September 2020 FX Forecast

“I don’t make predictions. I know what I can do, and I try not to think too far ahead.” - Bradley Wiggins Since the delayed Tour De France is taking place we thought it would be appropriate to quote Britain’s first Yellow Jersey winner; 2012, what a great year that was. Fast forward to today, not such a great year, the global economy is still recovering and markets are still split on the direction of this and as a result the residual impact on currency markets. Unlike Sir Bradley, financial institutions are constantly making predictions. We have collected the views of over 40 financial institutions to articulate the high, low and mean forecasts for the next 12 months in an attempt to provide this information to businesses. As you will see, the forecasts still predict a high degree of uncertainty based on the differential. Download the PDF report for the details: September FX Forecast Infinity International would be happy to offer a complimentary FX review of your current process to offer a fresh perspective and to highlight any areas that could be made more efficient.  If you would like to organise a time for an exploratory conversation, please leave your details below. The review would encapsulate: Strategy ideation to align FX risk management with your business objectives FX volatility assessment to understand the impact of a significant FX rate Credit terms to ensure efficiency for cashflow when hedging currency (subject to approval) FX pricing to determine your current cost of your current provider

2020-09-08T16:40:15+00:00September 8th, 2020|

Sterling Drops Against US Dollar to Lowest Levels Since 1985

GBPUSD continues to move lower as investors were not convinced of the UK laissez-faire approach to Covid 19. Yesterday, sterling was able to temporarily retrace some of its losses follow the UK Gov. update where Sunak pledged a further £350bn to help businesses. However, it nose-dived today to its lowest level since the October 2016 flash crash. Barring that low, GBPUSD is trading at its lowest level since March 1985. Sterling losses were further compounded as cases of Covid 19 grew by circa 35% overnight from 1950 to 2626 and rumours that a London shut down is imminent. The move is in tandem with a strong demand for the global safe haven currency, the US Dollar. The US Dollar index (vs a basket of currencies) reached a 3-year high as the fear of Covid 19 grows. Analyst from Nomura on have stated that they consider that there is "the potential for GBP to reach, what is in our view, it’s Hard Brexit equilibrium of 1.15-1.18.". In the meantime, according to the WSJ, a group of asset managers have told new BoE Gov Bailey that financial markets should close for two weeks. The call was held with senior executives from Blackrock, JP Morgan, Vanguard and Bank of New York Mellon. Sterling continues to be under pressure as the Government measures to combat Covid 19 are consider a light touch in comparison to its European counterparts whilst the prospect of a hard Brexit is being considered. Tonight, the

2020-04-14T15:49:28+00:00March 18th, 2020|