The Euro exchange rate has recovered most of its losses of the last couple of days, after the ECB pumped €442bn into credit markets to encourage liquidity to help resolve the Eurozone's recession.
This is similar to the Bank of England's quantitative easing programme, which initially weakened the Pound before seeing it strengthen weeks later.
If the same pattern happens for the Euro, we could therefore be entering a brief period where the single currency is at cheaper levels.
If you are worried about the increased cost in recent months of sending money abroad, don't forget you can fix exchange rates up to 2 years ahead through a reputable currency broker.
Wednesday, 24 June 2009
Tuesday, 23 June 2009
Euro rate down on data releases
Euro exchange rates have fallen today, after German consumer confidence and European factory prices both came out higher than expected.
The Euro has strenghtened [become more expensive] across the board, so if you need to send Euros to Spain, France or any other Eurozone country, keep a close eye on rates to make sure you don't lose out.
The Euro has strenghtened [become more expensive] across the board, so if you need to send Euros to Spain, France or any other Eurozone country, keep a close eye on rates to make sure you don't lose out.
Monday, 22 June 2009
GBP Outlook
With little data released this week, the Pound has continued its upward trend after a blip on Thursday after poor UK retail sales figures.
We are currently very near the best Euro exchange rates this year so far, and whether the Pound can find any more strength from here will become apparent this week. Analysts were only expecting 1.20 to be achieved towards the end of the year, so we would be surprised to see much more movement in the short term.
This week:
We are currently very near the best Euro exchange rates this year so far, and whether the Pound can find any more strength from here will become apparent this week. Analysts were only expecting 1.20 to be achieved towards the end of the year, so we would be surprised to see much more movement in the short term.
This week:
Today 9am – German IFO business survey
Tuesday 9am – European PMI (inflation indicator)
Wednesday 7.15pm – American interest rate decision & speech
Thursday 7am – Nationwide UK house price survey
Thursday 7am – US GDP
Thursday, 18 June 2009
Swiss Interest Rates Held
In Switzerland, interest rates were kept on hold this morning at 0.25%. This was as expected, although the Swiss Franc has weakened slightly to 1.7670 [interbank] making money transfers to Switzerland slightly cheaper.
Wednesday, 17 June 2009
Pound falls on UK employment data
Despite better-than-expected UK jobs data, the headling unemployment rate has risen to its highest level since Labour came to power in 1997.
The Pound has tumbled since the announcement, falling a cent against both the Euro and Dollar. The best Euro exchange rates are now trading around 1.17 as a mid-market rate.
The Pound has tumbled since the announcement, falling a cent against both the Euro and Dollar. The best Euro exchange rates are now trading around 1.17 as a mid-market rate.
Bank of England minutes today
At 9.30 this morning the minutes from this month's Bank of England meeting are released. Any clues about interest rates going back up later in the year are likely to have a positive effect on the Pound, and therefore the best exchange rates available if you are transferring money overseas.
Keep in touch with your currency company if you would like to be informed of the latest movements affecting your transaction.
Keep in touch with your currency company if you would like to be informed of the latest movements affecting your transaction.
Tuesday, 16 June 2009
5 pieces of good news boost Pound
This morning's data has been overwhelmingly positive for the Pound, with commercial exchange rates available for people sending money abroad improving across the board.
UK CPI for May was up 0.6% (expectations were 0.3%)
UK CPI for the year to May was up 2.2% (1.9%)
UK Retail Prices for May were up 0.6% (0.2%)
UK Retail Prices for year to May were down 1.1% (-1.5%)
UK CPI for year to May was up 1.6% (1.5%)
The Pound gained almost 2c against both the Euro and the Dollar on the release of the news.
UK CPI for May was up 0.6% (expectations were 0.3%)
UK CPI for the year to May was up 2.2% (1.9%)
UK Retail Prices for May were up 0.6% (0.2%)
UK Retail Prices for year to May were down 1.1% (-1.5%)
UK CPI for year to May was up 1.6% (1.5%)
The Pound gained almost 2c against both the Euro and the Dollar on the release of the news.
