GDP revised up

The final revision to Q4 GDP in the UK has been released - and shows a slight improvement on last month's estimate.

For 2009, the economy shrank by 3.1%, compared to the previous estimate of 3.3%.

The Pound has taken some strength from the news, which also confirmed the UK exited recession at the end of 2009. Exchange rates for sending money abroad have improved across the board this morning.

This week's currency update

After last week's budget, we return to the usual weekly data this week, which includes a mix of figures due to be released from around the world which are likely to affect exchange rates.

With the Easter weekend coming up, do speak to Currency Index before Friday if you would like an update on the latest news and some guidance on your currency transfers.

Monday 29th
0930 - UK mortgage approvals
1000 - Eurozone consumer confidence
1330 - US personal income & consumption

Tuesday 30th
0930 - UK current account
1500 - US consumer confidence

Wednesday 31st
Overnight - UK consumer confidence
0130 - Australian retail sales
0300 - New Zealand business confidence
1000 - Eurozone CPI inflation & unemployment rate
1330 - Canadian GDP
1500 - US factory orders

Thursday 1st
0130 - Australian trade balance
0900 - Eurozone manufacturing data
0930 - UK manufacturing data
1330 - US jobless claims
1500 - US manufacturing figures

Friday 2nd
Bank holiday (Good Friday)
1330 - US non-farm payrolls, hourly earnings and unemployment rate

Budget holds no surprises

Yesterday's budget has had very little impact on exchange rates, given Alistair Darling's cautious approach and the lack of any real economic change.

This morning we saw UK retail sales figures come out slightly better than expected, which has boosted the Pound somewhat. Exchange rates for sending money abroad are generally better than earlier in the week, with no major UK data due out before the weekend.

Inflation as predicted

This morning's UK inflation figures have come out slightly below expectations, with very little impact on the Pound and exchange rates.

Attention now turns to tomorrow's Budget - will Chancellor Darling give any reason for optimism in his measures tomorrow?

This week's currency news

This week we have the UK budget on Wednesday - analysts will be looking to interpret the government's plans with a likely knock-on effect for the Pound.

Other data releases due this week and likely to influence exchange rates are as follows:

Monday 22nd
1530 - Bank of England Governer King's speech
1530 - European Central Bank President Trichet's speech
2030 - US Treasury Geithner's speech

Tuesday 23rd
0930 - UK CPI & RPI inflation
1400 - US homes sales

Wednesday 24th
UK Budget
0100 - New Zealand consumer confidence
0900 - German business climate survey
1230 - US durable goods orders
1400 - US new home sales
2145 - New Zealand GDP

Thursday 25th
0930 - UK retail sales
1230 - US jobless claims
2245 - New Zealand trade balance

Friday 26th
1330 - US GDP & personal consumption

Public borrowing not as bad as expected

Public borrowing for February came in at £12.4bn - not as bad as economists had predicted (£14bn) and after yesterday's unemployment figures were also better than expected, the Pound has gained some strength from the first positive signs in the economy for some time.

With no major data out in the UK tomorrow, there may be an opportunity to secure better exchange rates over the next 24hrs for any payments you need to send abroad.

Unemployment figures boost Pound

This morning's UK unemployment figures have come in much better than expected - giving sterling a much-needed boost.

With public borrowing numbers due out tomorrow morning, today could be an opportunity to secure your exchange rate for sending foreign currency.

Please contact Currency Index if you would like to discuss your options.

Data out today and tomorrow

A busy couple of days ahead, with plenty of data releases likely to affect commercial exchange rates:

Tuesday 16th
0030 - Reserve Bank of Australia minutes
0930 - UK DCLG House Price Index
1000 - Eurozone CPI inflation & German ZEW survey
1230 - US Housing Starts & Import Price Index
1815 - Federal Reserve US interest rate decision

Wednesday 17th
0930 - UK average earnings, unemployment data & Bank of England minutes
1230 - US PPI inflation

Industrial Production Falls

This morning's UK industrial production data has come in worse than expected, in a new blow to anybody needing to send funds abroad.

January's figures showed a 0.9% contraction in manufacturing compared to December, against an expected growth of 0.3%.

