Derek Taylor recommends $1.3300 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 $1.3300 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 UK’s exit from the European Union has been postponed from March 29th to October 31st 2019.

We are looking at a longer term daily chart instead of our usual 4 hour chart. It is good sometimes, to take a step back and look at the wider view. As can clearly be seen GBP/USD has basically been trading in a range of 1.3000-1.3300 since mid-February, and pushing back the Brexit decision until the end of October will see this continue. However, the future is uncertain, with European elections, plus we are almost certain to have a new Prime Minister, and potentially a change in Government, not to mention another referendum. Sterling is only half the picture here, with the US Dollar as the other component in the currency pair, so we should think about that.

Donald Trump seems to be heading towards a long awaited trade agreement with China, and having threatened sanctions against both Europe and Japan, it seems as though negotiations are forthcoming. Interest rates with remain low, commodity prices especially oil are rallying, and stock markets look steady. So, barring shocks, the narrow trading range should continue, at least for the time being.

GBP/USD had been trading at the lowest end of our range, but has firmed up with the Pound now at 1.3100, so we are expecting the range 1.3000-1.3300 to hold.

Events for the remainder of the week to watch out for:

Tuesday 16th April – 9.30am UK Unemployment. 2.15pm US Industrial output.

Wednesday 17th April – 9.30am UK Inflation data. 10.00am EU Inflation.

Thursday 18th April – 9.30am UK Retail Sales. 1.30pm US Jobless claims.

Friday 12th April – 1.30pm US Housing starts.

Suggested level to buy holiday US Dollars.

We are anticipating a range for GBP/USD of 1.3000-1.3300.  Buying holiday dollars above 1.3100 still looks good. I have been recommending buying half your holiday money now and half when you travel.  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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