Please see our latest article on the current plight of sterling:
http://www.homesgofast.com/view_news/1730/
Tuesday, 22 September 2009
Friday, 18 September 2009
Rate alert - GBP falling
The Pound is losing significant ground this morning - falling to €1.11 and $1.63 [mid-market rates] overnight on poor UK sentiment.
With little support for sterling or confidence in the UK economy, if this morning's public finance figures at 9.30am do not show some good news, there could be further to fall.
With little support for sterling or confidence in the UK economy, if this morning's public finance figures at 9.30am do not show some good news, there could be further to fall.
Wednesday, 16 September 2009
Pound falls dramatically after King speaks out
Mervyn King, the Bank of England's governor, did those of you needing to send money overseas a favour last week when the quantitative easing programme was not extended - but he undid all the good work yesterday with a speech slamming the prospects of a quick recovery in the UK.
As other economies around the world look to a brighter future, it looks like the UK will have a tough time in the next few months. The Pound reacted accordgingly, dropping nearly 2c against both the Euro and the US Dollar.
As other economies around the world look to a brighter future, it looks like the UK will have a tough time in the next few months. The Pound reacted accordgingly, dropping nearly 2c against both the Euro and the US Dollar.
Monday, 14 September 2009
Monday Blues for the Pound
As often seems to be the case following a positive end to a week, sterling dropped away this morning after last week's gains following the Bank of England's announcement on Thursday.
Much of the improvements in rate last week were wiped out during the course of today, against both the Euro and US Dollar.
This week is all about inflation. We have key figures out in the UK, Europe and the USA, on Tuesday, Wednesday and Thursday. Which economy is performing best at the moment will probably indicate which currency will perform better too.
Elsewhere, look out for the RBA Minutes if you are buying Australian Dollars, and the Swiss interest rate decision if you need to send money to Switzerland. For the latest news contact Currency Index directly.
Much of the improvements in rate last week were wiped out during the course of today, against both the Euro and US Dollar.
This week is all about inflation. We have key figures out in the UK, Europe and the USA, on Tuesday, Wednesday and Thursday. Which economy is performing best at the moment will probably indicate which currency will perform better too.
Elsewhere, look out for the RBA Minutes if you are buying Australian Dollars, and the Swiss interest rate decision if you need to send money to Switzerland. For the latest news contact Currency Index directly.
Thursday, 10 September 2009
Pound up as QE programme paused
The Bank of England has said it will not extend its quantitative easing programme beyond £175bn for now - and the Pound has spiked up as a result.
Often such spikes are short-lived, so gains of nearly 1c against the Euro and US Dollar may not be available for long. Contact Currency Index for the latest update on 0800 043 2623.
Often such spikes are short-lived, so gains of nearly 1c against the Euro and US Dollar may not be available for long. Contact Currency Index for the latest update on 0800 043 2623.
Bank of England today
Take note of the Bank of England's monthly policy meeting at 12.00 today, whatever your currency requirements there is likely to be some impact.
Interest rates, which used to be the monthly headline from the Bank, are at 0.5% and are not likely to change any time soon. However, the big question in recent months has been whether there will be additional funds pumped in to the economy via 'quantitative easing'.
If the current £175bn programme is increased, we would expect to see the Pound fall significantly. If the amount is left as it is, there may be a small increase for sterling.
The decision is particularly hard to predict because last month the voting committee was split as to the right course of action, with Governer King voting for more action than most of his colleagues.
Whatever your currency needs, contact an experienced currency company today if you are concerned about your own forthcoming transactions.
Interest rates, which used to be the monthly headline from the Bank, are at 0.5% and are not likely to change any time soon. However, the big question in recent months has been whether there will be additional funds pumped in to the economy via 'quantitative easing'.
If the current £175bn programme is increased, we would expect to see the Pound fall significantly. If the amount is left as it is, there may be a small increase for sterling.
The decision is particularly hard to predict because last month the voting committee was split as to the right course of action, with Governer King voting for more action than most of his colleagues.
Whatever your currency needs, contact an experienced currency company today if you are concerned about your own forthcoming transactions.
Monday, 7 September 2009
This week's exchange rate news
There is a bank holiday in the USA for Labour Day today, so trading may be fairly quiet on the – but for the rest of this week we return to key announcements in the UK by the Bank of England on Thursday and on industrial figures on Tuesday.
Last week, Friday’s US employment data was very close to expectations, making little impression on the rate for sending dollars to America. In Australia, speculation that interest rates will be raised soon is making the AUD more expensive, despite the RBA’s decision to keep the central bank rate on hold at 3% last week.
