Currency Index Blog

The Pound Drops Over Fears Of Further QE

Thu, 17 May 2012 00:00:00 GMT

Despite data showing that unemployment was down for the second month in a row, comments from the Bank Of England caused the value of sterling to drop slightly, but rapidly. BoE director Mervyn King forecast weaker growth in the UK economy than was originally predicted, from 1.2% to 0.8%, causing the value of sterling to drop away from the 3 1/2 year high that we've seen so far this week. Sir Mervyn indicated that he believed the Euro was 'tearing itself apart', and that if the Euro was to suffer a major crisis, Britain would be directly affected, saying - ""We have been through a big global financial crisis, the biggest downturn in world output since the 1930s, the biggest banking crisis in this country's history, the biggest fiscal deficit in our peacetime history, and our biggest trading partner, the euro area, is tearing itself apart without any obvious solution. The idea that we could reasonably hope to sail serenely through this with growth close to the long-run average and inflation at 2% strikes me as wholly unrealistic". This raises the possibility that in future months the BoE might decide to introduce further Quantitive Easing measures, which would likely weaken the pound further in the short term. It is worth noting that King's comments yesterday caused the rate of Sterling vs Euro to drop even more sharply than the announcement that the UK is in recession, and was only stopped from dropping further by the positive employment data. David Cameron seems to be starting to pay more attention to the issues in the Eurozone, saying in Prime Ministers Questions that if the Eurozone intends to survive, it must construct a 'firewall' to secure the weaker members of the single currency. The key 'weaker member' is, of course, Greece, and with the failure of their elections in the past week, it seems unlikely that the problems there will be resolved any time soon. With anti-austerity parties leading the way in polls, the ECB is worried about Greece being able to pay off their debts, which would cause it to drop out of the Euro, causing a 'ripple' effect across the continent, particularly effecting weaker economies like Italy or Spain. A G8 summit later this week is likely to feature Greece's problems quite highly on the agenda. The best news yesterday came for the US Dollar, which gained strength against both sterling and euro, with the pound falling 1% against the American currency. However, despite negative news for sterling yesterday, analysts see its ‘bullish’ run against the euro to continue. It remains to be seen if the UK currency will increase its strength against the Euro sooner, rather than later.

Will Unemployment Figures Knock The Strong Pound?

Wed, 16 May 2012 00:00:00 GMT

Last month unemployment was slightly improved, but while it is expected to be unchanged today, claimant counts are expected to be higher, which could signal a drop off from the highs we have seen for the Pound in the last few days. Against the US Dollar, expectations together with a bit of an overall sell off have already brought Sterling below the psychological level of 1.60, with concerns things could get worse: “GBP/USD has reacted lower, breaking below the 2012 uptrend. Failure here leaves the market more vulnerable to a sell off to the 1.5830/1.5768 region”, wrote Commerzbank analyst Karen Jones. Any Dollar buyers should probably think about securing now, before this potential drop is realised. The Sterling to Euro rate is still holding close to the 3.5 year highs, due to the continuing concerns over what is happening all across Europe – highlighted further yesterday by the announcement that Greece will definitely face a new round of elections in the coming months, following the failure of the election 2 weeks ago to install a new government. However European GDP was static yesterday, showing the Eurozone has avoided going into an overall recession, as the UK has, and with CPI inflation data out this morning, it is entirely conceivable, with some more good data, we could see the Euro make some gains back against the Pound, especially if UK unemployment pans out as expected. I don’t expect this to be the beginning of a big slide, but if you are buying Euros and you want to be close to those highs, then now is the time.

Euro Weaker Over Greece Speculation

Tue, 15 May 2012 00:00:00 GMT

“A Greek exit from the euro zone is looking increasingly likely with a second round of elections likely to take place mid-June...so the more uncertainty we see in the euro zone the more the euro will drop against the other major currencies” said Chris Erlam, analyst at Alpari. Against the USD the pound was steady after earlier falling to a one month low as eurozone debt worries led investors to steer clear of riskier currencies such as the pound and euro opting for the safe haven of the greenback. As there seems to be very little immediate resolution to the current eurozone crisis we could well see the pound push on but sellers of GBP should be very cautious in terms of how much of a gamble they take. Should Greece actually leave the eurozone this will cause all kinds reverberations within the worldwide economy and we would be foolish to think it would not have a damaging effect on our own economy. That coupled with the fact the UK went back into recession last month, now may well be the best rates we will see against the euro so anybody with a requirement should look at all the options available for securing a rate that is the best it’s been for 33 months. Todays data is fairly quiet in the UK with just Trade Balance data due at 9.30 but at 10.00am we see eurozone GDP and German Business Sentiment releases which if negative could weigh further on an already crippling euro.

Pound up as Bank of England confirms QE not extended

Fri, 11 May 2012 00:00:00 GMT

Sterling spent Thursday out-performing most of the major currencies again, with pound euro exchange rates reaching fresh highs, as mid market tested new resistance levels. The boost came after lunch when the Bank of England’s MPC (Monetary Policy Committee) released their decision about interest rates and Quantitative Easing. Some analysts were expecting another small injection of cash via QE following the realisation the UK had slipped back into recession which had been hampering sterling. The result of “no change” gave the pound a fresh boost and we saw the rally over the rest of the day’s trading.

The fresh problems which have arisen this week in the Eurozone with Spain, Greece and France all having issues are likely to weigh on the single currency going forward but we must also bear in mind that the UK is in recession and it will only take some poor data releases for the pound to be knocked off the pedestal it finds itself on at present. With this in mind it would be prudent for those with a currency requirement coming in the next few weeks to look at the various options available for maximising the exchange rate you purchase at. Get in touch with one of the team at Currency Index today to discuss your specific requirements for sending money overseas.

Today from the UK we have PPI (Producer Price Index) data at 9.30am which could weigh on sterling if the figures come out lower than expected. If you are sending money to Canada, later on across the pond we have Canadian unemployment figures at lunchtime and US PPI data, followed by a consumer confidence survey later in the day.

Another good week for sterling but what will next week bring?

