This week's foreign exchange news

Please see our weekly currency article for this week's important data releases.

For Euro-buyers, Thursday is the main day of interest, with the ECB's monthly interest rate decision and accompanying speech, along with European GDP and retail sales.

US Data this afternoon

Anyone who needs to send money to the USA should be aware of a raft of data releases due out this afternoon.

Yesterday's GDP figure was negative, giving slightly better rates for transferring US Dollars. Today we have the following, all realeased at 1330 UK time:

• Durable Goods Orders
• Jobless Claims
• Personal Consumption
• Personal Income

Contact Currency Index this afternoon if you would like to discuss the implications for dollar rates on 0800 043 2623.

GDP revised up - but recession still with us

This morning's GDP figures showed a slight upward revision for the third quarter this year - but still indicate a 0.3% shrink in the economy for the period.

The UK economy has contracted for 6 consecutive quarters, the longest unbroken run since records began in 1955.

The revision was not worse than expected - so we have seen a mixed reaction on foreign exchange markets, with the Pound falling initially but recovering slightly after the announcement.

There is no further major UK data released this week.

Currency news due out this week

Please click here to see our weekly article on this week's important data releases.

Sterling outlook for 2010

Please click to see our article for an overview on the current position of the Pound in international markets.

Bank of England split on QE

Minutes released this morning showed that the Bank of England were split on their quantitative easing decision this month - raising fears that there could be further action ahead.

One member of the committee even voted for an extra £40bn of asset purchasing this month.

The Pound has fallen on the back of this news, and with UK mortgage approval data out tomorrow, there could be further volatility ahead.

Pound up on inflation news

UK inflation figures, released this morning, were better than expected - with the core CPI measure showing a 1.8% increase in the year to October.

Higher inflation makes higher interest rates more likely, so the Pound has taken some strength today across the board.

Beware though, tomorrow morning's Bank of England minutes could throw a spanner in the works if there are hints of more quantitative easing to come. Contact Currency Index if you would like to chat through your options.

This week's news

Please see our regular weekly article for this week's foreign exchange news.

UK inflation tomorrow (Tuesday) at 9.30am, and Wednesday's Bank of England minutes, also at 9.30am, are likely to be the main events this week on the foreign exchange markets.

US Dollar weaker on trade balance data

US Dollar rates have continued to improve slightly, after Friday's weaker-than-expected US trade balance figures.

September's defecit was $36.5bn, over $4bn worse than market expectations.

The US consumer sentiment survey published on Friday was also negative, giving the US Dollar some further weakness - good news for anyone sending money to the USA.

Don't forget, you can fix exchange rates up to 2 years ahead with Currency Index.

Unemployment & Inflation

Yesterday's unemployment figures showed a rise in the UK's jobless total, although not as much as some analysts had feared.

The Bank of England's quarterly inflation report was also slightly negative, with Governer King stating that UK interest rates are likely to remain low until 2011. The Pound is hampered by low interest rates, and dropped accordingly during King's speech.

If other worldwide interest rates start to increase before the UK, exchange rates for sending money abroad could remain low throughout 2010.

Bank of England speech & news tomorrow

Tomorrow sees 3 important events for the Pound:

1. UK unemployment figures (9.30am)
2. Quarterly Bank of England inflation report (10.30am)
3. Bank of England Governer Mervyn King's speech (10.30am)

It is likely to be a volatile morning on the foreign exchange markets. The unemployment and inflation news are always key for the UK economy and therefore the Pound, and King's speech will provide economic projections.

Often, King's speeches are sterling-negative, as the Bank of England tries to maintain realistic expectations in financial markets.

This week's currency update

Please see our weekly article on the Move Channel for all this week's data releases and the outlook for exchange rates.

Important news will be posted here throughout the week, or call us at Currency Index on 0800 043 2623 for the latest market update.

Worldwide Currency Roundup

Please see our monthly article for views on major world currencies in the current economic climate, including an economic overview for the UK, USA and Europe containing what you need to know if you are sending money abroad in the next few months.

