- Forward contract allows you to forecast future costs or profit if you are a business
- Enables you to fix a price for an overseas property if you a making stage payments
- Allows you to fix the sterling amount you will receive if you are selling an overseas property
- Saves time, stress and hassle when dealing with foreign exchange / exchange rates
- Provides peace of mind in uncertain times
Monday, 27 April 2009
Forward contract benefits
List of benefits of using a forward contract.
Tuesday, 3 March 2009
Dollar benefits as investors look for safe haven after equity move.
The dollar took full advantage of investors running for cover yesterday, after traumatic moves in the financial markets. Risk aversion went into overdrive as equity markets tumbled on bank fears. Asian share markets extended the global sell off on Tuesday as a spate of dividend cuts and faltering financial companies shook investor confidence around the world. This led to the dollar being bought against other currencies such as the pound and euro.
We saw four cents gained over sterling, from $1.4365 in early trade to hit an intraday high of $1.3958 in late UK trading. The gains made on the euro were not so severe but still managed nearly two cents in the greenbacks favour to hit an intraday high of $1.2552.
Data from the US was not great as manufacturing figures showed that a freeze in industrial activity continued into February, while further government intervention in American International Group (AIG) raised fears of an incremental nationalization of the US financial sector. Data from the UK and the losses posted by HSBC also pulled down sterling, which helped the dollars strong position on cable.
Data 15.00: Pending Homes Sales expected –3.0% from 6.3%. Speakers: Bernanke Testifies.
Pounds to Us Dollars = 1.4131
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Best Australian Dollar exchange rate
Pounds to Australian Dollar
We saw four cents gained over sterling, from $1.4365 in early trade to hit an intraday high of $1.3958 in late UK trading. The gains made on the euro were not so severe but still managed nearly two cents in the greenbacks favour to hit an intraday high of $1.2552.
Data from the US was not great as manufacturing figures showed that a freeze in industrial activity continued into February, while further government intervention in American International Group (AIG) raised fears of an incremental nationalization of the US financial sector. Data from the UK and the losses posted by HSBC also pulled down sterling, which helped the dollars strong position on cable.
Data 15.00: Pending Homes Sales expected –3.0% from 6.3%. Speakers: Bernanke Testifies.
Pounds to Us Dollars = 1.4131
Introducing Toby Fischer and Currency Today
Best Australian Dollar exchange rate
Pounds to Australian Dollar
Monday, 2 March 2009
Risk aversion rallies the US dollar and yen.
Risk aversion hit the currency markets first thing this morning, pushing the dollar up against
its major rivals. The market is trying to work out whether the US economy will sink under the weight of the cost of the economic and financial bailout plans or whether the stimulus plans will generate a faster recovery in the US than in the rest of the world—the jury is still out. This move saw the dollar take back over one and a half cents from sterling from Fridays low rate of $1.4365, to trade at $1.42 this morning. The greenback’s recent rally against the euro continued as we saw gains of nearly two cents made, taking EURO/USD to $1.2559 this morning. US equity markets dropped last week, lending support to an already buoyant dollar.
The economic picture appears set to get even bleaker this week, as February reports seen showing continued sales declines for US auto makers and retailers, and an unemployment rate that could reach 8%. The prospect of a potentially weak nonfarm payrolls number will keep a very solid floor underneath the Treasury market, and may also keep the dollar strong, with risk aversion looking set to continue to be the major play.
Data 13.30: Personal Spending expected 0.3% from –1.0% & Personal Income expected –0.2%
unchanged. 15.00: ISM Manufacturing expected 33.8 from 35.6.
Pound to Dollar = 1.4199
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Best Bulgarian Lev exchange rate
Pounds to Bulgarian Lev
its major rivals. The market is trying to work out whether the US economy will sink under the weight of the cost of the economic and financial bailout plans or whether the stimulus plans will generate a faster recovery in the US than in the rest of the world—the jury is still out. This move saw the dollar take back over one and a half cents from sterling from Fridays low rate of $1.4365, to trade at $1.42 this morning. The greenback’s recent rally against the euro continued as we saw gains of nearly two cents made, taking EURO/USD to $1.2559 this morning. US equity markets dropped last week, lending support to an already buoyant dollar.
The economic picture appears set to get even bleaker this week, as February reports seen showing continued sales declines for US auto makers and retailers, and an unemployment rate that could reach 8%. The prospect of a potentially weak nonfarm payrolls number will keep a very solid floor underneath the Treasury market, and may also keep the dollar strong, with risk aversion looking set to continue to be the major play.
