Derek Taylor recommends $1.4000 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 $1.4000 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:

 

Last week “The Donald” announced a 25% tariff on imported steel and 10% on aluminium. The World’s stock markets took a pounding, reacting to the possibility of all-out trade wars. This creates a “risk on” situation which inevitably benefits the dollar in the short term, although the longer term position becomes unclear.

Trade protectionism is serious, affecting the free movement of trade and markets. People with very long memories will hark back to the Smoot-Hawley Tariffs that the US implemented in 1930. Some say that this ushered in the depression and ultimately the rise of the extremist right wing governments in Europe.

The markets have also been somewhat jittery about the Italian elections held on Sunday, with a hung parliament in Italy, and the balance of power favouring the anti-establishment and far-right parties.

Mrs May’s much anticipated “Road to Brexit” speech on Friday therefore paled into insignificance, and ended up being something of a damp squib. Upbeat PMI figures published this morning have given some support to Sterling.

Events for the coming week to watch out for.

Monday 5th March – 9.30am UK Purchasing Managers Index (PMI). Above expectations.

Tuesday 6th March – Halifax House prices 8.30am. US Durable good 3pm.

Wednesday 7th March – 10am. EU GDP numbers.

Thursday 8th March 1.30pm US Jobless claims.

Friday 9th March 9.30am UK Trade balance and manufacturing output.

Suggested level to buy holiday US Dollars.

The strengthening US Dollar has pushed down the Pound, so our suggested range is now GBP/USD 1.3700-1.4000. Anything close to 1.4000 now looks to be a good level to buy holiday dollars. 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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