This week's economic news

After very little economic data out yesterday, some news coming out for the rest of this week which is likely to affect exchange rates:

Tuesday 9th
Overnight - UK RICS house price balance
0815 - Swiss CPI
0930 - UK trade balance
2330 - Australian consumer confidence

Wednesday 10th
0930 - UK industrial production
1900 - US monthly budget statement
2000 - New Zealand interest rate decision

Thursday 11th
0030 - Australian unemployment rate
0900 - European Central Bank monthly report
1300 - Swiss interest rate decision
1330 - US trade balance
2145 - New Zealand retail sales

Friday 12th
1000 - Eurozone industrial production
1200 - Canadian unemployment rate
1330 - US retail sales figures

Pound steadies as attention turns to Bank of England

The sell-off of sterling seems to have abated - but for how long? Tomorrow the Bank of England announce whether there will be any extension to quantitative easing.

If more money is injected into the economy, the Pound is likely to fall further as this would be seen as a negative sign regarding the UK's economic recovery.

For now, exchange rates are relatively stable so if you need to make overseas money transfers do consider your options prior to the Bank's announcement tomorrow lunch time.

Australian Dollar at 25 year high

Anyone emigrating this year and sending money to Australia should be aware that the Australian Dollar rates is now at its most expensive for 25 years, as the Australian economy goes from strength to strength relative to the UK.

Last night the Reserve Bank of Australia increased interest rates to 4%, which stimulates investor demans and makes the Dollar more expensive still.

If you are worried about falling exchange rates, don't forget you can fix a rate up to 2 years ahead without having all your sterling available. Call Currency Index for details.

Euro rate dips below €1.10

The rate for buying Euros has dropped below €1.10 this morning amid frenzied selling off of the Pound, following speculation that the forthcoming General Election could result in a hung parliament on top of further economic worries regarding the UK's credit and economic recovery.

This week's currency update

The Pound remains under sever pressure this week after Friday's disappointing revision to GDP - althouth the headlines reported an improvement to the Q4 figure, the government actually revised the annual growth number DOWN resulting in a broad sterling sell-off.

Exchange rates have fallen significantly against all major currencies.

This week, the following data will be of interest:

Monday 1st
0900 Eurozone PMT inflation
0930 UK mortgage approvals
1000 Eurozone unemployment rate
1330 Canadian GDP
1330 US personal consumption & spending

Tuesday 2nd
0330 Australian interest rate decision
0645 Swiss GDP
1400 Canadian interest rate decision

Wednesday 3rd
0030 Asutralian GDP
0700 German retail sales
1000 Eurozone retail sales

Thursday 4th
0030 Australian trade balance
1000 Eurozone GDP
1200 Bank of England interest rates & quantitative easing
1245 Eurozone interest rate decision
1330 US jobless claims

Friday 5th
1330 US average earnings, non-farm payrolls & unemployment rate

Market awaits GDP figures tomorrow

Friday at 9.30am sees the revision to the fourth quarter GDP figures, which showed on first estimate last month that the UK had crept out of recession.

As other economies around the world seem to be emerging in a better position than the UK, it will be interesting to see if there is an upward revision to the paltry growth figures announced in January.

If you are sending money overseas or making transfers back to sterling from another currency, you should check tomorrow morning to see what the effect has been on the Pound. Any downward revision is likely to hurt sterling badly, and given recent economic events it may be expensive to rely on a positive outcome.

Speak to an FSA-regulated currency company today if you are concerned about the effects on your own transaction.

Mervyn King hints at more QE

The Bank of England governor, Mervyn King, has hinted today in a question session with a parliamentary committee, that the Quantitative Easing policy may not be over after all.

Based on February's inflation report, King said that there were still significant risks to the UK's recovery, and unsurprisingly the Pound has fallen on the back of his comments.

With Friday's GDP adjustment poised to sent jitters through the currency markets if there is further bad news, commercial exchange rates are looking particularly fragile at present.

This week's data releases

After a raft of key data last week in the UK, things look quiet this week until Thursday when we have various unemployment, GDP and inflation figures out. The Pound seems to have lost its momentum for the moment and if you are sending money abroad it may be wise to check exchange rates sooner rather than later.