Bank of England today

Thu, 10 May 2012 00:00:00 GMT

We saw a relatively interesting day yesterday, as sterling rates rose to a 3 ½ year high against the Euro. This mostly came off the back of the ECB announcement that they were holding off 1bn Euros of the latest instalment of the Greek bailout. This is likely to be the first of many problems caused by anti-austerity political groups gaining strength in the recent Greek elections. Currently, rates on the mid-market stand at 1.24 on the sterling-euro rate. Some small gains for sterling may have been caused by the Queen's Speech, wherein new economic measures were introduced, including proposals to increase shareholder power, and further regulation cuts on business. These measures, the government claim, will boost economic growth by reducing regulatory burdens.

All eyes today will be fixed on the Bank Of England announcements later on today. Due to the nation officially entering recession, many analysts believe that the BoE will vote for further quantitive easing, which has the potential to weaken sterling’s position considerably. However, any major falls seem to be unlikely, owing to the fact that, despite Britain’s economic problems, they frankly pale in comparison to the concerns in the Eurozone.

Slightly further afield, the Reserve Bank Of India have introduced measures to boost the value of the rupee, asking exporters to convert 50% of their foreign exchange holdings into rupees. These measures seem to have had some short term success, boosting the value of the Indian currency against both the US dollar and sterling, and making money transfers to India more expensive. The US Dollar itself is at a two week high against sterling, with analysts waiting for news from today’s BOE figures, as well as today’s US jobless figures. This could either cause the sterling to regain its strength against the dollar, or cause it to lose even more ground.

Currency update - quiet day ahead

Wed, 09 May 2012 00:00:00 GMT

Today is what you might call a lull before the storm. There is relatively little data out home or abroad, bar some German trade balance data out first thing this morning. The Pound is still pushing 3.5 year highs against the Euro and is much higher than recent times against most of the other major currencies, including the Dollar, where the 1.60 level is very much in focus.

The storm comes tomorrow, with a raft of data out in the UK, Eurozone, US and further afield. Firstly the UK will find out how industrial production and manufacturing production figures are progressing, together with our trade balance numbers. The big one comes at Midday when the Bank of England announce their monthly policy statement – while interest rates are 99% certain to be held, will there be more Quantitative Easing? Some analysts believe so, and if there is then the 3.5 year highs will almost certainly be a thing of the past.

In the Eurozone, the ECB give their monthly report first thing, which will give us some indication of whether they intend to try and prop up the Euro in light of the almost daily bad news coming out of Greece, Spain, Holland and seemingly the whole area. The US has some jobless figures out around lunchtime, which while not critical will give us some further information following the bad non-farm payroll data last week. There is also trade balance and budget figures from across the pond as well – so for anyone looking to make a payment in US Dollars lunchtime tomorrow might well be one to avoid, as recent US releases have been very variable and we are likely to see quite a bit of volatility.

Further afield we have Australian unemployment figures and New Zealand’s retail sales data – could the Pound’s resurgence against the Antipodean currencies continue?

New Eurozone fears push Pound higher

Tue, 08 May 2012 00:00:00 GMT

Despite yesterday being a Bank Holiday in the UK, there was a lot of movement in the currency markets as investors lost confidence in the eurozone after Greek and French elections cast doubt on politicians' commitment to austerity plans aimed at tackling the debt crisis.

The euro hit a 3 month low against the dollar and a 3 ½ year low against the pound and many traders felt that these losses could be extended over the coming days.

In Greece the failure of the two main parties supporting the country's international bailout to secure a parliamentary majority threw into question the future of the programme and potentially Greece's membership of the euro.

In France Socialist Francois Hollande, who has championed a longer time-frame for eliminating the deficit, ousted centre-right incumbent Nicolas Sarkozy in a result that could start a push-back against German-led austerity across the euro zone.

"The reaction in the foreign exchange market shows if it really comes to the point where it's clear European politicians will step back from austerity measures that will be perceived as very negative by financial markets," said Lutz Karpowitz, currency analyst at Commerzbank.

On Friday we had the all important US jobs figures which cast further doubt over the US economy’s recovery. Non farm payrolls data for the month of April showed only 115,000 jobs were added, well below the forecast of 170,000. The pound pushed on against the dollar making sending money to the USA cheaper, and though the UK slipped into recession last week its seems investors are more concerned about issues in the eurozone and US so Sterling remains well bid across the board.

Today is fairly quiet in terms of economic data releases with German Industrial Production the only data of real note. Having said that there are a number of speakers throughout the day and its is often the analysis of these comments that can affect the currency markets so don’t be surprised if we have a volatile day in the markets.

Currency news this week

Mon, 07 May 2012 00:00:00 GMT

This week's economic data releases likely to affect exchange rates, are as follows. Check back later in the week for the latest currency news.

Monday 7th
0230 - Australian retail sales
0645 - Swiss unemployment rate
1100 - German factory orders

Tuesday 8th
0230 - Australian trade balance
1100 - German industrial production

Wednesday 9th
0700 - German trade balance
2330 - New Zealand business PMI

Thursday 10th
0050 - Japanese trade balance
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
0930 - UK industrial & manufacturing production
1200 - UK interest rate & QE decisions
1330 - US trade balance
1500 - UK GDP estimate
1900 - US monthly budget statement

Friday 11th
0700 - German consumer inflation
1330 - US producer inflation; Canadian unemployment

Friday market update

Fri, 04 May 2012 00:00:00 GMT

Thursday saw sterling have another strong performing day making gains against a basket of currencies. Most notably was the mid-market pound to euro exchange rates climbing back above the 1.23 level, the best we have seen for nearly two years. This was driven by fresh concerns over debt and economic weakness in the single area forcing investors to hold a more risk averse stance and putting money into the seemingly “safe haven” pound. This was also the reason behind gains the pound made against the antipodean currencies (New Zealand and Australian dollars). The New Zealand dollar rate which overnight weakened off following poor unemployment data continued its slide well above the key resistance point of 2 to the pound, losing nearly 3 cents in 24 hours and opening this morning another cent and a half lower.

If you are looking at sending money to any of the EU countries or down under to Australia or New Zealand in the coming weeks now is a fantastic time to be looking at locking in the exchange rate. This can be done on a forward basis, using a small deposit to fix the rate – speak to one of the team for more information on this and how it can potentially save you thousands.

