UK Gross Domestic Product (GDP) data out this morning came in worse than expected, causing the Pound to take a further tumble after an already miserable week for the UK currency.
First quarter GDP showed a decline of 1.9% and a decline of 4.1% for the 12-month period. This was worse than analysts' expectations of 1.5% and 3.8% respectively.
Negative news in the UK economy usually means lower exchange rates. This has been the case today with the best US dollar exchange rate falling over a cent this morning, and Euro exchange rates similarly affected.
Friday, 24 April 2009
Thursday, 23 April 2009
Q&A: So why does public debt matter?
A lot has been written recently regarding the public debit and all the news surrounding Alistair Darling's second Budget, but why does public debt matter?
What is GDP and why is it significant?
Gross domestic product is, in effect, the income a country generates. As with individuals, you have to consider what is a sensible level of borrowing you can take out against the income you produce. The numbers now, in terms of borrowing levels, are increasing significantly – and in a relatively short period.
What is meant by net public debt and how will Britain’s change?
Net public debt is the amount a country has built up during years of borrowing. The chancellor is now forecasting that public debt will rise to close to 80 per cent of GDP by 2013-2014 – that’s roughly £1.4trillion, or £23,000 a person.
And how will we all be affected?
Ultimately, that debt has to be borrowed from international sources and will need to be paid back. As individuals, we will all pay for the borrowing in one way or another, through higher taxes or reduced spending.
Historically, how does this compare?
The level of net public debt is the highest since the 1950s, when we were paying off the cost of World War II. That’s a pretty high level of borrowing, seeing as its closest comparison is when we were emerging from a war. Back then, net public debit was 250 percent of GDP.
Will Britain’s credit rating be harmed?
The new figure is almost twice the previous public debt ceiling of 40 per cent of GDP. It raises the risk the bond markets will eventually push up the cost of government debt in response. Not only are we borrowing billions, but the cost of servicing the debt could well rise.
What will happen to exchange rates?
High public debt causes confidence in the UK economy to fall. Therefore sterling assets are less in demand and the value of the Pound can fall. This was demonstrated after the budget speech itself, when Euro exchange rates and GBPUSD both fell over 1%. Until confidence returns to the UK economy, there is unlikely to be much upward movement for sterling.
What is GDP and why is it significant?
Gross domestic product is, in effect, the income a country generates. As with individuals, you have to consider what is a sensible level of borrowing you can take out against the income you produce. The numbers now, in terms of borrowing levels, are increasing significantly – and in a relatively short period.
What is meant by net public debt and how will Britain’s change?
Net public debt is the amount a country has built up during years of borrowing. The chancellor is now forecasting that public debt will rise to close to 80 per cent of GDP by 2013-2014 – that’s roughly £1.4trillion, or £23,000 a person.
And how will we all be affected?
Ultimately, that debt has to be borrowed from international sources and will need to be paid back. As individuals, we will all pay for the borrowing in one way or another, through higher taxes or reduced spending.
Historically, how does this compare?
The level of net public debt is the highest since the 1950s, when we were paying off the cost of World War II. That’s a pretty high level of borrowing, seeing as its closest comparison is when we were emerging from a war. Back then, net public debit was 250 percent of GDP.
Will Britain’s credit rating be harmed?
The new figure is almost twice the previous public debt ceiling of 40 per cent of GDP. It raises the risk the bond markets will eventually push up the cost of government debt in response. Not only are we borrowing billions, but the cost of servicing the debt could well rise.
What will happen to exchange rates?
High public debt causes confidence in the UK economy to fall. Therefore sterling assets are less in demand and the value of the Pound can fall. This was demonstrated after the budget speech itself, when Euro exchange rates and GBPUSD both fell over 1%. Until confidence returns to the UK economy, there is unlikely to be much upward movement for sterling.
Wednesday, 22 April 2009
Pound falls further on Budget
The Pound has come under renewed pressure after the UK budget predicted the worst year for the British economy since 1945.
Euro exchange rates are 2c lower than at the start of this morning.
Growth forecasts have been revised down, borrowing is far higher than anticipated, and tax rises have been announced.
Anyone needing to send money abroad for a property purchase should contact their currency broker to discuss the options. If the market continues to slide, Euro rates of 1.10 or buying dollars above 1.40 do not look like they will last for long.
Euro exchange rates are 2c lower than at the start of this morning.
Growth forecasts have been revised down, borrowing is far higher than anticipated, and tax rises have been announced.
Anyone needing to send money abroad for a property purchase should contact their currency broker to discuss the options. If the market continues to slide, Euro rates of 1.10 or buying dollars above 1.40 do not look like they will last for long.
Borrowing Up, Unemployment Up, Pound Down
This morning's data has brought the Pound's recent surge to an abrupt halt - public borrowing has risen to £19.1bn for March and official unemployment figures show a rise to 6.7%.
The Pound has been suffering accordingly, dropping nearly 1c against both the US Dollar and Euro. We still have around the best exchange rates for dollars and euro for some time, but with the budget this lunch time analysts are concerned that there is further to fall for the UK currency.
UK currency companies will be happy to help with your requirements.
The Pound has been suffering accordingly, dropping nearly 1c against both the US Dollar and Euro. We still have around the best exchange rates for dollars and euro for some time, but with the budget this lunch time analysts are concerned that there is further to fall for the UK currency.
UK currency companies will be happy to help with your requirements.
Tuesday, 21 April 2009
Canada cuts interest rates
The Bank of Canada has today unexpectedly cut its interest rate from 0.5% to 0.25%.
Analysts thought the rate would be held at today's meeting, and on top of weaker wholesale sales figures, the Canadian dollar is weakening significantly this afternoon.
Therefore if you are sending money to Canada there is an opportunity to take advantage of better exchange rates.
Don't forget a reputable currency broker will be able to offer you a fixed exchange rate up to 2 years ahead if you would like to remove the exchange rate risk from your transaction.
Analysts thought the rate would be held at today's meeting, and on top of weaker wholesale sales figures, the Canadian dollar is weakening significantly this afternoon.
Therefore if you are sending money to Canada there is an opportunity to take advantage of better exchange rates.