Monday, 15 June 2009
This week's currency news
This week's major economic data which is like to affect commercial exchange rates:
Monday:
Eurozone - employment change (10am)
Tuesday:
UK - CPI inflation data (9.30am)
Eurozone - CPI inflation data (10am)
Germany - ZEW economic sentiment (10am)
USA - PPI inflation data (1.30pm)
Wednesday:
USA - Federal Reserve chairman Bernanke's speech (5pm)
Thursday:
Switzerland - interest rate decision (8.30am)
UK - retail sales (9.30am)
Canada - CPI inflation data (12pm)
All these releases are likely to move exchange rates. If you are sending money to Switzerland, Thursday's interest rate decision will be key, while in Europe and the USA there are several important figures to show how each economy is coping with the recession.
Monday:
Eurozone - employment change (10am)
Tuesday:
UK - CPI inflation data (9.30am)
Eurozone - CPI inflation data (10am)
Germany - ZEW economic sentiment (10am)
USA - PPI inflation data (1.30pm)
Wednesday:
USA - Federal Reserve chairman Bernanke's speech (5pm)
Thursday:
Switzerland - interest rate decision (8.30am)
UK - retail sales (9.30am)
Canada - CPI inflation data (12pm)
All these releases are likely to move exchange rates. If you are sending money to Switzerland, Thursday's interest rate decision will be key, while in Europe and the USA there are several important figures to show how each economy is coping with the recession.
Thursday, 11 June 2009
New high for Pound
The Pound has continued to recover well after last week's uncertainty, and is currently trading at its best level in 2009 against the Euro.
Rates for sending money to Austria, Spain, Italy France and the other Eurozone countries are now over 1.17 on the interbank markets for the first time in 2009.
Rates for sending money to Austria, Spain, Italy France and the other Eurozone countries are now over 1.17 on the interbank markets for the first time in 2009.
Tuesday, 9 June 2009
Pound recovers on government stability
The Pound has recovered somewhat as Gordon Brown held the first cabinet meeting since his emergency reshuffle.
Markets have reacted positively to Alistair Darling's continuation as Chancellor, while the immediate threat to Brown's leadership seems to have abated.
Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.
We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.
Markets have reacted positively to Alistair Darling's continuation as Chancellor, while the immediate threat to Brown's leadership seems to have abated.
Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.
We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.
Friday, 5 June 2009
Dollar strenghtens on non-farm data
This afternoon's key American employment data (non-farm payrolls) was much more positive than expected - leading to further strength for the US Dollar against the Pound.
Anyone transferring money in US Dollars will now find their exchange rate 6c lower than its peak only a few days ago, as political trouble in the UK continues to undermine sterling.
Anyone transferring money in US Dollars will now find their exchange rate 6c lower than its peak only a few days ago, as political trouble in the UK continues to undermine sterling.
Pound plummets on UK political uncertainty
As the pressure increases on Gordon Brown, the Pound is falling rapidly across the board.
If you need to send money abroad contact your currency company urgently to discuss your requirements. Today sees the local election results throughout the day, followed by Euro poll results on Sunday.
If you need to send money abroad contact your currency company urgently to discuss your requirements. Today sees the local election results throughout the day, followed by Euro poll results on Sunday.
Thursday, 4 June 2009
Interest rates today
This lunchtime sees interest rate announcements both in the UK (12.00) and Eurozone (12.45).
Although neither central bank has much room for manouevre, the Eurozone announcement at 12.45 is accompanied by a speech from ECB President Jean-Claude Trichet, which often causes some volatility in the Euro exchange rates.
In the UK, there is no accompanying speech, but the interest rate announcement also includes a policy statement on quantititive easing, which can mean all commercial exchage rates against the pound can be affected.
Although neither central bank has much room for manouevre, the Eurozone announcement at 12.45 is accompanied by a speech from ECB President Jean-Claude Trichet, which often causes some volatility in the Euro exchange rates.
In the UK, there is no accompanying speech, but the interest rate announcement also includes a policy statement on quantititive easing, which can mean all commercial exchage rates against the pound can be affected.
Wednesday, 3 June 2009
But sterling weakens, is the upward run finished for now?
Wednesday afternoon has seen Euro and Dollar rates start to come back down - have we seen the best exchange rates for now?
