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:
Cable is the FX market term for the currency pair GBP/USD. It reflects the economic performance of both the UK and the USA. Markets move on new, breaking news, and the news may impact the UK, or the US, and sometimes both.
Last Thursday the 2nd August, at 12pm, the Bank of England raised interest rates in the UK from 0.50% to 0.75%, which is the highest level for 9 years. This had already been factored in by the markets. But the Bank’s Governor, Mark Carney followed up the announcement with comments about the UK economy, which is suffering due to Brexit uncertainty. He said, “ no-deal Brexit risk, was uncomfortably high”. Cable has been trading lower since then.
Our expected range has been GBP/USD 1.3000- 1.3300, but we have now adjusted this lower to reflect events. GBP/USD 1.2900-1.3200.
Events for the coming week to watch out for:
Monday 6th August – 8.30am UK Halifax house prices
Thursday 9th August – 1.30pm US Jobless Claims and Producer Prices.
Friday 10th August 9.30am UK Trade Balance and Manufacturing output. 1.30pm US Consumer Price Index.
Suggested level to buy holiday US Dollars.
Sterling has seen support at 1.3000, but trading below that now, so we are changing our anticipated range to GBP 1.2900-1.3200, and recommending buying holiday dollars above 1.3100.
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.
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 €1.1300 for a great deal.
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 $1.3500 for a great deal.