Monthly Update: GBP Vs USD February 2021

Monthly Update: GBP Vs USD February 2021

by Richard Taylor on Feb 12, 2021

Currency, Financial Planning

Richard catches up with Mark Ridley, co-founder & Managing Director of GreenShootsFX to take a quick look at the current state of GBP vs USD and review what's on the immediate horizon. GreenShootsFX are a corporate FX payments specialist focused on driving down margins and offering a more efficient way of moving funds internationally.

e: mark.ridley@greenshootsfx.com

t: 855-GSFX-PMT

w: www.GreenShootsFX.com

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Transcription

Richard Taylor:    

So Mark, you know, the drill. Tell us what's going on with the pound versus the dollar right now.

Mark Ridley:         

Thanks Richard. Hello everyone again. GBP USD, that's continued to baffle. Making headway above the 137 mark, as it has done on a few occasions so far this year, and remaining there has proved to be surprisingly difficult. So this has us thinking that this is less of an issue between the dollar and the pound and more of a struggle between the Euro and the pound, which not surprisingly is a currency pair. This is one of the most heavily traded. Brexit is in the rear view mirror, sorry. But remains very uncertain as to what the full extent of that will be. Since the vote and the Brexit vote, I'm specifically focusing on the pressure that has been on the pound, both against the Euro and the US dollar.

Now the reversal is running two important levels of support for Euro GBP, 0.8850 and GBP USD, 13750. But if we include COVID and the struggle between close downs and vaccines. And the pound versus any currency is struggling to find more buyers. From an economic standpoint, the UK has begun to find its footing. And there have been some positive signs in manufacturing and earnings. Unemployment was forecast at 5.1%, but actually came in a tick below at 5%, which is a nice sign. And the virus has created so much economic malaise that these are quite positive signs for the UK, and the pound in general.

Richard Taylor:         

Okay. Great stuff. What about any predictions for the future?

Mark Ridley: 

Well, we maintain the currency pair will continue to head in the 144 direction. So the pound is definitely going to continue to strengthen and the dollar continue to weaken. But that's going to slow throughout this year. We had a prediction of 144 a lot sooner within the the year of 2021. Any dip to 135 though, should be looked at as a great opportunity to purchase either at spot or any forwards, any currency geeks that are interested, the Euro pound does hold the future. The current level of 0.8850 is hugely important. And below that 0.85. So I know this is a GBP US dollar commentary, but we have to include factors that can effectively move this particular exchange rate. Right?

Richard Taylor:         

And as much as some people may want that, we can't completely divorce ourselves from Europe or the Euro. So that's a timely reminder, 1.4.

Mark Ridley: 

That's our prediction. That's, you know, we've maintained that comment pretty consistently over the course of the last few months. So we're still there. We're just saying, look, it's probably not going to be as quickly throughout this year than we originally had thought, but we're still pegging ourselves and putting our hat at 144 by the end of the year.

Richard Taylor:         

It's like a bygone era, isn't it? Hark back to the old days, but certainly since we've been having these conversations, we've been steadily heading in that direction, so yeah.

Mark Ridley: 

It's creeping towards it and we'll see this, like I say, we'll definitely continue to see the weakening of the dollar throughout this year.

Richard Taylor:         

Got it. Great stuff. All right, Mark. Well, thank you for that. See you next update.

Mark Ridley: 

Will do. Take care. Have a good one.

Richard Taylor:         

Bye bye. You too.

Mark Ridley: 

Bye. 

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