Retail sales & mortgage approvals down

Sterling has been held back today by poor retail sales and mortgage figures in the UK, which showed:

- Only 40,000 new mortgages were approved in November
- Retail sales fell 0.8% in December, and were flat for the year

Analysts were hoping for a slight rise in retail sales, given the Christmas period, and for around 20% more mortgage approvals - both of which would have been indicators of better recovery in the UK economy.

With the sterling-euro rate falling away, aiming for rates of 1.20 may now not be realistic for some time to come.

UK unemployment rises to 2.5m

This morning's UK unemployment data showed a 49,000 rise to 2.5m at the end of November - although the official unemployment rate remains at 7.9%

Some analysts are warning of a 'double dip' in unemployment, with the jobless total set to rise further in 2011 before improving.

As unemployment is a key measure of the UK's economic recovery, the Pound can be affected. This morning we have seen a slight fall in sterling's value on the back of the releases.

There is no more major UK data due out until Friday's retail sales figures at 9.30am.

UK inflation up to 3.7% in December

This morning's inflation figures showed an increase to 3.7% in December - the highest in 8 months.

Sterling surged higher this morning, as analysts factored in an increased likelihood of interest rate rises, which are the Bank of England's main weapon against rising inflation.

The Pound was up nearly a cent against both the US Dollar and Euro by 10am, although it has fallen back a little since.

Note that tomorrow's UK unemployment rate, released at 9.30am, could cause sterling to fall back further if the labour market is still struggling.

This week's currency news

This week's economic data likely to affect exchange rates is listed below. Call Currency Index on 0800 043 2623 for the latest trading rates and opinions for your own overseas currency transfer.

Monday 17th
Overnight - Rightmove house price index

Tuesday 18th
Overnight - RICS house price balance & Nationwide consumer confidence
0930 - UK CPI & RPI inflation
1000 - German & Eurozone ZEW economic sentiment survey
1400 - Canadian interest rate decision

Wednesday 19th
0930 - UK unemployment rate
1000 - Eurozone construction output
1330 - US housing starts
1530 - Bank of Canada monetary policy report
2145 - New Zealand CPI inflation

Thursday 20th
0900 - European Central Bank monthly report
1500 - US existing home sales
2145 - New Zealand retail sales

Friday 21st
0900 - German business climate survey
0930 - UK retail sales & public borrowing
1330 - Canadian retail sales

Factory inflation gives Pound a boost

After yesterday's losses, sterling has recovered this morning after higher than expected producer inflation rasied the likelihood of interest rate rises in the UK sooner rather than later.

Inflation is running well above target, and an interest rate rise would help to control it - as well as giving the Pound a boost.

The Bank of England yesterday voted for interest rates to remain at 0.5%, but we will not know how the committee vote was split until the minutes are released in a couple of weeks.

To take advantage of improved rates for your own transfers, call Currency Index on 0800 043 2623.

Euro stronger on bond sale, as interest rates held

The Euro strengthened (became more expensive) today as Spain and Italy held successful bond sales, easing fears of further financial difficulties in the Eurozone (see Reuters' article for more).

As interest rates were held in the UK and Eurozone, USA inflation figures were weaker than expected - resulting in cheaper US Dollars and more expensive Euros this afternoon.

Trade gap widens

The Pound's recent run came to a halt this morning, as the UK's trade balance worsended slightly for November, compared to expectations of a slight improvement.

Stronger than expected industrial production in the Eurozone and import figures in the USA have not helped exchange rates either.

The Pound has recovered a little this afternoon however, and we now await tomorrow's round of interest rate decisions along with UK manufacturing figures at 9.30.

Euro rate improves 3% in 10 days

So far in 2011 the Euro exchange rate has improved by over 3% - great news for those of you needing to send payments to Europe.

A weaker Euro against the USD has also helped sterling, and with no fresh bad economic news out recently in the UK, we have seen a sharp spike in rates.

Contact Currency Index for the latest rates available for your own transaction, whether for immediate transfer or fixed for a date in the future.