Today we have already had Halifax house price data out in the UK which has come in lower than expected. With the problems in the Eurozone, the single currency remains weak but the pound has lost a bit of ground against the US dollar. Despite this, mid-market trading is still well above the 1.6 mark and so still excellent for those sending money to the USA.

Elsewhere, we have PMI and retail sales data from the EU and later a raft of US employment data including average earnings and the key non-farm payrolls figure. This latter release tends to throw up some volatile trading dependent on the results coming in better or worse than expected so keep in touch at lunchtime (1.30pm) if you have a dollar requirement which may be affected.

Have a good weekend.

Euro stays weak as unemployment rises

Thu, 03 May 2012 00:00:00 GMT

The past 24 hours were quite strong for sterling. There was some slight negativity in the market due to growth in construction sector slowing down, indicated by The Markit/CIPS construction purchasing managers' index coming in at 55.8, down from March's 21-month high of 56.7, contributing to the 0.2% contraction in the economy. However, the total figure is still positive overrall; as long as the number remains over 50, the sector is still in growth. The major problems are in the Eurozone, with unemployment figure in the region as a whole reaching a record high of 10.9%, with the largest increases in Spain, Greece and Cyprus.

There was, however, slightly positive news for Greece, as credit rating agency Standard & Poors upgraded the nations credit rating from "CCC" from "selective default" after the country completed the biggest debt restructuring in history earlier this year. The CBI business group yesterday anticipated that the UK economy would return to growth in the second half of 2012, with 0.7% and 0.5% growth anticipated for the 3rd and 4th quarters respectively, with faster growth expected next year. This has caused the sterling to euro exchange rate to be the best we've seen since June 2010. Today's important data is the UK services PMI data, as well as the Nationwide HPI. In the Eurozone, we await the French Industrial data, as well as a possibly significant ECB press conference.

The Dow Jones reached a 4 year high in the United States, showing a slight increase in manufacturing, as well as a 0.3% increase in consumer spending. This has caused sterling to edge back slightly from the small gains it made against the Dollar yesterday. Important US data out today includes Weekly Initial Jobless Claims , Preliminary Nonfarm Productivity, Preliminary Unit Labor Costs and ISM Non-Manufacturing PMI.

Exchange rates holding steady

Wed, 02 May 2012 00:00:00 GMT

The last 24 hours have not seen an awful lot of movement for Sterling, with the Pound managing to hold its own against most of the major currencies, just off the summit of the recent 22 month highs.

We are now into May though and as is usual for the start of a month, a busy few days of data releases home and abroad is on the way. Today is no exception with purchasing manager index figures out for both Germany and the Eurozone as a whole, which should give some sign as to the performance of their manufacturing industries and also German unemployment figures as well. The PMI figures are expected to be a little lower than previous, with German unemployment not expected to change much at all. Watch out for movement on the Euro’s rate pairings if these consensuses prove to be incorrect.

In the UK we have some mortgage approvals data and consumer credit figures both out at 9.30am. The expectation for mortgage approvals is they could be slightly down, which could see Sterling drop off a little, so if you need to trade today then first thing could prove a better time to avoid this.

Currency news update

Tue, 01 May 2012 00:00:00 GMT

Yesterday saw the beginning of the trading week and the final day of the month of April. Sterling continued its recent gains against a basket of currencies as investors continued to see the pound as a safer bet than the weakening dollar and euro.

Following weak US growth data on Friday and continued debt worries in the eurozone, most notably Spain joining the ‘doom and gloom’ party on Monday, the pound rose to 8 month highs against the dollar and a 22 month high against the euro. Analysts however were quick to point out that the UK has now slipped back into recession so any GBP sellers may want to look at fixing rates now as we cannot be sure this pound rally will be sustained. "It makes sense that the pound has performed relatively well of late given the shift in interest rate expectations, but it appears to be overshooting now, particularly as the UK is still in recession," said Lee Hardman, currency strategist at BTM-UFJ.

With a May Bank Holiday across much of Europe today trading volumes are likely to remain relatively low, however eyes will be on manufacturing data from both the UK and US which will give an indication as to how companies are performing and we have already seen the pound fall away significantly from yesterday’s highs.

Currency news out this week

Mon, 30 Apr 2012 00:00:00 GMT

This week's selected news releases likely to affect currency rates are as follows:

Monday 30th
0700 - German retail sales
1000 - Eurozone consumer inflation
1330 - US personal imcome & expenditure; Canadian GDP

Tuesday 1st
0530 - Australian interest rate decision
1500 - US construction

Wednesday 2nd
0815 - Swiss retail sales
0855 - German unemployment rate
0930 - UK mortgage approvals
1000 - Eurozone unemployment
2345 - New Zealand unemployment

Thursday 3rd
1000 - Eurozone producer inflation
1245 - Eurozone interest rate decision

Friday 4th
0230 - Australian monetary policy statement
1000 - Eurozone retail sales
1330 - US non-farm payrolls & unemployment rate

UK falls back into recession

Wed, 25 Apr 2012 00:00:00 GMT

This morning's news that GDP fell in the first quarter of 2012 will not help the Pound's prospects after a solid performance in recent weeks.

Official figures showed a 0.2% contraction in the economy in the first 3 months this year, which on top of a 0.3% contraction at the end of 2011, mean that we are now officially back in recession.

The Pound fell nearly a cent against both the Euro and US Dollar on the release this morning, although has recovered a little since, given that the US and Eurozone economies are in at least as much trouble as the UK.

The news has also reopened the debate on whether the Bank of England may extend Quantitative Easing in the coming months, which would also hurt the Pound. With exchange rates against many major currencies near or at their peaks in recent trading ranges, clients with requirements to send money overseas in the short and medium term may like to consider whether fixing an exchange rate now may prove to be a wise decision, particularly if economic sentiment swings back to the downside after such positive data in recent weeks.