Don't forget a reputable currency broker will be able to offer you a fixed exchange rate up to 2 years ahead if you would like to remove the exchange rate risk from your transaction.
Inflation falls less than expected
CPI and RPI data has fell less than expected in March - in what is seen as a positive data release for the Pound. Sterling has found a little strength, making rates available from your currency broker slightly better if you are transferring money overseas.
Unfortunately the inflation figures were followed by consumer sentiment data in Germany which is much higher than expectations, leading to Euro exchange rates falling back straight away.
Against the US Dollar, the Pound is up nearly a cent from its lowest position this morning.
Unfortunately the inflation figures were followed by consumer sentiment data in Germany which is much higher than expectations, leading to Euro exchange rates falling back straight away.
Against the US Dollar, the Pound is up nearly a cent from its lowest position this morning.
UK Inflation Data out Today
9.30 today sees UK Consumer and Retail Price Index data released - the monthly key inflation figures for the economy.
These can cause volatility for the Pound and are worth watching out for if you need to send money overseas. Results will be published here by 10am.
These can cause volatility for the Pound and are worth watching out for if you need to send money overseas. Results will be published here by 10am.
Monday, 20 April 2009
Sterling punished
The Pound is falling this morning on a decline in risk appetite from investors, who are selling off sterling assets on fears of further global economic weakness.
Other currencies to be affected are New Zealand and Australian dollar exchange rates, which are also being sold off, leading to slightly better rates against the Pound today.
The US Dollar is the main benefactor, strenghtening (becoming more expensive) over 2% against the Pound since Friday. US dollar exchange rates are heading down towards 1.45 (mid-market rate) compared to nearly 1.50 last week.
”Its failure to react positively to the housing data warns that sterling is heading towards a pronounced downward correction,” said Hans Redeker at BNP Paribas this morning.
Other currencies to be affected are New Zealand and Australian dollar exchange rates, which are also being sold off, leading to slightly better rates against the Pound today.
The US Dollar is the main benefactor, strenghtening (becoming more expensive) over 2% against the Pound since Friday. US dollar exchange rates are heading down towards 1.45 (mid-market rate) compared to nearly 1.50 last week.
”Its failure to react positively to the housing data warns that sterling is heading towards a pronounced downward correction,” said Hans Redeker at BNP Paribas this morning.
Budget & Lots of UK Data This Week
This week's Budget on Wednesday will be grabbling most financial headlines, but there is also a lot of other UK data out which could affect the Pound and therefore exchange rates for sending money overseas.
Tomorrow's CPI and RPI (inflation figures) are important, and on Wednesday this month's Bank of England minutes are released along with jobless numbers and public borrowing.
On Friday, we also have retail sales and GDP.
All these are important releases which are likely to move exchange rates against sterling this week, as well as Wednesday's budget speech at lunch time.
The Pound has been on a good run in the last 2 weeks, however this morning you are losing ground if you need to send money in Euros or transfer dollars to the USA. Has the market peaked? Nobody knows of course, but speak to your currency broker today for an experienced opinions.
Tomorrow's CPI and RPI (inflation figures) are important, and on Wednesday this month's Bank of England minutes are released along with jobless numbers and public borrowing.
On Friday, we also have retail sales and GDP.
All these are important releases which are likely to move exchange rates against sterling this week, as well as Wednesday's budget speech at lunch time.
The Pound has been on a good run in the last 2 weeks, however this morning you are losing ground if you need to send money in Euros or transfer dollars to the USA. Has the market peaked? Nobody knows of course, but speak to your currency broker today for an experienced opinions.
Friday, 17 April 2009
European Trade Data today
In a quiet day for data, European trade balance figures are released at 10am. The effect on the Euro is unlikely to be significant.
There is no other major data out today or Monday, but a lot of releases are due on Tuesday.
Consider taking advantage of current Dollar and Euro exchange rates, which are at their best for weeks. Currency Index is a UK based currency broker.
There is no other major data out today or Monday, but a lot of releases are due on Tuesday.
Consider taking advantage of current Dollar and Euro exchange rates, which are at their best for weeks. Currency Index is a UK based currency broker.
Thursday, 16 April 2009
Has Euro Rate Peaked?
Sterling - Euro peaked this morning above 1.1350 (or 88.1p) - the best rate for buying Euros this year.
Slightly positive Euro data out this morning seems to have halted the Pound's momentum, and we have dropped the best part of a cent in the last 2 hours.
If you are considering transferring Euros abroad in the coming weeks, do contact your UK currency broker to discuss a currency strategy - with the budget next week and a lot of other figures released on the British economy on Tuesday, it could be good to consider securing a rate now.
Slightly positive Euro data out this morning seems to have halted the Pound's momentum, and we have dropped the best part of a cent in the last 2 hours.
If you are considering transferring Euros abroad in the coming weeks, do contact your UK currency broker to discuss a currency strategy - with the budget next week and a lot of other figures released on the British economy on Tuesday, it could be good to consider securing a rate now.
Wednesday, 15 April 2009
Pound Up - no news is good news
The Pound has continues its upward movement against major currencies - producing the best exchange rates for Euros and Dollars for some weeks. If you need to send money to a notaire in France, a builder in Bulgaria or an escrow account in the States, you should speak to your currency company straight away.
There is no particular reason for the movement - except perhaps a break from the negative news which has been dogging the UK economy in recent months. There has been no significant negative data for a week, allowing the Pound to gain some value in the markets.
Tomorrow's European inflation data and US jobless numbers will perhaps give us the next indication as to which way rates will move in the short term.
There is no particular reason for the movement - except perhaps a break from the negative news which has been dogging the UK economy in recent months. There has been no significant negative data for a week, allowing the Pound to gain some value in the markets.
Tomorrow's European inflation data and US jobless numbers will perhaps give us the next indication as to which way rates will move in the short term.
Thursday, 9 April 2009
Bank of England meets today
The Bank of England's Monetary Policy Committee announces its monthly interest rate decision today - and any changes to the Quantitative Easing policy.