Data 13.30: Personal Spending expected 0.3% from –1.0% & Personal Income expected –0.2%
unchanged. 15.00: ISM Manufacturing expected 33.8 from 35.6.
Pound to Dollar = 1.4199
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Best Bulgarian Lev exchange rate
Pounds to Bulgarian Lev
Friday, 27 February 2009
Dollar mixed as it digests President Obama’s budget report.
The dollars rally against its major rivals calmed down yesterday as the greenback digested the most expansive blueprint for federal government involvement in the US economy in more than a generation, in a ten-year budget outline that showed this years deficit quadrupling to $1,750bn.
The greenback is still bullish as risk sentiment is always just around the corner and with an under pressure pound and euro, more gains are not ruled out for the buck in this mornings trade. The pound did pull back some loses in Thursday’s afternoon trade after a UK government scheme to protect banks against further losses helped underpin risk appetite, but that now seems to have been reversed this morning.
The dollars position against the euro will be helped by expectations of an interest rate cut on the eurozone next week, keeping the single currency under pressure. The dollar did lose some strength against the yen, as Japanese exporters, who needed to convert dollars into their home currency to close books for month end, actively sold the dollar for the yen.
Data 13.30: GDP 4Q expected –5.3% from –3.8% & Personal Consumption. 14.45: Chicago Purchasing Manager expec. 34.0 from 33.3. 15.00: U.of Michigan Confidence expec. 56.2unchanged.
Pounds to US Dollars = 1.4194
Best Currency rate for Polish Zloty
Pounds to Polish Zloty
The greenback is still bullish as risk sentiment is always just around the corner and with an under pressure pound and euro, more gains are not ruled out for the buck in this mornings trade. The pound did pull back some loses in Thursday’s afternoon trade after a UK government scheme to protect banks against further losses helped underpin risk appetite, but that now seems to have been reversed this morning.
The dollars position against the euro will be helped by expectations of an interest rate cut on the eurozone next week, keeping the single currency under pressure. The dollar did lose some strength against the yen, as Japanese exporters, who needed to convert dollars into their home currency to close books for month end, actively sold the dollar for the yen.
Data 13.30: GDP 4Q expected –5.3% from –3.8% & Personal Consumption. 14.45: Chicago Purchasing Manager expec. 34.0 from 33.3. 15.00: U.of Michigan Confidence expec. 56.2unchanged.
Pounds to US Dollars = 1.4194
Best Currency rate for Polish Zloty
Pounds to Polish Zloty
Thursday, 26 February 2009
Dollar reassert’s its safe haven status as US homes sales data drops.
The dollar reasserted its safe haven status yesterday, rebounding sharply against the euro and pound and extending its recent rally against the yen to reach fresh multi-month highs. The broad theme remains a move back into the dollar, the undisputed safe-haven currency at the moment. This happened on the back of the release of January US existing homes data, which sent stock markets lower.
The dollar jumped to $1.2729 on the euro and $1.4250 on the pound as risk appetite was blown out the water. The dollar has continued its rally against sterling this morning with cable touching $1.4161. Earlier in the day the dollar had dropped to $1.29 on the euro and $1.46 on the pound, showing how volatile the currency markets are at present and the fact that a shift too and from risk appetite looks set to remain. Existing home sales tumbled to a nearly 12-year low in January, and prices took a double digit drop.
Data 13.30: Durable Goods & Continuing Claims. 15.00: New Home Sales.
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Best Currency rate for Icelandic Krona (HUF)
Pounds to Icelandic Krona
The dollar jumped to $1.2729 on the euro and $1.4250 on the pound as risk appetite was blown out the water. The dollar has continued its rally against sterling this morning with cable touching $1.4161. Earlier in the day the dollar had dropped to $1.29 on the euro and $1.46 on the pound, showing how volatile the currency markets are at present and the fact that a shift too and from risk appetite looks set to remain. Existing home sales tumbled to a nearly 12-year low in January, and prices took a double digit drop.
Data 13.30: Durable Goods & Continuing Claims. 15.00: New Home Sales.
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Best Currency rate for Icelandic Krona (HUF)
Pounds to Icelandic Krona
Wednesday, 25 February 2009
Dollar rally yesterday cools as Bernanke eases investors fears.