This week's currency news releases

Mon, 23 Apr 2012 00:00:00 GMT

This week we have a lot of data due out around the world likely to affect exchange rates: Monday 23rd 0230 - Australian producer inflation Tuesday 24th 0230 - Australian consumer inflation 0700 - Swiss trade balance 0930 - UK public sector borrowing 1330 - Canadian retail sales 1500 - US consumer confidence Wednesday 25th 0930 - UK GDP 1330 - US goods orders 1730 - US interest rate decision 2200 - New Zealand interest rate decision Thursday 26th 0700 - German retail sales 0930 - UK mortgage approvals 1000 - Eurozone consumer confidence Friday 27th 0030 - Japanese unemployment 1330 - US GDP

UK inflation posts first rise since Sep, sterling follows

Tue, 17 Apr 2012 00:00:00 GMT

The Pound is up in trading today, as UK inflation figures rose slightly, in the first increase since September. The official measure, CPI, was up from 3.4% in February to 3.5% in March.

The news is likely to move further Quantitative Easing off the Bank of England's agenda, and consequently sterling is up across the board today, moving back to near the top of its recent trading ranges against a basket of currencies.

Eurozone inflation was also up, but the struggling Euro failed to gain any strength, giving us excellent rates for buying Euros.

Elsewhere, rates for sending money to Canada have dropped 2c after the Bank of Canada kept interest rates on hold at 1% but said that higher borrowing costs "may become appropriate", giving strength to the Canadian Dollar as a potential safe haven curency.

Currency news this week

Mon, 16 Apr 2012 00:00:00 GMT

We are due for a busy week ahead on the currency markets, with important data due out around the world as follows. Monday 16th 1330 - US retail sales Tuesday 17th 0230 - Australian monetary policy statement 0930 - UK consumer & retail inflation 1000 - Eurozone consumer inflation & ZEW survey 1400 - Canadian interest rate decision 1415 - US industrial production Wednesday 18th 0930 - Bank of England minutes 2345 - New Zealand consumer inflation Thursday 19th 0230 - Australian business confidence 1500 - Eurozone consumer confidence Friday 20th 0700 - German producer inflation 0930 - UK retail sales 1330 - Canadian consumer inflation

Euro weaker, Dollar stronger as week draws to close

Fri, 13 Apr 2012 00:00:00 GMT

Sterling has finished the week up against the Euro, as concerns about the rising cost of debt swept equity and currency markets. The Pound is up nearly a cent to the top of recent trading ranges as we head towards the weekend.

The US Dollar, conversely, is stronger with rates for sending US Dollars a cent lower than at the beginning of the day. US producer inflation figures, out today, showed stonger demand than expected, in a rare piece of good news for the US economy which has increased the cost of the dollar.

Next week, we have Eurozone trade balance figures on Monday morning, and US retail sales on Monday afternoon, both of which are influential on currency values. The next major UK data is consumer inflation, out on Tuesday at 9.30am.

BRC reports improvement in retail sales

Wed, 11 Apr 2012 00:00:00 GMT

Retail sales have risen at their fastest rate so far this year, giving the Pound a further boost in trading today, particularly against the US Dollar.

The British Retail Consortium reported an annual increase in 1.3% in value terms.

The Pound has held steady against the Euro today, but is up elsewhere, particularly against the US Dollar where exchange rates have increased nearly 1 cent in 24 hours.

This week's currency calendar

Mon, 09 Apr 2012 00:00:00 GMT

After the long weekend, this week sees the following data out around the world. Sterling is trading at or near recent highs against many world currencies at present, so this could be a good week to book an exchange rate for your own transaction if you need to send money overseas.

Tuesday 10th
0230 - Australian business confidence
0645 - Swiss unemployment rate
0700 - German trade balance
0930 - EU investor sentiment
2300 - New Zealand business confidence

Wednesday 11th
0130 - Australian consumer confidence
1315 - Canadian housing starts
1900 - US monthly budget statement

Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
0930 - UK goods trade balance
1330 - US trade balance & producer inflation

Friday 13th
0700 - German consumer inflation
0930 - UK producer inflation
1330 - US consumer inflation

Euro hits best rate since Oct 2010, dollar rallies

Thu, 05 Apr 2012 00:00:00 GMT

Today has seen the Pound hit its highest level against the Euro since Ocotber 2010, despite poor UK manufacturing data released this morning.

Persistent worries about Spanish debt have weakened the Euro, making money transfers in the single currency their cheapest in around 18 months.

The US Dollar, conversely, has strenghtened slightly today, althrough rates are still relatively attractive.

Spanish debt prices up on new Euro fears

Wed, 04 Apr 2012 00:00:00 GMT

Spanish borrowing costs jumped at bond auctions today, spreading fear of a return to the Eurozone debt crisis with Spain as the focus. The Euro has weakened, giving us exchange rates at the top end of recent trading, good news for anybody making Euro money transfers.

The bond auction overshadowed a more successful step back into the debt markets for Portugal. Spain sold €2.6bn at an average interest rate of 5.34%, up from 5.15% in September.

Concerns Spain will struggle to meet its tough deficit targets are likely to dominate headlines in the weeks to come, although with UK banks highly exposed to Spanish debt, it is questionable whether there will be a large effect on the exchange rate from sterling to Euros.

Manufacturing PMI gives sterling a further boost

Mon, 02 Apr 2012 00:00:00 GMT

This morning's manufacturing figures showed a welcome boost for the economy and the Pound.

The growth figure came in at 52.1 (above 50 shows growth), against expectations of 50.7, giving sterling a boost and improving rates for sending money abroad. This is the best manufacturing growth in 10 months, and on Wednesday we will see the result of the larger services sector growth.

Continuing growth is likely to put inflationary pressure on the UK economy, which means interest rate rises would be more likely, in turn increasing the value of sterling and therefore exchahge rates.