No changes are expected so there is no reason to expect much effect on the Pound. Sterling is falling back this morning as overseas appetite for UK investments is easing slightly.
If you are making international money transfers make sure you speak to your currency broker for the latest news and views.
No changes are expected so there is no reason to expect much effect on the Pound. Sterling is falling back this morning as overseas appetite for UK investments is easing slightly.
If you are making international money transfers make sure you speak to your currency broker for the latest news and views.
Wednesday, 8 April 2009
Rate Update
Please see our latest article on current market conditions and exchange rates for EUR and USD:
http://www.homesgofast.com/view_news/1431/
http://www.homesgofast.com/view_news/1431/
Euro, Dollar at Best Rates for Months
We are seeing the best exchange rates for Euros and Dollars for some time - trading at 1.11 and 1.47 respectively.
Fundamentally, UK data is still very negative, but renewed appetite from investors in sterling assets has boosted demand for the Pound - and therefore we have better exchange rates for sending money to the USA and Eurozone.
This spike may not last. The only data of note out today are Canadian housing starts at 1.30pm, and minutes from the Federal Reserve's last interest rate meeting, released at 7pm.
Fundamentally, UK data is still very negative, but renewed appetite from investors in sterling assets has boosted demand for the Pound - and therefore we have better exchange rates for sending money to the USA and Eurozone.
This spike may not last. The only data of note out today are Canadian housing starts at 1.30pm, and minutes from the Federal Reserve's last interest rate meeting, released at 7pm.
Tuesday, 7 April 2009
Euro holds at 1.10
The Sterling-Euro exchange rate is holding above 1.10 on interbank markets this morning after slightly better than expected UK industrial production data, and slightly worse than expected European GDP.
Sending Euros to France or any other Eurozone country is now at its cheapest for some weeks. Check back here for updates on currency news later in the week.
Sending Euros to France or any other Eurozone country is now at its cheapest for some weeks. Check back here for updates on currency news later in the week.
This morning's data
Some figures released this morning which could affect the Pound.
9.30am: UK Industrial Production and Manufacturing Production
(A weaker than expected number would be likely to hurt the Pound)
10am: European GDP data
(A stronger than expected number would be likely to strengthen the Euro)
If you need to make currency transfers to foreign bank accounts, call your currency broker in the UK to discuss your situation.
9.30am: UK Industrial Production and Manufacturing Production
(A weaker than expected number would be likely to hurt the Pound)
10am: European GDP data
(A stronger than expected number would be likely to strengthen the Euro)
If you need to make currency transfers to foreign bank accounts, call your currency broker in the UK to discuss your situation.
Monday, 6 April 2009
Euro cheaper on PPI data
The Euro has lost ground (become cheaper) again today as Eurozone producer prices dropped 0.5% in February - leaving prices 1.8% weaker than in February last year.
This is the biggest annual drop in prices in Europe for almost 10 years, adding pressure to the European Central Bank to cut interest rates further in the coming months.
Lower interest rates tend to produce a weakening currency - so this is good news for anybody looking to send Euros to a foreign bank.
The exchange rate will struggle to improve much, however, as the Pound is dogged by one of the worst recessions in the western economies, according to analysts.
Speak to your UK currency broker to discuss any implications on your own currency requirements.
This is the biggest annual drop in prices in Europe for almost 10 years, adding pressure to the European Central Bank to cut interest rates further in the coming months.
Lower interest rates tend to produce a weakening currency - so this is good news for anybody looking to send Euros to a foreign bank.
The exchange rate will struggle to improve much, however, as the Pound is dogged by one of the worst recessions in the western economies, according to analysts.
Speak to your UK currency broker to discuss any implications on your own currency requirements.
This week's currency news
Please see our weekly article for a list of this week's currency data releases:
http://www.themovechannel.com/features/b455859f-1658/
The Pound improved last week for 3 reasons:
1. Surprise increase in UK house prices
2. Negative US data (poor non-farms employment data on Friday)
2. Negative Euro data (interest rates only cut by 0.25% last week)
This week it will be interesting to see if the Pound comes back down, or consolidates at a higher level. To make sure you achieve the best Euro rates or the best rate for sending dollars, contact your currency company today.
http://www.themovechannel.com/features/b455859f-1658/
The Pound improved last week for 3 reasons:
1. Surprise increase in UK house prices
2. Negative US data (poor non-farms employment data on Friday)
2. Negative Euro data (interest rates only cut by 0.25% last week)
This week it will be interesting to see if the Pound comes back down, or consolidates at a higher level. To make sure you achieve the best Euro rates or the best rate for sending dollars, contact your currency company today.
Friday, 3 April 2009
Sterling jumps after UK services PMI data
Earlier today Sterling jumped against the Euro and US Dollar after a higher than expected service sector PMI data report, hitting a seven week high against the dollar. Bank of Scotland's Treasury currency analyst Wahid had this to say "The UK PMI has snapped up quite sharply higher and we're seeing sterling rally on the back of that".
The Euro rose early on Thursday after the ECB cut interest rates by less than expected, down 25 basis points rather than 50 basis points. But before the Euro could push on the ECB President Jean-Claude Trichet signalled there may be another cut in interest rates next month, as well as a decision on non-standard measures.
Unemployment looks likely to rise over the next few months according to Alistair Darling. Unemployment hit a 12 year high last month, hitting 2 million unemployed.
If you would like any currency guidance during this hectic time, do not hesitate to contact one of our senior brokers at Currency Index on 0800 043 2623.
The Euro rose early on Thursday after the ECB cut interest rates by less than expected, down 25 basis points rather than 50 basis points. But before the Euro could push on the ECB President Jean-Claude Trichet signalled there may be another cut in interest rates next month, as well as a decision on non-standard measures.
Unemployment looks likely to rise over the next few months according to Alistair Darling. Unemployment hit a 12 year high last month, hitting 2 million unemployed.
If you would like any currency guidance during this hectic time, do not hesitate to contact one of our senior brokers at Currency Index on 0800 043 2623.
Thursday, 2 April 2009
US Dollar Cheaper on Jobs Data
Sending dollars to America is at its cheapest level for some weeks - today's jobless data showed the highest level of benefit claimants in the USA since 1982.