In all cases for sending currency abroad, the Bank of England’s monthly announcement on Thursday is the key event this week. If the Bank continue their policy of quantitative easing, this is likely to be seen as negative for sterling, while any signal that the policy is coming to an end is likely to make exchange rates better. The vote was split last month and this month’s outcome will be taken as an important signal for the UK economy, and therefore sterling's value around the world.
Monday 7th
US MARKETS CLOSED
1100 – German factory orders
Tuesday 8th
Overnight – RICS House Price Balance
0930 – UK Industrial & Manufacturing Production
Wednesday 9th
Overnight – UK Consumer Confidence
0930 – UK Trade Balance
Thursday 10th
Overnight – UK GDP
1200 – Bank of England Interest Rates & Quantitative Easing
1330 – US Trade Balance
Friday 11th
0900 – ECB September Report
0930 – UK PPI Inflation
Friday, 4 September 2009
US Dollar rate down on jobs data
The US Dollar exchange rate has dropped nearly a cent, on the back of stronger-than-expected jobs numbers, released this afternoon.
Sending money to the USA has been getting more expensive in recent weeks, and the improved employment figures have not helped. Mid-market level is now just below $1.63.
Sending money to the USA has been getting more expensive in recent weeks, and the improved employment figures have not helped. Mid-market level is now just below $1.63.
Thursday, 3 September 2009
Sterling outlook
The Bank of England meets next week and investors will be sensitive to any shift in tone, particularly whether it will extend or pause its £175 bn asset buying programme. This is overshadowing today's positive PMI data, which shows the UK services sector growing at its fastest pace in 2 years.
The Pound gained some value this morning, but for now seems to have tailed off, as all eyes are on next week's key Bank of England announcement on Thursday lunchtime.
Tuesday, 1 September 2009
This week's currency news
As we enter September, the Pound is set lower than most of the summer so far. Here are this week's major news announcements which could have an effect on commercial exchange rates. Contact Currency Index for the latest news.
TUESDAY 1st
10am - Eurozone unemployment
10pm - US consumer confidence for August
WEDNESDAY 2nd
7pm - FOMC (US interest rate) meeting minutes
THURSDAY 3rd
10am - European retail sales
12.45pm - European interest rate decision
1.30pm - US jobless claims
FRIDAY 4th
1.30pm - US non-farm payroll (key employment figures)
TUESDAY 1st
10am - Eurozone unemployment
10pm - US consumer confidence for August
WEDNESDAY 2nd
7pm - FOMC (US interest rate) meeting minutes
THURSDAY 3rd
10am - European retail sales
12.45pm - European interest rate decision
1.30pm - US jobless claims
FRIDAY 4th
1.30pm - US non-farm payroll (key employment figures)
Tuesday, 25 August 2009
Exchange Rates dropping fast
We have seen the Pound continue to tumble so far this week - despite some positive news in retail sales and inflation figures.
The problem lies with the Bank of England's quantitative easing programme. There is more money being pumped into the economy than analysts expected, and that is causing concern for the UK economy.
Next week will see the central Bank's next announcement on the subject, so until we have some clarity, Currency Index expects the Pound to continue to struggle.
Current interbank [mid-market] rates:
£1 = €1.1450, US$1.6365, AU$1.9525, NZ$2.3840
The problem lies with the Bank of England's quantitative easing programme. There is more money being pumped into the economy than analysts expected, and that is causing concern for the UK economy.
Next week will see the central Bank's next announcement on the subject, so until we have some clarity, Currency Index expects the Pound to continue to struggle.
Current interbank [mid-market] rates:
£1 = €1.1450, US$1.6365, AU$1.9525, NZ$2.3840
Friday, 21 August 2009
Exchange rate update
A bad week for sterling - despite UK retail sales for July showing a good improvement, public borrowing figures were very poor, and German/European purchasing figures also showed considerable improvement for the European economy.
Euro interbank rates are now in the 1.15s and US Dollar exchange rates have settled in the 1.65s.
Further afield, the Australian Dollar has dropped below $2 to the Pound again, and NZD rates are falling too.
Monday morning's Nationwide house price index will be important, however there is little else in the pipeline to give sterling any support.
Euro interbank rates are now in the 1.15s and US Dollar exchange rates have settled in the 1.65s.
Further afield, the Australian Dollar has dropped below $2 to the Pound again, and NZD rates are falling too.
Monday morning's Nationwide house price index will be important, however there is little else in the pipeline to give sterling any support.
Wednesday, 19 August 2009
Bank of England send mixed signals
Today's Bank of England minutes (from their interest-rate setting meeting earlier in the month) showed a surprise split on quantitative easing - with 2 members (including Mervyn King) voting for even more extra money for the economy than the £50bn which was injected.