Bank of England prints another £25bn

The Bank of England today announced an extra £25bn of quantitative easing - although it stopped short of adding £50bn as some analysts had expected.

The Pound gave a mixed reaction, gaining strength initially, before falling back as markets took the news in. ECB President Trichet also said this afternoon that Eurozone inflation would turn positive soon, signalling that European interest rates may start to go up before those in the UK. This would be likely to make the Euro more expensive.

As the dust settles on these announcements, sterling is back where it started the day against most currencies, although US Dollar exchange rates are slightly better than they were this morning.

Services data send GBP higher

This morning's PMI services data showed an unexpected expansion in the UK's services sector - giving sterling a boost across the board.

There may be a 24 hour window to buy currency between now and the Bank of England's vital quantitative easing announcement tomorrow lunch time - if more money is injected into the economy, analysts expect the Pound to fall significantly.

Speak to us today at Currency Index if you are sending money overseas. You can call free on 0800 043 2623.

Aussie Dollar weaker despite rate hike

The Reserve Bank of Australia put interest rates up overnight as expected - although comments that they may pause the cycle of higher rates in December led the Australian Dollar to weaken off slightly.

Mid-market rates are now comfortably back above 1.80.

If you are transferring money to Australia contact your currency broker to discuss your options - higher interest rates in a country usually lead to a more expensive currency and it is likely the RBA will raise rates again in January, if not December.

Currency Index is now FSA Regulated

We are pleased to announce that from today Currency Index is Authorised and Regulated by the FSA, with reference 504353 on the FSA's Register.

This gives clients even greater peace of mind regarding security of funds, and confirms that Currency Index conforms to the relevant Conduct of Business requirements.

A full list of Authorised companies can be found on the FSA's website.

This week's news

Please see our regular article for this week's currency news:
http://www.themovechannel.com/features/a01630fe-f266/

Lots of data out this week, particularly on Thursday, so do speak to your currency broker if you need to send funds abroad or make a money transfer back to the UK.

Pound back up... a little

It seems that no news is good news for sterling at the moment, and with no major data releases in the UK this week the Pound has crept back up slowly during the last 3 days. Next week's key Bank of England announcement on Thursday could shake things up, so anybody looking to send money overseas may have a window of a few days to look at securing your rate.

Don't forget, Currency Index can book exchange rates up to 2 years ahead, without you needing all your sterling available. Please call for more details.

This week's data

Please see our weekly article for an overview on the market and data releases this week which are likely to affect exchange rates.

Contact Currency Index on 0800 043 2623 if you would like to discuss the latest news relating to your specific requirements.

GDP sends sterling plummeting

This morning's GDP data has shown a contraction of 0.4% in the economy for Q3, dashing hopes that there would be some growth to technically end the recession.

Disappointing data - and the markets have reacted badly, with sterling dropping around 1.5c against both the Euro and US Dollar.

Contact Currency Index for the latest commercial rates.

Retail Sales at 9.30

Following some good days for sterling, this morning's retail sales figures at 9.30am are an important measure of economic activity. If you need to send money overseas, keep an eye on rates around 9.30 and contact Currency Index if you would like us to alert you to any movements.

Bank Minutes Boost Pound

A little more cheer for the Pound today - which has now gained 3% against the Euro and 6% against the US Dollar in the last week. The Bank of England revealed this morning that they voted unanimously for a pause in quantitative easing this month - easing fears that more money would need to be pumped into the economy in November.



The mid-market rates for Euros and Dollars are now above €1.10 and $1.65 respectively, although the outlook is still poor - the UK's debt and fiscal position are likely to stifle any recovery for GBP which remains vulnerable to bad news.

Pound to remain weak until 2014?

Some worrying reading on the Telegraph website over the weekend - Ernst and Young predicting rates around parity for sterling against the Euro for years to come:

http://www.telegraph.co.uk/finance/economics/6360466/UKs-budget-deficit-will-leave-pound-weak-until-at-least-2014.html

Sterling Update

Please see our article for this week's foreign exchange outlook and major data releases.


