The Bank of Canada last week cut interest rates from 1.5% to just 1%, in line with many other central banks around the world.
Normally an interest rate cut would be good news if you need to send money to Canada, however as the move was wideley expected there was little cheer on Canadian exchange rates.
Things have improved slightly in the last 2 days, but as the Pound is still under pressure on international markets, it may be that your rate gets worse before it gets better.
A reputable currency company will help guide you through these volatile times - make sure you don't leave your exchange rate to chance.
Thursday 29 January 2009
Exchange Rate Improvement
The Pound is up today on the back of a successful government auction of gilts (UK debt).
Confidence in the UK has been fragile in recent weeks, but this morning investors returned to buy UK assets and as a result the Pound has seen a boost.
That means if you are buying currency to send abroad, there's a spike in exchange rates which is obviously good news.
There are further announcements due this week which could weigh heavy on the Pound, so get in touch with a currency broker to make sure you do not miss out on any opportunities in the market.
Confidence in the UK has been fragile in recent weeks, but this morning investors returned to buy UK assets and as a result the Pound has seen a boost.
That means if you are buying currency to send abroad, there's a spike in exchange rates which is obviously good news.
There are further announcements due this week which could weigh heavy on the Pound, so get in touch with a currency broker to make sure you do not miss out on any opportunities in the market.
Wednesday 28 January 2009
US Interest Rates Tonight
Tonight the Federal Reserve's FOMC announce the monthly interest rate change in the USA.
While the Fed currently has low interest rates at 0.25%, there is not much room for any further cuts. However, the accompanying statement is just as important, as it gives the central bank's outlook for the US economy - which in turn is likely to affect US dollar exchange rates.
Money transfers to America have become more expensive recently, as the dollar rate has fallen from $2 last year, to below $1.40 to the Pound. A slight recovery in recent days has helped ease the pain.
If you do need to buy US dollars in the coming days, weeks, or months, make sure you speak to an expert currency broker who can help you keep the costs down as much as possible.
While the Fed currently has low interest rates at 0.25%, there is not much room for any further cuts. However, the accompanying statement is just as important, as it gives the central bank's outlook for the US economy - which in turn is likely to affect US dollar exchange rates.
Money transfers to America have become more expensive recently, as the dollar rate has fallen from $2 last year, to below $1.40 to the Pound. A slight recovery in recent days has helped ease the pain.
If you do need to buy US dollars in the coming days, weeks, or months, make sure you speak to an expert currency broker who can help you keep the costs down as much as possible.
Monday 26 January 2009
Money transfers to New Zealand
New Zealand Dollar rates are likely to show some volatility this week - the Reserve Bank of New Zealand (RBNZ) announces its latest interest rate decision on Wednesday.
Currently rates are set at 5%, and a cut to around 4% is expected. Expectation of a rate cut has led to a weaker dollar - and better exchange rates for money transfers to New Zealand.
Of course, if the RBNZ doesn't cut interest rates as much as expected, you could expect exchange rates to worsen accordingly.
Make sure you have a UK currency broker like Currency Index looking after you if you are moving to New Zealand, or sending money out there for any reason. Don't forget, you can book exchange rates up to 2 years ahead to help keep your costs under control.
Currently rates are set at 5%, and a cut to around 4% is expected. Expectation of a rate cut has led to a weaker dollar - and better exchange rates for money transfers to New Zealand.
Of course, if the RBNZ doesn't cut interest rates as much as expected, you could expect exchange rates to worsen accordingly.
Make sure you have a UK currency broker like Currency Index looking after you if you are moving to New Zealand, or sending money out there for any reason. Don't forget, you can book exchange rates up to 2 years ahead to help keep your costs under control.
South Africa Rand Rates
ZAR rates eased higher this morning on the back of a stronger US dollar and falling Government bond prices.
Sending money to South Africa from the UK is now over 1% cheaper than on Friday.
If you have a transfer to make in the coming weeks, make sure you are in touch with a reputable currency company who can keep you up to date with the latest developments.
Sending money to South Africa from the UK is now over 1% cheaper than on Friday.