As the extra funds have tended to devalue the Pound, the shock news send sterling tumbling over half a cent against the Euro and Dollar this morning, with the Dollar rate recovering slightly this afternoon.
Tomorrow's UK retail sales will now be interesting - can we get some good news from the high street, or will further gloom add to the weight on sterling exchange rates?
As the extra funds have tended to devalue the Pound, the shock news send sterling tumbling over half a cent against the Euro and Dollar this morning, with the Dollar rate recovering slightly this afternoon.
Tomorrow's UK retail sales will now be interesting - can we get some good news from the high street, or will further gloom add to the weight on sterling exchange rates?
Tuesday, 18 August 2009
Prices in UK hold steady
Today's UK inflation data shows prices were static in July, compared to analysts' expectations of a slight drop of 0.3% for July's inflation.
Year-on-year, prices rose 1.8%, again above expectations of 1.5%.
The Pound has spiked up a little on the news, although Germany's upbeat ZEW economic sentiment data has halted any huge gains against the Euro.
Thursday's retail sales figures are the next key UK data, so anyone worried about the Pound falling further in the coming weeks, may see this as a 2-day window to look at securing commercial exchange rates.
Year-on-year, prices rose 1.8%, again above expectations of 1.5%.
The Pound has spiked up a little on the news, although Germany's upbeat ZEW economic sentiment data has halted any huge gains against the Euro.
Thursday's retail sales figures are the next key UK data, so anyone worried about the Pound falling further in the coming weeks, may see this as a 2-day window to look at securing commercial exchange rates.
Monday, 17 August 2009
Rightmove House Prices
Rightmove's keenly watched monthly house price survey has shown a 2.2% drop in house prices in August - disappointing after July's 0.6% increase. As mixed signals continue to come out about the UK economy, it looks increasingly likely that things are not as good as the Treasury would have us believe.
The Pound's recent drop may well continue therefore and Currency Index would urge anyone looking for the best Euro exchange rates or cheapest US Dollar transfers, to consider locking in rates on a forward contract to eliminate the risk of paying even more in the future.
The Pound's recent drop may well continue therefore and Currency Index would urge anyone looking for the best Euro exchange rates or cheapest US Dollar transfers, to consider locking in rates on a forward contract to eliminate the risk of paying even more in the future.
This week's currency news
Comments by the Bank of England’s governor King last week citing a “fragile” recovery at best in 2010 did not help the Pound – as France, Germany and Japan have all now technically come out of recession and the UK is therefore lagging behind its main competitors.
As a result, the Pound has continued to fall against many major currencies, making sending money overseas more expensive. Euro rates are nearly 4c down in the last 10 days, while the US Dollar rate is nearly 7c down in the same period.
There is not a huge amount of significant data this week, although the UK's inflation and retail sales numbers will be interesting. Whatever your currency requirements, contact a currency company to discuss them and make sure you are equipped with the latest news.
Monday 17th
Rightmove House Price Index (already released)
Tuesday 18th
0230 – Australian interest rate meeting minutes
0930 – UK CPI & RPI inflation figures
1330 – US PPI inflation and house building data
Wednesday 19th
1200 – Canadian CPI inflation
Thursday 20th
0930 – UK retail sales
1330 – US jobless claims
Friday 21st
1500 – US home sales
Friday, 14 August 2009
Australian dollar rate at 11 month low
The Aussie Dollar rate has slipped to an 11-month low today of 1.9650 [mid-market], on speculation that Australia will increase their interest rates in the coming months.
This would be the first upward interest rate move by a developed economy, since the financial crisis started last September.
If you need to send money to Australia in the coming months, contact your currency company to discuss your transaction - if interest rates do start to go up in Australia, exchange rates could easily fall further still.
This would be the first upward interest rate move by a developed economy, since the financial crisis started last September.
If you need to send money to Australia in the coming months, contact your currency company to discuss your transaction - if interest rates do start to go up in Australia, exchange rates could easily fall further still.
Thursday, 13 August 2009
Germany and France out of recession
Germany and France have both posted positive growth data in the last 24 hours - signalling the end, technically, of their recessions.
With the Bank of England stating that any recovery in the UK will be "fragile" at best in 2010, this is a signal that the Euro may gain value over sterling in the next 6 months.
Anybody needing to transfer Euros abroad should therefore be concerned, as falling exchange rates may dominate the rest of 2009.
Contact Currency Index if you would like to discuss your own requirements in detail.
With the Bank of England stating that any recovery in the UK will be "fragile" at best in 2010, this is a signal that the Euro may gain value over sterling in the next 6 months.
