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By Jonathan Watson

Sterling reached an 8 week high against the dollar yesterday. Why is this? Well the US dollar benefits from being a ‘safe haven’ currency. That means that in times of fear and uncertainty investors look to the US dollar as a secure option. Recently we have seen funds move away from the US dollar as global economic conditions improve. We saw that as soon as the ECB started buying up european debt bonds confidence in the euro was restored and previously safe haven funds were moved away from the dollar into the euro and other currencies too.

Couple these global developments with a strong pound which is making gains against most majors and you can see why the GBPUSD rate is quite attractive right now. With further discssisons in Europe over the euro crisis, this may yet improve further.

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By Jonathan Watson

The US dollar climbed to 1.5850 yesterday, up nearly 3 cents from the average trading level this month. This is presenting a great opportunity for those with US dollar requirements. The reasoning is in my opinion because the ECB undertook a massive purchase of Spanish and Portuguese debt and this helped strengthen the euro as it showed renewed confidence in the euro. Consequently investors who were seeking refuge in the US dollar have moved funds to the euro which they believe is a better option.

If you have currency transactions to make why not get in touch to see if we can offer helpful solutions? As specialist currency brokers we will happily discuss all your options. We can also offer award winning rates that could well save you money!

By Jonathan Watson

The US dollar will I feel make gains this year as unemployment appears to be coming down. But why then did the dollar lose over a cent in yesterdays trading? Well as happens in the global economy, seemingly unconnected events can via a chain reaction shape events in other spheres of the globe. Yesterday’s bond auction by the Portuguese government strengthened the euro as the ECB stepped in to help keep the interest rate low (relatively speaking).

I think we saw money moved away from the typcially safe haven dollar to the euro as investors were inspired to move money back to the euro. The dollar has really been benefitting of late due to it’s status as a safe haven and we saw it weaken yesterday as investors were moved to the euro.

I still think the euro has many problems to overcome, Spain has a bond auciton today which should be interesting. Looking at the evidence I expect further euro weakness in the coming weeks and consequently dollar strength.

For me this makes current rates very attractive. Why not speak to one of the team here at currencyline to see if we can save you some money on your currency transfer. As specialist currency experts we can make your currency transfers not only quick, easy and hassle free, but more importantly much more cost effective through our award winning exchange rates. Speak to us and find out more!

By Jonathan Watson

The US dollar remains strong despite some very turbulent times. We have seen the value of the dollar fluctuate majorly in recent years. One of the key issues for me is the unemployment rate. Obama will have been overjoyed to see the unemployment rate fall to 9.4% for December, from 9.8% for November, the biggest drop since 1998. Closer analysis of the situation however revealed that part of the reason for this drop was that 260,000 people were actually no longer looking for work and hence removed from the total.

Nevertheless the overall economic siutation seems to be improving and longer term I expect the dollar to regain ground against both the euro and sterling. Despite sterling starting 2011 well, particularly against the euro, I would expect further dollar strength on the GBPUSD rate as their economic situation improves.

If you have currency transactions to perform for any currency why not get in touch to see if we can save you money. We offer not only excellent rates, but expert guidance and opinion that could well save you money.

By Jonathan Watson

GBPEUR has  improved by over 2.2% this week . The low of under 1.16 has been improved on with the rate now at just under 1.19. This is presenting a fantastic opportunity for those buying euros with sterling. The question is will it last? I now personally think it may do despite the weakness ahead for sterling. Spain and Portugal are to auction off  debt bonds in the coming weeks and the insurance and interest on these bond sales could be massive. Would you consider investing in Spain right now?

Depending on the outcome here we could see some massive losses for the euro. If you have a currency transfer for euros or any other currency why not get in touch with us to discuss the requirement? As specialist currency brokers we are exceptionally well placed to offer guidance that could save you money.