Derek Taylor recommends $1.3950 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 $1.3950 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:

It seems amazing that two weeks ago the Pound was buying in excess of USD 1.4300, and is now trading at 1.3750. “Breaking news moves markets”. The news is all bad, starting with softer inflation data, followed by the lowest GDP numbers for 5 years. All this has meant that expectations of higher interest rates in May have practically disappeared. Anticipated higher rates had been boosting Sterling, so when you take this away, then the Pound suffers. The net result, with bad news for sterling, has seen Cable (GBP/USD) fall from 1.4300, to 1.3750.

Amber Rudd, the UK Home Secretary, has resigned over the “Windrush” scandal. She “inadvertently misled” MP’s over targets for removing illegal immigrants.

The Amber Rudd news should really have hit the Pound harder than it has, which may signify that Sterling is starting to find a new base for now.

Events for the coming week to watch out for.

Monday 30th April  – 1.30pm – US personal consumption followed by Home Sales.

Tuesday 1st May – 3.00pm US Manufacturing PMI.

Wednesday 2nd May – 7.00pm – US Federal Open Market Committee (FOMC) Rate announcement.

Thursday 3rd May – 10.00am EU inflation and producer prices. 3.00pm US Factory orders.

Friday 4th May – 8.30am Halifax house prices. 10.00am EU Retail Sales. 1.30pm US Non-farm payrolls.

Suggested level to buy holiday US Dollars.

We are adjusting our range to GBP/USD 1.3650-1.3950. Right now, travellers have suffered as the Pound drops. Volatility in Sterling is a factor, as interest rate concerns and potential Brexit news are priced in.

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.

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