- Sterling fell sharply against the dollar on Wednesday, erasing earlier gains after Asian monetary officials said they would keep buying US Bonds
- Weak American employment and services sector data hurt the outlook for global economy hitting riskier assets such as sterling
- The deteriorating market sentiment prompted investors to dismiss earlier strong UK services sector data, as UK shares tumbled 2.3%
- A worsening political crisis for Gordon Brown also helped take some shine from sterling
- Profit taking, "Sterling has had a very good run recently and people are also thinking it may be prudent to take some profit off the table now,"
- Investors are nervous ahead of the Bank of England and the European Central Bank policy decisions, as well as key US jobs data on Friday
- Hazel Blears' decision to step down follows Tuesday's resignation by Jacqui Smith. Both are seen as undermining Brown's authority on the eve of European and local elections
- Investors will also be looking to see whether there are any further announcements on quantitative easing on Thursday
- Sterling fell sharply against the dollar on Wednesday, erasing earlier gains after Asian monetary officials said they would keep buying US Bonds
- Weak American employment and services sector data hurt the outlook for global economy hitting riskier assets such as sterling
- The deteriorating market sentiment prompted investors to dismiss earlier strong UK services sector data, as UK shares tumbled 2.3%
- A worsening political crisis for Gordon Brown also helped take some shine from sterling
- Profit taking, "Sterling has had a very good run recently and people are also thinking it may be prudent to take some profit off the table now,"
- Investors are nervous ahead of the Bank of England and the European Central Bank policy decisions, as well as key US jobs data on Friday
- Hazel Blears' decision to step down follows Tuesday's resignation by Jacqui Smith. Both are seen as undermining Brown's authority on the eve of European and local elections
- Investors will also be looking to see whether there are any further announcements on quantitative easing on Thursday
PMI Grows
This morning another good surprise for the Pound - UK PMI (Purchasing Managers Index) showed expansion for May, as opposed to a small contraction expected.
PMI is a measure of the health of the UK services sector, which has been struggling during the recession - so the news is the latest in some boosts for the Pound this week. Sending dollars to the USA is, for example, now at its best level for 9 months.
PMI is a measure of the health of the UK services sector, which has been struggling during the recession - so the news is the latest in some boosts for the Pound this week. Sending dollars to the USA is, for example, now at its best level for 9 months.
UK Consumer Confidence Up
This month's Nationwide Consumer Confidence data showed an increase in sentiment in the UK - above analysts' expectations.
The announcement has given the Pound a further boost against both the Euro and US Dollar - making sending money overseas cheaper again as the recent rally for sterling continues.
If you are sending money to Dubai, don't forget that the AED rate is also pegged to the US Dollar, so in both cases the exchange rate is currently the best it's been since Autumn.
The announcement has given the Pound a further boost against both the Euro and US Dollar - making sending money overseas cheaper again as the recent rally for sterling continues.
If you are sending money to Dubai, don't forget that the AED rate is also pegged to the US Dollar, so in both cases the exchange rate is currently the best it's been since Autumn.
Tuesday, 2 June 2009
UK Elections & Exchange Rates
Anyone needing to transfer money overseas is encouraged to contact their currency company in advance of this Thursday's European and local UK elections.
Historically, confidence in a country has been eroded by landslide defeats for incumbent parties - so international markets (and sterling) may not react well to any Labour wipeout this week.
The Pound is relatively strong at the moment but is still sensitive to negative news.
Historically, confidence in a country has been eroded by landslide defeats for incumbent parties - so international markets (and sterling) may not react well to any Labour wipeout this week.
The Pound is relatively strong at the moment but is still sensitive to negative news.
Australian interest rates held again
The Reserve Bank of Australia last night held interest rates, bad news for any of you making money transfers to Australia. A cut in interest rates may have weakened the Aussie currency, making exchange rates better for buying dollars.
The mid-market GBP-AUD rate has stayed at around the 2.02 level this morning.
The mid-market GBP-AUD rate has stayed at around the 2.02 level this morning.
Monday, 1 June 2009
Pound gains more strength
The Pound has continued on its recent run, now trading at the best rates for buying Euros and US Dollars since last year.
Sterling touched €1.16 and $1.6450 as traders continued to move out of Euros and Dollars into more risky assets.
Look out for Eurozone and UK interest rate decisions on Thursday which may have an effect on rates in general.
The Reserve Bank of Australia also makes its monthly interest rate decision overnight tonight, which could be important if you are sending money to Australia.
Sterling touched €1.16 and $1.6450 as traders continued to move out of Euros and Dollars into more risky assets.
Look out for Eurozone and UK interest rate decisions on Thursday which may have an effect on rates in general.
The Reserve Bank of Australia also makes its monthly interest rate decision overnight tonight, which could be important if you are sending money to Australia.
