CurrencyIndex.co.uk

Foreign Currency Exchange Specialists

Tuesday 31 May 2011

Currency news this week

After the long weekend we have a mixed bag of news releases scheduled this week, with the only main UK figures being mortgage approvals and services & manufacturing growth.

There are various other pieces of news due around the world, with the details below of anything likely to affect exchange rates in each country. Contact us at Currency Index for the latest news and live rates.

Monday 30th
1330 - Canadian GDP

Tuesday 31st
0200 - New Zealand business confidence
0230 - Australian current account
0645 - Swiss GDP
0700 - German retail sales
0855 - German unemployment rate
1000 - Eurozone CPI inflation & unemployment rate
1400 - Canadian interest rate decision

Wednesday 1st
0230 - Australian GDP
0930 - UK mortgage approvals & PMI manufacturing

Thursday 2nd
0230 - Australian trade balance
1500 - US factory orders

Friday 3rd
0930 - UK PMI services
1330 - US unemployment rate & non-farm payrolls

Wednesday 25 May 2011

GDP unchanged

This morning's revision to the first quarter UK GDP showed no change from the 0.5% first estimate, meaning the UK economy had not grown at all in the 6 months to the end of March.

While a downward revision would have caused trouble for the Pound, there has been little impact from the figures this morning, although we have seen rates for buying USD spike up by nearly 0.5c

Tuesday 24 May 2011

UK public borrowing hits record high

This morning's public borrowing figures showed the worst April on record with a net public borrowing figure of £7.71bn. Analysts had expected a figure nearer £4bn, so fears have grown that the UK economy is still far from a sustainable road to recovery.

The Pound fell sharply on the news, and now tomorrow's GDP revision is even more critical, as any further disappointing data will be likely to weigh strongly on sterling. The GDP revision is published at 9.30am tomorrow.

Monday 23 May 2011

Currency news this week

This week's main news will be Wednesday's adjustment to UK GDP. Any improvement on the previous estimate of 0.5% growth in Q1 will likely be positive for the Pound, while any revision downwards would have a negative effect on sterling.

Monday 23rd
0900 - Eurozone manufacturing & services PMI

Tuesday 24th
0400 - New Zealand inflation report
0700 - German GDP
0930 - UK public borrowing
1500 - US home sales

Wednesday 25th
0930 - UK GDP
1330 - US durable goods orders

Thursday 26th
0715 - Swiss trade balance
1020 - Speech: European Central Bank President Trichet

Friday 27th
Overnight - UK consumer confidence
1330 - US personal income & expenditure

Thursday 19 May 2011

Retail sales better than expected

This morning's UK retail sales figures were better than expected, showing a 2.8% increase in the 12 months to April.

Sterling found some strength this morning, and combined with weak US manufacturing numbers this afternoon, has recovered nearly a cent against the US Dollar.

Unfortunately the Euro had a rally of its own during the afternoon, leaving rates for buying Euros back where they started at the beginning of the day.

With little important data out tomorrow (except in Canada), we are not expecting any improvements in the outloook for sterling this week.

Wednesday 18 May 2011

Unemployment falls, but so does Pound

Sterling has fallen across the board this morning, despite figures showing a slight fall in unemployment to 2.46m at the end of March. The official rate is now 7.7%.

Meanwhile the Bank of England minutes showed that the MPC voted 6-3 in favour of keeping interest rates on hold in May. This was as expected, although the minutes revealed that 2 of the members who did vote for an interest rate rise are not entirely convinced that the policy would be on the right path.

Interest rate rises would be a major factor in increasing the value of the Pound and therefore would be good news if you need to make international payments. The fact that the committee is even less committed to a rate rise than was previously thought, is the reason behind the fall in the Pound this morning.

Tuesday 17 May 2011

Inflation reaches 2.5 year high, sterling rises

The Pound has risen this morning after inflation figures showed a 4.5% rise in prices in the year to April. This was higher than analysts expected, adding to recent expectations that the Bank of England will have to raise interest rates in the next 6 months.

Sterling spiked up sharply on the news, but has fallen back a little since, as we look to tomorrow's Bank of England minutes to see how the committee voted on interest rates earlier this month.