Such bad news tends to weaken the US currency as it has today - mid-market levels are now at 1.4697.
Of course, if you are sending money to Dubai in UAE Dirhams, or need any other currency pegged to the US Dollar, your exchange rate has also improved.
Currency Index is a specialist currency company and can help you with any foreign transactions - call us for a friendly discussion.
Such bad news tends to weaken the US currency as it has today - mid-market levels are now at 1.4697.
Of course, if you are sending money to Dubai in UAE Dirhams, or need any other currency pegged to the US Dollar, your exchange rate has also improved.
Currency Index is a specialist currency company and can help you with any foreign transactions - call us for a friendly discussion.
ECB Cuts Euro Interest Rates
The European Central Bank has cut the Eurozone interest rate by 0.25% to 1.25%.
This was a smaller cut than expected and may cause some Euro strength - making the best Euro exchange rates more expensive if you are sending money abroad.
Analysts were hoping for at least a 0.5% cut, which may have weakened the Euro and given a boost to the Pound.
This was a smaller cut than expected and may cause some Euro strength - making the best Euro exchange rates more expensive if you are sending money abroad.
Analysts were hoping for at least a 0.5% cut, which may have weakened the Euro and given a boost to the Pound.
House Prices in Shock Rise - Pound Up
Nationwide this morning reported a surprise jump in house prices for February - up 0.9%.
This is the first rise reported in 16 months and some much needed good news. The Pound has responded by surging against the Euro and US Dollar - although it is yet to break 1.10 against the single currency.
Later today the ECB's interest rate decision could provide the opportunity to buy Euros at better rates than have been available for some weeks. Contact your currency company to discuss your requirements.
This is the first rise reported in 16 months and some much needed good news. The Pound has responded by surging against the Euro and US Dollar - although it is yet to break 1.10 against the single currency.
Later today the ECB's interest rate decision could provide the opportunity to buy Euros at better rates than have been available for some weeks. Contact your currency company to discuss your requirements.
Wednesday, 1 April 2009
Pound up on manufacturing data
The Pound has surged this morning against the Euro and Dollar, after UK manufacturing data was not as bad as had been predicted by analysts.
The Bank of England has, however, warned that we are yet to feel all the negative effects of higher unemployment in the UK.
Euro exchange rates are also being buoyed by the prospect of an interest rate cut by the European Central Bank tomorrow. In theory this should make sending Euros to France, for example, cheaper - but the better exchange rate is often priced in prior to the announcement.
Therefore, anyone needing to buy Euros might have a good opportunity today and tomorrow to secure slightly better rates than we have seen in the last week.
The Bank of England has, however, warned that we are yet to feel all the negative effects of higher unemployment in the UK.
Euro exchange rates are also being buoyed by the prospect of an interest rate cut by the European Central Bank tomorrow. In theory this should make sending Euros to France, for example, cheaper - but the better exchange rate is often priced in prior to the announcement.
Therefore, anyone needing to buy Euros might have a good opportunity today and tomorrow to secure slightly better rates than we have seen in the last week.
Monday, 30 March 2009
This week's exchange rate outlook
This week's data likely to affect exchange rates:
Tuesday - European Unemployment & Inflation - 9am and 10am
Wednesday - UK Industrial Production Data & House Price Survey - 9.30am and 10am
Thursday - ECB Interest Rate Decision & US Jobless Claims - 12.45pm and 1.30pm
Friday - US Non Farm Payrolls - 1pm
A busy week, specially for anybody looking for the best Euro rates or commercial exchange rates for the dollar.
Thursday's Eurozone interest rate decision is an opportunity for the ECB to cut interest rates - they have been reluctant to do this so we could see some Euro weakness if a rate cut is announced.
For the USA, Friday's non-farm payroll data is the key monthly employment statistic which often moves the dollar significantly one way or another, depending on the number of jobs reported.
Speak to your currency company if you would like more information on how any of these releases might change rates and therefore the price of your currency.
Tuesday - European Unemployment & Inflation - 9am and 10am
Wednesday - UK Industrial Production Data & House Price Survey - 9.30am and 10am
Thursday - ECB Interest Rate Decision & US Jobless Claims - 12.45pm and 1.30pm
Friday - US Non Farm Payrolls - 1pm
A busy week, specially for anybody looking for the best Euro rates or commercial exchange rates for the dollar.
Thursday's Eurozone interest rate decision is an opportunity for the ECB to cut interest rates - they have been reluctant to do this so we could see some Euro weakness if a rate cut is announced.
For the USA, Friday's non-farm payroll data is the key monthly employment statistic which often moves the dollar significantly one way or another, depending on the number of jobs reported.
Speak to your currency company if you would like more information on how any of these releases might change rates and therefore the price of your currency.
Friday, 27 March 2009
Today's Currency News
The UK's GDP data is released today at 9.30am. This figure shows the total output of the UK economy, both quarterly and annually.
A lower than expected figure would be likely to bring further pressure on the Pound, making commercial exchange rates lower for anybody importing goods or buying overseas property.
At 12.30 today, American personal spending data is released - while this is not a major piece of news it may affect the rates for anyone needing to send money to the USA.
A lower than expected figure would be likely to bring further pressure on the Pound, making commercial exchange rates lower for anybody importing goods or buying overseas property.
At 12.30 today, American personal spending data is released - while this is not a major piece of news it may affect the rates for anyone needing to send money to the USA.
Thursday, 26 March 2009
Retail Sales weigh on Pound
This morning's retail sales figures were much worse than expected, causing a sharp decline in the Pound and exchange rates.
Growth slowed to 0.4% last month, compared with a 3.6% rise in January.
Slowing retail sales will worry analysts as a sign of deepening recession, adding to deflationary fears. This is on the back of the government's failed auction of bonds yesterday which added to the doom and gloom in the UK.
The Pound has fallen nearly a cent against the dollar and euro, although commercial exchange rates are still better than 10 days ago.
Growth slowed to 0.4% last month, compared with a 3.6% rise in January.