Anybody needing to transfer Euros abroad should therefore be concerned, as falling exchange rates may dominate the rest of 2009.
Contact Currency Index if you would like to discuss your own requirements in detail.
Wednesday, 12 August 2009
Bank Downbeat on Recovery
The Bank of England says the UK has some way to go before recovering from the financial crisis, and that any recovery in 2010 will be "fragile".
This is contrary to the government's insistence that there will be a sharp rebound in 2010 - not so, according to the Bank's Governor Maervyn King.
This morning's unemployment figures showed an increase to 2.44m - the highest level since 1995.
Unsurprisingly, the Pound has not reacted well this morning, losing nearly a cent against both the Euro and US Dollar.
Contact Currency Index if you would like to discuss the implications for your currency transactions.
This is contrary to the government's insistence that there will be a sharp rebound in 2010 - not so, according to the Bank's Governor Maervyn King.
This morning's unemployment figures showed an increase to 2.44m - the highest level since 1995.
Unsurprisingly, the Pound has not reacted well this morning, losing nearly a cent against both the Euro and US Dollar.
Contact Currency Index if you would like to discuss the implications for your currency transactions.
Tuesday, 11 August 2009
Inflation Report Tomorrow
At 10.30 tomorrow morning, the Bank of England's quarterly inflation report is published.
This could have profound effects on sterling's value in the currency markets, particularly after last week's decision by the Bank to extend quantitative easing by £50bn.
The likelihood is that inflation figures will be low - which usually causes the Pound to fall.
Contact Currency Index tomorrow morning if you need to send money abroad and are worried about exchange rates falling - you can call us on 0800 043 2623 from around 8.30am.
This could have profound effects on sterling's value in the currency markets, particularly after last week's decision by the Bank to extend quantitative easing by £50bn.
The likelihood is that inflation figures will be low - which usually causes the Pound to fall.
Contact Currency Index tomorrow morning if you need to send money abroad and are worried about exchange rates falling - you can call us on 0800 043 2623 from around 8.30am.
Monday, 10 August 2009
Pound continues down
The Pound has continued to lose ground today, as the lack of data in the UK following on from last week's disappointing announcement from the Bank of England left traders with little reason to buy GBP.
Don't forget that you can fix and guarantee an exchange rate up to 2 years in advance by using a Forward Contract with Currency Index. There is a small deposit to pay once a rate has been agreed, providing peace of mind that your currency requirement is then fixed in sterling instead of fluctuating day by day at the behest of international markets.
Please contact Currency Index if you would like to discuss your options.
Don't forget that you can fix and guarantee an exchange rate up to 2 years in advance by using a Forward Contract with Currency Index. There is a small deposit to pay once a rate has been agreed, providing peace of mind that your currency requirement is then fixed in sterling instead of fluctuating day by day at the behest of international markets.
Please contact Currency Index if you would like to discuss your options.
This week's FX news
A quiet week ahead this week, with little major data out to affect commercial exchange rates. Contact Currency Index for our own views and opinions affecting any currency transactions.
Tuesday 11th
0930 – UK trade balance
1315 – Canadian new house builds
Wednesday 12th
0930 – UK average earnings, unemployment rate and jobless claims
1000 – Eurozone industrial production
Thursday 13th
0700 – German GDP
1330 – US retail sales and jobless claims
Friday 14th
1000 – Eurozone CPI inflation
1330 – US CPI inflation
Friday, 7 August 2009
US employment data boosts Dollar
This afternoon's non-farm payroll data is not the news you were looking for if you need to send money to the USA - the jobless total has fallen more than expected, as the US economy added more jobs in July than analysts had estimated.
The US Dollar has been volatile since the announcement, dropping below 1.67 [interbank rate] briefly but then rallying as the Pound has found some strength accross the board.
Those of you holding out for trading rates above 1.70 might like to reasses their targets following the main monthly employment news of the month from America.
The US Dollar has been volatile since the announcement, dropping below 1.67 [interbank rate] briefly but then rallying as the Pound has found some strength accross the board.
Those of you holding out for trading rates above 1.70 might like to reasses their targets following the main monthly employment news of the month from America.
Thursday, 6 August 2009
What goes up...
...must come down. The Bank of England today unexpectedly announced a further £50bn injection of cash into the economy - a shock move which has dented the Pound significantly.
Exchange rates dropped over 1c against both the Euro and US Dollar immediately after the announcement at 12.30pm.
Next we look to tomorrow's PPI inflation figures in the morning, and at 2.30 the key monthly US emplyment data is announced.
Exchange rates dropped over 1c against both the Euro and US Dollar immediately after the announcement at 12.30pm.
