Currency Today foreign exchange blog https://currencytoday.co.uk/blog Mon, 10 Mar 2014 12:39:11 +0000 en-US hourly 1 http://wordpress.org/?v=3.6 Sterling Strength Tempting for those Looking to Buy Property Abroad https://currencytoday.co.uk/blog/sterling-strength-tempting-for-those-looking-to-buy-property-abroad/ https://currencytoday.co.uk/blog/sterling-strength-tempting-for-those-looking-to-buy-property-abroad/#comments Mon, 10 Mar 2014 10:03:09 +0000 admin https://currencytoday.co.uk/blog/?p=1548 If you’re planning to move overseas, of paramount importance is the kind of property you’ll be able to afford. Clearly, the value of the house and state of the property market in your new country will have a big say in that, but so too will the exchange rate, which could make a big difference worth as much as thousands of pounds in a matter of weeks. All of which makes watching the markets and being aware of when they’re in your favour a very worthwhile exercise. Here’s why it’s so important: say you’re buying a French farmhouse and you needed to transfer £200,000 to pay for it – at today’s exchange rates, you’d get about €243,000. A year ago, that same amount would have got you €13,000 less, a huge difference that could make all the difference when it comes to moving in. Live Rates for Transferring £200,000 UK Pounds into Euros: It’s looking like a good time to buy in Europe at the moment, with the pound performing well against the euro, against which, sterling has recently hit a one year high. Add to that a property market which has seen house prices drop in many European countries, and now is looking like a particularly tempting time. Taking France as an example, according to the national association of French estate agents (FNAIM), house prices outside of Paris fell by an average of 3% in the last year. The hardest hit regions were Franche-Comte (down 6% on the year), Brittany (down 5.7%) and Languedoc-Roussillon (down 5.3%). It’s not just the euro against which sterling is performing well; GBP/USD, has reached its highest point since November 2009. At the end of February 2014, GBP/USD was at 1.6675, with £300,000 getting you around $500,000. At the start of February, that same amount was worth $494,000 - $6,000 less in the space of a mere few weeks. Going back one year, the GBPUSD rate was at around 1.55, with £300,000 getting you $465,000 – a huge difference of $35,000 in a year. Live Rates for Transferring £300,000 UK Pounds into US Dollars: But the thing with exchange rates is that no-one knows when they will change, and the extent to which they change. Sterling could lose its strength at any time, and leave you out of pocket. That’s when it pays to be aware of your options. Some currency exchange companies, including World First, offer forward contracts, which let you fix an exchange rate in advance for a future transfer. Then, if the exchange rates go against you in the meantime, you won’t lose out, because you’ll already have agreed the exchange rate. Keeping your eye on the markets (or getting someone to do it for you) could pay dividends and may mean that you get a lot more for your money. Written by James Thorp World First

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]]> https://currencytoday.co.uk/blog/sterling-strength-tempting-for-those-looking-to-buy-property-abroad/feed/ 0 Demand for Sterling Soars https://currencytoday.co.uk/blog/demand-for-sterling-soars/ https://currencytoday.co.uk/blog/demand-for-sterling-soars/#comments Mon, 17 Feb 2014 19:13:13 +0000 admin https://currencytoday.co.uk/blog/?p=1527 It seems that nothing can stop demand for sterling now. The BoE’s adjustment to forward guidance went down well with the market and fuelled significant strengthening of the pound. Although the central bank ruled out any immediate tightening, confidence about the UK outlook and the prospect for a policy tightening in the first half on 2015 is strong. This week there is more opportunity for the pound to advance further as unemployment data and inflation figures will be published. Some more encouraging numbers here will most likely keep the dollar and the euro on the back foot for yet another week. The latest MPC minutes will be published this week, and it is unlikely that this will encourage any significant sterling buying. In the last monetary policy meeting the committee opted to maintain the current level of asset purchases and hold the bank rate at 0.50%. Considering the Inflation Report was released just last week, we doubt rhetoric in the minutes will differ much and therefore expect minimal movement on the back of that release. PMI attempts to rescue the euro Despite some solid GDP figures last week, the euro is still struggling against sterling, and has failed to really push the rate further