Slowing retail sales will worry analysts as a sign of deepening recession, adding to deflationary fears. This is on the back of the government's failed auction of bonds yesterday which added to the doom and gloom in the UK.
The Pound has fallen nearly a cent against the dollar and euro, although commercial exchange rates are still better than 10 days ago.
Wednesday, 25 March 2009
Rate Alert - Pound Falling
The Pound is being sold off this today, making exchange rates worse for sending money abroad. If you have a transfer to make, contact your currency company for the latest news.
Today's Data Releases
A good day for the Pound yesterday, continuing Monday's improvement against the Euro and Dollar. The sterling-dollar rate has now improved around 5% in the last week.
Watch out for the following data releases today (all times GMT):
9.00am German business climate and expectation survey
2.00pm US Home Sale data
If you are sending money in Euros or Dollars these could affect commercial exchange rates today - keep in touch with your Currency Index account manager if you would like us to inform you of any significant movement.
Watch out for the following data releases today (all times GMT):
9.00am German business climate and expectation survey
2.00pm US Home Sale data
If you are sending money in Euros or Dollars these could affect commercial exchange rates today - keep in touch with your Currency Index account manager if you would like us to inform you of any significant movement.
Tuesday, 24 March 2009
Rates spike on UK inflation data
The Pound improved significantly against the Euro and Dollar this morning after UK inflation data showed static prices, instead of the anticipated deflation which would have been seen as very negative for the UK economy.
Commercial exchange rates are therefore considerably better than yesterday, although they are already dropping down from a peak at about 9.45am.
Sending payments to Eurozone countries in particular is over 1% cheaper than yesterday evening.
Commercial exchange rates are therefore considerably better than yesterday, although they are already dropping down from a peak at about 9.45am.
Sending payments to Eurozone countries in particular is over 1% cheaper than yesterday evening.
Monday, 23 March 2009
This week's currency news
Data out this week which could affect exchange rates - if you need to send money overseas or transfer money to the UK, speak to a currency broker to check the implications of these releases.
Monday 1230 - Canadian economic indicators (Canadian Dollar)
Monday 1400 - US home sale data (US Dollar)
Tuesday 0930 - UK key monthly and yearly inflation numbers (Pound)
Wednesday 0900 - German business climate survey results (Euro)
Thursday 1230 - US jobless claims and GDP (US Dollar)
Friday 0930 - UK GDP (Pound)
Monday 1230 - Canadian economic indicators (Canadian Dollar)
Monday 1400 - US home sale data (US Dollar)
Tuesday 0930 - UK key monthly and yearly inflation numbers (Pound)
Wednesday 0900 - German business climate survey results (Euro)
Thursday 1230 - US jobless claims and GDP (US Dollar)
Friday 0930 - UK GDP (Pound)
Thursday, 19 March 2009
Dollar weaker on Fed cash injection
The dollar has weakened today, making money transfers to the USA cheaper, after the surprise news that the Federal Reserve has injected $1.2tn into the US economy to stimulate lending.
While this is a positive action, the creation of more dollars (similar to the Bank of England's quantitative easing 2 weeks ago) is that the value of the currency is actually decreased.
Therefore exchange rates have got better, and a pound buys around 3c more today than it would have done yesterday.
Currency companies can help if you need to send or receive dollars from abroad.
While this is a positive action, the creation of more dollars (similar to the Bank of England's quantitative easing 2 weeks ago) is that the value of the currency is actually decreased.
Therefore exchange rates have got better, and a pound buys around 3c more today than it would have done yesterday.
Currency companies can help if you need to send or receive dollars from abroad.
Wednesday, 18 March 2009
UK Recession to last longest?
This morning's Metro reported on the UK recession being likely to last longer than any other in the worldwide slowdown. Unemployment figures out this morning may show unemployment over 2 million for the first time since 1997.
All this is bad news for the Pound. Sending money overseas is likely to continue to become expensive as the UK reels from a constant flow of negative news.
If you do need to buy or sell currency, speak to a currency broker to make sure you don't lose out.
All this is bad news for the Pound. Sending money overseas is likely to continue to become expensive as the UK reels from a constant flow of negative news.
If you do need to buy or sell currency, speak to a currency broker to make sure you don't lose out.
Monday, 16 March 2009
This week's exchange rate news
After last week’s fall in the value of sterling, this week some important figures which could make it a week of volatility for exchange rates.
Tuesday morning’s UK house price index and German economic sentiment numbers may both have an effect on the best Euro exchange rates. A larger than expected drop in UK house prices would not be good news for the struggling Pound, while conversely we might see German business confidence taking a knock which would be likely to make the Euro slightly cheaper.
On Wednesday, the minutes from the Bank of England’s monetary policy committee meeting are released, with notes on the state of the economy and the UK's trial of quantitative easing. Volatility is probable, specially as unemployment data is released at the same time.
For anyone needing to send money to Canada or the USA, Thursday brings Canadian inflation data at 11am, followed by US employment data at 12.30 and manufacturing data at 2pm. There is also US data on Tuesday and Wednesday lunchtimes which will be of interest to anyone wiring funds to the USA.
Finally on Friday we have EU trade balance followed by Federal Reserve chief Bernanke’s speech at 4pm.
Any individuals or businesses sending money abroad would be well advised to contact a specialist currency broker to keep an eye on the relevant rates this week. The fragility of the Pound is likely to last for some time, but there are still opportunities to secure reasonable rates for buyers and sellers in the know.
Tuesday morning’s UK house price index and German economic sentiment numbers may both have an effect on the best Euro exchange rates. A larger than expected drop in UK house prices would not be good news for the struggling Pound, while conversely we might see German business confidence taking a knock which would be likely to make the Euro slightly cheaper.
On Wednesday, the minutes from the Bank of England’s monetary policy committee meeting are released, with notes on the state of the economy and the UK's trial of quantitative easing. Volatility is probable, specially as unemployment data is released at the same time.
For anyone needing to send money to Canada or the USA, Thursday brings Canadian inflation data at 11am, followed by US employment data at 12.30 and manufacturing data at 2pm. There is also US data on Tuesday and Wednesday lunchtimes which will be of interest to anyone wiring funds to the USA.