Monday 22nd
No major data

Tuesday 23rd
0930 - BBA UK mortgage approvals
1500 - US consumer confidence

Wednesday 24th
0700 - German GDP and consumer confidence
1200 - US mortgage applications

Thursday 25th
0200 - New Zealand business confidence
0815 - Swiss employment rate
0855 - German unemployment rate
1000 - Eurozone consumer confidence
2145 - New Zeland trade balance

Friday 26th
0930 - UK GDP
1000 - Eurozone CPI inflation
1330 - US GDP

Retail sales hit new low

This morning's retail sales figures were the worst since June 2008 - showing a 1.8% drop in January, 3 times worse than expected.

Regular readers will not be surprised to learn that the Pound has fallen on the back of this news.

There is little news likely to improve exchange rates, so anybody who needs to make foreign currency transfers might like to consider booking a rate in case things go from bad to worse, with no major UK data due out before next Friday.

Public finances deteriorate sharply

This morning's public borrowing figures were much worse than expected - leading to sharp losses for sterling.

The net deficit of £4.3bn was the worse since comparable records began in 1993, and compared to a surplus of over £5bn in January last year.

The worry for sterling is that such negative data could send exchange rates on a downward spiral after recent gains - which is only good news if you are transferring money back to the UK rather than sending it abroad.

Please contact Currency Index for the latest rates.

Unemployment up... but Bank of England helps sterling

This morning's unemployment figures were worse than expected - with the number of peoplpe claiming benefit up 23,500 in January and the official unemployment rate now at 7.8%.

Usually the Pound would fall on such negative news - but the figures were released at the same time as the Bank of England announced that its Monetary Policy Committee voted 9-0 to pause Quantitative Easing at its February meeting. Analysts had expected a closer decision, and this has been seen as a positive signal for the UK economoy and therefore for the Pound.

As a result the rates for sending money overseas in most currencies have risen slightly this morning.

Tomorrow's public sector borrowing figures are the next big test for the UK's recovery and are likely to move exchange rates back down sharply if borrowing is much higher than expected.

Inflation as expected - house prices up

In the first of 4 key days of UK data this week, inflation figures have come out only slightly below expectations at 3.5% for the year to January.

At the same time, the DCLG (government) figures on house prices showed a surprise 2.2% increase in 2009.

The net effect on the Pound has been negligible, with tomorrow's unemployment figures at 9.30am the next focus.

If you need to send money in Euros, the German ZEW survey out at 10am could cause some movement in Euro exchange rates.

Currency news this week

This week's economic calendar is below; the main figures of interest for sterling will be the Bank of England minutes on Wednesday, and Tuesday's inflation figures will be of interest. With unemployment and public borrowing figures also out this week, there could be a rocky road ahead for the Pound.

Do call us at Currency Index to discuss your exact requirements, and to make sure you don't get caught out by volatile exchange rates.

Monday 15th

Ban k holiday in Canada, USA and some European countries

UK house prices (Rightmove)

Tuesday 16th

0930 – UK CPI inflation

1000 – German & Eurozone ZEW economic sentiment surveys

1330 – Canadian manufacturing shipments

Wednesday 17th

0930 – Bank of England minutes & UK unemployment rate

1330 – US import price index

1900 – US FOMC minutes

Thursday 18th

0715 – Swiss trade balance

0930 – UK public borrowing

1000 – Eurozone consumer confidence survey

1330 – US PPI inflation

Friday 19th

0700 – German PPI inflation

0900 – Eurozone current account deficit

0930 – UK retail sales

1330 – US CPI inflation

1330 – Canadian retail sales

FSA advises use of regulated currency companies

The FSA has issued guidance to individuals and businesses sending funds abroad - only use a company that is regulated (either 'Registered' or 'Authorised') by the FSA.

The BBC has run a news story here: http://news.bbc.co.uk/1/hi/business/8505568.stm

Currency Index is fully Authorised and fits into the most secure category of companies for overseas money transfers.

Bank of England report sends sterling plummeting

The Bank of England's quarterly inflation report has sent jitters through markets, with predictions that inflation & interest rates are likely to stay low for the rest of 2010.

Low interest rates usually mean a weak currency, and analysts had expected UK interest rates to start increasing towards the end of 2010.

The Bank of England has moved to dampen these expectations, and the Pound has fallen across the board this morning in reaction.