This week's currency news

This week we have the following data due out, which may affect exchange rates:

Monday 10th
0030 - Australian retail sales trends
1530 - Bank of Canada business outlook survey

Tuesday 11th
Overnight - British Retail Consortium retail sales monitor
0030 - Australian trade balance
1315 - Canadian housing starts

Wednesday 12th
Overnight - UK consumer confidence
0930 - UK trade balance (November)
1330 - US import price index

Thursaday 13th
Overnight - UK GDP estimate (December)
0030 - Australian unemployment rate
0930 - UK industrial & manufacturing production (November)
1200 - UK interest rate & QE decision
1245 - Eurozone interest rate decision
1330 - Speech: ECB President Trichet
1330 - US trade balance (November)

Friday 14th
0700 - German CPI inflation (December)
0930 - UK PPI inflation (December)
1000 - Eurozone CPI inflation (December) & trade balance (November)
1330 - US CPI inflation & retail sales (December)

This week's currency news

This week looks fairly quiet for data, with the Christmas holiday approaching. We do however have a triple-whammy of important UK data on Wednesday morning, with the Bank of England minutes, GDP and current account all released at the same time.

Given the Pound's volatility in recent weeks, contact Currency Index if you would like to be kept informed of any movement and opportunities to secure your rate.

Monday 20th
1500 - Eurozone consumer confidence

Tuesday 21st
Overnight - UK consumer confidence
0715 - Swiss trade balance
0930 - UK public borrowing
1200 - Canadian CPI inflation
1330 - Canadian retail sales
2145 - New Zealand current account

Wednesday 22nd
0930 - UK current account, GDP & Bank of England minutes
1500 - US home sales
2145 - New Zealand GDP

Thursday 23rd
0930 - UK mortgage approvals
1330 - Canadian GDP & US durable goods orders

Friday 24th
No major data - Christmas Eve

Retail sales up 0.3% in November

This morning's retail sales figures showed a 0.3% increase in November, broadly in line with expectations. October's figure was revised up to 0.3% from 0.1%, which improved the year-on-year figure further.

The Pound gained a little strength on the release of the figures, although nothing like enough to counter the losses we have seen this week.

UK consumer confidence is released overnight but there is no other major data due out.

Unemployment figures hurt sterling

This morning's figures showed UK unemployment has risen to 2.5m - the first monthly rise for 6 months. The new number equates to an unemployment rate of 7.9%.

As the Pound is so sensitive to any news around economic recovery, sterling has predictably been falling. We have lost nearly a cent against both the Euro and US Dollar.

Tomorrow morning's retail sales data have the potential to bring exchange rates back up a little, but any more bad news for the UK is likely to weigh heavy on the Pound through the Christmas period.

Pound finds no support

Sterling has fallen across the board today, as a few neutral or negative UK data releases were accompanied by stronger figures in the Eurozone and USA.

UK: CPI inflation as expected, house prices lower than expected
Eurozone: economic sentiment better than expected
USA: retail sales double expected growth

The net result has been a stronger (more expensive) Euro and US Dollar, with other currencies following suit.

Tomorrow morning we have UK unemployment data at 9.30am, and the Pound remains vulnerable to any further negative news.

This week's currency news

As 2010 draws to a close, this week sees the last round of inflation data from the UK, Europe and USA. Inflation is crucial as it dictates how much flexibility there is in an economy to change interest rates, which in turn are a major influence on exchange rates.

This week may provide opportunities to buy before we enter the quieter Christmas period. Whatever your requirements for exchanging currency, contact Currency Index to make sure we can keep you updated with the latest news and rates.

Monday 13th
Overnight - Rightmove house prices
0930 - UK PPI inflation
2145 - New Zealand retail sales

Tuesday 14th
0930 - UK CPI & RPI inflation
1000 - German ZEW survey
1330 - US retail sales & PPI inflation
1915 - US interest rate decision

Wednesday 15th
0930 - UK unemployment & earnings
1330 - US CPI inflation

Thursday 16th
0730 - Swiss interest rate decision
0930 - UK retail sales
1000 - Eurozone CPI inflation
1330 - US jobless claims

Friday 17th
1000 - Eurozone trade balance

Currency Index in the news

Currency Index were interviewed again on BBC One today, as the collapse of Crown Currency Exchange was investigated on the programme "Rip Off Britain". You can see the programme on the BBC iPlayer here.

