Thu 8th March 2012
Hi there! In this post I’d like to share some tips to help you decide the best time to make your foreign exchange transfers.
The main challenge involved in finding the best time to make a foreign exchange transfer is that the foreign exchange rates are changing all the time. For instance, just in the past week the UK pound has gained more than 2.5% against the euro, as problems in Greece as well as concerns about a recession in Europe dampen confidence in the euro.
One morning then the pound might be at 1.18 against the euro, and the next it could reach as high as 1.21, depending on sentiment at the time. Given this, how can you find the best time to make your foreign exchange transfers?
Track The Foreign Exchange Rates
One method of course is to do as professionals in the foreign exchange industry do, and that’s to have one eye on both the exchange rates and what’s affecting the rates at the same time. Is the Bank of England about to announce its monthly interest rate decision? That could impact sterling to be sure! Is Iran threatening to cut off oil to Europe? That might benefit the US dollar then, as investors seek haven currencies!
This is literally a matter of finding out what’s affecting the rates at the moment, and looking for changes in the rate on an hour-by-hour basis. It means that you can find out exactly when the rates hits your target range, and so can therefore make your foreign exchange transfer at precisely the best time for you.
Speak To Foreign Exchange Professionals
That though might sound like an awful lot of work! For me at least, keeping an eye on the rates is quite fun because it provides a quick indicator of exactly how the financial markets feel about each country. If the pound suddenly gains two percent, you can be certain that either something great has happened in Britain or something terrible somewhere else! It’s in that sense addictive.
But if that’s not your cup of tea, you can enjoy the same benefits as watching the rates yourself by asking a foreign exchange broker to do it for you. Most brokers including ourselves provide this service completely free: you simply sign up for a rate alert, mentioning which currencies you’re trading and your target rate, and we get in touch the moment that rate becomes available. This also guarantees you change currencies at the best time.
Set A Realistic Foreign Exchange Target
Of course, it’s also important to be realistic about choosing the best time to make your foreign exchange transfers. If you want the pound at 1.50 against the euro, you might be waiting some time: it’s not been that high since before the financial crash! Hence being pragmatic is also a good idea.
If you have any other questions about changing currencies, feel free to visit us at foreign exchange specialists Pure FX. You can also call us on +44 (0) 1494 671800 or email firstname.lastname@example.org.