Friday, 29 May 2009
UK house prices in surprise increase
Nationwide this morning has reported a 1.2% rise in house prices for May.
Expectations had been for a 0.3% drop - so the news has given the UK economic outlook - and therefore the Pound - a welcome boost.
With more key data out next week which could potentially provide trouble for sterling, anyone looking to transfer money overseas should contact a currency broker to discuss the latest developments.
Expectations had been for a 0.3% drop - so the news has given the UK economic outlook - and therefore the Pound - a welcome boost.
With more key data out next week which could potentially provide trouble for sterling, anyone looking to transfer money overseas should contact a currency broker to discuss the latest developments.
Thursday, 28 May 2009
Mixed Euro and US data keeps rates steady
The Pound hovered around its newly-found levels against both the Euro and Dollar today, as mixed data from the States and Eurozone did little to encourage either of the currency pairs.
EMU consumer confidence came out at the level expected by analysts, while in the USA there was some good news on the jobs front but bad news in construction of new homes.
As a result sending money in dollars is still around its best level since November, although the mid-market rate has dropped back below 1.60.
For Euro exchange rates, overnight levels of 1.15 were not sustained but a relatively healthy 1.14 is still showing on the live markets.
Tomorrow's Nationwide house price survey in the UK will be watched at 7am for any clues as to the next direction for the Pound.
EMU consumer confidence came out at the level expected by analysts, while in the USA there was some good news on the jobs front but bad news in construction of new homes.
As a result sending money in dollars is still around its best level since November, although the mid-market rate has dropped back below 1.60.
For Euro exchange rates, overnight levels of 1.15 were not sustained but a relatively healthy 1.14 is still showing on the live markets.
Tomorrow's Nationwide house price survey in the UK will be watched at 7am for any clues as to the next direction for the Pound.
Wednesday, 27 May 2009
Best rates this year
The Pound has continued its recent surge, reaching 1.60 against the US Dollar and nearly 1.15 against the Euro.
Both currencies are now around the cheapest they have been all year against sterling.
If you need to transfer money overseas in Euros or Dollars, it is worth discussing your requirements with a UK currency company to make sure you do not miss any opportunities to secure a preferential rate.
Both currencies are now around the cheapest they have been all year against sterling.
If you need to transfer money overseas in Euros or Dollars, it is worth discussing your requirements with a UK currency company to make sure you do not miss any opportunities to secure a preferential rate.
Tuesday, 26 May 2009
This week's data
News out this week which might affect all commercial foreign exchange rates:
Transferring money to the USA
1500 Tuesday - consumer confidence
1500 Wednesday - US house price index and home sales figures
1330 Thursday - durable goods orders
1330 Friday - GDP
Transferring money to Europe
1000 Thursday - consumer confidence
1000 Friday - CPI inflation data
Transferring money to Australia
0200 Thursday - new home sales
UK Data
0001 Friday - consumer confidence
0700 Friday - Nationwide house prices
Transferring money to the USA
1500 Tuesday - consumer confidence
1500 Wednesday - US house price index and home sales figures
1330 Thursday - durable goods orders
1330 Friday - GDP
Transferring money to Europe
1000 Thursday - consumer confidence
1000 Friday - CPI inflation data
Transferring money to Australia
0200 Thursday - new home sales
UK Data
0001 Friday - consumer confidence
0700 Friday - Nationwide house prices
Thursday, 21 May 2009
...and Pound drops back down after S&P Rating
Following overnight gains the Pound has dropped back sharply after the credit agency S&P downgraded the outlook for the UK economy from "stable" to "negative".
If you need to transfer money overseas contact your currency company for the latest developments in a volatile market today.
If you need to transfer money overseas contact your currency company for the latest developments in a volatile market today.
Pound Continues Up
We have the best US Dollar exchange rates so far this year at the moment, and near the year-high for the best Euro exchange rates too.
Trading this morning is particularly volatile, with both Euro and Dollar rates fluctuating by up to 2c in the last hour. Trade data out this morning showed UK Retail Sales up more than expected - but at the same time business investment has fallen.
Trading this morning is particularly volatile, with both Euro and Dollar rates fluctuating by up to 2c in the last hour. Trade data out this morning showed UK Retail Sales up more than expected - but at the same time business investment has fallen.
Tuesday, 19 May 2009
Pound steady on Inflation Data
This morning's UK inflation data was slightly lower than expected - but close to analysts' expectations, so there has been no major movement for the Pound.