Finally on Friday we have EU trade balance followed by Federal Reserve chief Bernanke’s speech at 4pm.
Any individuals or businesses sending money abroad would be well advised to contact a specialist currency broker to keep an eye on the relevant rates this week. The fragility of the Pound is likely to last for some time, but there are still opportunities to secure reasonable rates for buyers and sellers in the know.
Tuesday, 10 March 2009
Euro exchange rates
Euro exchange rates have lost another cent today, now trading at 1.0826.
UK manufacturing data out this morning was poor, which weighs on the Pound, while German data out at lunch time was more positive, making the Euro more expensive.
Sending money in Euros is now approaching record price levels.
Tomorrow's UK trade balance figures should give a clue as to the next movement - keep in touch with your currency broker if you have any requirments. Don't assume the exchange rate will improve - it could be an expensive mistake.
UK manufacturing data out this morning was poor, which weighs on the Pound, while German data out at lunch time was more positive, making the Euro more expensive.
Sending money in Euros is now approaching record price levels.
Tomorrow's UK trade balance figures should give a clue as to the next movement - keep in touch with your currency broker if you have any requirments. Don't assume the exchange rate will improve - it could be an expensive mistake.
Monday, 9 March 2009
Pound falling this week
Monday has started with the Pound in sharp decline following a wave of uncertainty on the markets amidst speculation that the banking sector has more bad news to come.
If you need to send money abroad, speak to your currency broker today.
Of course, if you have money to bring back to the UK, now could be a great time to secure exchange rates in advance.
If you need to send money abroad, speak to your currency broker today.
Of course, if you have money to bring back to the UK, now could be a great time to secure exchange rates in advance.
Friday, 6 March 2009
Non Farm Payrolls Today
1.30pm today sees the release of key monthly employment data in the USA - "non-farm payrolls". This is an estimate of the number of workers in the US drawing a salary, excluding seasonal industries like farming.
It is not unusual for the figures to be wildly different to expectations, which can cause volatility in the US dollar exchange rate. Those of you looking to either buy American dollars, or even to bring Dollars back to the UK, would be well advised to look at rates this afternoon as there may be opportunities to buy.
A reputable foreign exchange broker will of course be able to provide help for your specific circumstances.
It is not unusual for the figures to be wildly different to expectations, which can cause volatility in the US dollar exchange rate. Those of you looking to either buy American dollars, or even to bring Dollars back to the UK, would be well advised to look at rates this afternoon as there may be opportunities to buy.
A reputable foreign exchange broker will of course be able to provide help for your specific circumstances.
FAQs on Quantitative Easing
While the economy is going from bad to worse there always seems to be new buzz words that have not been mentioned for many years. We had parity, which has become used all over the finance world as GBP/EUR was getting close to 1 for 1, even sport commentators were using it.
The current buzz word, which probably won't make it into sports is quantitative easing, here are a few questions and answers;
If you would like any more guidance regarding quantitative easing and the effect on the currency market, call one of our experienced brokers today on 0800 043 2623.
The current buzz word, which probably won't make it into sports is quantitative easing, here are a few questions and answers;
How does Quantitative Easing work?
The Bank of England increases the amount of cash in the economy. But while it sounds good that the Bank of England is adding more cash into the economy, the more there is the less it is worth.
How much are they putting into the economy?
Initially they will be adding £75billion over the three months, but this could potentially rise to £150billion if the first attempt doesn't work.
What are the pros?
The Bank can buy gilts, which are very secure, or invest in shares. Buying gilts is, in effect, lending the government money.
What are the cons?
It decreases the value of money, you need more to buy something.
Why do it?
It can lower interest rates, which encourages spending.
Can't we just cut rates?
Interest rates cannot fall below zero per cent. Despite months of cuts, banks are still not lending.
Is money actually printed?
Most money in circulation never actually gets printed. When you buy large items, numbers just get transferred between accounts.
Won't the Bank just buy more bad debt?
No. It will buy government gilts and private IOUs in companies with the best credit ratings.
Who else has done this?
Zimbabwe has been doing it for years, to disastrous effect, to pay government bills. Germany did the same thing in the 1920s. Japan did it in 2005 and it helped end their 15 year recession. The US started in November.
Will Europe follow suit?
Unlikely. Countries with the Euro will probably not all agree on it.
If you would like any more guidance regarding quantitative easing and the effect on the currency market, call one of our experienced brokers today on 0800 043 2623.
Thursday, 5 March 2009
Quantitative Easing and Exchange Rates
Speculation is rife that we will see the exchange of letters between Mervyn King and the Chancellor today at midday, relating to the Government's plans for quantitative easing (injection of funds into the economy).
The effect on exchange rates is not yet known, although US Dollar exchange rates have worsened significantly this morning. Check back on this blog later today to find out the latest currency news.
The effect on exchange rates is not yet known, although US Dollar exchange rates have worsened significantly this morning. Check back on this blog later today to find out the latest currency news.
Wednesday, 4 March 2009
A Busy Day on the Markets
A potentially busy day on the markets today, depending on how much has been priced in by the traders. The day starts with the European Monetary Union announcing the change in Gross Domestic Product on Quarter on Quarter and Year on Year, both are reportedly predicted to be a drop, giving early strength to Sterling and US Dollar.
The strength may not last depending on how likely the Bank of England are to halve interest rates down to 0.5%. There is a positive consensus that a reduction to 0.5% will happen, which could be priced into the market already. Following on from that is the European Central Bank possibly reducing their interest rate to 1.5% from 2.0%. If they decide to only reduce the interest rate by 0.25% expect to see Euro strength early on after 12:45 while everyone waits to hear Trichet's speech at 13:30.
If you need any guidance regarding interest rate decisions contact any of our senior brokers today on 0800 043 2623. Exchange rate for buying Euros are likely to be volatile from midday onwards.
The strength may not last depending on how likely the Bank of England are to halve interest rates down to 0.5%. There is a positive consensus that a reduction to 0.5% will happen, which could be priced into the market already. Following on from that is the European Central Bank possibly reducing their interest rate to 1.5% from 2.0%. If they decide to only reduce the interest rate by 0.25% expect to see Euro strength early on after 12:45 while everyone waits to hear Trichet's speech at 13:30.