No change from Bank of England

The Bank of England left interest rates and quantitative easing on hold at its monthly policy meeting today, as expected.

Elsewhere, the European Central Bank in its monthly report reduced its forecast for Eurozone growth next year, while maintaining that the single currency area is still on track for recovery. It added that current interest rates are appropriate, given the debt problems in some Euro countries.

In the USA, jobless claims came out better than expected, but for the Pound, exchange rates across the board remain broadly unchanged.

Pound improves

Rates for sending money abroad have improved across the board in the last 24 hours, after weak German trade balance data this morning helped to further weaken the Euro in particular.

Tomorrow we have some more important announcements, all likely to affect rates: UK house prices and trade balance, along with the ECB monthly report and German CPI inflation.

Egyptian Pounds now available

If you need to send money to Egypt, Currency Index can now supply Egyptian Pounds for transfers at commercial rates.

Contact us for a quote if you are buying property in Egypt, and see how much you can save compared to using your bank.

This week's currency news

This week we have interest rate decisions in the UK, Australia, New Zealand and Canada, along with Quantitative Easing policy at the same time in the UK.

Problems in the Eurozone continue to make the headlines, along with the prospect of further monetary easing in the USA. For the latest news and live exchange rates for your own transaction, contact Currency Index.

Monday 6th
0930 - Eurozone investor confidence

Tuesday 7th
0330 - Australian interest rate decision
0645 - Swiss unemployment rate
0930 - UK industrial & manufacturing production
1400 - Canadian interest rate decision

Wednesday 8th
0700 - German trade balance
2000 - New Zealand interest rate decision

Thursday 9th
0030 - Australian unemployment rate
0700 - German CPI inflation
0900 - European Central Bank monthly report
1200 - UK interest rate decision

Friday 10th
0930 - UK producer price index
1330 - US trade balance
1900 - US monthly budget statement

German unemployment weakens Euro further

This morning's German unemployment figures have added to the problems in the Eurozone, with a recorded fall of 9,000 compared to expectations of 18,000. Unemployment in the Eurozone overall is now running at 10.1%.

The Euro has weakened further (become cheaper) today while the US Dollar, which is mirroring the Euro's movements at the moment, has strengthened.

For the latest rates please contact your account manager at Currency Index.

This week's currency update

This week the main story is likely to be the continuing developments of the Irish bank bailout - and whether there will be any knock-on effects elsewhere in the Eurozone. For now the Euro has started to strengthen.

Elsewhere we have economic releases in Australia, Canada, the USA and Switzerland, all likely to affect rates for sending money abroad. Contact your foreign exchange broker for the latest rates and news.

Monday 29th
0930 - UK mortgage approvals & money supply
1000 - Eurozone economic & consumer confidence
1330 - Canadian current account

Tuesday 30th
Overnight - UK consumer confidence
0030 - Australian current account
1000 - Eurozone unemployment & CPI inflation
1330 - Canadian GDP
1500 - US consumer confidence

Wednesday 1st
0030 - Australian GDP
0700 - UK Nationwide house prices
0900 - Eurozone manufacturing inflation
0930 - UK manufacturing inflation
1500 - US manufacturing & construction

Thursday 2nd
0030 - Australian retail sales & trade balance
0645 - Swiss GDP
1000 - Eurozone GDP & PPI inflation
1245 - Eurozone interest rate decision
1330 - US jobless claims

Friday 3rd
0815 - Swiss CPI inflation
1000 - Eurozone retail sales
1200 - Canadian unemployment
1330 - US non-farm payrolls & unemployment rate

Portugal next for EU bailout?

The Eurozone is urging Portugal to seek aid. Portugal’s bonds fell on concern they will follow Ireland and Greece and present a formal request to Europe's rescue fund, similar to that of Ireland earlier in the week.

As a result the Euro has been slowly weakening (getting cheaper) this week, and we now have the best rates for sending Euro payments since mid-September. Conversely, investors are buying up US Dollars, which has brought the exchagne rate down to its worst level for a month.

