UK house prices in surprise increase

Nationwide this morning has reported a 1.2% rise in house prices for May.

Expectations had been for a 0.3% drop - so the news has given the UK economic outlook - and therefore the Pound - a welcome boost.

With more key data out next week which could potentially provide trouble for sterling, anyone looking to transfer money overseas should contact a currency broker to discuss the latest developments.

Mixed Euro and US data keeps rates steady

The Pound hovered around its newly-found levels against both the Euro and Dollar today, as mixed data from the States and Eurozone did little to encourage either of the currency pairs.

EMU consumer confidence came out at the level expected by analysts, while in the USA there was some good news on the jobs front but bad news in construction of new homes.

As a result sending money in dollars is still around its best level since November, although the mid-market rate has dropped back below 1.60.

For Euro exchange rates, overnight levels of 1.15 were not sustained but a relatively healthy 1.14 is still showing on the live markets.

Tomorrow's Nationwide house price survey in the UK will be watched at 7am for any clues as to the next direction for the Pound.

Best rates this year

The Pound has continued its recent surge, reaching 1.60 against the US Dollar and nearly 1.15 against the Euro.

Both currencies are now around the cheapest they have been all year against sterling.

If you need to transfer money overseas in Euros or Dollars, it is worth discussing your requirements with a UK currency company to make sure you do not miss any opportunities to secure a preferential rate.

This week's data

News out this week which might affect all commercial foreign exchange rates:

Transferring money to the USA
1500 Tuesday - consumer confidence
1500 Wednesday - US house price index and home sales figures
1330 Thursday - durable goods orders
1330 Friday - GDP

Transferring money to Europe
1000 Thursday - consumer confidence
1000 Friday - CPI inflation data

Transferring money to Australia
0200 Thursday - new home sales

UK Data
0001 Friday - consumer confidence
0700 Friday - Nationwide house prices

...and Pound drops back down after S&P Rating

Following overnight gains the Pound has dropped back sharply after the credit agency S&P downgraded the outlook for the UK economy from "stable" to "negative".

If you need to transfer money overseas contact your currency company for the latest developments in a volatile market today.

Pound Continues Up

We have the best US Dollar exchange rates so far this year at the moment, and near the year-high for the best Euro exchange rates too.

Trading this morning is particularly volatile, with both Euro and Dollar rates fluctuating by up to 2c in the last hour. Trade data out this morning showed UK Retail Sales up more than expected - but at the same time business investment has fallen.

Pound steady on Inflation Data

This morning's UK inflation data was slightly lower than expected - but close to analysts' expectations, so there has been no major movement for the Pound.

Transferring money in Euros and Dollars is slightly cheaper than yesterday, as a surge from the Pound in early trading has been sustained.

Rates for the US Dollar are now the best they have been all year.

Pound up on Lloyds resignation

UK shares and currency are on the rise this morning after the resignation over the weekend of Lloyds Banking Group chairman Sir Victor Blank.

The Pound has responded positively to what is seen as the removal of one of the men responsible for the current banking crisis, after Lloyds TSB took over the troubled HBOS Group last year. Both banks are expected to make massive losses this year and the Group is now 43% owned by the taxpayer.

Transferring money abroad is, as a result, slightly cheaper today then last week in the case of most currencies. If you would like to discuss taking advantage of a spike in exchange rates, contact your currency company straight away.

This week for the Pound

9.30am on Tuesday and Wednesday see this week's main data releases for the Pound - UK CPI/RPI inflation figures on Tuesday, and Bank of England Minutes on Wednesday.

Anyone sending money abroad this week should be aware that both releases are likely to affect exchange rates across the board.

For data releases overseas which might affect individual currencies, please check back here later in the week or contact a currency broker to advise you of all relevant news.

Eurozone GDP posts largest drop on record

European GDP showed a 4.6% year-on-year decline - the biggest fall on record for the economic area.

Against the Pound, there has been little movement - surprising given the negative Euro-news which might have weakened the single currency off and provided better exchange rates for sending money to Europe.

The next major data out is from the USA, where Consumer Price Index (a leading inflation indicator) is announced at 1.30pm. We expect some volatility for US Dollar exchange rates.

Amercan data this afternoon

1.30pm sees some important data out if you are sending money to America.

Jobless claims and Producer Price Indicator figures are likely to affect the value of US Dollar exchange rates.

Mid-market rates against the Pound are currently at 1.5150.

Inflation report today

10.30am today is Bank of England Governer Mervyn King's speech and the release of the Bank's quarterly inflation report.

We would expect volatility in all commercial exchange rates around this time. If you are looking to buy or sell any currency against the Pound, contact your currency exchange broker who will be able to monitor the situation for you.

Unemployment up to 7.1%

UK unemployment has risen to 7.1%, a bigger increase than expected. The Pound has not reacted too badly, although a slight dip from the day's highs against both the Euro and US Dollar have made sending money abroad slightly more expensive.

Exchange rates remain reasonably stable but are likely to be sensitive to data releases for the rest of the week.

UK Data Boosts Pound

This morning's UK manufacturing and trade balance data has given the Pound a welcome boost for anyone looking to transfer money abroad.

Exchange rate are up across the board after better-than-expected figures were released at 9.30am.