Currency news this week

Sun, 01 Apr 2012 00:00:00 GMT

As we head into April, a very busy week of data releases could lead to a volatile week for exchange rates before the Easter weekend. Check back through the week for updates or contact Currency Index for a free quote on your own transaction. This week's news releases are as follows: Monday 2nd 0815 - Swiss real estate sales 0858 - Eurozone manufacturing inflation 1100 - Eurozone unemployment rate 1500 - US construction spending & manufacturing Tuesday 3rd 0230 - Australian retail sales 0530 - Australian interest rate decision & policy statements 1000 - Eurozone GDP & production 1500 - US factory orders Wednesday 4th 0230 - Australian trade balance 0928 - UK services sector growth 1100 - German factory orders 1245 - Eurozone interest rate decision & statement 1315 - US employment change Thursday 5th 0815 - Swiss consumer inflation 0930 - UK industrial & manufacturing production 1200 - UK interest rate decision & QE 1200 - Canadian unemployment rate 1500 - UK GDP estimate Friday 6th Good Friday 1330 - US non-farm payrolls & unemployment rate

USD hits best rate since November

Fri, 30 Mar 2012 00:00:00 GMT

The rate for sending money to the USA has reached its best level since November this morning, as sterling generally performs well against the US Dollar and elsewhere in the absence of much UK economic data.

Despite better than expected German data, the rate for buying Euros has also improved.

For a quote on your own transfer in any currency, contact Currency Index for a quote to see if we can save you some money. This afternoon we have some further US data due out at 1.30pm, which is personal expenditure and consumption, and could bring rates back down if the data is better than expected.

GDP Revised Down

Wed, 28 Mar 2012 00:00:00 GMT

Sterling lost value across all major currencies this morning as UK GDP was revised down.

The pound was trading lower against most currencies as trading opened today ahead of a raft of UK data and continued to fall following the data releases. Total business investment actually came in above expectations at -3.3% month on month compared to the expected -5.4% and up 1.6% compared to -1.9% for the year on year figure. This did little to help sterling though as the GDP figures were revised down.

This was the final reading for Q4 2011, having had two previous readings in January and February. The expectation was for a final reading of -0.2% for QoQ and 0.7% growth for the YoY but in fact the revision came in at -0.3% for QoQ and 0.5% for the YoY.

This shows growth in the UK is slower than expected which will fuel the argument for further quantitative easing from the Bank of England in the coming months and is generally negative for the pound. The result for today is a half percentage point drop against the Euro and US Dollar as well as losses against most other major currencies.

Tomorrow could bring further turbulence as the Bank of England publish their credit report as well as money supply and mortgage lending figures are released.

Dollar cheapest for a month

Tue, 27 Mar 2012 00:00:00 GMT

The US Dollar is trading at its cheapest since November, as worries persisted that more Federal Reserve intervention will be needed to boost the US economy.

Fixed exchange rates for up to 2 years ahead are available for sending money to the USA, if you are buying property or paying a supplier, at the best rates for 4 months. While exchange rates are still susceptible to negative news in the UK, the headlines this week have been on worries that futher monetary easing will be needed to give the ailing US economy a boost. These worries filter through to a weaker US dollar which we are seeing this week.

Exchange rate update - Monday

Mon, 26 Mar 2012 00:00:00 GMT

The Pound has had a little movement against major currencies today, in particular we have seen an improvement of over 1c in US Dollar exchange rates. Against the Euro, gains this morning have come back this afternoon, leaving the rate for Euro money transfers the same as first thing this morning.

The Pound has also gained nearly a percent against the Thai Baht, giving the best rates for money transfers to Thailand in over a month.

There is no major data due out this afternoon, apart from ECB President Draghi's speech at 5pm.

Currency News due out this week

Sun, 25 Mar 2012 00:00:00 GMT

This week despite nearing the end of the month, there is plenty of economic data likely to keep currency markets moving. Check back for daily updates on the latest currency news here.

Monday 26th
0700 - UK house prices (Nationwide)
1300 - Speech: Federal Reserve (USA) Ben Bernanke
1700 - Speech: ECB President Draghi

Tuesday 27th
All day - G7 meeting
0700 - German consumer confidence
0930 - UK current account
1500 - US consumer confidence

Wednesday 28th
0700 - German consumer inflation
0930 - UK GDP revision and business investment
1330 - US durable goods

Thursday 29th
0100 - New Zealand business confidence
0855 - German unemployment
0930 - UK consumer credit and mortgage approvals
1330 - US GDP revision

Friday 30th
0030 - Japanese unemployment rate
0700 - German retail sales
1000 - Eurozone consumer inflation
1330 - US personal income and expenditure

Consumer Confidence Knocks The Pound

Fri, 23 Mar 2012 00:00:00 GMT

Forecasters were predicting a rise in consumer confidence from last months 47 reading to 49 for February but the figure came in at a lowly 44. Anything under 50 is seen as negative so the poor reading knocked the pound. Later this morning the British Bankers Association released mortgage approval levels which also came in under expectations at 33,100 approvals compared to 39,100 whilst also downgrading the reading for the previous month.

With no Euro zone data out today to harm the single currency the UK data took affect, losing half a cent against the Euro.

Across the pond in Canada we have Consumer Prices Index figures out at lunch time followed by New Home Sales in the US and a speech by FED chairman Ben Bernanke early evening. The Canadian dollar has been trending down against the pound giving good opportunities for buying Canadian dollars. If you have a requirement coming up speak with Currency Index today and make sure you don't miss out on the best GBP to CAD rates in the past couple of weeks.

For a quote on your own transfer, contact us at Currency Index and see how much you can save compared to using your bank.

Sterling Drops On Retail Figures

Thu, 22 Mar 2012 00:00:00 GMT

Pound to euro exchange rates were comfortably above the 1.2 mark this morning having jumped from start of European trade as weaker German services and manufacturing PMI sent the Euro lower against sterling and the dollar.

Manufacturing PMI in the EMU also dropped from 49.0 to 47.7 in March, despite a rising consensus of 49.5. Services data dropped by 0.1 from 48.8 to 48.7, against 49.2 expectations. Anything below 50 is seen as contraction in the sector and therefore negative. A drop into further contraction obviously doesn’t bode well, hence the Euro sell off first thing today.

Unfortunately the 1.2 trading level was short lived as retail sales in the UK came in lower than forecast. For the month sales came in at -0.8% compared to expected -0.4% and 1% for the year rather than 2.5% expected. This is a significant difference which weighed heavily on sterling across the board. Against the Euro we lost half a cent and a whole cent against the US dollar.

Sending Sterling To The Southern Hemisphere?