GDP revised slightly upwards

This morning's GDP figures showed a slight upward adjustment to previous figures for the third quarter of the year.

The UK economy grew 0.8% in the 3 months to the end of September, or 2.8% in the 12 month period.

Sterling gained slightly on the news, and with no more major UK data out this week, securing a rate for your overseas transfer now is looking reasonable.

Euro falls, Dollar rises

The Euro has weakened significantly today, as the political problems in Ireland continue.

The main move has been between the Euro and US Dollar, which has been back in demand as a "safe haven" currency.

The result is something of a see-saw with the Pound stuck in the middle. We have improved rates for sending money in Euros, but worse rates for buying US Dollars.

Tomorrow's UK GDP figures are likely to turn focus back to sterling, so if you need to secure Euros in particular you might like to contact Currency Index for a quote before the data release at 9.30 am.

Currency news this week

The main release this week is the second estimate of Q3 GDP, which is published on Wednesday. Any downward adjustment in the UK's official growth figures would be likely to hurt sterling.

We also have the breaking news of the EU bailout of the Irish economy. Although you might expect the Euro to weaken as a result, the UK is also likely to contributing billions via the EU, so the Pound is not immune to any fallout.

This week's full calendar of releases likely to affect exchange rates is below. Contact Currency Index for the latest rates for your own transactions, and views on what might happen this week and further ahead.

Monday 22nd
1500 - Eurozone consumer confidence
1615 - Speech: European Central Bank President Trichet

Tuesday 23rd
0200 - New Zealand inflation expectations
0700 - German GDP
0900 - Eurozone manufacturing & services growth
0930 - UK mortgage approvals
1200 - Canadian CPI inflation
1330 - US GDP & Canadian retail sales
1900 - US Federal Reserve minutes

Wednesday 24th
0930 - UK GDP second estimate Q3
1330 - US jobless claims & personal expenditure

Thursday 25th
US bank holiday (Thanksgiving)
0815 - Swiss employment level

Friday 26th
No major data

Sterling recovers yesterday's losses

Having fallen back yesterday, sterling has recovered somewhat today, despite public borrowing figures this morning being much worse than expected at £9.77bn for October.

Retail sales figures were not so bad, and with the possibility of an Irish economic bailout looking more likely, the Euro is also struggling. Against the US Dollar, rates have also recovered, as volatility continues in fragile economic recoveries.

There is no major data out tomorrow, but we have speeches from the Federal Reserve chairman (Ben Bernake) and European Central Bank president (Trichet), at 2.15pm and 9.15am respectively.

Please contact Currency Index for the latest live rates for your own transaction.

Bank of England split 3 ways again

The Bank of England did not move nearer to further Quantitative Easing in their November meeting, according to their minutes released today.

7 of the 9-strong committee voted for no change, with one voting for more QE, and one voting for an interest rate rise - exactly the same result as October.

The Pound gained a small amount of value after the minutes were released.

Meanwhile EU finance ministers are meeting to discuss a possible bail-out of the Irish economy. The Euro could be affected if the Irish government asks for help, although when a rescue package was announced for Greece earlier this year, the Euro strenghtened (became more expensive) as markets saw the bailout as helping the single currency zone.

High inflation forces letter to Chancellor

This morning's UK inflation figures (3.2% for the previous 12 months) are again above the government's targets, forcing Bank of England Governer Mervyn King to write another explanatory letter to the Chancellor.

While the figures are unlikely to spark any short-term interest rate rises, they should be viewed as sterling-positive. Unfortunately, half an hour after the announcement, Eurozone inflation and economic sentiment were released at higher than expected levels, giving the Euro some retaliatory strength and reducing exchange rates for the rest of the day.

Tomorrow morning's Bank of England Minutes, to be released at 9.30am, are now crucial to the short-term movement of the Pound. If any of the committee voted for further quantitative easing this month, we could see the Pound's gains of the last week quickly disappear.

This week's economic news

We have plenty of important data out this week which is likely to move exchange rates - including key inflation, unemployment and retail sales figures in the UK, as well as the all-important Bank of England minutes on Wednesday, which will reveal whether more Quantitative Easing was considered this month.