Good news if you are sending money back to the UK, but for those of you buying property abroad, do contact your currency company straight away if you are worried about falling exchange rates.

Tuesday's data hurts sterling

This morning's data has not been helpful for those of you sending money overseas. In the UK, the BRC reported retail sales down 7%, and the official trade balance figure at -£3.3bn was much worse than expected. Both have brough sterling under pressure and exchange rates have fallen.

If you are following exchange rates for buying Euros, further bad news from Germany where the trade balance came out at +€16.7bn, better than expected, which has made the Euro more expensive.

Tomorrow's UK quarterly inflation report is now crucial, and a low reading could send GBP back to very low levels across the board.

This week's currency news

This week's major data releases are tomorrow's trade balance and Wednesday's inflation report in the UK. For the latest news please contact your currency company as exchange rates are fluctuating every second.

Monday 8th

No major data

Tuesday 9th

0700 – German CPI inflation

0930 – UK trade balance

Wednesday 10th

0930 – UK industrial production

1030 – UK Bank of England quarterly inflation report & King’s speech

1330 – US trade balance

Thursday 11th

0030 – Australian unemployment rate

0815 – Swiss CPI inflation

1330 – US retail sales (Jan)

Friday 12th

1000 – Eurozone GDP

US Employment Data today

This afternoon at 1.30 sees the monthly release of US "non-farm payrolls" - the main employment statistic in the States each month.

Non-farms often causes a lot of volatility in the best rates for sending money to the USA, because the figure released is often a lot better or worse than expected. If more jobs have been created than the expected figure of 15,000, the US Dollar is likely to gain strength, making exchange rates worse again.

The US Dollar is gaining some momentum now, with rates significantly below $1.60. If you have payments to make in USD, contact your currency broker for the latest information and commercial exchange rates.

Bank halts QE as expected

The Bank of England has decided not to extend is programme of quantitative easing (printing of money), as expected, at its monthly policy announcement today.

The move is widely seen as positive for sterling, and was 'priced in' over the last week, resulting in better exchange rates across the board for sending money overseas.

The next major data out in the UK is not until Tuesday's industrial and manufacturing production figures.

Australian interest rates held

The Reserve Bank of Australia has suprirsed markets by keeping interest rates on hold at 3.75%.

Most analysts had expected an increase to 4% - and the price of the AUD has fallen, making sending payments to Australia unexpectedly cheaper.

If you or someone you know is moving to Australia, speak to your currency broker about taking advantage of a spike in exchange rates.

Economic news this week

This week's economic data likely to affect exchange rates is as follows. In addition there are house price surveys from Hometrack (Monday) and Halifax (Friday). The key day for the Pound is likely to be Thursday when the Bank of England announce whether or not quantitative easing is at an end.

Monday 1^st

0930 – UK PMI manufacturing data

1330 – US personal expenditure

Tuesday 2^nd

0330 – Australian interest rate decision

1500 – US home sales figures

Wednesday 3^rd

0030 – Australian trade balance

0900 – UK PMI services data

1000 – Eurozone retail sales figures

2145 – New Zealand unemployment rate

Thursday 4^th

0030 – Australian monetary policy statement

0715 – Swiss trade balance

1100 – German factory orders

1200 – Bank of England monthly policy announcement

1245 – European Central Bank monthly policy announcement

Friday 5^th

1200 – Canadian unemployment rate

1330 – US non-farm payrolls & unemployment rate

Dollar stronger on US GDP

The US dollar has strengthened this afternoon after the Q4 GDP figure came out at 2.1%, much better than the 1.3% expected.

The surprise hike in growth in the US economy is increasing the cost of a dollar - specially against sterling which had a much worse GDP figure earlier this month.

Anyone sending money to America should contact their currency company for the latest news.

House prices up... but no gains for Pound

Sterling seems to have run its course for the moment - this morning's Nationwide house price index showed a 1.2% increase in January, much better than expected. Usually the Pound would expect a boost but not so this morning.

Perhaps Tony Blair's appearance at the Iraq enquiry is causing jitters, or perhaps markets think that sterling has had enough of a run in the last 3 weeks. Either way, the only major data out later today is a raft of numbers from the States at 1.30pm - likely to affect rates for buying US dollars for international transfers.