Overnight sterling gained 2 cents against the New Zealand dollar as their GDP came in well below forecast giving best New Zealand Dollar exchange rates from the pound since the start of the year. Further concerns over an economic slowdown in China are also weighing negatively on the Australian dollar (as well as the Kiwi) so for those looking to buy either currency there are some good opportunities to secure now.

Sterling Falls On BoE Minutes

Wed, 21 Mar 2012 00:00:00 GMT

This morning we have seen the pound lose ground to all major currencies as borrowing figures were nearly double the forecast. Net public borrowing rose from £8.9 billion in February to £15.2 Billion, much more than the expected £8 billion. This figure will come as a big blow to George Osbourne on the day of his third budget at lunchtime today.

In addition to this the Bank of England minutes from the meet earlier in the month showed 2 members voted for a further increase to Quantitative Easing by another £25 Billion highlighting the Bank could still implement more in coming months. Such a move would almost certainly be a negative move for sterling and we've seen the markets adjust for that, increasing the cost of international payments from the UK.

If you have a buying Euro requirement coming up in coming months it may be prudent to look at fixing the exchange rate in case any such move does come from the BoE and the rates drop further. You can fix the rate for up to 2 years, securing your entire Euro requirement for just a small deposit up front. Speak to one of the team at Currency Index to discuss this option in more detail and see if it's the right choice for your needs.

Pound Rises On Inflation Figures

Tue, 20 Mar 2012 00:00:00 GMT

The inflation figures out this morning came in higher than expected showing inflation is easing less than forecast.

Consumer price inflation fell to 3.4 percent from 3.6 percent in January, the lowest level in more than a year but still above the consensus forecast for a drop to 3.3 percent.

The main focus for the pound now is the annual UK budget, as well as Bank of England minutes tomorrow. Some analysts say sterling could get a boost if George Osborne announces measures to support growth. The budget is expected to show government borrowing next year falling below £100 billion for the first time since 2008/9, while the growth outlook for 2012 could be nudged higher.

Check back for the latest exchange rate news as the week develops.

This week's currency news

Sun, 18 Mar 2012 00:00:00 GMT

This week sees the UK budget on Wednesday, as well as important news out around the world likely to affect exchange rates:

Monday 19th
No major data

Tuesday 20th
0030 - Reserve Bank of Australia minutes
0700 - German producer inflation
0815 - Swiss industrial production
0930 - UK consumer & retail inflation
2145 - New Zealand current account

Wednesday 21st
UK budget
0930 - Bank of England minutes & public sector borrowing
1400 - US existing home sales
2145 - New Zealand GDP

Thursday 22nd
0700 - Swiss trade balance
0930 - UK retail sales
1230 - Canadan retail sales
1500 - Eurozne consumer confidence

Friday 23rd 1100 - Canadian consumer inflation
1400 - US new home sales

US inflation weakens dollar

Fri, 16 Mar 2012 00:00:00 GMT

Today's inflation figures from the USA weakened the dollar, improving exchange rates for money transfers to the USA.

Rates have improved nealy 1% during the afternoon, reversing the trend so far through the week, after figures showed that inflationary pressure is building in the US economy, and also data showing industrial production growth was flat in February.

Buying US dollars is now as cheap as 10 days ago and near the top of recent trading ranges.

Sterling down on credit ratings

Thu, 15 Mar 2012 00:00:00 GMT

The Pound fell back from 1-month highs against the Euro today, as Moody's and Fitch both said that Britain may lose its triple-A credit rating.

Credit ratings are important for a currency, since they influence inward investment and therefore demand for the local currency.

Tomorrow there is no major data due out in the UK but with Wednesday's budget looming, we are sure to see some volatility for commercial exchange rates in the coming days.

Unemployment stays at 8.4pc

Wed, 14 Mar 2012 00:00:00 GMT

Today's headline unemployment figure of 8.4% is the same as last month and as expected, but youth unemployment hit a record high in January.

The Office for National Statistics said the total number of benefit claimants rose by 7,200 to 1.6 million.

While not disastrous, the slightly negative news has caused the Pound to fall, putting an end to the run we have seen for better exchange rates in the last 48 hours. We are still near to 2012's best rates for sending Euros, and tomorrow we have Eurozone unemployment figures as well as the European Central Bank monthly report.

Pound up across the board as EU demands more austerity

Tue, 13 Mar 2012 00:00:00 GMT

Sterling has had a good day, with rates better for sending money abroad in most currencies today.

The Euro in particular has weakened, as a European Commission report has said that Greece will have to slash a further5.5% of GDP in spending in 2013, leading to more doubts about the sustainability of the now-signed-off bailout package.

The US Dollar is also cheaper ahead of the Federal Reserve meeting this evening, while exchange rates are better for the Pound against the Australian, New Zealand and Canadian dollars too in trading today.

For a quote on your own transfer, contact us at Currency Index and see how much you can save compared to using your bank.,

EU ministers meet today

Mon, 12 Mar 2012 00:00:00 GMT

EU ministers are meeting today and are expected to give final approval to the Greek bailout deal. The Euro has been strengthening (giving worse rates for sending Euros) this morning, despite worries over Spain missing new deficit targets, but having signed off the credit swap with private creditors last week, Greece will now be in line to receive its bailout payout before the looking deadline to refinance its debts.

The Pound is also falling back against the US Dollar, having lost nearly a cent in morning trading.

Currency news this week

Sun, 11 Mar 2012 00:00:00 GMT

This week's economic data due out and likely to affect exchange rates is as follows:

Monday 12th
All day - EU finance ministers meeting
1800 - US monthly budget statement

Tuesday 13th
0030 - Australian business confidence
1000 - Eurozone economic sentiment
1230 - US retail sales
1900 - US interest rate minutes

Wednesday 14th
0930 - UK unemployment
1000 - Eurozone consumer inflation

Thursday 15th
0830 - Swiss interest rate decision
0900 - European Central Bank monthly report
1000 - Eurozone employment change

Friday 16th
1230 - US consumer inflation

Greek bond deal goes through, Euro stronger

Fri, 09 Mar 2012 00:00:00 GMT

Greek creditors last night accepted a deal to cut the value of their debt, paving the way for the EU/IMF bailout to go ahead in time to avoid a catastrophic debt default. Unsurprisingly the Euro has strengthened overnight and this morning, with rates for sending payments to Europe now around a cent lower than yesterday.