If you have a transfer to make in the coming weeks, make sure you are in touch with a reputable currency company who can keep you up to date with the latest developments.
Thursday 22 January 2009
Pound battered by bank bailout
The Pound has suffered another awful time this week, as investors lose confidence in the UK economy following the government's second round of banking bailouts this week.
Euro exchange rates are tumbling towards their all-time low set 2 weeks ago, while buying US dollars has become the most expensive since the 1980s.
Transferring money to Canada, South Africa and Dubai is also now much more expensive.
With no sign to the end of Britain's economic troubles, we are unlikely to see dramatic improvement in the short term. If you need to buy a large quantity of currency, for example for an overseas property purchase, make sure you are in touch with a specialist currency company to discuss your options.
Euro exchange rates are tumbling towards their all-time low set 2 weeks ago, while buying US dollars has become the most expensive since the 1980s.
Transferring money to Canada, South Africa and Dubai is also now much more expensive.
With no sign to the end of Britain's economic troubles, we are unlikely to see dramatic improvement in the short term. If you need to buy a large quantity of currency, for example for an overseas property purchase, make sure you are in touch with a specialist currency company to discuss your options.
Monday 19 January 2009
This week's currency news
Key data this week which might affect exchange rates - particularly for those of you looking for Euro exchange rates - are shown in our weekly economic calendar.
Bank of England Governer Mervyn King speaks tomorrow, so look for sterling volatility depending on the contents of the speech. On Wednesday, the minutes from the last Bank of England interest-rate setting meeting are released - this should give us clues as to whether further interest rate cuts are likely and again this will weigh on the Pound one way or another.
Eurozone payments will likely be affected even more on Wednesday as ECB president Trichet will be speaking - followed by the monthly ECB report on Thursday.
Finally on Friday, UK retail sales figures are released, and any further bad news from the high street is likely to filter through and drag the Pound lower again. Keep in touch with your currency company so that you don't get caught out by any of the announcements this week.
Bank of England Governer Mervyn King speaks tomorrow, so look for sterling volatility depending on the contents of the speech. On Wednesday, the minutes from the last Bank of England interest-rate setting meeting are released - this should give us clues as to whether further interest rate cuts are likely and again this will weigh on the Pound one way or another.
Eurozone payments will likely be affected even more on Wednesday as ECB president Trichet will be speaking - followed by the monthly ECB report on Thursday.
Finally on Friday, UK retail sales figures are released, and any further bad news from the high street is likely to filter through and drag the Pound lower again. Keep in touch with your currency company so that you don't get caught out by any of the announcements this week.
Thursday 15 January 2009
Euro interest rates cut - cheaper Euros available
The ECB have cut their interest rates by 0.5% to 2% today - although this was expected, the Euro has weakened this afternoon meaning that the best Euro exchange rates are now over 1.11.
It is unlikely that we will see a sustained movement on the exchange rate (bad news for those of you transferring money to Spain, France etc), as the cut was already priced in to the exchange rate. A 1% cut in EU interest rates would have been better news!
The Pound has gained nearly 10% since the start of January, meaning the same amount of Euros is now 10% cheaper than it was only 2 weeks ago. Do speak to a foreign currency broker to discuss your requirements for buying or selling Euros.
It is unlikely that we will see a sustained movement on the exchange rate (bad news for those of you transferring money to Spain, France etc), as the cut was already priced in to the exchange rate. A 1% cut in EU interest rates would have been better news!
The Pound has gained nearly 10% since the start of January, meaning the same amount of Euros is now 10% cheaper than it was only 2 weeks ago. Do speak to a foreign currency broker to discuss your requirements for buying or selling Euros.
Eurozone interest rates today
12.45 today sees the latest European Central Bank interest rate decision - this could move Euro exchange rates around considerably depending on the outcome.
Check back after 12.45 and we will have the lates currency news on this blog - keep in touch with your currency company if you need to buy and send Euros.
Check back after 12.45 and we will have the lates currency news on this blog - keep in touch with your currency company if you need to buy and send Euros.
Monday 12 January 2009
Canadian Exchange Rates
The Bank of Canada makes its monthly interest rate decision next Tuesday, January 20th.