The dollar initially saw gains across the board yesterday after economic data in the form of US consumer confidence levels showed a collapse in February, as householders painted a dire picture of the economy. The index fell to a historic low for the survey, at a reading of 25.0 from a previous low of 37.7, and a much worse figure of 35.5 which was expected. This saw players scramble for cover in the safety of the buck, pushing the dollar up over one cent on the euro to hit an intraday high of $1.27, and over one and a half cents against the pound to hit an intraday high of $1.4404.
The dollar continued its rally as Federal Reserve Chairman Ben Bernanke addressed the Senate to talk about the state of the US economy. The move against the dollar came as Bernanke told lawmakers that he doesn’t believe any major banks are on the verge of failure and sought to quash speculation that banks would need to be nationalized, though he did leave open the possibility that some eventually would fall into government hands. This eased investors fears and risk sentiment re-appeared, forcing the dollar back down against the pound and euro. A rally in US equity markets also dragged the greenback down, with the Dow Jones posting a 3.32% gain.
Data 15.00: ExistingHome Sales, Bernanke to give Monetary Report Before House Panel.
Pound to Dollar exchange rate = 1.4565
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Best Currency rate for Hungarian Forint (HUF)
Pounds to Hungarian Forint
The dollar continued its rally as Federal Reserve Chairman Ben Bernanke addressed the Senate to talk about the state of the US economy. The move against the dollar came as Bernanke told lawmakers that he doesn’t believe any major banks are on the verge of failure and sought to quash speculation that banks would need to be nationalized, though he did leave open the possibility that some eventually would fall into government hands. This eased investors fears and risk sentiment re-appeared, forcing the dollar back down against the pound and euro. A rally in US equity markets also dragged the greenback down, with the Dow Jones posting a 3.32% gain.
Data 15.00: ExistingHome Sales, Bernanke to give Monetary Report Before House Panel.
Pound to Dollar exchange rate = 1.4565
Introducing Toby Fischer and Currency Today
Best Currency rate for Hungarian Forint (HUF)
Pounds to Hungarian Forint
Tuesday, 24 February 2009
Dollar continues to gain against majors on flight to safety.
Yesterday saw the dollar emerge higher versus the euro and yen after volatile trading on a continued flight to safety. Traders sold the euro and other riskier assets on uncertainty over Washington’splans for US banks, as well as cautious remarks from the ECB President.
I.O.U.S.A.: Byte-Sized - The 30 Minute Version
The dollar took three and a half cents off the single currency to trade at an intraday high of $1.2660 but has slipped down slightly this morning. The dollar saw gains against the yen and pushed through the Y95 level for the first time in nearly three months as players lost faith in the Japanese currency. The pound was the real winner against the dollar as the buck lost nearly three cents to trade at an intraday low of $1.4661, which seemed to be on the back of UK financial companies performing well on equities markets the previous night, with news RBoS is planning to place about 25% of assets into a non-core unit to prepare for disposal.
Elsewhere, the dollar found support as equity markets fell in the US, with risk aversion and the weight of a global recession driving the Dow Jones to levels last seen more than a decade ago.
Data 15.30: Consumer Confidence, House Price Index, Bernanke Report on Economy & Fed Policy. Speakers: Bernanke to Testify before Senate.
Pounds to Dollars = 1.4525
Introducing Toby Fischer and Currency Today
Best Currency rate for Danish Kroner (DKK)
Pounds to Danish Kronar
I.O.U.S.A.: Byte-Sized - The 30 Minute Version
The dollar took three and a half cents off the single currency to trade at an intraday high of $1.2660 but has slipped down slightly this morning. The dollar saw gains against the yen and pushed through the Y95 level for the first time in nearly three months as players lost faith in the Japanese currency. The pound was the real winner against the dollar as the buck lost nearly three cents to trade at an intraday low of $1.4661, which seemed to be on the back of UK financial companies performing well on equities markets the previous night, with news RBoS is planning to place about 25% of assets into a non-core unit to prepare for disposal.
Elsewhere, the dollar found support as equity markets fell in the US, with risk aversion and the weight of a global recession driving the Dow Jones to levels last seen more than a decade ago.
Data 15.30: Consumer Confidence, House Price Index, Bernanke Report on Economy & Fed Policy. Speakers: Bernanke to Testify before Senate.
Pounds to Dollars = 1.4525
Introducing Toby Fischer and Currency Today
Best Currency rate for Danish Kroner (DKK)
Pounds to Danish Kronar
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