Pound Sterling forecast - more money pumped into the economy?

This report will cover recent market movements for sterling against a basket of major currencies alongside what is due out in the week ahead. It includes vital information to consider for anyone with a requirement to buy foreign currency to send money overseas or to sell foreign currency and bring money back.

Tuesday November 3rd 2009, By Daniel Wright – Associate Director

Sterling Report – Pound makes losses ahead of interest rate decision on Thursday

Sterling lost ground against all major currencies yesterday as investors expressed their concerns that the Bank of England may introduce further quantitative easing measures at their interest rate decision due out at 12:00 on Thursday. This decision could be vital for anyone due to send money overseas or with any upcoming money exchange.

The mere mention of quantitative easing in the U.K over the past few months has generally led to Sterling weakness, as pumping yet even more money into the economy is seen as negative for the Pound.

"With the possibility of more quantitative easing looming, no one is willing to bet the ranch on this one," said Daragh Maher, senior currency strategist at Calyon in London.

It appears now that investors have now stepped back from investing in the perceived ‘risky’ Pound that led to the majority of the strength during last week and are eagerly awaiting announcements on Thursday.

"The blow to the foundation of risk appetite is really hurting sterling, along with concerns about the UK banking sector and the prospect of more QE from the BoE," said Ashraf Laidi, chief markets strategist at CMC Markets in London.

He added that sterling's inability to make a sustained break above the $1.67 level after two failed attempts in October and September would keep sterling weak against the U.S. currency.

The pattern over the past few months for the Pound has been taking two steps forward then dropping three steps back as I’m sure many of you are aware, so if you do have an upcoming currency requirement it may be prudent to take advantage of this rare spike seen last week before Sterling even has the chance to drop away again.

If you do not already have an account open here at FCD but do have an upcoming trading requirement, click here to open a trading facility in advance, so that when the time comes it’s one less factor on your mind, and you are prepared to secure a rate should there be any spikes in your favour in what is an extremely volatile market at present.

Sterling forecast – Around the globe

Expect an extremely volatile week for Sterling against the Dollar as we see a flurry of the most important releases for the month from both economies from Wednesday onwards. The Fed interest rate decision is first up followed by the previously mention BOE interest rate decision on Thursday and Non farm payrolls data on Friday lunchtime.

No major changes to rates are expected in the decisions however be aware that any economic policies mentioned may cause high volatility. The non farm payrolls have also bought large movements in the past, as the predicted and factored in figures can largely differ from the actual release leading to market corrections.

The Eurozone also release their interest rate decision on Thursday at 12:45, once again no major changes are expected however head of the ECB (European Central Bank) Jean Claude Trichet speaks afterwards and may give indications of future economic tactics.

Breaking news overnight – Australian interest rate decision

The Reserve Bank of Australia released their rate decision yesterday and increased rates for the second consecutive month by 0.25% to 3.50%, this has not bought major movements in the markets however just goes to show how far they are ahead of the U.K at present in terms of the state of their economy.

Breaking news this morning – Banks shake up revealed

Finally, Alistair Darling revealed the full extent of the banking shake up for Lloyds and RBS this morning amid concerns that the two bailed out banks would need to be scaled down to safeguard competition concerns. Early morning trading has seen Sterling weakness.

"The likely costs to the taxpayer and the risks on the impact on the public finances have been reduced," the Treasury said.

In short, if you are buying or selling foreign currency why not eliminate the gamble that your funds will cost more or achieve you a lot less than you bargained for and contact your personal account manager today on 0800 328 5884


THIS IS A BRIEF SUMMARY OF TODAY'S REPORT - SHOULD YOU REQUIRE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CONTACT ME EITHER BY EMAILING HERE Email Me - OR CLICKING ON THE BANNER BELOW TO SEE TODAY'S FULL REPORT I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you have the need to send money overseas or bring money into the U.K and want the best exchange rates and a great service just click on the links below to go straight to our main site and click on the register now button to open a free no obligation trading facility quoting DANIEL WRIGHT as your point of contact.

Have a great day and thanks for reading!

Daniel Wright

Currency Information - The week ahead for GBP USD EUR NZD CHF AUD JPY DKK AED and more

A pretty busy week ahead on the data front, asides from any surprises that may pop up as they have been tending to in the current market as i'm sure many of you are aware!

Monday

Monday is reasonably quiet on the data front with the main data release being the Swiss National Bank interest rate decision at 13:00pm - no major changes are expected however listen for economic announcements around it.

