The Pound has seen a fairly poor start to trading this month dropping against almost all major currencies so far notably dropping away from the 1.70 mark against the Australian Dollar after looking like it may really push onwards and upwards.
Economic data has been fairly poor for the U.K and with only the Bank of England interest rate decision leaving little to wet investor’s appetite this afternoon the Pound is finding it a bit of a struggle to gain much ground back.
Everyone with a currency transfer to make in the near future also need to be wary of the current situation over in the States as the ‘Debt ceiling’ deadline is slowly closing in.
The U.S have until the 17th October (a week today) to resolve this issue otherwise you could technically say that they have defaulted on their debt and this could have a huge effect on the currency markets.
Personally I feel should this happen then we may see the Dollar weaken again and the riskier currencies (AUD, NZD, ZAR) may also suffer as it could affect global attitude to risk.
Being something that I have not seen before it is tough to know exactly what this may bring to the market but I would imagine either way we will be looking at an extremely volatile and fragile market.
With this in view if you have a pending currency transfer to make it may be prudent to look at putting a stop loss or a limit order in place to protect yourself from adverse market movements or to take advantage of a good shift in your favour outside of normal trading hours.
A stop loss is where you can set yourself a worst case scenario and should the market suddenly drop rapidly then your currency gets bought out automatically, with a limit order it does the opposite and takes advantage of a spike in the market for you if a particular level you wish to achieve becomes available.
For a full explanation of these free options then feel free to contact me directly on [email protected] with a brief description of your situation and I will be more than happy to get in touch personally.
I look forward to speaking with you.