Data out this week

This is a busy week for foreign exchange news - commercial exchange rates are likely to be volatile across the board.

12th May (Tuesday)
0030 US Federal Reserve Chairman Bernanke’s speech – likely to affect US Dollar rates for sending money to the USA
0930 UK industrial and manufacturing data, likely to affect the Pound significantly

13th May (Wednesday)
0930 UK unemployment data
1030 Bank of England quarterly inflation report and accompanying speech
1330 USA retail sales data

14th May (Thursday)
0200 Australian inflation expectations
1330 US factory inflation
2345 New Zealand retail sales data

15th May (Friday)
0700 German GDP
1000 European inflation figures, likely to cause movements in the Euro exchange rate

American and UK data out Friday

Friday sees the monthly "non-farm payroll" data from the USA - a key indicator of the employment market and typically a volatile moment for the US Dollar.

If you need to send money to America, 1.30pm is the key moment. If more jobs have been created in the US economy than expected, the dollar is likely to strengthen and become more expensive.

Also on Friday, UK PPI (Producer Price Index) figures are out at 9.30am. This is an important measure of inflation and can give the Pound a boost - or the opposite - which will affect all exchange rates if you are sending money abroad.

UK & Eurozone interest rates

As expected, at today's MPC and ECB meetings, the UK interest rate has been held at 0.5%, while the Eurozone rate has been cut to 1%.

The cut was already priced in to forex markets, meaning the exchange rate for buying Euros did not improve much. Jean-Claude Trichet's accompanying speech has however caused some volatility, as the Eurozone for the first time discussing a quantitative easing programme similar to those in the UK and USA.

The net result has been strength for the Euro, which is back down around the 1.12 level, having peaked at 1.1409 in earlier trading today. Currency brokers will be able to advise you of the latest movements.

UK and EU interest rates today

The Eurozone's ECB and UK's MPC today release their monthly interest rate decisions - the UK at 12.00 and Eurozone at 12.45.

A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.

The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 - so anyone sending money to France, Spain or Portugal will be pleased.

If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.

Australian Dollar dips below 2.00

The Australian Dollar has fallen below $2 to the Pound for the first time in recent memory this morning, due to a combination of factors which have combined to make sending money to Australia yet more expensive this week.

1. Australian interest rates were held on Tuesday
2. Retail sale in Australia rose more than expected (2.2% in March)
3. Australian inflation increased
4. Investors are switching back to higher-yielding currencies like the Aussie

All these have placed the Aussie in high demand, increasing the price and therefore decreasing the exchange rate. If you have to send Australian dollars abroad for any reason in the next few weeks or months, contact your UK currency company for some help.

Euro cheaper on interest rate speculation

The Pound pushed above 1.13 against the Euro in trading today, following speculation that the ECB will cut interest rates this Thursday from 1.25% to 1%.

Lower interest rates tend to mean a weaker currency - and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.

The ECB's announcement comes on Thursday lunch time - if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.

Speak to your currency broker if you have any forthcoming Euro requirements, and don't forget you can fix exchange rates in advance for up to 2 years.

Eurozone PMI falls

European factory prices are still declining faster than expected, according to figures out this morning.

In a Euro-negative announcement, Euro exchange rates have improved against the Pound, good news for anyone sending money to a French notaire for a property purchase for example.

Producer prices fell 0.7% for March and 3.1% for the year to end of March, against analysts' expectations of 0.5% and 2.9% respectively.

Australian interest rates held

Overnight the RBA kept Australian interest rates on hold at 3%. Those of you sending money to Australia would have been hoping for a cut, which could have improved the exchange rate.

Aussie retail sales and emplyment data are also out this week.

Euro & Dollar Rates Up

European markets have been open on Monday, during the UK bank holiday, and a fall in retail sales figures in Germany has weakened the Euro slightly. Mid market rates were nearly back at 1.12 late on Monday - the best Euro exchange rates for a couple of weeks.

At the same time, investors have moved to slightly riskier assets again, resulting in the 'safe' US Dollar being sold off over the weekend. A reduction in demand means a cheaper dollar and better rates if you are sending money to the USA to pay for a property or importing goods.

There is more data out in the USA, Europe and the UK this week which could affect your rates - check back here for the latest news or contact your UK currency company directly for news & analysis relevant to your exact requirements.

Australian Dollar rates this week

Any of you looking to emigrate down under will need to think about sending money to Australia and be worried about recent poor exchange rates.

This week, a few important data releases will give us a clue as to the future direction of the rate - and may provide opportunities to buy or fix exchange rates for the future.

At 4.30am on Tuesday the RBA interest rate decision is announced - a cut in Aussie interest rates would do no harm to the prospects of better Australian exchange rates. Retail sales data is then released at 2.30am on Wednesday, followed by employment figures at 2.30am on Thursday.

Check with your currency broker each morning for any differences in exchange rates and full analysis of the figures.

UK PMI gives Pound a boost

This morning's Purchasing Managers Index data, a measure of business conditions in the UK manufacturing sector, has come out significantly higher than expected.

The Pound has received a welcome boost. Exchange rates against the Euro and US Dollar are up around 2c each, so property buyers sending Euros to Spain for example will be pleased with the news.

With the long weekend approaching, be aware that the markets still trade in many countries, so rates can move over the bank holiday. Call your currency broker to discuss your options.