Tuesday

The first seconds of Tuesday bring some intresting releases firstly with the Retail Sales for New Zealand.... will they continue to get stronger and stronger?? At the same time two key releases for the U.K with the RICS (Royal Institute of Chartered Surveyors) house price data, prices have been on the up recently but sadly the Pound has not followed suit! Also U.K retail sales makeup the three midnight releases, so Sterling could move sharply early morning on Tuesday morning so be aware...

At 02:30am Australia release their business confidence and with pretty much every Australian release being better than expected lately will be see the AUD improve once more??

U.K CPI and Eurozone ZEW Index are out at 09:30am and 10:00am respectively.

Wednesday

Another late night one for Australian Dollar interest with business confidence at 01:00.

Japanese Yen volatility may be seen at 05:00am with the Bank of Japan interest rate decision.

09:30am brings unemployment data for the U.K which may set the tone for the day for the Pound.

The U.S Dollar is set for movement with retail sales data at 13:30pm and the Federal reserve meeting minutes at 19:00pm.

Thursday

10:00am there is a monthly report from Europe alongside thier key inflation data CPI and also 13:30 makes for a busy afternoon for the USD with CPI data and also unemployment info with Jobless Claims being released.

Friday

You can afford to relax data wise on Friday with some adjusted retail sales at 08:15am and just Canadian CPI data due at 12:00, mind you no day is guaranteed to be quiet on the currency markets so make sure you are still sharp as good buying opportunities can arise at any time!!

All in all as usual the week will bring volatility between all currencies if you don't have time to watch the market all day then make me aware of what you are looking to do and I can watch them for you.... there are many other options including limit and stop orders so feel free to contact me for a full explanation.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site.

Have a great day and thanks for reading!

Daniel Wright

Pound Sterling drops once again following poor manufacturing data - drops against EUR AUD NZD SEK DKK CHF CZK ZAR CAD JPY - Small gain on USD

This morning has seen Sterling once again start to falter against a basket of major currencies following much weaker than expected manufacturing data, however a house price release from Halifax came out slightly better than expected - so not all bad news for the U.K

Although the data released this morning was a mix of positive and negative the Pound has dropped by 0.40% against the Euro, 0.49% against the New Zealand Dollar, 0.36% against the Rand and 0.51% against the Swedish Kroner.

Sterling has also dropped against the Australian Dollar but this is mainly due to the Reserve Bank of Australia surprisingly raising interest rates by 0.25% to 3.25% overnight.

For those that aren't aware, an interest rate hike usually is seen as positive for the economy in question and a drop negative, as investors look to shift their funds into that currency for a better return.

The AUD and NZD may still strengthen off the back of this, as people may start to look at carry trading between Sterling and the currencies that are currently benefiting from higher interest rates.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling continues minor gains following further positive data - gains on EUR USD JPY ZAR CZK losses against AUD and NZD

The Pound has continued it's minor fight back today in morning trading following another positive data release for the U.K economy.

Consumer confidence for September came out overnight and was much better than expected. A negative figure still is not great for the U.K economy and the figure came out at -16 however major analysts were actually predicting a figure of -24.

Markets move on rumour as well as fact so the -24 figure would have been initially priced into the market hence the fact when the figure came out much better Sterling gained some good ground in early morning trading.

At the time of writing this markets seem to have stabled, however over the course of the day further losses against the Australian Dollar and New Zealand Dollar have been seen.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling weakness set to continue??

Following a terrible week for the Pound last week many clients are asking me whether or not I believe this is set to continue....... Personally it certainl;y looks like it will in the short term with many other economies in a much better position than the U.K.

We are also seeing lots of interesting announcements and revalations this week at the Labour conference - with Alistair Darling due to speak later on today, and we all know what generally happens to the value of Sterling when he talks - it tends to plummet.

Political certainty is one of the four factors that will effect the value of a currency alongside economic stability, acts of terror and acts of god.

Obviously there is little we can do about the second two factors however the first two are key, and i'm sure that anyone who has had one eye on the markets or the news recently can make their own mind up as to which way the Pound may go.

My personal prediction is that come Spring things will start to turn around again, however anything can happen in the currency markets over a matter of hours let alone months, so anyone giving predictions and being fully confident they they are right has their head in the clouds as there are lots of surprises popping up everywhere all over the globe.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling Euro Parity Gbp Eur Parity ????

The phones have been off the hook today with a vast variety of clients worried that their upcoming transfers will end up costing a lot more than they first had budgeted for.

Sterling is currently up by 0.21% against the Euro which is better news than I imagined I would be giving to those of you that look to these posts for regular updates.

