Just look at how much exchange rates moved yesterday! For an overview of your personal situation and information on getting the best rates please contact me Jonathan directly on firstname.lastname@example.org
Sterling traders were dealt another dimension yesterday as Andy Haldane, a member of the Bank of England’s nine member Monetary Policy Committee said he felt any rate cut was just as likely as a rise. The pound has been rather unpredictable lately as economic data points towards improvements in the economy. As so often happens however a rising pound is hampered by the usual comments that a rising pound is no good for UK exports. The Governor of the Bank of England Mark Carney has also stated inflation may continue to fall due to lower oil prices. As Inflation falls there is less pressure on the Bank of England to raise interest rates. You can very easily argue it is in Mark Carney’s interest to weaken sterling to help boost the economy.
DataWatch Today – 09.30 am Public Sector Net Borrowing (PSNB) data. This data will outline the amount of increase or decrease in government borrowing, projections seem to suggest sterling may get a small lift.
It is the best time in 7 years to buy Euros with Sterling, the best time in two years to sell USD for the pound and the pound is still enjoying multi-year highs against the ZAR, CAD, AUD and NZD. Nothing should ever be taken for granted on exchange rates so to get a full overview of sterling and just how today’s data may pan out please contact the office on 0800 328 5884 or make a free quote request here.
Fallout for the Euro continues from the Greek crisis but yesterday a new plan of reform was agreed between Greece and senior Eurozone ministers. I would not get too excited however as this is once again only a short term solution! There are also still plenty of fears and worries surrounding their QE (Quantitative Easing) programme. This is essentially printing money by a central bank and there is a strong likelihood the Euro will come unstuck again presenting opportunities for buyers and creating further headaches for sellers.
In my opinion we will see spikes above 1.40 again but they will be short-lived. To guarantee your rate at these kind of trading levels speak to one of our team about a ‘Limit’ order which will guarantee your price once your rate is hit. You can view all the options on our website here, please contact one of the team to discuss further to see what will suit you best.
The next major event on financial markets looks set to be the UK’s General Election in May. It would seem reasonable to expect sterling to come under some strong selling pressures but if you are selling Euros and hoping this will provide a get out of jail free card, you might to wish to consider just how weak the Euro could be by then. I think the best strategy is to set some levels at which you are happy or unhappy to trade and closely monitor the market with the aid of one of our team. For a personal strategy to help you get the most from the market please contact us today on 0800 328 5884.
Aftershocks from The Federal Reserve’s interest rate decision continued yesterday but I would expect the USD to have a quieter day. The Federal Reserve have stated it will be a bit longer than expected before the US raise interest rates as we have been saying here for some time. To raise interest rates in the current global economic climate could be very dangerous and the Federal Reserve will need to be very careful with how they approach the raising of their base rate.
Markets are still expecting the US will raise interest rates well ahead of the UK and the Eurozone so this should continue to help the dollar to rise. Next week is a raft of US Inflation data and GDP data too. I think if you need to buy the USD moving sooner rather than later is sensible. To get the latest news and be kept up to date please get in touch on 0800 328 5884.
AUD Glenn Stevens Speech. Released overnight the
Speech focussed on supporting the Australian economy, principally the mining economy through Infrastructure projects. This has helped the AUD recover a little but markets do still expect at least one more rate cut this year.
CAD Today is a range of Canadian data that might move the market. Retail Sales figures but most importantly the latest Inflation data from Canada could move the market. GBPCAD has spent the last few weeks of 2015 at the best levels since 2008 but may move higher against the pound in line with its most close trading partner the USD.
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