Derek Taylor recommends $1.3000 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 $1.3000 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:

 

The recent bad press around the Pound has sold newspapers, but the real story here is the strength of the US Dollar, and it is mostly about the Trade Wars initiated by President Trump.

The sanctions that “the Donald” has been dishing out are really starting to impact the economies of a number of countries. Global investors are rattled, and move their money out of these economies. This really boosts the value of the US Dollar. These economies then suffer the double whammy of crashing stock markets and home currencies. You can really see this effect in places like Russia, South Africa and especially Turkey.

Turkey faces economic collapse and one dollar in 2015 bought 2 Turkish Lira, and now it buys about 7, which is a 350% devaluation of the Turkish currency. The sanctions on Turkey, the USA’s Nato partner, are mainly driven by the Turkish government locking up a US pastor. The knock on effects are catastrophic, and they don’t stop with Turkey, because Europe has such a large exposure to Turkey, the Euro has been dragged down as well.

So recent moves in Sterling can be mainly attributable to the very strong dollar, and not necessarily the domestic story.

We have had to drop our expected range to reflect the stronger Dollar, so GBP/USD 1.2700- 1.3000.

Events for the coming week to watch out for:

Tuesday 14th August – 9.30am UK Earnings and Unemployment. 10.00am EU, GDP estimates and Industrial Production.

Wednesday 15th August – 9.30am UK Inflation data (CPI & RPI).

Thursday 16h August – 9.30am UK Retail Sales. 1.30pm US Housing starts.

Suggested level to buy holiday US Dollars.

The strong dollar has driven the Pound down. We personally feel that the market is due a bounce and therefore suggest a range of GBP/USD 1.2700-1.3000.

To take advantage of rate spikes, please try our rate tracker and forward order facilities to be sure of not missing out.

Remember, breaking news moves markets!

ABOUT DEREK TAYLOR

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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