Derek Taylor recommends $1.3100 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 $1.3100 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:

Chinese Vice Premier Liu He will join Treasury Secretary Steven Mnuchin in Beijing for high-level trade talks this week, with time running short to make a deal ahead of the March 1 imposition of further tariffs on China. President Trump is refusing to meet his Chinese counterpart Xi Jinping before the deadline runs out.

The Fed announcement on January 30th, that US rates would stay on hold, and may even fall, surprised the market. U.S. stocks rallied after the announcement, Treasury yields fell and the dollar sank.

Since then the market has had time to absorb the news, and in fact stock markets have recovered and the dollar has gained, in fact, to higher levels against most countries than before the announcement.

GBP/USD has fallen to 1.2850 before recovering to trade around 1.2900. The Brexit news is still uncertain, and UK GDP figures this morning are worse than expected. However, the real story is about unexpected US Dollar strength, which has driven the Pound down. The Bank of England held UK interest rates unchanged, which is no surprise following the Fed about turn on interest rates.

We are anticipating a range of GBP/USD 1.2800-1.3100.

Events for the coming week to watch out for:

Monday 11th February – 9.30am UK GDP and Trade balance. Slightly worse than expected, but not a surprise..

Wednesday 13th February – 9.30am UK Inflation date. 10.00am EU Industrial Production. 1.30pm US Consumer Price Index (CPI).

Thursday 14th February – 10.00am EU GDP and employment. 1.30pm US Jobless claims and Producer prices..

Friday 15th February –  9.30am UK Retail Sales. 1.30pm US Retail Sales.

Suggested level to buy holiday US Dollars.

We are anticipating a range for GBP/USD of 1.2800-1.3100.  Buying holiday dollars above 1.3000 looks 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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