For anyone buying Canadian dollars, your exchange rate is likely to be affected. Typically a lower interest rate means a weaker (cheaper) currency, so an interest rate cut (or speculation leading up to the announcement in the coming days) could mean that sending money to Canada becomes slightly cheaper.
Canadian exchange rates are currently near their worst for the last 12 months, and with the UK economy struggling even more than most other developed nations, anyone moving to Canada should get in touch with a specialist foreign exchange company to make sure they are up to date with the latest currency news.
For anyone buying Canadian dollars, your exchange rate is likely to be affected. Typically a lower interest rate means a weaker (cheaper) currency, so an interest rate cut (or speculation leading up to the announcement in the coming days) could mean that sending money to Canada becomes slightly cheaper.
Canadian exchange rates are currently near their worst for the last 12 months, and with the UK economy struggling even more than most other developed nations, anyone moving to Canada should get in touch with a specialist foreign exchange company to make sure they are up to date with the latest currency news.
Euro Exchange Rates this week
Buyers or sellers of Euros should be aware that this Thursday at 12.45pm the European Central Bank announces its latest interest rate decision for the Eurozone.
There has been much speculation that the ECB will cut rates, much as has happened in the UK and USA. Typically, lower interest rates mean a weaker currency, so Euro exchange rates might get better for those of you buying overseas property if there is a dramatic cut on Thursday.
Conversely, if the cut is not as much as expected, sending money to Portugal, France, Spain and Germany might become more expensive.
Make sure you use a reputable currency company if you have a transaction of over £5,000 to carry out - this should save you money compared to using your bank.
There has been much speculation that the ECB will cut rates, much as has happened in the UK and USA. Typically, lower interest rates mean a weaker currency, so Euro exchange rates might get better for those of you buying overseas property if there is a dramatic cut on Thursday.
Conversely, if the cut is not as much as expected, sending money to Portugal, France, Spain and Germany might become more expensive.
Make sure you use a reputable currency company if you have a transaction of over £5,000 to carry out - this should save you money compared to using your bank.
Thursday 8 January 2009
Interest Rates Cut 0.5%
The Bank of England has cut interest rates by 0.5% to 1.5% - the lowest level in its 300 year histrory.
Some analysts had expected a 1% cut, which would have been bad news for the ailing Pound. As 0.5% was the minimum cut expected, the Pound has found some strength which has improved Euro exchange rates, Dollar exchange rates, and most others this afternoon.
If you need to send money abroad or send money back to the UK, make sure you are in touch with your currency broker who can give you the latest market updates.
Some analysts had expected a 1% cut, which would have been bad news for the ailing Pound. As 0.5% was the minimum cut expected, the Pound has found some strength which has improved Euro exchange rates, Dollar exchange rates, and most others this afternoon.
If you need to send money abroad or send money back to the UK, make sure you are in touch with your currency broker who can give you the latest market updates.
Wednesday 7 January 2009
Exchange Rate Outlook
Prospects for the Pound in 2009 are as uncertain as ever – a look at this week’s upcoming events which are likely to affect exchange rates at the beginning of the year.
After a quiet Christmas, there is lots of data out this week from around the world. “If you are looking to transfer money overseas at the best exchange rates, it’s worth speaking to your currency broker to keep up to date with market movements”, says Chuck Hall, payments manager at Currency Index Ltd.
Tuesday 5th
UK Nationwide House Prices – will give an indication of likely interest rate cuts from the Bank of England
UK and EU Purchasing Managers Index – manufacturer inflation figures for the UK and Europe
US FOMC Minutes – released by the Federal Reserve in the USA, gives overview of economic conditions
Wednesday 6th
UK Nationwide Consumer Confidence – key economic indicator for UK confidence
EU Producer Price Index – main inflation figure for the Eurozone
Thursday 7th
EU Consumer Confidence – European confidence survey
EU GDP – is the Eurozone contracting and in deep recession?