The Pound has indeed lost ground against a basket of major currencies over the past few months with the AUD and the NZD rates being hit the hardest, certainly not great news for those still in the U.K looking to emigrate ast some point in the near future.

All eyes for tommorow will be on the Bank of England minutes announced tomorrow at 09:30am which are expected to give an overview on the quanititative easing programme and any further mention of more in the future may lead to even more Sterling weakness.

This is one of the main factors pushing down the Pound as at present we are seeing other economies announcing that their recession is over, yet we are potentially still throwing money at the problem and money that is seemingly going down the drain??!!

Certainly a rocky week ahead for the Pound and I will ensure that you are updated as to movements in the morning however do call if you would rather speak to me in person.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling Euro Parity - Once again a subject on everyones lips!!

As I awoke this morning the first thing I heard on radio 5 happened to be a discussion about Sterling - Euro Hitting parity again before the end of the year....

I must stop geting so surprised at how little our media do to assist the strength of the Pound.

Last year pretty much every national newspaper had this on the front page which bought about a vicious circle of people worrying and selling off Sterling as quickly as possible, leading to further weakness and indeed more panic.

On boxing day of last year Sterling hit its lowest point of 1.0170 which led to an extremely unhappy christmas for many of my clients looking to pay the balance of their properties overseas or complete essential building work.

There are ways to conquer these sort of problems - by booking out funds in advance with a forward contract. Many of my business clients are taking full advantage of this so that they know exactly how m,uch upcoming costs will set them back so that they can budget accordingly.

I am here to help so if you would like a full explanation as to how these contracts work or what the other options are that are available to you then do feel free to contact me either by emailing directly below or calling the freephone number at the top of this page.


This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling report and forecast against a basket of major currencies - early morning strength

Sterling has started the day off on a slightly more positive note making minor gains against most major currencies in early morning trading.

It is certainly refreshing to see green screens in the offices following the past few days of Sterling dropping away off the back of comments from Mervyn King and a huge drop in confidence in the Pound.

It appears confidence may be returning in the U.K with the FTSE being at its highest point in a year, so avoiding further shock announcements from King or Mr Darling then I would hope we gain back ground towards the end of this week.

Retail sales datya are due at 09:30am, expect volatility should these figures come out different than analysts have forecast.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

Sterling continues weakness following comments from King gbp v eur usd nzd usd zar sek, dkk, nok, aud, nzd

Sterling has contiuned to make minor losses against most major currencies this morning off the back of Mervyn Kings comments yesterday regarding the U.K economy.

We actually had slightly better than expected unemployment data for the U.K this morning which has assisted Sterling in making back some of the ground lost in early morning trading however it appears investors confidence in the Pound has once again been knocked by one of our key economic figures.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright

The Pound loses value following Kings speech

Once again just as Sterling looks like it is moving in the right direction, Mervyn King has come out to talk down the U.K economy leading to Sterling weakness accross the board losing 1% against the Dollar, 0.86% against the Euro and the biggest loser of the day being 1.81% against the South African Rand!!!

King said that the economy is probably on the road to recovery however the recovery would be slow and risks to inflation are still to the downside.

Former member of the MPC David Blanchflower also blasted the way in which King handled potentially the worst recession since world war two, this unrest added to Sterlings woes.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright`

Sterling Forecast - The week ahead GBP EUR GBP USD GBP AUD GBP NZD GBP CAD GBP ZAR

Certainly an interesting week ahead on the markets for the Pound, with the Bank of England interest rate decision being the main talking point at present.

The past few interest rate decisions have not bought any rate changes as such, but have dragged up the issue of quantitative easing which has had a negative impact on the value of the Pound.

Quantitative easing is effectively where the government pump more money into the economy and as you can imagine if there is more of a particular currency available then its value decreases.

It also becomes slightly worrying for investors as whilst other major economies like germany and France are announcing their recession coming to an official end, we in the U.K are still throwing vast amounts of money at the situation.

This week also brings out a string of other important data releases for the U.K inclusive of House prices, industrial production, consumer confidence and the other larger release of note - GDP estimate at 00:01am on 10/09/09.

The GDP estimate is an estimation as to how much the economy has grown or contracted in the U.K and as the marklet moves on rumour as well as fact can lead to high volatility.

Obviously the markets move 24 hours a day and although we can't be here to watch rates for you during releases such as this there are options available including limit and stop orders - pick up the phone or email should you wish to discuss how these work.



This is a brief summary of todays report. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me




Have a great day and thanks for reading!

Daniel Wright