If you need any guidance regarding interest rate decisions contact any of our senior brokers today on 0800 043 2623. Exchange rate for buying Euros are likely to be volatile from midday onwards.
Tuesday, 3 March 2009
A Positive Sign Downunder
In a positive move for Australia, the Reserve Bank of Australia has frozen interest rates at 3.25% causing strength for the Australian Dollar against all major currencies.Prior to the announcement GBP/AUD was trading at about 2.232, but since the positive news it was dropped to around 2.191.
There is no major news released today to effect cable against any of the major currencies. The Bank of Canada will be announcing their interest rate decision at 14:00 GMT, many believe the rate will be halved from 1.0% down to 0.5%, but this was also the consensus with the Australian Dollar as well.
If you would like to find out how you can be protected against adverse rate changes and assistance on when to buy your currency, contact one of our senior brokers today on 0800 043 2623 who will be able to explain you through the process. So if you are sending money to Australia or need to starting sending money to Canada contact us today and our foreign currency exchange specialists will be able to explain how it works.
Monday, 2 March 2009
More Negative Banking News
Another day, another bank needing extra funding. Today HSBC announced they are looking to raise £12.5bn from shareholders through rights issue in the UK.
This was announced after HSBC revealed pre tax profits for 2008 of £6.5bn. Unfortunately for the London stock market this was down 62% on the previous year. HSBC are looking at reducing their presence in North America after they recorded a $15.5bn loss, mainly due to the US sub-prime market.
Just when everyone thought HSBC had finished they announced 6,100 job cuts in America as well.
The European Monetary Union announced an improvement in the Consumer Price Index from 1.1% up to 1.2%. The earlier consensus was a slight drop between 0.9%-1.0% so an early rally for the Euro this morning against Sterling.
Both the Bank of England and the European Central Bank are predicted to lower their rates to 0.5% and 1.5% respectively.
If you are looking at sending money overseas in the near future and need some guidance, speak to one of our brokers today on 0800 043 2623. They will be able explain how it works and how we could potentially save you up to 4% against most high street banks.
This was announced after HSBC revealed pre tax profits for 2008 of £6.5bn. Unfortunately for the London stock market this was down 62% on the previous year. HSBC are looking at reducing their presence in North America after they recorded a $15.5bn loss, mainly due to the US sub-prime market.
Just when everyone thought HSBC had finished they announced 6,100 job cuts in America as well.
The European Monetary Union announced an improvement in the Consumer Price Index from 1.1% up to 1.2%. The earlier consensus was a slight drop between 0.9%-1.0% so an early rally for the Euro this morning against Sterling.
Both the Bank of England and the European Central Bank are predicted to lower their rates to 0.5% and 1.5% respectively.
If you are looking at sending money overseas in the near future and need some guidance, speak to one of our brokers today on 0800 043 2623. They will be able explain how it works and how we could potentially save you up to 4% against most high street banks.
Thursday, 26 February 2009
House prices down in February
More bad news for the UK economy today as Nationwide announced a 1.8% drop in February house prices.
House prices need to stabilise in order for confidence to return to the UK economy - and the Pound is likely to remain low until that happens, says Chuck Hall, senior analyst at UK-based Currency Index Ltd.
"The low Pound is helping international investment into the UK, with sending money to the UK now around its cheapest for many years", says Hall.
However, for those of you wanting the best exchange rates to send money to Germany or the Eurozone, or needing to buy US dollars at the best rates, things are still looking gloomy.
House prices need to stabilise in order for confidence to return to the UK economy - and the Pound is likely to remain low until that happens, says Chuck Hall, senior analyst at UK-based Currency Index Ltd.
"The low Pound is helping international investment into the UK, with sending money to the UK now around its cheapest for many years", says Hall.
However, for those of you wanting the best exchange rates to send money to Germany or the Eurozone, or needing to buy US dollars at the best rates, things are still looking gloomy.
Tuesday, 24 February 2009
Recession to last to 2010?
Ben Bernake, chairman of the Federal Reserve in the USA, said in his speech today that the US Recession my last into 2010.
This is the first time a central bank has indicated its concerns so far into the future.
As a result, the US Dollar weakened, making sending money in Dollars cheaper this afternoon. However, the Pound is also vulnerable to such comments (when America sneezes, we catch a cold in the UK) - so today some of the gains made in recent days have been wiped out in terms of exchange rates.
Euro money transfers are some of the worst affected, down 2c this afternoon, while South African Rand transfers have also got more expensive today.
Of course, if you are bringing Euros back to the UK, the news is the other way round - and you will get more sterling than you would have done yesterday.
This is the first time a central bank has indicated its concerns so far into the future.
As a result, the US Dollar weakened, making sending money in Dollars cheaper this afternoon. However, the Pound is also vulnerable to such comments (when America sneezes, we catch a cold in the UK) - so today some of the gains made in recent days have been wiped out in terms of exchange rates.
Euro money transfers are some of the worst affected, down 2c this afternoon, while South African Rand transfers have also got more expensive today.
Of course, if you are bringing Euros back to the UK, the news is the other way round - and you will get more sterling than you would have done yesterday.
Taxpayer liability over £1tn
Government insurance schemes to protect banks from further losses arising from their bad loans and investments, will bring the taxpayer's total liability to £1.3tn - more than the entire output of the British economy each year.
With Mervyn King telling an audience we are "deep in recession", it is unlikely the Pound will be able to recover much this year, meaning that foreign currency transfers will remain expensive for some time.
For those of you wanting to buy overseas property, the only good news is that bargains can be found in Europe and elsewhere, to make up for the poor exchange rate against the Euro and US Dollar.
Use a currency company to make sure you get the best deal on any currency transactions.
With Mervyn King telling an audience we are "deep in recession", it is unlikely the Pound will be able to recover much this year, meaning that foreign currency transfers will remain expensive for some time.
For those of you wanting to buy overseas property, the only good news is that bargains can be found in Europe and elsewhere, to make up for the poor exchange rate against the Euro and US Dollar.