Transferring money in Euros and Dollars is slightly cheaper than yesterday, as a surge from the Pound in early trading has been sustained.
Rates for the US Dollar are now the best they have been all year.
Transferring money in Euros and Dollars is slightly cheaper than yesterday, as a surge from the Pound in early trading has been sustained.
Rates for the US Dollar are now the best they have been all year.
Monday, 18 May 2009
Pound up on Lloyds resignation
UK shares and currency are on the rise this morning after the resignation over the weekend of Lloyds Banking Group chairman Sir Victor Blank.
The Pound has responded positively to what is seen as the removal of one of the men responsible for the current banking crisis, after Lloyds TSB took over the troubled HBOS Group last year. Both banks are expected to make massive losses this year and the Group is now 43% owned by the taxpayer.
Transferring money abroad is, as a result, slightly cheaper today then last week in the case of most currencies. If you would like to discuss taking advantage of a spike in exchange rates, contact your currency company straight away.
The Pound has responded positively to what is seen as the removal of one of the men responsible for the current banking crisis, after Lloyds TSB took over the troubled HBOS Group last year. Both banks are expected to make massive losses this year and the Group is now 43% owned by the taxpayer.
Transferring money abroad is, as a result, slightly cheaper today then last week in the case of most currencies. If you would like to discuss taking advantage of a spike in exchange rates, contact your currency company straight away.
This week for the Pound
9.30am on Tuesday and Wednesday see this week's main data releases for the Pound - UK CPI/RPI inflation figures on Tuesday, and Bank of England Minutes on Wednesday.
Anyone sending money abroad this week should be aware that both releases are likely to affect exchange rates across the board.
For data releases overseas which might affect individual currencies, please check back here later in the week or contact a currency broker to advise you of all relevant news.
Anyone sending money abroad this week should be aware that both releases are likely to affect exchange rates across the board.
For data releases overseas which might affect individual currencies, please check back here later in the week or contact a currency broker to advise you of all relevant news.
Friday, 15 May 2009
Eurozone GDP posts largest drop on record
European GDP showed a 4.6% year-on-year decline - the biggest fall on record for the economic area.
Against the Pound, there has been little movement - surprising given the negative Euro-news which might have weakened the single currency off and provided better exchange rates for sending money to Europe.
The next major data out is from the USA, where Consumer Price Index (a leading inflation indicator) is announced at 1.30pm. We expect some volatility for US Dollar exchange rates.
Against the Pound, there has been little movement - surprising given the negative Euro-news which might have weakened the single currency off and provided better exchange rates for sending money to Europe.
The next major data out is from the USA, where Consumer Price Index (a leading inflation indicator) is announced at 1.30pm. We expect some volatility for US Dollar exchange rates.
Thursday, 14 May 2009
Amercan data this afternoon
1.30pm sees some important data out if you are sending money to America.
Jobless claims and Producer Price Indicator figures are likely to affect the value of US Dollar exchange rates.
Mid-market rates against the Pound are currently at 1.5150.
Jobless claims and Producer Price Indicator figures are likely to affect the value of US Dollar exchange rates.
Mid-market rates against the Pound are currently at 1.5150.
Wednesday, 13 May 2009
Inflation report today
10.30am today is Bank of England Governer Mervyn King's speech and the release of the Bank's quarterly inflation report.
We would expect volatility in all commercial exchange rates around this time. If you are looking to buy or sell any currency against the Pound, contact your currency exchange broker who will be able to monitor the situation for you.
We would expect volatility in all commercial exchange rates around this time. If you are looking to buy or sell any currency against the Pound, contact your currency exchange broker who will be able to monitor the situation for you.
Tuesday, 12 May 2009
Unemployment up to 7.1%
UK unemployment has risen to 7.1%, a bigger increase than expected. The Pound has not reacted too badly, although a slight dip from the day's highs against both the Euro and US Dollar have made sending money abroad slightly more expensive.
Exchange rates remain reasonably stable but are likely to be sensitive to data releases for the rest of the week.
Exchange rates remain reasonably stable but are likely to be sensitive to data releases for the rest of the week.
UK Data Boosts Pound
This morning's UK manufacturing and trade balance data has given the Pound a welcome boost for anyone looking to transfer money abroad.
Exchange rate are up across the board after better-than-expected figures were released at 9.30am.