UK BoE Interest Rate Decision – this month’s central interest rate decision
Friday 8th
UK Producer Price Index – main inflation figure for the UK
EU Retail Sales – another important economic indicator
US Non Farm Payrolls – the main US employment metric showing jobs created last month
All these releases are likely to have an impact on the Pound’s relative value to (in particular) the Euro and US Dollar rates. If UK interest rates are cut heavily on Thursday, we could be in for plummeting exchange rates yet again, while readers buying property in France, Spain and the rest of Europe, will be hoping for weak Eurozone data on Wednesday and Thursday.
Keep in touch with a currency specialist, who can save you money against your bank’s exchange rate.
After a quiet Christmas, there is lots of data out this week from around the world. “If you are looking to transfer money overseas at the best exchange rates, it’s worth speaking to your currency broker to keep up to date with market movements”, says Chuck Hall, payments manager at Currency Index Ltd.
Tuesday 5th
UK Nationwide House Prices – will give an indication of likely interest rate cuts from the Bank of England
UK and EU Purchasing Managers Index – manufacturer inflation figures for the UK and Europe
US FOMC Minutes – released by the Federal Reserve in the USA, gives overview of economic conditions
Wednesday 6th
UK Nationwide Consumer Confidence – key economic indicator for UK confidence
EU Producer Price Index – main inflation figure for the Eurozone
Thursday 7th
EU Consumer Confidence – European confidence survey
EU GDP – is the Eurozone contracting and in deep recession?
UK BoE Interest Rate Decision – this month’s central interest rate decision
Friday 8th
UK Producer Price Index – main inflation figure for the UK
EU Retail Sales – another important economic indicator
US Non Farm Payrolls – the main US employment metric showing jobs created last month
All these releases are likely to have an impact on the Pound’s relative value to (in particular) the Euro and US Dollar rates. If UK interest rates are cut heavily on Thursday, we could be in for plummeting exchange rates yet again, while readers buying property in France, Spain and the rest of Europe, will be hoping for weak Eurozone data on Wednesday and Thursday.
Keep in touch with a currency specialist, who can save you money against your bank’s exchange rate.
Monday 5 January 2009
Euro rates up... at last
Rates for buying Euros have improved slightly today - up nearly 3%. That will save you £6,000 if you need to transfer €200,000 abroad, for example the best rate for sending money to France.
The reason? Some over-selling at Christmas, and relatively positive data out today. Beware however, the Bank of England are due to cut interest rates again on Thursday and that is not usually good news for sterling.
There is a lot of data out this week which could make a difference to the value of the Pound against all other currencies - keep in touch with a currency broker who can help you get the best foreign exchange deal.
The reason? Some over-selling at Christmas, and relatively positive data out today. Beware however, the Bank of England are due to cut interest rates again on Thursday and that is not usually good news for sterling.
There is a lot of data out this week which could make a difference to the value of the Pound against all other currencies - keep in touch with a currency broker who can help you get the best foreign exchange deal.
Friday 2 January 2009
New Year Currency News
Happy New Year from Currency Index Ltd - provider of some of the best exchange rates available in the UK.
The main news this month is likely to be the Bank of England's interest rate decision on Thursday January 8th. Further cuts in the UK base rate are expected, and that does not bode well for the Pound - normally lower interest rates mean a weaker currency. With the European Central Bank tipped to keep their interest rates higher than ours, that means that predictions of sterling - Euro rates falling to parity (€1 = £1) are perhaps not wide of the mark.
Elsewhere, the Pound continues to struggle across the board. The next 4-6 weeks will be crucial as we see how bad the UK recession becomes - any negative news in the UK is likely to push the vulnerable Pound further still. Your currency broker should be able to help if you would like to discuss your own circumstances and requirements in detail.
The main news this month is likely to be the Bank of England's interest rate decision on Thursday January 8th. Further cuts in the UK base rate are expected, and that does not bode well for the Pound - normally lower interest rates mean a weaker currency. With the European Central Bank tipped to keep their interest rates higher than ours, that means that predictions of sterling - Euro rates falling to parity (€1 = £1) are perhaps not wide of the mark.
Elsewhere, the Pound continues to struggle across the board. The next 4-6 weeks will be crucial as we see how bad the UK recession becomes - any negative news in the UK is likely to push the vulnerable Pound further still. Your currency broker should be able to help if you would like to discuss your own circumstances and requirements in detail.
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