Monday 16 May 2011

Currency news this week

This week we have inflation, Bank of England minutes and retail sales released in the UK on Tuesday, Wednesday and Thursday, so the Pound could be in for a volatile week. Whatever currency you need to buy or sell, contact Currency Index for the latest news and live rates.

Monday 16th
1000 - Eurozone trade balance & CPI inflation
1400 - Speech: Federal Reserve Chairman Bernanke

Tuesday 17th
0230 - Australian interest rate decision minutes
0930 - UK CPI & RPI inflation
1000 - German ZEW survey
1330 - US building permits & housing starts
2345 - New Zealand PPI inflation

Wednesday 18th
0930 - Bank of England interest rate decision minutes

Thursday 19th
0930 - UK retail sales
1400 - Speech: European Central Bank President Trichet
1500 - US existing home sales

Friday 20th
1200 - Canadian CPI inflation
1500 - Eurozone consumer confidence

Thursday 12 May 2011

Inflation report sends Pound higher

Yesterday's Bank of England inflation report signalled that UK interest rates may yet go up this year (around November), which has given sterling some strength despite the downbeat growth prospects.

The Pound has gained around 4c against the Euro in the last week.

Monday 9 May 2011

Currency news this week

This week's most important data for the Pound is Wednesday's quarterly inflation report, where the Bank of England sets out projections for UK inflation, which in turn are a significant influence on its interest rate policy and therefore the value of the Pound.

Elswhere we are in for a quiet couple of days, until Thursday where there are a few releases likely to affect exchange rates.

Do contact us at Currency Index for the latest news and live rates for any currency transfers you need to make.

Monday 9th
No major data

Tuesday 10th
0815 - Swiss CPI inflation
1330 - US import price index

Wednesday 11th
0700 - German CPI inflation
1030 - Bank of England quarterly inflation report
1330 - US trade balance

Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
0930 - UK manufacturing & industrial production
1330 - US retail sales, PPI inflation & jobless claims
1500 - UK GDP estimate
2345 - New Zealand retail sales

Friday 13th
0700 - German GDP
1000 - Eurozone GDP
1330 - US CPI inflation

Thursday 5 May 2011

Bank of England and ECB both hold interest rates

Today's interest rate decisions saw the Bank of England and European Central Bank both keeping rates on hold.

Although the Bank of England are very unlikely to raise rates in the coming few months, the European policy makers may be raising rates sooner, which has led to Euro strength and worse exchange rates for sending money to Europe.

The ECB President, Jean-Claude Trichet, also indicated in his accompanying speech that European interest rates are unlikely to go up in June. The Euro has weakened off accordingly, giving exchange rates a 2c improvement during the course of the day.

We will have to wait another 2 weeks to find out the basis of the Bank of England's decision, when the Minutes are released.

Wednesday 4 May 2011

UK interest rates to remain low until 2013?

As we await tomorrow's interest rate decisions from the Bank of England and European Central Bank, an article which may be of interest discusses UK interest rates potentially remaining low well into 2012: http://uk.finance.yahoo.com/news/Why-afford-rate-rise-yahoofinanceuk-3340835426.html

Interest rate changes have a strong affect on exchange rates, to discuss your own situation and currency strategy please call us on 0800 043 2623

Monday 2 May 2011

Currency calendar this week

This week sees interest rate decisions in the UK, Eurozone and Australia; and unemployment, retail sales and house price figures all coming out around the world.

Of the interest rate decisions, the Eurozone will be watched most closely by markets, as any further rate hikes would be likely to strengthen the Euro and send exchange rates lower for buying Euros. European inflation is running high, so interest rates should rise further, however with concerns about the impact on weaker economies such as Spain, Portugal and Ireland, the decision is not an easy one for the ECB.

Call us at Currency Index for the latest news and live rates.

Monday 2nd
UK Bank Holiday

Tuesday 3rd
0530 - Australian interest rate decision
1000 - Eurozone PPI inflation
1500 - US factory orders

Wednesday 4th
0730 - Nationwide UK house price survey
0930 - UK mortgage approvals & money supply
1000 - Eurozone retail sales
2345 - New Zealand unemployment rate

Thursday 5th
1200 - UK interest rate decision
1245 - Eurozone interest rate decision

Friday 6th
0230 - Australian monetary policy statement
0930 - UK PPI inflation
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate