Derek Taylor recommends $1.3200 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 $1.3200 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:

Our anticipated range for the GBP/USD pair was 1.3000-1.3300. we have actually touched both sides of this range with a volatile Pound being dragged around by conflicting news. If you look at the Pound against the Euro, the Pound has been gaining. But against the USD it has been falling. There are a number of reasons, and some are conflicting.

  1. The US has been finally closing trade deals with its neighbours, Canada and Mexico.
  2. The Euro has been hard hit by the Italian coalition government’s plans to run up an enormous trade deficit. Italy has been compared to Argentina. Investors have been fleeing from Italian assets.
  3. This afternoon, news broke that the UK was softening its stance on the UK border with Ireland. The Pound was heavily bought but has given up most of it’s gains already.
  4. Purchasing Managers Index (PMI) data has been released today by both the UK and the USA. The UK was better than expected and the US worse.

I have adjusted the anticipated range down a shade to GBP/USD 1.2900- 1.3200.

Events for the coming week to watch out for:

Monday 1st October 9.30am UK PMI. 3.00pm US PMI.

Tuesday 2nd October 7.00am UK Nationwide house prices. 10.00am EU Producer Prices.

Wednesday 3rd October 10.00 EU Retail Sales. 1.15pm US employment report.

Thursday 4th October 1.30pm US Jobless claims.

Friday 5th October 8.30am UK Halifax house prices. 13.30 EU employment. 1.30pm US non-farm payrolls.

Suggested level to buy holiday US Dollars.

We are suggesting a range of GBP/USD 1.2900-1.3200, with a good chance of buying Dollars at 1.3100.

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.

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