through 1.37. Growth across the region has boosted hopes that the worst of the regions crisis is behind it and this has made the outlook for the eurozone a little brighter. This week Eurozone PMI data will be key, and some impressive results should contribute to more positive view, and therefore this should be reflected into euro strength. Last week, talks of negative deposit rates in the Eurozone resurfaced as ECB member Coeure implied the ECB had seriously been discussing this option. Although the effect on the euro was temporary, the market is still unsure about what is to come from the ECB, and this could keep the euro vulnerable. Live Rates for Transferring £400,000 UK Pounds into Euros: An important week ahead for the dollar. The greenback has taken a huge hit, especially against the pound as US data continues to disappoint giving investors more excuses to favour sterling. Comments from Fed chair Yellen were regarded as dovish and this has also weighed on the dollar’s performance. A buoyant pound has pushed cable towards three year highs and with sterling buyers waiting in the wings, US figures this week will need to impress to ease pressure off the dollar. ~ The Federal Open Market Committee (FOMC) will release the minutes from their last monetary policy meeting. Considering remarks made by Fed Chair Yellen, the market will be looking closely for any sign of a dovish bias from the central bank. Since their last decision to reduce asset purchases further by $10bn, yet another disappointing employment report has been released. Although this is unlikely to have a significant impact on their stance, it has provoked some concern about the labour market and an upbeat tone is needed in order to provide the greenback with some support. […]

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]]> https://currencytoday.co.uk/blog/demand-for-sterling-soars/feed/ 0 Pound Strength Wanes in Last Week https://currencytoday.co.uk/blog/pound-strength-wanes-in-last-week/ https://currencytoday.co.uk/blog/pound-strength-wanes-in-last-week/#comments Tue, 11 Feb 2014 16:55:35 +0000 admin https://currencytoday.co.uk/blog/?p=1514 Following some stellar months in the past year or so GBP investors could easily feel short changed by sterling in the past month. Data momentum into 2014 was strong – Purchasing Managers Index (PMI) surveys, which test the economic pulse of private sector companies, painted the UK as the fastest growing economy through November and December, and strong employment figures have also brought some cheer in January.  But the exchange rates haven’t fully mirrored this data. That said, the performance of sterling has still been strong in recent weeks compared to some other currencies, and now is still a good time for people looking to change their pounds into euro or US dollar. However, in the space of just one week, the pound has lost a fair amount of its strength. On Feb 3, the GB Pound / Euro exchange rate was at the 1.218 mark, but just seven days later it’s down at 1.203. So if you were transferring £300,000, you’d have got €365,000 a week ago – now, that same amount would get you less than €361,000. Today's rate ( in real time) for transferring £300,000 GB Pounds into Euros: Waiting one week to make your transfer would have cost you more than €4,000. And that’s just a week – think what could happen in a longer period of time. It just shows that when you’re dealing with the exchange rates, getting your timing right is key. If you don’t, you could end up losing thousands of pounds. Before this recent blip, GBP/EUR had hit its highest level in a year, and against the US dollar, sterling had been performing even better, with close to 32 month highs being hit. Again though, GBP has taken a minor hit against the dollar in the last few days. On Jan 29, GBP/USD was at 1.658, but at the time of writing it’s now 1.641. When transferring pounds into dollars, that’s a drop of $5,000 dollars on a £300,000 transfer in the space of little over a week.  Today's rate ( in real time) for transferring £300,000 GB Pounds into US Dollars: The euro has benefited from strong data in recent weeks so the highs seen for GBP/EUR may have gone for a while. And in the US, with interest rates remaining ultra-low until unemployment is significantly below 6.5%, the dollar is also expected to have a strong 2014 – which could affect those changing pounds into dollars. If you’re an expat or you need to make any sort of international payment, World First will give you better exchange rates than the bank, which will put more money back into your pocket. Plus, they provide faster transfers and offer you outstanding service. You’ll get access to services and products that you typically won’t be able to get from your bank – for example, forward contracts which protect you from fluctuating exchange rates by letting you fix a rate for a future transaction. Written by James Thorp World First

