Derek Taylor recommends $1.4100 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 $1.4100 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:

There are a number of items of Breaking News, which ARE moving markets this morning, and certainly effecting the GBP/USD (Cable) currency pair:

  1. There has been an agreement on Brexit transition. This means that current EU rules will remain in place in the UK until well after the Brexit date. Until the end of 2020. Note that this is breaking news and as yet unconfirmed officially.
  2. Facebook are coming under a lot of fire and their stock has dropped nearly 4%. Global stock markets are being heavily sold off this morning, especially techs. It seems that a company called Cambridge Analytica was employed by the Trump presidential campaign. They carried out a survey of around 230,000 Facebook users, but in fact tapped into data from 50 million Facebook users.
  3. There is building concern over the future of Japanese PM Shinzo Abe. He has become embroiled in several scandals, the worst of which is the “land sale” scandal, which involves the sale of state owned land  at well below market value to operators with ties to the Abe family. Mr. Abe has been the proponent of “Abenomics”, which has led to the weakening of the Japanese Yen, boosting exports. If he is forced out of office, the Yen could well strengthen considerably, forcing the USD/JPY lower. This may negatively impact the Dollar further against other currencies.
  4. There is also a new Governor at the Central Bank in China. Yi Gang is now at the Head of the Peoples Bank of China (PBOC), markets await the reaction, but one should remember that the Trump Trade Wars will not be going down well in China, and they have been relatively quiet recently. This may change!!

Last week’s Spring Statement showed nothing new, and the markets were quiet. We are looking at a chart covering the last 3 weeks instead of the usual 1 week. The end of February saw Sterling slump against a stronger US Dollar, which had been gaining ground on the back of the “risk on” situation developing around the prospect of “Trade Wars”. This negatively impacted stock markets and boosted the Dollar. Since then the Pound has recovered with some better than expected UK economic data and expectations of interest rate rises, hinted at by the Bank of England.

Note that GBP/USD (Cable) had been trading relatively comfortably in the 1.3800- 1.4000 range. It has broken 1.4000 on the topside. There is plenty to watch out for this week, with data announcements and interest rate decisions. Plus we are awaiting news from the Brexit summit due this Friday.

Events for the coming week to watch out for.

Tuesday 20th March – 9.30am Inflation data. UK CPI and RPI.

Wednesday 21st March –  9.30am UK Earnings/unemployment data and Industrial trends. 6pm US FOMC Rate announcement.

Thursday 22nd March – 9.30am UK Retail Sales.12.30pm US Jobless claims. 12pm Bank of England Interest rate decision.

Thursday 22nd March – 12.30pm US Jobless claims.

Friday 23rd March 12.30pm US Durable Goods and at 2pm New Home Sales.

Friday 23rd March Brexit summit news announcements.

Suggested level to buy holiday US Dollars.

We have moved our suggested range up a shade to GBP/USD 1.3800-1.4100.  We still feel that 1.4000 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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