Problems in Greece, Portugal continue cheaper Euro

If you are transferring money to Italy, France or any other Eurozone country, we have the best Euro rates since August again today, with the mid-market rate touching 1.16 in morning trading.

The economic problems in Greece and Portugal are weighing on the Euro and decreasing its value. In addition, comments from the Bank of England that Quantitative Easing is likely to be ended next week have given sterling a boost.

There is no major European data due out this afternoon, so it may be a good time to look at securing your exchange rate today.

The end of QE end next week?

The Pound has shrugged off a few negative data releases this week, on speculation that the Bank of England might bring an end to Quantitative Easing at their monthly policy meeting next week. If they do, it would be seen as a positive sign for the UK economy, and for sterling.

Exchange rates have held up well, particularly against the Euro, given how bad this week's GDP figures were. If you are sending money abroad, it often pays to take advantage of speculation in case the outcome is not as expected. Don't forget it is possible to fix an exchange rate up to 2 years ahead.

Economy stutters out of recession

This morning's Q4 GDP figures showed that the UK has finally emerged from recession - months after most other major economies - but only just.

The first estimate for the fourth quarter of 2009 showed a miserly 0.1% growth in the UK economy, against analysts' expectations of 0.4%.

The very disappointing figure has led to losses of over 1c against the Euro, US Dollar and similar drops for the Pound against most other currencies. Losses may continue after the Pound's recent fragile gains - contact Currency Index if you need to send or receive any currency.

UK GDP figures out this week - are we out of recession?

This week's economic calendar is as follows - most important for anyone sending money abroad or bringing funds back to the UK will be tomorrow's GDP figure released at 9.30am. If the UK is only just emerging from recession, expect sterling weakness, while a very positive growth figure would probably give the Pound further value.

Other news likely to affect commercial exchange rates:

Monday 25th

7am – German consumer confidence

Tuesday 26th

9am – German business climate survey

9.30am – UK GDP first estimate

3pm – US consumer confidence

Wednesday 27th

12.30am – Australian CPI inflation

6.15pm – US interest rate decision

8pm – New Zealand interest rate decision

Thursday 28th

8.55am – German unemployment rate

10am – Eurozone consumer confidence

1.30pm – US jobless claims & goods orders

9.45pm – New Zealand trade balance

Friday 29th

9am – Eurozone unemployment rate

1.30pm – Canadian GDP

Retail sales bring Pound back down

This morning's UK retail sales data came in worse than expected - prompting a drop in value for the Pound across the board.

December's retailers reported a 0.3% rise in sales compared to November, down from market forecasts of a 1.2% increase.

Exchange rates are still much better than 10 days ago for virtually every currency - so if you are sending money abroad, contact Currency Index for the latest rates.

Public borrowing hits record level

After an amazing run in the last week, sterling has fallen back this morning as public borrowing has hit a new all-time record of 61% of GDP. This is the worst level since records began in 1974.

Despite the bad news, the Pound is only falling back slowly - however with the Bank of England's deputy governer speaking tonight there could be more bad news in the pipeline. If you want to take advantage of the recent improvements in commercial exchange rates, consider securing your deal today.

More good news for GBP

Further boosts for the Pound this morning - unemployment is down slightly (15,000 less claims in Decemeber compared to November), and the Bank of England revealed that its decision to keep quantitative easing on hold this month was unanimous.

Both announcements gave the Pound further momentum against the Euro as well as other European currencies, and rates have also improved for buying the Australian, Canadian and New Zealand Dollars.

Tomorrow morning's UK public borrowing numbers are the next focus. If you are worried that the run of good news might come to an end tomorrow, contact Currency Index today to discuss securing your rate for your overseas currency transfer.

Inflation moves sterling higher

This morning's UK CPI inflation figures have given the Pound a further boost, with rates against the Euro now the best since August, if you are sending money to France, Spain, Italy or Portgual for example.

With the Bank of England's minutes from their last meeting due out tomorrow lunch time, it may be worth looking at securing exchange rates TODAY for any foreign currency transfers, in case the Pound falls back later in the week.

Currency news this week

Here are this week's important news releases - important inflation data from the UK, Europe, New Zealand and Canada which is likely to affect commercial exchange rates.