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]]> https://currencytoday.co.uk/blog/pound-strength-wanes-in-last-week/feed/ 0 How Things Have Changed in Foreign Exchange https://currencytoday.co.uk/blog/how-things-have-changed-in-foreign-exchange/ https://currencytoday.co.uk/blog/how-things-have-changed-in-foreign-exchange/#comments Fri, 31 Jan 2014 16:29:44 +0000 admin https://currencytoday.co.uk/blog/?p=1489 It’s nearly ten years since I left my job dodging London’s traffic selling cigarette machines in favour of working as foreign exchange dealer in a dingy room behind a bureau de change kiosk in Marble Arch. Having recently moved to Holland Park in West London this opportunity was a very appealing one with only a twenty minute commute on the central line and the chance to work with three of my closest pals. It was March 2004 and I was 22 (See above image) and the world of foreign exchange was somewhat different (and slower) than what it is today. Google and search in general was still in its infancy and many customers were still favouring Teletext over hunting around the internet to track live foreign exchange rates. The process of booking a foreign exchange transaction back then was a little more convoluted than it is now and went a little like this. A client would call; confirm an exchange rate verbally on the telephone and after rushing them off the phone I would then secure the purchased currency with our bank (the deal counterparty). That was the relatively easy part before the dreaded admin work which involved me manually editing a word document, adding the correct exchange rates and amounts (a lot of room for error here) before saving, attaching and finally sending an email to the client not forgetting our bank details for settlement of their pounds sterling. The onus was now on my client “Mr Smith” to pay for his ordered currency by electronic transfer using the default option of a visit to his bank branch. In those days’ telephone banking had low daily limits and consumers remained cautious over using internet banking especially on larger amounts. So off Mr Smith went to his local branch and after half an hour trying to find a parking space in his local town and standing in a queue for ten minutes the cashier requested the completion of a complicated bank transfer form by hand. The form requested the bank details of who he wanted to pay (us) along with the sender’s “life history” and lots of other unnecessary information. Upon close inspection of the handwritten form and a minor interrogation, the cashier charged a fee of £30 for the remittance of funds with no guarantee as to whether funds would hit our account that day or the following day. This was not massively helpful to my clients as our transfers were often sent last minute to pay installments on overseas property purchases with frantic lawyers chasing payment to complete the sale. Internet banking. Thankfully this process started to get easier over the years when security improvements and increased usage of internet banking made the movement of money much easier. The introduction of Faster Payments Service (FPS) in 2008 allowed clients to send up to £10,000 the same day online or by phone banking and those with higher limits able to transfer much larger sums. Debit card payments More recently […]

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]]> https://currencytoday.co.uk/blog/how-things-have-changed-in-foreign-exchange/feed/ 0 Now is a Great Time to Send Money Abroad https://currencytoday.co.uk/blog/now-is-a-great-time-to-send-money-abroad/ https://currencytoday.co.uk/blog/now-is-a-great-time-to-send-money-abroad/#comments Fri, 31 Jan 2014 09:17:15 +0000 admin https://currencytoday.co.uk/blog/?p=1476 Since the start of the year, we’ve seen great strides made by GDP, which had already ended last year as the strongest currency in the G10. Favourable data releases - such as good employment figures –have seen sterling hit its highest level against euro in a year. This is great news for expats looking to buy property overseas or send money abroad, as they’re now getting much more for their money. To illustrate the point, let’s take a look at the exchange rates now and a year ago, and see the difference. So, at the end of January last year, the GB Pound /  Euro exchange rate was at 1.1733, but now the rate is 1.2044. If you were transferring £200,000, you’d have got around €234,660 a year ago, but you’d now get around €240,880. What a difference a year makes - a difference of over €6,000. Get your timing wrong, and it could end up costing you a lot of money. Twice last year, in March and