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:
Theresa May’s Brexit bill was soundly rejected last Tuesday, which should have significantly hurt the Pound. But the vote was so widely anticipated that the negative news had already been factored into the Pound. So, although the Pound dropped below GBP/USD 1.2700 on the vote, it quickly rallied to close higher. Jeremy Corbyn immediately tabled a vote of no confidence, but the next day MP’s backed Theresa May by 325 to 306 votes. This prompted the Pound to rally, trading briefly above GBP/USD 1.3000.
When the air cleared, everyone realised that we were back to exactly where we were before the parliamentary sessions, which is clearly reflected in the Pound. So our near term prediction for cable is GBP/USD 1.2700-1.3000.
Elsewhere in the World, the US Government shutdown and the slowing economic growth in China are the major drivers. One basically cancels out the other in terms of dollar movement.
Events for the coming week to watch out for:
Tuesday 22nd January – 9.30am UK Unemployment and earnings data. 3pm US Home Sales.
Wednesday 23rd January – 11.00am UK Industrial trends.
Thursday 24th January – 12.45pm EU ECB rate announcement. 1.30pm US Jobless claims.
Friday 25th January 9.30am UK GDP. 1.30pm US Durable goods and 3pm Single family home sales.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 1.2700-1.3000. Buying holiday dollars close to 1.3000 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!
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.
Derek Taylor, our very own foreign exchange expert, is recommending that Travel Money Club members buying Euros this week should target their “Forward Orders” at €1.13250 for a great deal.