future) –You can fix today’s rate of exchange for up to 2 years, protecting you against volatility and helping you to budget. You lodge 10% of the total to be converted within 2 days, with the remaining balance due when you want your currency transferred. This type of contract really helps budgeting for business’s and those buying or selling property abroad. 

Limit order (Hold out for a better rate) – Secure your currency when your desired rate becomes available; particularly useful if time is on your side and you think the rate may get better. This allows you to aim for a higher rate in the hope that things will get better. 

Stop loss order (Protect against rates dropping) – Your currency is exchanged if the rate goes below a pre-determined level. Combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market. This gives you a worst case scenario so you don’t end up paying more than necessary for your currency. 

So that's a brief overview of the main contracts I offer. I also provide a free consultative service for any clients who need the best exchange rates in order to explain what may move the rate, to help you decide when to fix a rate and what contract type to use. Using these types of contract give you control over your currency purchase. The alternative is simply sitting back and hoping the exchange rate will move in your favour. In my experience, hope is not a reliable economic tool. 

To discuss our contract types in more detail and take the first step to taking control of your currency needs, contact me today by sending me a free enquiry by clicking below, and I will get in touch personally to discuss your requirements. 

Click here to send me a free enquiry and get a quote.

Exchange Rates volatile due to interest rate speculation

Wednesday 5th August 2015
There was some movement on both GBP/EUR and GBP/USD exchange rates overnight, and it’s interest rate speculation again that’s driving exchange rates. After a quick look at the charts I’ll explain what’s going on. As you can see below Sterling/Euro rates have climbed to €1.4350 and Sterling/Dollar rates dropped a cent overnight: 

Sterling/Euro

Sterling/Dollar

GBP/USD - US Interest rates affect exchange rates 

Last night, one of the US Federal Reserve members, Dennis Lockhart, who is one of the people who decides on interest rates, said that it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September. This means that chances are increased that the USA will be the first major western economy to start pushing rates back up. The hint of higher interest rates tends to strengthen a currency due to the higher return on offer for investors. 

On the comments, the USD gained strength and pulled GBP/USD Rates down. As investors moved funds from the Euro into the Dollar, the single currency weakened accordingly, and as you can see from the graphs above, the GBP/EUR rate moved inversely to cable, rising by over 1% to €1.4350. 

On Friday, we see some very important jobs data from the USA at 13:30pm, and if these numbers beat forecasts, expect the decline in GBP/USD rates to continue. I am still of the view that GBP/USD rates won’t stay above $1.50 for very much longer. 

GBP/EUR – Thursday very important for exchange rates 

With many analysts now expecting the US to raise interest rates next month, many are also starting to look at whether the UK will do the same. Tomorrow (Thursday) is a very important one for the Pound. Here is the data we’re going to see from Britain: 

‘Super’ Thursday’s eco-stats include: Manufacturing Production, Industrial Production, a GDP growth estimate, the BoE decision on interest rates, the BoE Inflation report, a Statement from the BoE’s Monetary Policy Committee, and a Speech by the BoE governor Mark Carney. 

Phew. There’s a huge amount of data to chew on tomorrow, and taken as a whole will paint a very clear picture on what direction the UK economy is taking. I think that at least 2 of the 9 member MPC committee will vote for an interest rate hike, and if this happens and the other data is good, expect Sterling to gain in strength. We could well see a decent rise for Sterling exchange rates if the UK economic picture is a robust one. 

Do you need to exchange currency? 

I don't just provide regular updates on exchange rates;I help clients source some of the best currency deals available. I am the foreign exchange manager for one of the UK’s leading currency brokerages. In July alone we helped clients exchange over £35,000,000.00 and due to these large volumes we trade, our exchange rates are some of the best you can find anywhere. 

If you need to convert over £5000.00 and have your currency transferred to a bank account, then get in touch with me by clicking here. I can provide you a quote and you can see how much you can save compared to your bank or existing broker. We’re fully authorised by the FCA in the UK so you can trade with us knowing your funds are safe.

I look forward to hearing from you and providing you a quotation for your exchange. 

This week's data that could affect exchange rates

Monday 28th April 2014
Good morning. Today I will give a brief outline of how Sterling exchange rates start the week, and then I’ll list all the economic data releases that I think will affect currency prices this week. 

Let’s start with how the Pound is performing this Monday morning. Sterling has risen against the US Dollar this morning, hitting $1.6850. This was due to a strengthening of the Pound after U.S. drug maker Pfizer confirmed it had made a bid approach to Britain's second-biggest drugs group, AstraZeneca.  

There weren’t any gains for Pound/Euro however, as the Euro is being kept strong by expectations that EU inflation will rise when figures are released later this week. 

Below I will list the main data releases I think will affect exchange rates. If you have a currency transaction to perform, and would like to get a quote or discuss how I can assist you, click here to send me a free no obligation enquiry. 

This week’s economic data releases. 

Monday 28th April 2014 

It’s been a quiet start to the week, with the merger and acquisition news about Astra Zeneca giving the Pound a lift. The rest of today is also quiet, with some US Home Sales data due at 3pm. Later this evening we will see New Zealand’s latest trade balance data that could affect GBP/NZD rates. 

Tuesday 29th April 2014 

Today is the main day this week that might affect Pound/Euro rates. At 09:30am we will see the latest UK Gross Domestic Product figures. They’re expected to come in at 0.9% (quarterly) and 3.2% (annually), so any deviation from these numbers could see the Pound rise or fall accordingly. 

This is followed at 10am by EU Investor and Consumer confidence, so the Euro’s value could also be affected today. There are also German inflationary releases due at 1pm. 

Wednesday 30th April 2014 

Late on Tuesday evening UK Consumer confidence figures were due to be released, so when the markets open at 8am we could see some reaction. Also today we have Germany Retail Sales and Unemployment, and EU inflation numbers, so GBP/EUR could be affected. 

It’s a busy day stateside today, with GDP figures, a FED interest rate decision, and FED policy statement all expected to affect Sterling/Dollar rates. 

Thursday 1st May 2014 

Some minor Credit and Mortgage data is released from the UK this morning but I don’t expect it to affect rates. The rest of today’s ecostats are from the USA: Jobless Claims, a speech by Janet Yellen the FED chair, Manufacturing and Construction. GBP/USD will therefore be the currency pair most at risk today. 

Friday 2nd May 2014 

UK Construction data, along with EU Unemployment and growth forecasts will drive the Sterling/Euro pair today. This afternoon we have the US Non-Farm Payrolls – these are usually very different from forecast so often causes GBP/USD to move - the numbers are released at 1.30pm so expect a choppy day’s trade for cable. 

Find out more about the rates and service I offer 

If you have a currency transaction to perform and would like to find out how I can help you, get in touch in the following ways: 

Click here to send a free enquiry 
Call me directly: +44 (0) 1442 892 066 

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