Next we look to tomorrow's PPI inflation figures in the morning, and at 2.30 the key monthly US emplyment data is announced.
Wednesday, 5 August 2009
More good news for GBP
The Pound has continued up this morning - breaking the 1.18 level against the Euro and 1.70 level against the US Dollar [mid-market rates] after more good economic news from the UK.
Manufacturing production was up 0.4% in June, while PMI services data was positive in the UK and negative in Germany. Retail sales also fell unexpectedly in the EU in June.
So the combination of good news in the UK and bad news elsewhere has pushed commercial exchange rates up today - however the interest rate decisions on the UK and Europe tomorrow could shake things up, so do consider looking at rates today if you'd like to take advantage of the recent movements when sending money overseas.
Manufacturing production was up 0.4% in June, while PMI services data was positive in the UK and negative in Germany. Retail sales also fell unexpectedly in the EU in June.
So the combination of good news in the UK and bad news elsewhere has pushed commercial exchange rates up today - however the interest rate decisions on the UK and Europe tomorrow could shake things up, so do consider looking at rates today if you'd like to take advantage of the recent movements when sending money overseas.
Monday, 3 August 2009
Pound up - this week's FX news
The Pound has soared to a 10-month high against the US Dollar and is near its best against the Euro this year, after Barclays and HSBC reported unexpectedly good profits today.
This week we have a number of important data releases which could make or break the recent rally - keep in touch with Currency Index for the latest news.
Tuesday 4th
Aussie retail sales (2.30am)
Aussie interest rates (5.30am)
Swiss CPI inflation (8.15am)
US income & consumption (1.30pm)
Wednesday 5th
UK manufacturing (9.30am)
European retail sales (10am)
US factory orders (3pm)
New Zealand unemployment rate (11.45pm)
Thursday 6th
Australian unemployment rate (2.30am)
Bank of England interest rates (12pm)
European interest rates (12.45pm)
Friday 7th
UK PPI core inflation (9.30am)
US non-farm payrolls and earnings (2.30pm)
This week we have a number of important data releases which could make or break the recent rally - keep in touch with Currency Index for the latest news.
Tuesday 4th
Aussie retail sales (2.30am)
Aussie interest rates (5.30am)
Swiss CPI inflation (8.15am)
US income & consumption (1.30pm)
Wednesday 5th
UK manufacturing (9.30am)
European retail sales (10am)
US factory orders (3pm)
New Zealand unemployment rate (11.45pm)
Thursday 6th
Australian unemployment rate (2.30am)
Bank of England interest rates (12pm)
European interest rates (12.45pm)
Friday 7th
UK PPI core inflation (9.30am)
US non-farm payrolls and earnings (2.30pm)
Thursday, 30 July 2009
Property market gives UK PLC a boost
Exchange rates for sending money abroad are up across the board today - mostly due to Nationwide's house price survey showing a 1.3% rise in house prices for July.
The UK's biggest building society believes that we may even see house prices finish the year higher than they started - which would have been unthinkable just a few months ago.
This, along with a rise in mortgage approvals announced earlier in the week by the Bank of England, has given the Pound a welcome boost, as good economic news (along with the increased likelihood of higher interest rates in due course) tends to make the currency more attractive to investors.
As a result the Pound is now trading at nearly 1.65 against the US Dollar and for Euro exchange rates, the mid-market rate is back above 1.17 for the first time in weeks.
The UK's biggest building society believes that we may even see house prices finish the year higher than they started - which would have been unthinkable just a few months ago.
This, along with a rise in mortgage approvals announced earlier in the week by the Bank of England, has given the Pound a welcome boost, as good economic news (along with the increased likelihood of higher interest rates in due course) tends to make the currency more attractive to investors.
As a result the Pound is now trading at nearly 1.65 against the US Dollar and for Euro exchange rates, the mid-market rate is back above 1.17 for the first time in weeks.
Monday, 27 July 2009
Quiet week to come?
There is very little important data out this week, as much of the key inflation, interest rate, employment and housing data for the month has all been released earlier in July.
