Derek Taylor recommends $1.2800 target rate on US Dollar “Forward Orders”

Derek Taylor, our very own foreign exchange expert, is recommending that Travel Money Club members buying US Dollars this week should target their “Forward Orders” at $1.2800 for a great deal.

The “Forward Order” feature is exclusive to Travel Money Club and allows members to automatically buy currency when their target exchange rate is reached. They simply tell the us what currency to buy, what exchange rate to buy at, and the payment card to use. Then if and when the target exchange rate is reached, we automatically execute the order and deliver next business day* (for orders completed by 1pm). As it all happens in the blink of an eye, even if your target rate is only achieved for a couple of minutes, we will still execute your order! Here we explain the latest news about buying US Dollars.

Derek told us:

Market volatility abounds. Sterling fell victim to what has now been called the “New Year Flash Crash! This occurred between the New York close and Asian opening around midnight GMT late on the 2nd January. This is probably the absolute low point in terms of market liquidity as the machines are turned off and a little panic can go a long way. Especially it seems in USD/JPY and GBP/USD.

Our pre-Christmas range was GBP/USD 1.2500-1.2800, which has held true, except for the “flash crash” which saw Sterling nearly touch 1.2400 before rebounding towards todays level at 1.2650.

So, we will stick with our range of GBP/USD 1.2500-1.2800, and return to looking at the usual mix about Brexit and the US/China Trade Wars.

Events for the coming week to watch out for:

Monday 7th January – 10.00am EU Retail Sales 3.00pm US Factory Orders

Tuesday 8th January – 8.30am UK Halifax house prices.

Wednesday 9th January – 10.00am EU Unemployment.

Thursday 10th January 1.30pm US Jobless claims.

Friday 11th January 9.30am UK Trade balance and manufacturing output, 1.30pm US Inflation data (CPI).

Suggested level to buy holiday US Dollars.

We are anticipating a range for GBP/USD of 1.2500-1.2800.  Buying holiday dollars close to 1.2700 seems good right now. With Sterling volatility, it makes sense to take advantage of rate spikes, so try our rate tracker and forward order facilities to be sure of not missing out.

Remember, breaking news moves markets!


Derek is Director and Co-Founder of the Travel Money Club, as well as CEO of Taylor Associates (International) Ltd, one of the City of London’s foremost financial and market training organisations. Taylor Associates was established in 1993, specializing in derivatives, capital markets, risk and treasury training. He has personally trained in banks, brokers, asset managers, hedge funds and corporations both in the UK and overseas.

Derek’s career started in Midland Bank Group Treasury working across a broad product range including Money Markets, Foreign Exchange, Equity and Fixed income. He rose to the level of senior Director, before moving to Lehman Brothers, and then Bank of America working both in London and NY.

Derek has primarily worked as a trader, both inter-bank and proprietary, but has also spent some years as an inter-bank broker, running desks at two of the world’s leading brokerage houses, Tullett Prebon and Harlow Butler Savage (now part of the ICAP group).

Derek is a frequent speaker on Financial Markets subjects all over the World, and is an Associate of the Chartered Institute of Bankers (ACIB), a member of the Forex Association (ACI), and a member of the Society of Technical Analysts (MSTA).

* Please note that a small number of currencies are not available for next business day delivery. The actual delivery date will be clearly displayed in your order acknowledgement.

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