Monday 18th
US Bank Holiday
Midnight – Rightmove house price index

Tuesday 19th
0930 – UK CPI inflation
1000 – German ZEW confidence survey
1330 – Canadian interest rate decision
2145 – New Zealand CPI inflation

Wednesday 20th
0700 – German PPI inflation
0930 – Bank of England minutes & UK unemployment rate
1200 – Canadian CPI inflation
1330 – USA PPI inflation
2145 – New Zealand retail sales

Thursday 21st
0900 – European Central Bank monthly report
1330 – US jobless claims

Friday 22nd
0930 – UK retail sales
1330 – Canadian retail sales

Best Euro rates for 4 months

ECB President Trichet's speech yesterday stated "uncertainty" about the Eurozone recovery - which has sent jitters through the market and decreased the price of a Euro today.

This is good news if you are sending money to France, Spain or anywhere else in Europe - the exchange rate is at its best since September.

With a lack of UK data today the probability of further gains might be small, specially with traders likely to take profits before the weekend which could bring the rate back down later today.

Pound up on UK manufacturing figures

An improvement in exchange rates this morning for anybody needing to send money abroad - the UK's manufacturing figures released this morning were better than expected, giving the Pound a boost.

There is important data out in Europe, the USA and Australia tomorrow, so if you are concerned about exchange rates contact Currency Index to discuss your requirements.

Australian Dollar Cheaper

Some respite at last today for those of you looking for the best rates for sending money to Australia - the market rate is up from $1.73 yesterday to $1.755 today, a movement of around 1.5%.

Weaker than expected Aussie home loans data out this morning, on top of some positive UK trade balance numbers, have helped. However, the Aussie Dollar is still in high demand globally, with rising interest rates likely to keep downward pressure on the exchange rate in 2010.

If you are buying property abroad anywhere this year, speak to Currency Index about your requirements.

This week's economic news

We have a lot of data out this week likely to affect exchange rates if you are buying Euros or US Dollars in particular. Contact Currency Index if you would like to discuss your own requirements.

Here are the key announcement times:

Monday 11th
ECB President Trichet’s speech
0815 – Swiss retail sales
1315 – Canadian house building figures

Tuesday 12th
British Retail Consortium survey
0030 – Australian home loans
0930 – UK house price index & trade balance
1330 – Canadian house price index
1330 – US trade balance

Wednesday 13th
0930 – UK industrial & manufacturing production
1000 – Eurozone industrial production
1900 – monthly US budget statement

Thursday 14th
0030 – Australian unemployment rate
0700 – German CPI inflation
1245 – ECB monthly interest rate announcement
1330 – US import prices, retail sales & jobless claims

Friday 15th
1000 – Eurozone CPI inflation & trade balance
1330 – US CPI inflation
1455 – US consumer sentiment index

Dollar weaker on US jobs data

Sending money to America is cheaper this afternoon on the back of weaker-than-expected US jobs figures. The US economy shed 85,000 jobs in December, compared to a forecast of just 2,000.

Contact Currency Index for the latest live rates.

Monthly Currency Report

Please click here to see our article with a summary of 2009's exchange rates and the relative costs of various currencies as we head into 2010.

Pound struggles despite higher house prices

No real news from the Bank of England today, which kept UK interest rates on hold at 0.5% and maintained the QE programme at £200bn. The policy amounts to a "wait and see" until the next inflation report in February.

In other news, house prices are up 1.1% compared to last December - the first year-on-year rise since March 2008. This should be good news for the Pound, but the political turmoil surrounding Gordon Brown is perhaps holding back any progress for sterling.

The Pound now buys less than $1.60 and less than €1.11. To get the best available deal, contact an FSA-regulated currency company if you are looking to buy or sell any currency over £5,000.

Pound falls on UK political wrangles

Sterling is falling this morning on the back of fierce economic arguments between the government and opposition. The credibility of plans for economic recovery is being called into question - and jittery markets are selling off the Pound.

In an election year we are likely to see a lot of such volatility, so if you need to send money overseas do consider fixing your exchange rate sooner rather than later.

Currency News January 2010

Happy new year - and 2010 has started in positive fashion for the Pound. Please see our weekly article for this week's exchange rate news - updates will be posted here whenever there is major news so do check back regularly.