Look out for the following which may cause some volatility in exchange rates:
Today - US new homes sales (3pm)
Tomorrow - US consumer confidence (3pm)
Wednesday - Australian new home sales (1am)
Thursday - US jobless claims (1.30pm)
Thursday - UK consumer confidence survey (released overnight)
Friday - European CPI inflation (10am)
Friday - US GDP (1.30pm)
Look out for the following which may cause some volatility in exchange rates:
Today - US new homes sales (3pm)
Tomorrow - US consumer confidence (3pm)
Wednesday - Australian new home sales (1am)
Thursday - US jobless claims (1.30pm)
Thursday - UK consumer confidence survey (released overnight)
Friday - European CPI inflation (10am)
Friday - US GDP (1.30pm)
Thursday, 23 July 2009
Friday's Data
Today's figures likely to affect commercial exchange rates are as follows:
8.30am German PMI inflation
9.30am UK GDP
2.55pm US consumer sentiment
Monday also sees the monthly Nationwide house price survey at 7am which is likely to have an impact on UK markets, which are fragile to any news about the recovery (or lack of) in the economy. Contact Currency Index if you are concerned about the implications for your transaction.
8.30am German PMI inflation
9.30am UK GDP
2.55pm US consumer sentiment
Monday also sees the monthly Nationwide house price survey at 7am which is likely to have an impact on UK markets, which are fragile to any news about the recovery (or lack of) in the economy. Contact Currency Index if you are concerned about the implications for your transaction.
Retail sales & mortgages bring some cheer
Today's mortgage approval figures and retail sales numbers for June were both better than expected, which gave the Pound some strength, in a choppy day on the markets.
Tomorrow's UK GDP figure will be eagerly anticipated - if the nation's income is improving significantly, there may be a spike tomorrow afternoon offering the opportunity to send money abroad more cheaply. If the news is bad, perhaps the Pound will end the week on a low note.
Tomorrow's UK GDP figure will be eagerly anticipated - if the nation's income is improving significantly, there may be a spike tomorrow afternoon offering the opportunity to send money abroad more cheaply. If the news is bad, perhaps the Pound will end the week on a low note.
Wednesday, 22 July 2009
Bank of England Boost
Today's Bank of England minutes, unsurprisingly, showed a unanimous vote to keep UK interest rates on hold at 0.5%.
The slight surprise, however, was that the central bank has kept its quantitative easing programme at £1.25bn, resisting the temptation to 'print more money' (the maximum allowed under current legislation is £1.5bn), and noting the worst of the recession is probably behind us.
The pleasing news has given some support to what was a rapidly falling Pound - giving opportunities for foreign currency transfers at better rates than we were seeing.
In the last few days, sterling has been falling consistently - so there may be an opportunity today to secure currency at relatively good levels in case there is any further bad news later in the week.
The slight surprise, however, was that the central bank has kept its quantitative easing programme at £1.25bn, resisting the temptation to 'print more money' (the maximum allowed under current legislation is £1.5bn), and noting the worst of the recession is probably behind us.
The pleasing news has given some support to what was a rapidly falling Pound - giving opportunities for foreign currency transfers at better rates than we were seeing.
In the last few days, sterling has been falling consistently - so there may be an opportunity today to secure currency at relatively good levels in case there is any further bad news later in the week.
Monday, 20 July 2009
This week on the markets
This week sees fewer data releases than normal, as most of the key monthly data has come out already. Therefore we expect commercial exchange rates to be less volatile than we have seen so far this month.
Last week's UK inflation data was better than expected, as was the Rightmove house price data released overnight, so the Pound is looking a little stronger this morning. Contact your currency company if you would like to discuss the implications for your own transactions.
This week's main news releases are as follows:
Last week's UK inflation data was better than expected, as was the Rightmove house price data released overnight, so the Pound is looking a little stronger this morning. Contact your currency company if you would like to discuss the implications for your own transactions.
This week's main news releases are as follows:
Monday
1.30pm - Canadian foreign investment data
3pm – US economic trends
Tuesday
1.30am - Reserve bank of Australia meeting minutes
2pm - Canadian interest rate decision
4pm – Federal Reserve chairman Bernanke’s speech (USA)
Wednesday
2.30am - Australian CPI inflation
9.30am - Bank of England meeting minutes for July
3pm – US house price index
Thursday
9am – Eurozone current account balance figures
9.30am - UK retail sales data
1.30pm – US jobless claims
Thursday, 16 July 2009
Pound creeps up
Despite yesterday's headline-making unemployment figures in the UK, the Pound has not fallen - perhaps because poor figures were already factored into the value of GBP.
A terrible reading from the key German ZEW business survey also helped keep the Euro weak.
For the US Dollar, the Federal Reserve's downbeat outlook on the US recession have helped to weaken the dollar, the exchange rate now is back up above $1.64 to the Pound.
This week's major data is now all out, so anybody with currency requirements should perhaps take stock of the latest movements and speak to Currency Index about securing rates, which can be done up to 2 years ahead of your anticipated requirement.
A terrible reading from the key German ZEW business survey also helped keep the Euro weak.
For the US Dollar, the Federal Reserve's downbeat outlook on the US recession have helped to weaken the dollar, the exchange rate now is back up above $1.64 to the Pound.
