Sterling euro rates have hit a fresh 7 YEAR HIGH this week following the Europeans decision to simply push away the Greek issues for another day. The ECB signed an extension for another 4 months meaning that the issues will simply return later in the year, in a similar way as simply paying the minimum on a large credit card bill. In either case it will probably enable the new GBPEUR range of 1.36-1.375 to stay for some time. I personally expect this range to be kept for potentially weeks now as only the largest economic surprise will break these boundaries.
UK GDP figures released yesterday came out as expected helping to hold GBPEUR levels at the top end of this range. If I were a buyer looking at moving over the next 7 days, I personally would trade today as in the next week I expect it to either move up by a fraction or come down by a cent or two. Euro Sellers may want to wait until next week when I expect European Consumer Price Index figures released on Monday, Euro GDP on Tuesday and Euro Retail on Wednesday to potentially show an improvement. I would probably avoid the ECB Meeting on Thursday as I expect this to be a negative event for the single currency, making it less valuable and cheaper to buy again.
As you can tell the markets do not move in a straight line so timing a transfer is crucial when trying to get the best price. If you would like more information about the potential best time to trade please get in contact with your personal broker here or contact the trading floor by clicking here.
Buying the USD has become cheaper over the last few weeks as the global uncertainty has pushed back any likelihood of US interest rates climbing until the end of 2015.
This has made their economy less attractive for investors and has made the dollar 4 cents cheaper in the last 3 weeks, resulting in a $200,000 purchase becoming nearly £3,000 cheaper. The US economy is actually getting stronger as they continue to publish improvements, the latest of which was their Durable Goods which was confirmed yesterday to have increased significantly.
The next key economic release is US GDP Figures which will be published this afternoon at 13:30, this is widely expected to show a contraction due to the bad weather that hit the US at the end of last year. So much so that traders will probably price this in before the release, meaning anyone buying USD today could achieve the best price in the expectation rather than the actual release. As a result, I personally would be buying around 13:00. As I think at this point buyers will be getting the best price of 2015 so far!
Longer term I expect CABLE to remain within this range challenging new highs later in the year. If you are a USD seller and want to discuss the choices you have please get in contact by clicking here.
The Japanese Yen has now weakened to the lowest level seen in 2015. Buyers of the Yen are now only 2 cents away from the best levels seen for over 6 years.
The recent fall has been put down to comments by the Bank of Japan that suggested hitting their targets of 2% inflation in the coming year remains difficult.
They currently have a huge QE program which is being put into the economy, the BOJ went on to hint that there were no plans to slow this down in the near future, as a result the YEN weakened further. The Japan Nikkei share index hit a new 15 year high this week as a result. (A weaker yen helps big exporting firms in Japan because it makes their goods cheaper overseas.) The forecast for the GBPJPY is for this now well established trend to continue. To keep an eye on the active inter-bank price please bookmark our link here.
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