When It Comes To Foreign Exchange, Cambridge FX Will Help You Get The Most For Your Money

Last month saw some stabilization with the Pound maintaining its seven-year high against the Euro. The markets were dominated by political events rather than just market data with the spotlight focusing on Greece’s negotiations with its creditors.

financeGreek representatives are pushing for an extension and restructure of its loan repayments as well as an end to the imposed austerity measures, while counterparts on the EU side are insisting that Greece continues under the existing framework. The ongoing negotiation between Greece and its creditors continued without agreement, with both sides predictably claiming victory after the first round of talks. Further discussions are planned, with Germany perhaps in a conciliatory mood after Chancellor Merkel’s comments that the creditors were prepared to negotiate. The only certainty is that if nothing is agreed then Greece will default by the summer, and that currency markets are likely to remain volatile before then surrounding speculation and uncertainty.

Greek Prime Minister Alexis Tsipras has struck a defiant tone in parliament thus far making it difficult for analysts to understand how a new deal could be brokered. The radical leftist leader told MPs that Greece will not submit to ‘psychological blackmail’ and will not agree to a continuation of the ‘toxic’ austerity measures that were a forerunner to the previous aid deal. Tsipras’ fighting talk ensures that the very real threat of ‘Grexit’ still looms large over the single currency. If unity can’t be restored there could be a long road of troubles. The sub-plot involves the single currency being dragged behind the bus getting battered and bruised by the Pound and the US Dollar over time, good news for Euro buyers.

Across the Channel, the Bank of England inflation report, a quarterly bulletin from the Central Bank, was well received by markets despite containing something of a mixed message. Governor Mark Carney stated that inflation fell to a record low in January, giving a welcome boost to hard-pressed households – but a group of economists warned the drop will harm the government’s finances because tax receipts rise when prices go up. The Office of National Statistics reported that prices rose by just 0.3% in the 12 months to January, which was the lowest increase since the consumer price began in 1989.

The sharp fall in oil prices and fierce competition between supermarkets could even push overall prices down in the coming months. Food prices fell 2.8% in the year, while motor fuels dropped 16.2%. Carney also stated that the BoE could cut the base rate further if core CPI inflation (excluding everyday items) turned deflationary. Whilst this would normally be Sterling-negative, the Governor went on to say that rate hikes may also come sooner than markets had previously predicted, in Q1 of 2016. With the UK’s employment level at an equal record high of 73.2% since the end of last year. The official figures also showed domestic wages rising by 2.4% in December compared with a year earlier – significantly above inflation.

When it comes to foreign exchange, getting the most out of your money involves three things – converting currency at the right time, at the best rate, with minimal fees. Specialist brokers like Cambridge, fix the exchange rate now for use in the future for many thousands of clients using forward contracts, avoiding all Bank fees and hidden charges. With approximately 14,000 clients worldwide, Cambridge transacted $26bn last year on behalf of its clients. Investment in offices within Costa del Sol and Costa Blanca ensure we have people on the ground and our Spanish representatives have years of experience enabling us to create a service that benefits our clients far beyond the process of simply sending funds.

We have created a package specific for the Spanish market, identifying all the challenges people face with transferring funds, putting together the simplest solution around, whether buying, selling, ad hoc or regular payments. Cambridge works with local reputable companies offering additional benefits for our clients such as discounted bankers drafts, home/life/medical insurance, furniture packs, car hire/sales, British television and broadband bundles. We have worked tirelessly to create a complete hand held, retail service to commercial and private clients alike, improving significantly on the service delivered by both UK and Spanish banks. We offer a non-speculative service, used for delivery of funds only, constantly beating the banks on exchange rates. We don’t baffle you with jargon or add any sneaky fees into the mix. Just a friendly, useful and informative service!

Kelly Eason
By Kelly Eason
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Kelly Eason is a Business Development Manager at Cambridge Mercantile office on the Costa del Sol. He lends us his expertise on foreign exchange and regional knowledge in Spain on a regular basis.