Exchange rate are up across the board after better-than-expected figures were released at 9.30am.
Monday, 11 May 2009
Data out this week
This is a busy week for foreign exchange news - commercial exchange rates are likely to be volatile across the board.
12th May (Tuesday)
0030 US Federal Reserve Chairman Bernanke’s speech – likely to affect US Dollar rates for sending money to the USA
0930 UK industrial and manufacturing data, likely to affect the Pound significantly
13th May (Wednesday)
0930 UK unemployment data
1030 Bank of England quarterly inflation report and accompanying speech
1330 USA retail sales data
14th May (Thursday)
0200 Australian inflation expectations
1330 US factory inflation
2345 New Zealand retail sales data
15th May (Friday)
0700 German GDP
1000 European inflation figures, likely to cause movements in the Euro exchange rate
12th May (Tuesday)
0030 US Federal Reserve Chairman Bernanke’s speech – likely to affect US Dollar rates for sending money to the USA
0930 UK industrial and manufacturing data, likely to affect the Pound significantly
13th May (Wednesday)
0930 UK unemployment data
1030 Bank of England quarterly inflation report and accompanying speech
1330 USA retail sales data
14th May (Thursday)
0200 Australian inflation expectations
1330 US factory inflation
2345 New Zealand retail sales data
15th May (Friday)
0700 German GDP
1000 European inflation figures, likely to cause movements in the Euro exchange rate
Thursday, 7 May 2009
American and UK data out Friday
Friday sees the monthly "non-farm payroll" data from the USA - a key indicator of the employment market and typically a volatile moment for the US Dollar.
If you need to send money to America, 1.30pm is the key moment. If more jobs have been created in the US economy than expected, the dollar is likely to strengthen and become more expensive.
Also on Friday, UK PPI (Producer Price Index) figures are out at 9.30am. This is an important measure of inflation and can give the Pound a boost - or the opposite - which will affect all exchange rates if you are sending money abroad.
If you need to send money to America, 1.30pm is the key moment. If more jobs have been created in the US economy than expected, the dollar is likely to strengthen and become more expensive.
Also on Friday, UK PPI (Producer Price Index) figures are out at 9.30am. This is an important measure of inflation and can give the Pound a boost - or the opposite - which will affect all exchange rates if you are sending money abroad.
UK & Eurozone interest rates
As expected, at today's MPC and ECB meetings, the UK interest rate has been held at 0.5%, while the Eurozone rate has been cut to 1%.
The cut was already priced in to forex markets, meaning the exchange rate for buying Euros did not improve much. Jean-Claude Trichet's accompanying speech has however caused some volatility, as the Eurozone for the first time discussing a quantitative easing programme similar to those in the UK and USA.
The net result has been strength for the Euro, which is back down around the 1.12 level, having peaked at 1.1409 in earlier trading today. Currency brokers will be able to advise you of the latest movements.
The cut was already priced in to forex markets, meaning the exchange rate for buying Euros did not improve much. Jean-Claude Trichet's accompanying speech has however caused some volatility, as the Eurozone for the first time discussing a quantitative easing programme similar to those in the UK and USA.
The net result has been strength for the Euro, which is back down around the 1.12 level, having peaked at 1.1409 in earlier trading today. Currency brokers will be able to advise you of the latest movements.
UK and EU interest rates today
The Eurozone's ECB and UK's MPC today release their monthly interest rate decisions - the UK at 12.00 and Eurozone at 12.45.
A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.
The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 - so anyone sending money to France, Spain or Portugal will be pleased.
If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.
A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.
The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 - so anyone sending money to France, Spain or Portugal will be pleased.
If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.
Australian Dollar dips below 2.00
The Australian Dollar has fallen below $2 to the Pound for the first time in recent memory this morning, due to a combination of factors which have combined to make sending money to Australia yet more expensive this week.
1. Australian interest rates were held on Tuesday
2. Retail sale in Australia rose more than expected (2.2% in March)
3. Australian inflation increased
4. Investors are switching back to higher-yielding currencies like the Aussie
All these have placed the Aussie in high demand, increasing the price and therefore decreasing the exchange rate. If you have to send Australian dollars abroad for any reason in the next few weeks or months, contact your UK currency company for some help.