August, the GBPEUR exchange rate fell to 1.15. If you were to transfer £200,000 at that rate, you’d have got €230,000, which is nearly €11,000 less than you’d get now. It just goes to show that you can’t afford to take any risks when dealing with the currency markets. Live rates for transferring £200,000 UK Pounds into Euros: Against the US dollar, sterling has also been enjoying great strength, having recently moved close to a 32 month high. Today, if you transfer £300,000, you’d get around $497,000. A year ago, the same amount would have got you about $472,000 – a huge difference of $25,000 in a year. Live rates for transferring £300,000 UK Pounds into US Dollars: It’s certainly a good time to be changing money from sterling into both euro and US dollar, but no-one knows when sterling’s strength will recede. We’ve seen how a change from one year to the next can affect you, but exchange rates can also fluctuate dramatically in the space of a month or week. Every piece of political or financial news and data – like the movement in interest rates, employment data, business confidence or political instability in a country – can combine to significantly affect the strength of a currency at any time. If you’re an expat or someone that needs to send money home, World First are on hand to provide you with better exchange rates than the bank, faster transfers and exceptional service. They can also offer you services and products that the banks tend to reserve for only their large corporate clients. Benefit from the peace of mind that a forward contract brings, and protect yourself from moves in the market against you by fixing the exchange rate now for a transfer later down the line. That way, if sterling does take a dive, you won’t lose out, having already agreed an exchange rate. Written by James ThorpWorld First

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]]> https://currencytoday.co.uk/blog/now-is-a-great-time-to-send-money-abroad/feed/ 0 Best exchange rates on Euro and US Dollar https://currencytoday.co.uk/blog/best-exchange-rates-on-euro-and-us-dollar/ https://currencytoday.co.uk/blog/best-exchange-rates-on-euro-and-us-dollar/#comments Fri, 20 Dec 2013 06:41:28 +0000 admin https://currencytoday.co.uk/blog/?p=1425 The past month has seen GBP remain in pole position as the G10’s best performing currency, as the Bank of England acknowledged that they may have to raise rates in the UK sooner than they had originally thought. The euro has remained strong despite the ECB deciding to surprise the market by cutting rates, and in the US, with the market still working through the data backlog since the government shutdown and debt ceiling battle, the dollar has been difficult to move from its current range. Sterling’s strength is good news for Brits moving abroad, as their pound now goes further, and could be the difference between achieving or just missing out on the home of their dreams. In the last month, GBP / EUR has been as low as 1.167 but has recently been hovering close to 1.20. When exchanging £300,000, that’s a difference of €10,000. £300,000 currently buys the following amount of Euros It’s a similar story for GBP / USD, which – at around 1.64 - is at its highest point not only in the month, but since the early part of the year. A month ago, it was around 1.60, and just three months ago, slumped at 1.56. When transferring £300,000, you’d get $24,000 more now than at the start of September. £300,000 currently buys the following amount of USD However, house prices in Europe recently rose for the first time since 2010, according to figures from Knight Frank. We’ve become used to falling house prices in the continent, but property prices in Europe have risen by 0.7 percent over the past 12 months. Turkey leads the way with a 12.2% price increase, while Greece has had the worst performance, down 11.5%. In the US, house prices are up year-on-year for the 20th consecutive month. If you’re looking to buy abroad, the sort of property you can afford depends on the strength of the housing market in the country in which you’re looking to buy, and what exchange rates you can achieve. Our partners World First can help you get the best exchange rates, as well as offering excellent service and the fastest available international payments. Plus, you’ll get access to the kinds of services and products that banks usually reserve for their large corporate customers, with all sorts of ways to protect you against fluctuating rates. For example, a forward contract enables you to fix the exchange rate for a date in the future, so you’ll know exactly what the transaction will cost you on the day of completion, helping you budget more easily. Written by James Thorp at World First

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