Getting the best exchange rate can be achieved by an understanding of what is driving rates and the service of a specialist currency broker. You can see below movements in the last week affecting Pound Sterling rates when buying £200,000 of three majorly traded currencies buying at highs and lows:
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP/EUR | 0.81% | €2,040 |
| GBP/USD | 1.43% | $4,660 |
| GBP/ZAR | 4.61% | ZAR 128,000 |
Pound Sterling Outlook
At the Conservative Party Conference this week the UK Chancellor George Osborne and David Cameron affirmed the tough road ahead for Britain and that they will stick to their guns on deficit reduction. This means the economic recovery is likely to continue to be painful and hence the pound will continue to suffer under more QE (Quantitative Easing) and inadequate economic data releases.
Important Dates for anyone buying or selling the pound are next Wednesday the Bank of England Minutes and the 25th October when we learn the official data for Q3 Gross Domestic Product data. We are also expecting more Quantitative Easing in November which in conjunction with the data above is likely to cause sterling volatility. Sterling exchange rates could easily be tipped up or down a cent or two depending on the outcome, I personally feel sterling weakness is likely to be the outcome.
Getting the best exchange rate is about managing your risk. To make sure you are getting not only the best exchange rates but also are aware of all your options why not make a free enquiry here. The gamble in this kind of market is doing nothing. Call 0800 328 5884 for more information and to speak with one of our experienced team about all of your options.
Ending the pain in Spain?
Well another week goes by and Spain has not had a bailout. According to some reports they do not need one. A fall in Spanish borrowing costs and Draghi’s comments that the Euro is ‘irreversible’ have for the time being helped the single currency to stabilise and removed some of the pressure on Spain.
I think that ultimately the ECB will need to do more but for the time being the approach of Mario and the ECB means a solid return to say 1.25+ on GBPEUR looks unlikely. I predict that the Euro will in fact actually appreciate further against a weaker pound although I cannot see a break below the 1.20 mark.
‘When moving money internationally it is important not to take an exchange rate for granted or neglect to prepare for the worst as rates can quickly and unexpectedly change’
Movements in the last two weeks particularly on GBPEUR and GBPZAR show how dangerous it is to gamble and hope that the market will magically go your way. In some cases that may mean trading at a level you previously thought was unacceptable. Speak to your account manager here who can highlight market movements and the underlying market conditions, as well as update you should things take an unexpected turn in or out of your favour. The gamble as always is to doing nothing so please feel free to contact us using the phone, email or enquiry forms for updates and information to enable you to make an informed decision.
GBPUSD drops
The impressive buying GBPUSD rates we had been enjoying for the last month have dropped as the pound loses value and the honeymoon period of last month’s Fed QE programme announcement, wears off. The IMF International Monetary Fund cut their global growth forecast this week and I think it is fair to expect the dollar will strengthen in the coming months as further fears arise over the global economic outlook. I expect rates to soon come back under the magic 1.60 mark.
When will the Rand recover?
Gill Marcus of the Reserve Bank of South Africa was quoted as saying this week the economic outlook in South Africa is ‘deteriorating rapidly’. The huge outflows of capital have left the currency reeling. Marcus also said a weaker Rand may help exports by making South African goods and services cheaper. This indicates to me it is unlikely we will see a return anytime soon to the levels of earlier this year or last year. If you are selling Rand to buy sterling why not speak with us today to discuss how we can help sell your Rand for sterling at the very best prices.