1. Australian interest rates were held on Tuesday
2. Retail sale in Australia rose more than expected (2.2% in March)
3. Australian inflation increased
4. Investors are switching back to higher-yielding currencies like the Aussie
All these have placed the Aussie in high demand, increasing the price and therefore decreasing the exchange rate. If you have to send Australian dollars abroad for any reason in the next few weeks or months, contact your UK currency company for some help.
Tuesday, 5 May 2009
Euro cheaper on interest rate speculation
The Pound pushed above 1.13 against the Euro in trading today, following speculation that the ECB will cut interest rates this Thursday from 1.25% to 1%.
Lower interest rates tend to mean a weaker currency - and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.
The ECB's announcement comes on Thursday lunch time - if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.
Speak to your currency broker if you have any forthcoming Euro requirements, and don't forget you can fix exchange rates in advance for up to 2 years.
Lower interest rates tend to mean a weaker currency - and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.
The ECB's announcement comes on Thursday lunch time - if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.
Speak to your currency broker if you have any forthcoming Euro requirements, and don't forget you can fix exchange rates in advance for up to 2 years.
Eurozone PMI falls
European factory prices are still declining faster than expected, according to figures out this morning.
In a Euro-negative announcement, Euro exchange rates have improved against the Pound, good news for anyone sending money to a French notaire for a property purchase for example.
Producer prices fell 0.7% for March and 3.1% for the year to end of March, against analysts' expectations of 0.5% and 2.9% respectively.
In a Euro-negative announcement, Euro exchange rates have improved against the Pound, good news for anyone sending money to a French notaire for a property purchase for example.
Producer prices fell 0.7% for March and 3.1% for the year to end of March, against analysts' expectations of 0.5% and 2.9% respectively.
Australian interest rates held
Overnight the RBA kept Australian interest rates on hold at 3%. Those of you sending money to Australia would have been hoping for a cut, which could have improved the exchange rate.
Aussie retail sales and emplyment data are also out this week.
Aussie retail sales and emplyment data are also out this week.
Monday, 4 May 2009
Euro & Dollar Rates Up
European markets have been open on Monday, during the UK bank holiday, and a fall in retail sales figures in Germany has weakened the Euro slightly. Mid market rates were nearly back at 1.12 late on Monday - the best Euro exchange rates for a couple of weeks.
At the same time, investors have moved to slightly riskier assets again, resulting in the 'safe' US Dollar being sold off over the weekend. A reduction in demand means a cheaper dollar and better rates if you are sending money to the USA to pay for a property or importing goods.
There is more data out in the USA, Europe and the UK this week which could affect your rates - check back here for the latest news or contact your UK currency company directly for news & analysis relevant to your exact requirements.
At the same time, investors have moved to slightly riskier assets again, resulting in the 'safe' US Dollar being sold off over the weekend. A reduction in demand means a cheaper dollar and better rates if you are sending money to the USA to pay for a property or importing goods.
There is more data out in the USA, Europe and the UK this week which could affect your rates - check back here for the latest news or contact your UK currency company directly for news & analysis relevant to your exact requirements.
Australian Dollar rates this week
Any of you looking to emigrate down under will need to think about sending money to Australia and be worried about recent poor exchange rates.
This week, a few important data releases will give us a clue as to the future direction of the rate - and may provide opportunities to buy or fix exchange rates for the future.
At 4.30am on Tuesday the RBA interest rate decision is announced - a cut in Aussie interest rates would do no harm to the prospects of better Australian exchange rates. Retail sales data is then released at 2.30am on Wednesday, followed by employment figures at 2.30am on Thursday.
Check with your currency broker each morning for any differences in exchange rates and full analysis of the figures.
This week, a few important data releases will give us a clue as to the future direction of the rate - and may provide opportunities to buy or fix exchange rates for the future.
At 4.30am on Tuesday the RBA interest rate decision is announced - a cut in Aussie interest rates would do no harm to the prospects of better Australian exchange rates. Retail sales data is then released at 2.30am on Wednesday, followed by employment figures at 2.30am on Thursday.
Check with your currency broker each morning for any differences in exchange rates and full analysis of the figures.
Friday, 1 May 2009
UK PMI gives Pound a boost
This morning's Purchasing Managers Index data, a measure of business conditions in the UK manufacturing sector, has come out significantly higher than expected.
The Pound has received a welcome boost. Exchange rates against the Euro and US Dollar are up around 2c each, so property buyers sending Euros to Spain for example will be pleased with the news.