With sterling still vulnerable to any negative news, speak with your Currency Index broker about your own transaction to avoid being caught out by any sudden moves in the market.

Monday 15th
1000 - Eurozone trade balance
1330 - US retail sales

Tuesday 16th
0930 - UK CPI & RPI inflation
1000 - Eurozone CPI inflation & German ZEW sentiment survey
1330 - US PPI inflation
1415 - US industrial production

Wednesday 17th
0930 - UK earnings, unemployment & Bank of England minutes
1000 - Eurozone construction output
1330 - US CPI inflation & housing starts

Thursday 18th
0715 - Swiss trade balance
0930 - UK public borrowing & retail sales
1500 - US manufacturing

Friday 19th
0700 - German PPI inflation

Pound pushes higher against Euro

Rates for sending money in Euros are now at their best for 6 weeks, after the Bank of England inflation report was followed by news of economic woe in Spain (where growth is approaching zero) and Ireland which weakened the Euro.

Worries about Quantitative Easing in the UK are now receding a little, although with 6 consecutive days of improvement in the Pound-Euro rate, there may be some profit-taking by investors as the weekend approaches, which could bring the rate back down.

Inflation report boosts sterling

This morning's Bank of England inflation report has given the Pound a timely boost, as Governer King took a neutral approach and did not mention further quantitative easing.

Furthermore, with the outlook still likely to give high inflation in the coming months, there may even be talk of UK interest rate rises next year, depending on the stability of the recovery. The Bank do not see a significant likelihood that we will slide back into recession.

As a result of the report, the Pound has spiked against the Euro and US Dollar, gaining over a cent against both currencies.

Contact Currency Index for the latest quote on your own transaction.

UK data as expected

This morning's UK manufacturing data and trade balance have come out close to expectations, with no resulting effect on most exchange rates. Attention will now turn to tomorrow's inflation report at 10.30am.

This week's currency news

The main news for the Pound this week is likely to be Wednesday's inflation report, which is an important economic indicator affecting decisions about interest rates and quantitative easing, and therefore the strength of sterling.

Tomorrow's manufacturing figures will also be important, otherwise there is no other significant UK data out this week. Other important data releases around the world are listed below.

Monday 8th
0645 - Swiss unemployment rate
1315 - Canadian housing starts
1800 - Speech - Federal Reservce - Fisher

Tuesday 9th
0930 - UK industrial & manufacturing production; UK trade balance
1400 - unofficial UK GDP estimate
1730 - Speech - Bank of Canada - Carney

Wednesday 10th
1030 - UK inflation report; Speech - Bank of England - King
1330 - US & Canadian trade balance; US jobless claims

Thursday 11th
0030 - Australian unemployment rate
0900 - ECB monthly report

Friday 12th
0700 - German GDP
1000 - Eurozone GDP

Federal Reserve pumps $600bn into economy

The US Federal Reserve has announced an extra $600bn of Quantitative Easing to boost the ailing American economy.

The amount was slightly more than most analysts had expected, but represents a middle-of-the-road approach, which had already been priced into the US Dollar exchange rate.

US Dollar rates are still around their best since February, but there has been no sudden movement in exchange rates which could have been expected if the figure was much higher.

Anybody needing to send money to the USA might like to consider fixing a rate now on the back of current US Dollar weakness.

US Dollar cheaper ahead of Fed decision

Rates for sending US Dollars have improved again in the last 24 hours, ahead of tonight's Federal Reserve decision on Quantitative Easing. Analysts are expecting more money to be pumped into the US economy, which is making the dollar cheaper.

Tonight's decision at 6.15pm is likely to cause strong volatility in the USD rate.

This morning's UK PMI services data showed good growth in the UK's services sector, which has also injected some sterling strength across the board.

Australian interest rates increased

The Australian Dollar gained strength today, after the RBA's decision to increase interest rates to 4.75% sparked increased demand for the Aussie currency.

If you need to make a money transfer to Australia, the next major news is overnight on Wednesday, when retail sales and trade balance figures are released. For the latest rates for Australian Dollars or any other currency, please contact us.

