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.
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 US Federal Open Market Committee (FOMC) raised rates by 0.25%, which was exactly what the market expected. The Dollar lost ground after the announcement and rates are expected to be raised about another 0.75% in 2018. The attention soon shifted back to the US tax reform bill, which is struggling to get enough votes, resulting in a lower bias to the US Dollar. The Pound slumped on Friday as Brexit negotiations entered the second phase.
Markets are range trading, and looking like we are heading into Christmas without seeing any clear or breaking news. It should be noted that market activity slows down considerably in the run up to Christmas. This means less liquidity and therefore if there is any important breaking news then movements can be exaggerated.
Keep an eye out for Brexit news – Round Two. But also watch the US Tax reforms – the situation is delicate!
Events for the coming week to watch out for.
Tuesday 19th December – 1.30pm US Housing starts – always an important number.
Thursday 21st – 1.30pm US Jobless Claims
Friday 22nd – 9.30am UK GDP figures. 1.30pm US Durable goods and Home sales.
Suggested level to buy holiday US Dollars.
The range GBP/USD 1.3200-1.3500 holds for now.
GBP/USD 1.3400 is looking like a good level to buy holiday Dollars, with an outside chance of 1.3500.
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 €1.1650 for a great deal.
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 €1.1600 for a great deal.