With the long weekend approaching, be aware that the markets still trade in many countries, so rates can move over the bank holiday. Call your currency broker to discuss your options.
The Pound has received a welcome boost. Exchange rates against the Euro and US Dollar are up around 2c each, so property buyers sending Euros to Spain for example will be pleased with the news.
With the long weekend approaching, be aware that the markets still trade in many countries, so rates can move over the bank holiday. Call your currency broker to discuss your options.
Thursday, 30 April 2009
House prices decline again
The monthly Nationwide house price survey out today shows a 0.4% fall in April, although the pace of decline has slowed.
The news is a blow to the beleagured housing market after HMRC's figures recently showed an increase in the number of property transactions.
Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand - so exchange rates are unlikely to improve.
The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.
The news is a blow to the beleagured housing market after HMRC's figures recently showed an increase in the number of property transactions.
Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand - so exchange rates are unlikely to improve.
The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.
Fed expects weakness to persist
At the monthly Federal Reserve interest rate meeting in the USA last night, as expected there was no change to the 0.25% base rate in operation.
Following news that ths US economy contracted more than expected during the first quarter, the Fed said "the economy has continued to contract", adding that it would "remain weak for some time".
The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.
Following news that ths US economy contracted more than expected during the first quarter, the Fed said "the economy has continued to contract", adding that it would "remain weak for some time".
The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.
Wednesday, 29 April 2009
UK Mortgage Lending falls back
Mortgage lending in the UK fell for the first time in 4 months during March, figures out today show.
6.8% less new mortgages were issued than in February.
The news is a blow after some encouraging recent data suggesting the housing market may at last be picking up - and the news has hit the Pound on foreign exchange markets this afternoon.
The Pound fell around 1c against the Euro and US Dollar, while sending money to Australia is now over 1% more expensive than yesterday. Candian Dollar exchange rates have also fallen.
6.8% less new mortgages were issued than in February.
The news is a blow after some encouraging recent data suggesting the housing market may at last be picking up - and the news has hit the Pound on foreign exchange markets this afternoon.
The Pound fell around 1c against the Euro and US Dollar, while sending money to Australia is now over 1% more expensive than yesterday. Candian Dollar exchange rates have also fallen.
Tuesday, 28 April 2009
Pound Boosted by CBI Survey
The Confederation of British Industry has reported a shock rise in high street sales in April - the best result since January 2008.
Although the "green shoots of recovery" may be some way off, the majority of retailers reported increased sales for April, compared to analysts' expectations of 40% more who were expected to report declining sales.
As a result the Pound has dramatically come back in to demand, showing increases of over 1c against the Euro and US Dollar since the data was released this morning.
If you need to transfer money abroad do contact your currency company to discuss your options.
Although the "green shoots of recovery" may be some way off, the majority of retailers reported increased sales for April, compared to analysts' expectations of 40% more who were expected to report declining sales.
As a result the Pound has dramatically come back in to demand, showing increases of over 1c against the Euro and US Dollar since the data was released this morning.
If you need to transfer money abroad do contact your currency company to discuss your options.
Aussie, New Zealand Rates Up
An opportunity this morning for anybody needing to send money to Australia or make money transfers to New Zealand. The Swine Flu panic has sent investors fleeing to hold assets in US Dollars (a so called "safe haven" currency) - instead of the Antipodeans.
As a result the Aussie and New Zealand have been sold off overnight leading to better exchange rates.
Although both currency rates are not as good as last year, in the current climate of weak sterling, any spike like this is good news. Speak to your UK currency company to find out your options.
As a result the Aussie and New Zealand have been sold off overnight leading to better exchange rates.
Although both currency rates are not as good as last year, in the current climate of weak sterling, any spike like this is good news. Speak to your UK currency company to find out your options.
Monday, 27 April 2009
Sterling down in Budget aftermath
The Pound is struggling in early Monday trading, further to a raft of negative data released last week including the Budget on Wednesday, along with GDP, unemployment and inflation figures which all worsened in a terrible week for the UK's economic prospects.
Sterling may struggle to recover for some time - so anybody looking to send money overseas in the coming months may do well to consider fixing an exchange rate for future delivery. Speak to your currency broker if you would like to discuss your options.
Sterling may struggle to recover for some time - so anybody looking to send money overseas in the coming months may do well to consider fixing an exchange rate for future delivery. Speak to your currency broker if you would like to discuss your options.
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