Currency markets don’t like uncertainty. Few of us do. That’s why we want to give you options on how to plan for currency exposure with some level of certainty. Because even in the middle of all this, businesses still need to move money globally.
Currency markets have seen some violent swings recently as news emerged from countries at different stages of the crisis. Risk is well and truly back on the cards with the AUD/USD catapulting to its highest level last seen in early February. There was a combination of factors that contributed to this bullish risk move. Firstly, there was a sigh of relief after Donald Trump began the process of ending Hong Kong’s special status but did not withdraw from the US-China phase-one trade deal. Secondly, green shoots of recovery were witnessed in China following the Manufacturing PMI release. A number above 50.00 signals expansion and the industry posted 50.6, total new orders continued to expand, with the index rising to 50.9 in May, up 0.7 percentage points from the previous month. But the improvement was due almost entirely to domestic demand, with new export orders continuing to decline sharply.
Riots in the states have added further pressure to the greenback amid the virus pandemic during the weekend.
The docket for the first week of June see’s central bank decisions from the RBA, BOC and ECB where all are expected to hold on rates. A raft of employment data from the states this week and given the high level of unemployment already witnessed investors will be looking for signs of improvements. Brexit talks and PMI’s will be the focus for the UK.
How can OFX help your business create certainty?
Here are some tools that can help you in the coming months to reduce the amount of risk you are taking when it comes to currency:
Forward Contract – this allows you to fix the rate you will receive for between a week and a year, so you can be confident of the exchange rate you receive, no matter what happens to rates.
Limit Order – These are generally provided alongside guidance from one of our OFXperts, so you set a target a rate that you have a realistic chance of achieving in the market conditions. Once the rate is hit, your transfer occurs automatically.
Rate Alerts – if you prefer to know when the market hits a specific rate before you transfer, then you can sign up for rate alerts.
Briars Foreign Exchange
Briars have partnered with OFX to provide a fast, effective and low-cost currency solution to our clients and their employees.
You can use this service yourself, or Briars can combine it with our banking and payment service for a fully managed solution.
Your bank’s charges are often hidden in the exchange rates that they give you, and should not be confused with their flat charges. We offer a free comparison of their charges and ours.
- An online system that you can access from anywhere at anytime.
- An average saving of 3% on the value of your transfers.
- Swifter service, reducing transfer times by days
To take advantage of your preferred rate and VIP service through the Briars Group contact firstname.lastname@example.org.