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 €1.1350 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:
“It was a bad week for the Pound! On Tuesday the 18th the latest UK inflation figures came in lower than expected. This comes after hawkish comments from the Bank of England had underpinned the Pound, with the possibilities of interest rate rises. The Pound reacted immediately, falling against the Euro to GBP/EUR 1.1250.
“Two days later, on Thursday 20th July, the ECB President Mario Draghi strongly hinted at Monetary Policy tightening which boosted the Euro. So we have had negative Sterling news followed by positive Euro news. Not a good week for the Pound which has now reached levels against the Euro (1.1100) not seen since October 2016. In the face of all the bad news for the Pound, which has been discounted and factored into the exchange rate, it may be that Sterling recovers somewhat.
“However, we are adjusting our near term forecast to reflect the market, down to a range of GBP/EUR 1.1050-1.1350. Holidaymakers who can see Euros at 1.1300, should be lucky. Many Airports round the UK were selling Euros for less than Pounds, which is a compete rip-off considering that a pound should still buy you 1.11 Euros. This is blatant profiteering. They punish holidaymakers quickly, but when the Pound improves, are they so quick to pass on the better rates??”
Important Economic Data to watch out for this week:
Wednesday the 26th at 6pm. Federal Open Market Committee meeting (FOMC). This is where they announce US interest rates, so very important.
It is a big week for company earnings data, so keep an eye on Stock Markets, especially the US.
Remember, it is breaking news that 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.
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 €1.1750 for a great deal.
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 $1.3300 for a great deal.