This week's major data is now all out, so anybody with currency requirements should perhaps take stock of the latest movements and speak to Currency Index about securing rates, which can be done up to 2 years ahead of your anticipated requirement.
Tuesday, 14 July 2009
Inflation on target
This morning's key inflation data has come out exactly as analysts expected - so there has been little effect on the Pound.
Euro exchange rates are now back up in the €1.16s [mid-market level] and the rate for sending money to the USA has recovered above $1.63. This afternoon sees 6 important news releases in the USA, at 1.30pm.
Euro exchange rates are now back up in the €1.16s [mid-market level] and the rate for sending money to the USA has recovered above $1.63. This afternoon sees 6 important news releases in the USA, at 1.30pm.
RICS House Price Boost
This morning's Royal Institute of Chartered Surveyors data showed a surprise increase in house prices for June - showing the second-highest monthly increase in the number of houses increasing in price, since the survey began in 1978.
Retail sales data released overnight also showed a 3.2% increase in the year to June.
The Pound has gained ground on these two pieces of positive news - next is retail inflation at 9.30am...
Retail sales data released overnight also showed a 3.2% increase in the year to June.
The Pound has gained ground on these two pieces of positive news - next is retail inflation at 9.30am...
Monday, 13 July 2009
Euro back below 1.15
Sterling has fallen below 1.15 against the Euro [mid-market level] for the first time in a month, as negative sentiment continues in the UK.
Anybody needing to send money to Europe should speak to their currency company for the latest news, as wishful thinking can be expensive in the currency markets.
Sterling has fallen 3% against the single currency, since its peak in mid-June.
Anybody needing to send money to Europe should speak to their currency company for the latest news, as wishful thinking can be expensive in the currency markets.
Sterling has fallen 3% against the single currency, since its peak in mid-June.
This week's exchange rate outlook
Plenty of news due out this week which is likely to affect commercial exchange rates - whichever currencies you need to buy or sell, contact Currency Index for our views on the market.
UK Data
Monday (overnight) - retail sales and RICS house prices
Tuesday (9.30am) - CPI & RPI inflation figures
Wednesday (9.30am) - unemplyment rate for May
European Data
Monday (11.30am) - ECB President Trichet's speech
Tuesday (10am) - industrial production data
Wednesday (10am) - CPI inflation
Amercian Data
Tuesday (1.30pm) - PPI inflation and retail sales for June
Wednesday (1.30pm) - CPI inflation
Wednesday (7pm) - minutes from the last FOMC meeting
Thursday (3pm) - manufacturing survey
Other Data
Canada - Monday (1.30pm) - Bank of Canada business outlook survey
Australia - Tuesday (2.30am) - key business confidence data
Switzerland - Wednesday (8.15am) - May retail sales
UK Data
Monday (overnight) - retail sales and RICS house prices
Tuesday (9.30am) - CPI & RPI inflation figures
Wednesday (9.30am) - unemplyment rate for May
European Data
Monday (11.30am) - ECB President Trichet's speech
Tuesday (10am) - industrial production data
Wednesday (10am) - CPI inflation
Amercian Data
Tuesday (1.30pm) - PPI inflation and retail sales for June
Wednesday (1.30pm) - CPI inflation
Wednesday (7pm) - minutes from the last FOMC meeting
Thursday (3pm) - manufacturing survey
Other Data
Canada - Monday (1.30pm) - Bank of Canada business outlook survey
Australia - Tuesday (2.30am) - key business confidence data
Switzerland - Wednesday (8.15am) - May retail sales
Thursday, 9 July 2009
Pound better on monetary easing & trade balance
Two important figures out in the UK today have given the Pound a welcome boost. This morning, the trade balance figure showed a defecit of £2.2bn, better than analysts' expectations of £2.75bn. Then, at lunch time, the Bank of England announced they are not using all the funds made available for quantitative easing, putting off the decision to inject a further £25bn into the economy until August.
Sending money abroad has got cheaper during the course of today as a result, with most exchange rate posting gains of around 1%.
Clients wishing to take advantage of a spike in the market should consider booking a forward contract, which secures a fixed exchange rate for the future.
Sending money abroad has got cheaper during the course of today as a result, with most exchange rate posting gains of around 1%.
Clients wishing to take advantage of a spike in the market should consider booking a forward contract, which secures a fixed exchange rate for the future.
Wednesday, 8 July 2009
Swiss unemployment up
Swiss unemployment has risen slightly more than expected, according to figures out this morning. The number of Swiss unemployed is now up to 3.6%.