In the UK, a mixed bag of data this morning has left sterling largely unaffected, with factory prices up but industrial and manufacturing figures not as good as expected.

For a live quote on your own transaction, contact us on 0800 043 2623.

Interest rates held in the UK, Eurozone and Canada

Thu, 08 Mar 2012 00:00:00 GMT

Today's interest rate decisions have not thrown up any surprises, and Quantitative Easing in the UK has remained the same.

Interest rates, which are a key factor in exchange rate fluctuations, have been held steady in the UK (0.5%), Eurozone (1%) and Canada (1%). QE, which tends to hurt the Pound, has been held too.

ECB President Draghi is speaking this afternoon, and markets will be nervous ahead of tonight's Greek bond swap deal deadline. For now, sterling is up against the US Dollar and down against the Euro, which may strengthen further tonight if the final hurdle for Greece's bailout is overcome. Sending money to Japan is also slightly cheaper, with the Yen 1% lower against sterling.

New Zealand dollar cheapest since January

Wed, 07 Mar 2012 00:00:00 GMT

Sending money to New Zealand has become a little cheaper this week, with the New Zealand Dollar at its weakest level against sterling since mid-January. At 8pm tonight the Reserve Bank of New Zealand kept interest rates on hold at 2.5%, but negative sentiment in the lead up to the monetary statement caused selling off of the NZD, with risk aversion also a factor. While the Kiwi remains well below the £1=$2 level last seen at the turn of the year, at least those of you making money transfers to New Zealand have a little better news this week.

Australian interest rates held

Tue, 06 Mar 2012 00:00:00 GMT

The Reserve Bank of Australia this morning held interest rates at 4.25%, in a widely expected move. The Australian dollar held steady on the news at 3.30am UK time, and rates for sending money to Australia are currently sitting at their best since January, although overall rates remain low compared to recent years.

In the UK this morning, house price data from the Halifax has shown a 0.5% fall in house prices in February, causing the Pound to fall slightly as the fragile economic recovery remains responsive to any negative news.

Services growth slows, but still indicates economy picking up

Mon, 05 Mar 2012 00:00:00 GMT

This morning's UK services PMI showed that the dominant services sector in the UK grew less than expected in February, but combined with the manufacturing data last week shows that Britain is on course to stave off a second recession.

The British Chambers of Commerce said that Britain will avoid a recession and the Bank of England will not need to inject anymore stimulus, but the recovery will be weak and the government should step up its efforts to boost growth.

This makes the most likely course for sterling unclear, particularly as the Eurozone crisis looks to have been averted for now and we could see some Euro strength in the coming weeks. Later this week we have key data releases in Europe, the USA, Australia, Canada and New Zealand, so check back for the latest currency news as it happens.

This week's currency news

Sun, 04 Mar 2012 00:00:00 GMT

This week's currency news schedule is a busy one, as we have the monthly round of interest rates in several countries as well as important industrial and consumer figures out around the world.

Monday 5th
0815 - Swiss retail sales
0928 - UK services sector PMI
1000 - Eurozone retail sales
1500 - US factory orders

Tuesday 6th
0330 - Australian interest rate decision
1000 - Eurozone GDP

Wednesday 7th
0030 - Australian GDP
1100 - German factory orders
2000 - New Zealand interest rate decision

Thursday 8th
0030 - Australian unemployment rate
0815 - Swiss inflation (CPI)
1100 - German industrial production
1200 - Bank of England QE & interest rate decision
1245 - Eurozone interest rate decision
1400 - Canadian interest rate decision

Friday 9th
0030 - Australian trade balance
0700 - German inflation (CPI)
0930 - UK industrial & manufacturing production
1200 - Canadian unemployment rate
1330 - US trade balance, unemployment & non-farm payrolls

Canadian Dollar boosted by GDP

Fri, 02 Mar 2012 00:00:00 GMT

Canadian GDP, released today, showed a surprise increase to 0.4% in December, strengthening the Canadian Dollar (CAD) and causing rates for sending money to Canada to fall over a cent against the Pound.

Sterling is up slightly against the Euro despite the Fiscal Pact being signed off at the EU summit today, but has fallen back from recent highs against the US Dollar during trading today.

On Monday we have UK services sector data which is an important indicator of the health of the UK economy, and can therefore have a pronounced effect on the Pound.

Fears of recession fall back, sterling rides higher

Thu, 01 Mar 2012 00:00:00 GMT

The Pound has continued to climb, as the manufacturing sector expanded again in February. Although not as much as expected, the increase shows that the UK is slowly heading away from a double-dip recession danger zone. Monday's services sector data, which accounts for a larger portion of UK output will be more revealing.

In contrast, the Eurozone unemployment level has hit a new record high today, German manufacturing growth has slowed, and Spain's factory decline has put the country on course for a new recession.

Not surprisingly, Euro exchange rates have improved again, with the single currency cheaper after the data releases.

In the US and Canada today, mixed data has held exchange rates steady.

Pound up as Bank of England play down further QE

Wed, 29 Feb 2012 00:00:00 GMT

The Pound is up across the board, as Bank policy maker Martin Weale says there is not much of a case for more quantitative easing. Earlier this month the Bank of England injected £50bn of extra purchasing into the economy, which tends to hurt exchange rates as sterling is effectively diluted.

There had been speculation that further QE would be used, but more positive economic data now seems to have put the QE agenda in the background.

Elsewhere weak European inflation also weakened the Euro. Overall, sterling is trading near recent highs against both the Euro and US Dollar, and rates for sending money to Switzerland, Australia and New Zealand are also up.

US Dollar cheaper on poor manufacturing data

Tue, 28 Feb 2012 00:00:00 GMT

The US Dollar has weakened again, giving better rates for sending USD payments, after this afternoon's durable goods orders in the USA, which cover large household orders etc, were much worse than expected.

The Pound is up nearly a cent against the US Dollar, and even this afternoon's better consumer confidence figures did not stop the currency sliding.