Economic data this week

This week we have interest rate decisions in the UK, Eurozone, Australia and USA. As the various policies of interest rate changes, austerity measures and quantitative easing are revealed, which are variously being touted in the US, UK and Europe, we are likely to see some volatility in exchange rates through the week.

For the latest market reactions and how your own exchange rate may be affected, contact your currency broker for a jargon-free chat.

Monday 1st
0030 - Australian house price index
0900 - Eurozone manufacturing inflation
0930 - UK manufacturing inflation
1230 - US personal consumption & expenditure
1400 - US manufacturing

Tuesday 2nd
0330 - Australian interest rate decision
0800 - UK Halifax house price index
0815 - Swiss retail sales
0930 - UK construction PMI

Wednesday 3rd
0930 - UK services PMI
1400 - US factory orders
1815 - US interest rate decision
2145 - New Zealand unemployment rate

Thursday 4th
0030 - Australian retail sales & trade balance
1000 - Eurozone PPI inflation
1200 - UK interest rate decision
1245 - Eurozone interest rate decision

Friday 5th
0030 - Australian interest rate minutes
0930 - UK PPI inflation
1000 - Eurozone retail sales
1100 - Canadian unemployment rate
1230 - US non-farm payrolls & unemployment rate

Currency Index in the news

To see our interviews on the One Show, Sky News and Five News, regarding rogue traders Crown Currency Exchange and better regulation in the currency industry, please click here to view our YouTube channel.

Nationwide says house prices are falling

Nationwide this morning unveiled its report gauging housing prices in the UK with a worrying downward trend. The monthly comparison of prices showed a 0.7% decline coming after a no-change result last month and plummeting past the forecasted fall at 0.3%.

The official release deals with the potential consequences of the drops in price: "If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010. This would compare to a rate of +5.9% at the end of 2009."

Falling house prices are a worry for the economy as a whole, and tend to cause a fall in sterling. The Pound has dropped around 0.5c against the Euro and US Dollar this morning.

Pound boosted by GDP figures

This morning's Q3 GDP figures showed that the economy grew more than expected from July to September, showing a 0.8% growth rather than the 0.4% expected by analysts.

This reduced the likelihood of futher Quantitative Easing (QE) next month, and the Pound has spiked up nearly a cent against the Euro and US Dollar on the back of the figures.

This week's economic data releases

As we near the end of October, this week's economic data releases are as follows. For the Pound, Tuesday's GDP figure is the most important, as we learn how much the economy looks to have grown from July to September.

Monday 25th
1000 - Eurozone industrial orders
1500 - US home sales

Tuesday 26th
0930 - UK GDP
1500 - US consumer confidence

Wednesday 27th
0230 - Australian CPI inflation
1500 - US new home sales
2100 - New Zealand interest rate decision

Thursday 28th
0855 - German unemployment rate
1000 - Eurozone economic confidence
1330 - US jobless claims

Friday 29th
0700 - German retail sales
0930 - UK mortgage approvals
1000 - Eurozone unemployment rate
1330 - Canadian GDP

Retail sales fall as Euro rate continues down

This morning's UK retail sales showed a 0.2% decline in September (worse than expected), which has done nothing to help the ailing pound.

The rate for buying Euros is now at its worst since April, and there is no major data due out for the rest of the week to give cause for optimism.

US dollar rates, however, are still holding up due to weakness in the US economy.

Bank of England split 3 ways on policy

This morning's Bank of England Minutes revealed a 3-way split in the monetary policy committee's views on interest rates and quantitative easing.

While 7 of the 9 members voted for no change, one (Andrew Sentance) voted again for an interest rate rise, while one (Adam Posen) voted for a £50bn extension to QE.

Any extensions to QE are likely to hurt sterling and it now seems plausible that this will happen in the coming months.

On top of September's Public Borrowing figures, which showed record levels of UK debt, the Pound could easily fall further in the short term.

The government is also revealing its spending review cuts today.

Currency Index wins OPP Award

We are pleased to announce that Currency Index has won the prestigious “Best Currency Company” award in the 2010 OPP Awards for Excellence, in recognition of our industry-leading client service levels and exchange rates.