Mervyn King, the Governer of the Bank of England, is giving a speech tonight at 8.30 which will be watched for clues about quantitative easing. This morning, public finance data is released at 9.30am - if public debt has increased significantly we would expect negative movement for the Pound.

Bank of England sends mixed signals

Some good news for the Pound at last this week, as Bank of England MPC member Paul Fisher told the FT that quantitative easing is now working, "having the scale and impact that we would have hoped for".



The Pound has been struggling on expectations that the Bank would increase QE by pumping more money in to the economy at its next meeting in November. We would expect more volatility leading up to the announcement, as speculation increased as to what the Bank's next move will be.

Unemployment rises

UK unemployment has risen according to official figures out today - but not as much as expected. Sterling has gained a little strength accordingly.

The outlook is still worsening overall for the Pound. See our article on HomesGoFast for an updated analysis on the current situation.

Pound hit by UK inflation

Further bad news for sterling this morning, as the UK's Retail Price Index, a key measure of inflation, fell 1.4% in the year to September. A smaller fall was expected.

Lower inflation means that interest rates are even less likely to rise, and tends to be negative for sterling.

Luckily for anyone sending money in Euros, the Eurozone ZEW economic sentiment survey also came in negative, meaning the EUR exchange rate did not fall as much as it might have done otherwise.

Britain comes bottom of 'quality of life' survey

According to a new survey, the UK has the lowest quality of life compared to 9 other large European countries. Although average household income is higher than anywhere else, the high cost of living, bad weather and long hours mean that France, Spain and Denmark have overall much better quality of life.

This will come as no surprise to those of you buying property overseas, so although exchange rates at the moment mean that property in Europe is relatively more expensive than when the Pound is strong, there is no shortage of Brits wanting to make the move abroad.

If you are making the move, speak to Currency Index about obtaining commercial exchange rates for sending money overeas.

This week's currency news

A lot of data is out this week, so expect exchange rates to be volatile. In the current climate the Pound is struggling so any further bad news is likely to make foreign currency transfers more expensive.

For a list of this week's data releases please see our article here.

CEBR Predicts £1 = €1, $1.40

A damning report over the weekend from the Centre for Economics and Business Research, has predicted the Pound will fall BELOW parity with the Euro (£1 = €1) and below $1.40 against the US Dollar, with UK interest rates staying at 0.5% until 2011.

See the BBC's report for more information.

UK Trade Balance worsens

The UK trade balance for August has risen to -£3bn, above expectations of -£2.5bn, in more bad news for the UK economy and sterling.

The Pound is dropping this morning as a result.

Currency News this week

No joy for those of you waiting to transfer money overseas yet this week - as the Pound was hampered by this morning's negative UK manufacturing data.

For the rest of the week we have some key data which may cause volatility - not least the monthly Bank of England and European Central Bank policy announcements.

Whatever your requirements, do contact a currency company to discuss your currency transfer - optimism in these markets can be expensive.

Wednesday
Overnight - UK consumer confidence
11am - German factory orders

Thursday
1.30am - Australian unemployment rate
11am - German industrial production (August)
12pm - Bank of England interest rate decision
12.45pm - European Central Bank interest rate decision
1.15pm - Canadian housing starts
1.30pm - US jobless claims data

Friday
Midnight - Federal Reserve Chairman Bernanke's speech
7am - German CPI inflation
9am - Halifax UK house price index
9.30am - UK PPI inflation
1.30pm - US trade balance (August)

Australian Interest Rates Up

The Reserve Bank of Australia has become the first major central bank to raise interest rates since the economic crisis - from 3% to 3.25%.

This is significant for anybody who needs to send money to Australia, as higher interest rates increase demand for the currency, and therefore the price tends to increase - in other words, exchange rates for sending money to Australia fall.

This morning, the mid-market rate has fallen below $1.80, and with unemployment figures to come tomorrow overnight, there could be more movement to come if the Australian economy is picking up more quickly than expected.

Sterling Report

Please see our latest article on the current plight of sterling:
http://www.homesgofast.com/view_news/1730/

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.

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.

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.

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.

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.

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

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.

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.

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)

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

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.

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?

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.

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.

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