Use a currency company to make sure you get the best deal on any currency transactions.
Monday, 23 February 2009
Sterling - Euro rallies
The Pound has gained nearly 2c against the Euro today - giving some of the best Euro exchange rates we have seen this year.
Positive news from the UK banking sector, including Northern Rock and RBS, have given some new-found confidence in the British economy.
While those of you who need to be sending Euros overseas will not be doing cartwheels just yet, it could at least be a good time to speak to your friendly currency broker if you have any Euro requirements in the coming weeks and months.
Positive news from the UK banking sector, including Northern Rock and RBS, have given some new-found confidence in the British economy.
While those of you who need to be sending Euros overseas will not be doing cartwheels just yet, it could at least be a good time to speak to your friendly currency broker if you have any Euro requirements in the coming weeks and months.
This week's data releases
Week Commencing Feb 23rd - important data releases for currency rates
Pound Sterling - sending money overseas? Receiving money from abroad?
Wednesday 0930 – GDP figures for the last quarter of 2008
Friday 0001 – Consumer Confidence survey
Eurozone
Tuesday 1000 – Industrial Orders
Friday 1000 – CPI inflation data
Canadian Dollar
Monday 1330 – Canadian Retail Sales
US Dollar exchange rates
Tuesday 1500 – Federal Reserve chairman Ben Bernanke’s speech
Wednesday 1500 – Home resales data
Thursday 1330 – Durable Goods orders
Thursday 1500 – New home sales
Friday 1330 – GDP and personal consumption data
Exchange Rate News
Weekly Exchange Rate and Currency Update 16/2/09
With uncertainty in the financial markets set to continue, a summary of this week’s major data announcements which could affect exchange rates and currency movements. All times are GMT.
Pound Sterling
Tuesday 0930 – UK consumer and retail price index
Wednesday 0930 – Bank of England minutes
Wednesday 1100 – UK industrial trends survey
Thursday 0930 – public sector net borrowing
If you are sending money abroad, the value of your Pound could be volatile during these announcements, specially the Bank of England minutes on Wednesday which give the results of the MPC’s last interest rate vote earlier this month.
Eurozone
Tuesday 1000 – Eurozone trade balance
Canadian Dollar
Monday 1330 – Canadian investment data
Sending money to Canada has been increasing in cost due to the weak Pound – this release is not a major one but could make a difference to your Canadian dollar exchange rate.
US Dollar
Tuesday 1800 – US housing market index
Wednesday 1330 – US housing starts and building permits
Thursday 1330 – US producer price index
As the US dollar has been strengthening in recent weeks, look to these data releases for clues as to the Greenback’s future direction.
Swiss Franc
Thursday 1000 – ZEW business sentiment survey
Transferring money to Switzerland, whose Franc is seen as a ‘safe haven’ currency, has not been helped by the recent financial problems in the UK. In risky climates, investors tend to buy safe currencies and assets such as the CHF, which means demand increases and the currency therefore becomes more expensive.
With uncertainty in the financial markets set to continue, a summary of this week’s major data announcements which could affect exchange rates and currency movements. All times are GMT.
Pound Sterling
Tuesday 0930 – UK consumer and retail price index
Wednesday 0930 – Bank of England minutes
Wednesday 1100 – UK industrial trends survey
Thursday 0930 – public sector net borrowing
If you are sending money abroad, the value of your Pound could be volatile during these announcements, specially the Bank of England minutes on Wednesday which give the results of the MPC’s last interest rate vote earlier this month.
Eurozone
Tuesday 1000 – Eurozone trade balance
Canadian Dollar
Monday 1330 – Canadian investment data
Sending money to Canada has been increasing in cost due to the weak Pound – this release is not a major one but could make a difference to your Canadian dollar exchange rate.
US Dollar
Tuesday 1800 – US housing market index
Wednesday 1330 – US housing starts and building permits
Thursday 1330 – US producer price index
As the US dollar has been strengthening in recent weeks, look to these data releases for clues as to the Greenback’s future direction.
Swiss Franc
Thursday 1000 – ZEW business sentiment survey
Transferring money to Switzerland, whose Franc is seen as a ‘safe haven’ currency, has not been helped by the recent financial problems in the UK. In risky climates, investors tend to buy safe currencies and assets such as the CHF, which means demand increases and the currency therefore becomes more expensive.
Friday, 20 February 2009
Canadian Dollar Exchange Rates
If you need to send money to Canada in the near future, keep an eye on Monday's Canadian retail sales data, released at 1.30pm UK time.
Canadian Dollar rates have been falling for some time, as the Pound has been losing ground across the board. A positive reading on Monday is likely to strengthen the Canadian Dollar, making exchange rates worse if you send funds across the pond.
Don't forget, a currency broker will enable you to save money against using your bank, and also offer the facility to fix exchange rates up to 2 years ahead. If you are emigrating, fixing your exchange rate can sometimes save you thousands of pounds, without needing all your sterling available.
Canadian Dollar rates have been falling for some time, as the Pound has been losing ground across the board. A positive reading on Monday is likely to strengthen the Canadian Dollar, making exchange rates worse if you send funds across the pond.
Don't forget, a currency broker will enable you to save money against using your bank, and also offer the facility to fix exchange rates up to 2 years ahead. If you are emigrating, fixing your exchange rate can sometimes save you thousands of pounds, without needing all your sterling available.
Monday, 16 February 2009
South African Rand stays steady
Historically, the South African Rand has been a volatile currency while many others stayed steady against the Pound. However, with the recent financial volatility in the financial markets, the Rand has been relatively stable.
Sending money to South Africa is therefore becoming an increasingly attractive option for investors in overseas property. The best South African Rand rates have remained within a manageable range over the last 12-18 months.
Of course, using a currency broker such as Currency Index Ltd will save money compared to using typical high street banks.
Sending money to South Africa is therefore becoming an increasingly attractive option for investors in overseas property. The best South African Rand rates have remained within a manageable range over the last 12-18 months.
Of course, using a currency broker such as Currency Index Ltd will save money compared to using typical high street banks.
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