Small data, big decisions
Predicting whether currencies will rise or fall against each other means looking at the big picture and the small. Just recently it’s all been big picture stuff, most obviously the Referendum. From early November it will be big picture again as America goes to the polls on 8th November, potentially to elect a protectionist President, in Mr Trump. It could have a major impact on the value of the US dollar – when Hillary Clinton took a tumble with pneumonia recently, the Mexican peso fell 8 percent too, on worries for Mexican exports if Mr Trump is elected. Also big picture, the US Federal Reserve will probably begin to raise interest rates in December too. The UK is expected to trigger Article 50 early in the New Year, even as the Eurozone continues to tackle its own myriad problems. These will all affect how much you will get for your sterling.
While waiting for those big decisions, however, you might wonder what keeps the currency markets moving up and down. The simple answer is, a little bit of everything. A range of economic data comes in each day, which our experts analyse for meaning and relevance. For example, suppose the Purchasing Managers Index shows that German manufacturers are pessimistic about demand; where does that leave the EUR/GBP rate if, on the same day, a member of the Bank of England monetary policy committee says that the bank is running out of stimulus options? It may seem quite arcane and random to an outsider, but it all builds into a picture that your Smart Currency Exchange expert will understand.
Why not sign up to our daily currency note to see the latest movements and why they’re happening.
The good news, however, is that you don’t need to worry about all that data if you don’t want to. That’s our job. We can help design a currency strategy that will give you peace of mind by reducing risk, and by saving you money.
We have a number of tools on offer when booking your transfer that could help protect your funds and minimise your risks. Which is the best choice for you?
If you need to make your transfer now, you can benefit from exchanging your currency at the live exchange rate at the time that you contact us. Booking this rate now means you are protected from further exchange rate fluctuations but you do have to pay up front. You can discuss your options with your trader, and monitor the exchange rates beforehand.
If your transfer is planned for some date in the future you can secure your exchange rate now to protect yourself from any adverse fluctuations after the result has been announced. This also allows you to plan your budget with price certainty, as you will know exactly what exchange rate you will receive on your future transfers.
Regular Payments Plan
If you need to send funds overseas on an ongoing basis setting up a Regular Payments Plan can save you both time and money on every transfer. You can also lock in the exchange rate on these payments to ensure that you always know how much you are sending and receiving every time.
To talk through the best currency exchange tools for you in the run up to the EU Referendum, make sure you give us a call today on 020 3542 7829.