Overseas Property Professional editor Geoff Hadwick presented the award to Currency Index at last week’s OPP / Property Investor Live show at ExCeL in London.

This week's currency news

This week, focus in the UK is likely to be on Wednesday's Bank of England minutes, which will reveal to what extent the MPC considered extending the UK's Quantitative Easing programme this month. Any likelihood of further QE could hurt the pound.

Also on Wednesday, the government publishes its key spending review, with details of the billions of pounds of cuts planned in the forthcoming spending round. Markets are concerned whether there will be an impact on the economy, and therefore we feel Wednesday could be a doubly hard day for sterling.

Don't forget, if you are worried about a falling pound, that you can fix exchange rates up to 2 years ahead using a Forward Contract from Currency Index.

This week's economic calendar is as follows:

Monday 18th
1415 - US industrial production

Tuesday 19th
1000 - Eurozone construction output & ZEW economic sentiment survey
1330 - US housing starts
1400 - Canadian interest rate decision

Wednesday 20th
0930 - Bank of England minutes & UK public borrowing

Thursday 21st
0715 - Swiss trade balance
0830 - Eurozone manufacturing inflation
0930 - UK mortgage approvals & retail sales
1500 - Eurozone consumer confidence

Friday 22nd
All day - G20 meeting
1200 - Canadian CPI inflation
1330 - Canadian retail sales

UK Data Update

The data out from the UK this week so far has been mixed at best, unfortunately leading to a fall in the value of sterling against most currencies.

Trade Balance: worse than expected (-£8.2bn)
House prices: worse than expected (up 8.3% in last 12 months but now falling)
Unemployment rate: better than expected (7.7%)
Jobless claimants: worse than expected (up 5,300)

It is worth noting that Bank of England MPC member Andrew Sentance is giving a speech at 6.40pm today, and his views on interest rates and quantitative easing are likely to be taken as signals as to the Bank of England's intentions for the next few months, with implications for the Pound.

This week's currency news

This week's economic data, likely to affect currency exchange rates:

Monday 11th
US/Canada bank holiday (Columbus Day/Thanksgiving)
No major data releases

Tuesday 12th
0930 - UK CPI & RPI inflation and DCLG house price index, plus August trade balance
1900 - US Federal Reserve minutes

Wednesday 13th
0930 - UK unemployment rate & jobless claims
1900 - US monthly budget statement

Thursday 14th
0900 - Eurozone ECB monthly report
1330 - US PPI inflation & jobless claims

Friday 15th
1000 - Eurozone CPI inflation & trade balance
1330 - US CPI inflation & retail sales

Contact Currency Index for our views on how these figures could affect exchange rates for your own currency transfers.

House prices fell 3.6% in September

UK house prices fell 3.6% in September, according to Halifax - the biggest monthly fall since the survey started in 1983.

Although it is too early to say that prices are in decline, there is a worry for the UK economy that further falls in the housing market could cause serious problems for the economy. The Pound has continues its fall against the Euro and may other major currencies.

Currency Index in the news

Further to the collapse of Crown Currency Exchange, who are not Authorised by the FSA, Currency Index has today been commenting to the media regarding the enhanced safety and security offered by Authorised currency companies.

We are due to be featured on the BBC 6.00 news this evening, Wednesday October 6th.

Economic data due out this week

A busy week this week for data releases so we expect some volatility in exchange rates. Contact your account manager at Currency Index for the latest news relating to your currency transactions.

Monday 4th
1000 - Eurozone PPI inflation
1500 - US pending home sales
2000 - Federal Reserve Chairman Bernanke speaks
2200 - New Zealand business confidence

Tuesday 5th
0130 - Australian retail sales & trade balance
0530 - Australian interest rate decision
1000 - Eurozone retail sales

Wednesday 6th
1000 - Eurozone GDP
1100 - German factory orders
1315 - US non-farm employment change

Thursday 7th
0230 - Australian unemployment rate
0930 - UK industrial & manufacturing production
1200 - UK interest rate & QE decision
1245 - Eurozone interest rate decision
1330 - ECB press conference; US jobless claims

Friday 8th
0745 - Swiss unemployment rate
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate