Derek Taylor recommends $1.3700 target rate on US Dollar ‘Forward Orders’

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 $1.3700 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!

Derek told us:

Sterling was again a big winner last week, reaching a post Brexit high of GBP/USD 1.3616. In fact the best performing major currency for the month.

The inflation data released last Tuesday, was way higher than expected. Sterling rose in anticipation of rate hikes. But then, on Thursday the Bank of England’s Vlieghe, who was previously an interest rate dove, came out with a much more hawkish speech. This really set the Pound soaring. Fridays poor US trade numbers further boosted the Pound.

The markets have now priced in a 75% chance of an interest rate rise in November and another rate rise in December.

After last weeks record breaking performance for the Pound, we have adjusted our range to GBP/USD 1.3300-1.3700.

Events for the coming week to watch out for:

Tuesday 19th 1.30pm – US Housing Starts.

Wednesday 20th – US Federal Open Market Committee (FOMC) interest rate announcement.

Thursday 21st at 1.30pm – US Jobless claims

Friday September 22nd – Theresa May speaks in Florence about Brexit. She is said to be planning to make an “important intervention” on the issue.

Suggested level to buy holiday US Dollars.

We feel that current levels 1.35-1.36 make now a good time to buy holiday dollars.

Remember, breaking news moves markets!

Disclaimer: Opinions expressed are solely those of Derek Taylor and do not necessarily express the views or opinions of the Travel Money Club or any other organisation mentioned herein. These opinions are not intended to be a source of advice and any action taken as a result of this information is entirely at the reader’s own risk.

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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