The Swiss Franc weakened around 0.5% on the release of the news, good news if you are sending money to Switzerland.
The Swiss Franc weakened around 0.5% on the release of the news, good news if you are sending money to Switzerland.
Tuesday, 7 July 2009
Industrial data negative
The UK's industrial and manufacturing data both showed suprise falls this morning, in further bad news for the Pound.
Manufacturing and industrial data for May were expected to show an increas on April's figures - but the opposite has happened and damaged expectations of economic recovery, and hence the Pound has fallen.
Commercial exchange rates fell around 0.5c against both the Euro and Dollar on the release of the news.
Manufacturing and industrial data for May were expected to show an increas on April's figures - but the opposite has happened and damaged expectations of economic recovery, and hence the Pound has fallen.
Commercial exchange rates fell around 0.5c against both the Euro and Dollar on the release of the news.
Monday, 6 July 2009
Pound down as momentum shifts
More losses for the Pound this morning - despite the lack of any major data, last week's slight drop in exchange rates has been compounded, suggesting we have seen the top for sterling for the moment.
If you need to buy Euros at the best rates or send dollars to the USA, we would suggest considering all your options, as holding out for better rates does not seem to be paying off currently.
Tomorrow's manufacturing and house price data will be of interest to the market, and any negative news is likely to bring rates down further.
If you need to buy Euros at the best rates or send dollars to the USA, we would suggest considering all your options, as holding out for better rates does not seem to be paying off currently.
Tomorrow's manufacturing and house price data will be of interest to the market, and any negative news is likely to bring rates down further.
Friday, 3 July 2009
Pound struggles despite data
Yesterday's US employment data (non-farm payrolls) was bad news for the US economy - but there was little improvement in the exchange rate. This is a worry for anyone needsing to send money to the USA, as normally a negative reading in the States would improve the exchange rate. Has the Pound reached the top for the moment?
In Europe, ECB President Jean-Claude Trichet said after the Eurozone held interest rates, that the decision was because of the "appropriate" cost of borrowing at present, dashing hopes of a Eurozone interest rate cut which would be likely to improve the Euro exchange rate for Brits.
Speak to your Currency Index dealer for some more opinions, but it may be that the good run the Pound has enjoyed in the last 2 months, has come to an end for the moment.
In Europe, ECB President Jean-Claude Trichet said after the Eurozone held interest rates, that the decision was because of the "appropriate" cost of borrowing at present, dashing hopes of a Eurozone interest rate cut which would be likely to improve the Euro exchange rate for Brits.
Speak to your Currency Index dealer for some more opinions, but it may be that the good run the Pound has enjoyed in the last 2 months, has come to an end for the moment.
Tuesday, 30 June 2009
UK economy shrinks most in 50 years
Figures out today showed the UK economy contracted by 2.4% in the first quarter of 2009, the worst figure in 50 years.
The figures were adjusted from earlier indications, and were much weaker than originally estimated.
The Pound has fallen sharply on the news, meaning the best exchange rates this year look like they may be a peak in the market for the moment.
The figures were adjusted from earlier indications, and were much weaker than originally estimated.
The Pound has fallen sharply on the news, meaning the best exchange rates this year look like they may be a peak in the market for the moment.
Monday, 29 June 2009
This week's currency news
This week sees a number of data releases which are likely to bring some volatility back to the market, after a reasonably quiet week last week.
If you need to send money overseas, keep in touch with your currency broker for the latest news affecting your exchange rate.
For all rates against GBP
Tuesday - Nationwide house price survey
Tuesday - GDP data 9.30am
Wednesday - manufacturing inflation 9.30am
Australian Dollar
Tuesday - new home sales 1am
Wednesday - retail sales 2am
Thursday - Australian trade balance 2.30am
If you need to send money overseas, keep in touch with your currency broker for the latest news affecting your exchange rate.
For all rates against GBP
Tuesday - Nationwide house price survey
Tuesday - GDP data 9.30am
Wednesday - manufacturing inflation 9.30am
Australian Dollar
Tuesday - new home sales 1am
Wednesday - retail sales 2am
Thursday - Australian trade balance 2.30am
Euro
Thursday - unemployment rate 10.00am
Thursday - interest rate decision & speech 12.45pm
Friday - retail sales for May 10.00am
US Dollar
Tuesday - June consumer confidence 3.00pm
Wednesday - May home sales 3.00pm
Thursday - weekly earnings 1.30pm
Thursday - non-farm payroll data 1.30pm
Friday - market closed (US bank holiday)
Swiss Franc
Friday - Swiss CPI inflation (8.15am)
Wednesday, 24 June 2009
Euro weaker on ECB cash injection
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.
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.
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.
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