Trump rhetoric continues to keep markets on edge
Yesterday proved another jittery session across financial markets as participants continue to lose appetite for risk this week.
Further strong rhetoric coming from the Trump administration kept moves for the dollar and euro particularly choppy. Yesterday’s highlight centred on comments made by the president’s trade advisor Peter Navarro, who took aim at a “grossly undervalued” euro providing competitive advantage to Germany, allowing them to “exploit” the US and EU partners. EURUSD spiked during the session climbing to highs not seen since November last year, with trading currently sustained around the 1.08 mark. Trump himself was again quoted on similar lines, saying yesterday China and Japan “play the devaluation market”, with the comments collectively continuing to sustain the new administration’s frank tone offered on the topic of a stronger US dollar.
Equities stateside closed largely lower as participants continued digesting the feed of divisive recent moves for Trump, which combined with a spate of mixed corporate results and profit forecasts kept the mood generally more downbeat on the session than has been felt in recent weeks. Across the pond, European indices had earlier seemingly matched the tone.
This morning has seen UK manufacturing PMI results come in as expected with the survey edging down slightly from December’s reading. It represents a reasonably robust start to the year, but the report also suggested input price inflation reached a new survey record, reiterating the ongoing price pressure spurred by sterling’s significant slump last year.
Of note today we have the expected vote on the Article 50 bill, which is anticipated to pass following yesterday’s lengthy debates in Parliament. This afternoon across the pond US data arrives in the form the ADP non-farm employment, ISM manufacturing PMI and weekly crude oil inventory readings. Later still, the FOMC provide their latest rate decision, which is largely anticipated to see US monetary policy kept on hold and as always accompanying commentary on future trajectory examined with scrutiny.
The August minutes of the Bank of England's Monetary Policy Committee (MPC) show that 2 of the 9 members voted for an interest rate rise of 0.25% to 0.75%.
This is the first time in three years that there has not be unanimity amongst the MPC members, suggesting that interest rates may rose sooner rather than later. On this expectation, sterling jumped 0.2% against the dollar to $1.66.
Owning a home abroad can be great fun when you are spending time there, relaxing in familiar surroundings and switching off from the hustle of normal life. But when back home, the financial commitment of that holiday home can provide a real headache at times.
Whether utility bills, service charges or mortgages in the local currency, owners regularly have to make international money transfers to cover the costs of their home. British expats living permanently abroad need to make regular payments from UK sterling into local currency from perhaps a pension or other UK income.
It is easy to use your bank to action a currency exchange and pay from a UK account to a foreign account. However, more and more people are benefiting from better exchange rates and faster transactions by using foreign exchange (FX) brokers, specialists in international money transfer. Brokers can provide one-off transactions or regular payments plans, ideal for people who have financial commitments in more than one country.
FX brokers can typically save you between 3% and 5% on the exchange rates. That can amount to an extra £50 for every £1000 transacted. The money usually arrives at the destination the same or next day, unlike the banks who often need 3 to 5 days to clear the funds.
In volatile financial times, exchange rates fluctuate and so the amount of local currency you can expect from a fixed amount can vary. Brokers offer the ability to fix exchange rates for up to one year therefore taking the risk out of the currency movement.
mymoneyspy.com works closely with FCA regulated foreign exchange brokers, comparing the rates offered across most currencies in the world. By updating the search results minute by minute, you can be sure that the rates that you see on this site are the rates that you will be offered.
Compare for yourself by completing the form opposite or by clicking the links below.
Money Transfer Operators such as Western Union or Moneygram operate cash desks all over the world providing immediate point to point money transfer. These services are convenient as they also operate in remote parts of the world and allow the sending of small amounts of cash to recipients even if they do not have a bank account. There is a price to pay however and for small amounts of money you can expect to be charged anywhere between 4% and 8% for the transaction.
Banks are the usual choice for most consumers, but a combination of fees and opaque exchange rates hide the true cost of making a foreign currency transfer. Fees of up to £25 are common and even if these transaction fees are discounted then banks will still add a margin of 5% to 7% hidden within the exchange rates that they offer. Transferring money abroad within the same banking group may allow you to avoid some of the charges, but it is unlikely that the exchange rate will be any more favourable. Payments between different banks may take several days to clear.
Foreign Exchange Brokers - If you are sending more than £1000 then the best option of making an international money transfer is to use a foreign exchange (FX) broker. Specialists in exchanges rates, FX brokers can be unto 5% cheaper than high street banks. As exchange rates fluctuate throughout the year, brokers can also offer fixed rate forward contracts offering you a fixed exchange rate no matter how it moves over a period of time. Finally, FX brokers can usually make same day transfers anywhere in the world. Foreign exchange brokers are the ideal choice for businesses wishing to pay suppliers or expats living abroad wishing to repatriate their money.
mymoneyspy.com is a free comparison site that monitors the exchange rates between specialist foreign currency brokers.
Complete the form opposite to see for yourself how you can save money.
Despite a four month ban for biting Giorgio Chiellini, Luis Suarez has been sold by Liverpool to Barcelona for an apparent £75m. The 27 year old Uruguayan signed for Liverpool in January 2011 for 32m Euro from Ajax.
In January 2011, the Euro was trading at EURGBP was trading at 0.8633, whereas today it is currently trading at 0.795. Liverpool have bought and sold Suarez at times where the exchange rate has worked in their favour. Assuming that Suarez is worth £75m, Liverpool have made over £6m just on the currency movement.