Sterling is also slightly up against the Euro after Angela Merkel faced new opposition in Germany for plans to beef up the EU stability fund for any future bailouts which may be needed.

This week's currency news

Sun, 26 Feb 2012 00:00:00 GMT

This week's economic news releases, likely to affect currency exchange rates, are as follows:

Monday 27th
No major data

Tuesday 28th
1000 - Eurozone consumer confidence
1300 - German inflation (CPI)
1500 - US consumer confidence

Wednesday 29th
0030 - Australian retail sales
0855 - German unemployments
0930 - UK consumer credit & mortgage approvals
1000 - Eurozone inflation (CPI)
1300 - US GDP

Thursday 1st
0645 - Swiss GDP
1000 - Eurozone unemployment
1330 - US consumption & expenditure
1500 - US construction & manufacturing

Friday 2nd
0700 - German retail sales
1000 - Eurozone inflation (PPI)
1330 - Canadian GDP

UK GDP unchanged as Lloyds racks up massive losses

Fri, 24 Feb 2012 00:00:00 GMT

This morning's revised UK GDP figure was unchanged at -0.2% for the fourth quarter last year, in neutral news which did little to help or hinder the Pound. Making more headlines were the Lloyds Banking Group's £3.5bn loss for the year, showing that the banking crisis is not over just yet.

There is now hope that the UK economy may not dip back into recession in 2012, following recent encouraging data in retail sales and consumption. Sterling has gained slightly across the board in the last couple of days, apart from against the Euro which has itself strengthened after the Greek bailout deal was officially agreed earlier this week.

The next major UK currency news is not due out until we see mortgage approvals and consumer credit on Wednesday.

Sterling falls after Bank of England minutes

Wed, 22 Feb 2012 00:00:00 GMT

This morning's Bank of England minutes have sent the Pound falling back as it was revealed that 2 committee members voted for a larger increase in Quantitative Easing. David Miles joined long-standing "dove" Adam Posen in voting for a £75bn boost, but were outvoted by the other seven monetary policy committee (MPC) members, who voted for the £50bn increase.

QE is notoriously bad for sterling, and the minutes showed that there may be further economic stimulus to come in the months ahead.

UK public borrowing in surplus, as EU sign off Greek bailout

Tue, 21 Feb 2012 00:00:00 GMT

This morning's UK public sector borrowing figures showed their biggest surplus for 4 years, prompting speculation that the government may beat its own borrowing forecasts for the year.

The UK's total public sector net debt, excluding financial sector interventions, fell back to £988.7bn, having breached £1tn in December. The surprise improvement is good for the Pound, although with the GDP revision due out on Friday, markets will still be cautious.

Meanwhile the EU have formally agreed the Greek bailout package, which will mean Greece can refinance its debts in March and stay in the Eurozone. Euro exchange rates had been tipped to fall on the news, but there is still scepticism about the longevity of the solution, so the sovereign debt crisis has probably got some distance to run yet.

Greek deal edges closer

Mon, 20 Feb 2012 00:00:00 GMT

Finance ministers today moved closer to approving Greece's bailout package, which will enable the refinancing of debt and stability for the Euro, for now at least.

A deal would provide immediate relief to Athens and financial markets but no one is pretending it will end Greece's problems. Figures last week showed its economy shrank 7 percent year-on-year in the last quarter of 2011, much more than expected, with further cuts likely to make matters worse.

Therefore, once the bailout is agreed, the short-term future of the single currency bloc will be secured, but some analysts are concerned about Greece's ability to implement its tough austerity measures - so we may end up back in the same position again in a few months' time.

For exchange rates, it is likely that the Euro could strengthen when the deal is finally agreed, giving worse exchange rates for buying Euros.

The longer term outlook is, as much as ever in recent times, very hard to predict.

Currency news this week

Sun, 19 Feb 2012 00:00:00 GMT

This week's economic news due out is as follows: Monday 20th US Bank Holiday 1430 - Eurozone finance ministers meeting Tuesday 21st 0030 - Reserve Bank of Australia minutes 0700 - Swiss trade balance 0830 - UK public borrowing 1330 - Canadian retail sales 1500 - Eurozone consumer confidence Wednesday 22nd 0930 - Bank of England minutes 1000 - Eurozone industrial orders 1500 - US home sales Thursday 23rd 0930 - UK mortgage approvals 1500 - US house price index Friday 24th All day - G20 summit 0700 - German GDP 0930 - UK GDP

Retail sales in surprise jump

Fri, 17 Feb 2012 00:00:00 GMT

This morning's retail sales figures showed a surprise 0.9% increase in January, boosting the Pound, as risks of another UK recession fell. Sterling has gained half a cent against both the Euro and the US Dollar, and rates for sending money abroad are up across the board. In Europe, Greece now expects to get approval on Monday for its long awaited debt-swap with private investors, paving the way for its bailout. This could strengthen the Euro next week.

UK unemployment up as Italy and Netherlands fall into recession

Wed, 15 Feb 2012 00:00:00 GMT

UK uneployment rose this morning, but by its smallest amount in a year, as official figures showed contraction in Germany with Italy and Holland now in recession.

The Euro has weakened on the back of the disappointing Eurozone GDP figures, with growth in the single currency zone at -0.3% in the fourth quarter of 2011. In addition, the Greek government is yet to clarify exactly how its austerity measures will be implemeted, giving a weaker Euro and better rates for sending Euros abroad, while talks continue today.

The UK unemployment data could have been worse, so sterling has held up, although Bank of England Governer Mervyn King said in his speech this morning that further Quantitative Easing could be on the agenda in the coming months, which does not bode well for the Pound.

Inflation at lowest level since November 2010

Tue, 14 Feb 2012 00:00:00 GMT

This morning's UK inflation data shows a drop in the main CPI measure to 3.6% in January, from 4.2% in December, ahead of tomorrow's Bank of England quarterly report.

The drop is in line with the Bank of England's forecasts and paves the way for more Quantitative Easing in the coming months, which is not good news for sterling.

Tomorrow's quarterly inflation report is a key news release for inflation, the UK economy at large, and therefore the Pound. Exchange rates for sending currency or receiving payments from abroad are likely to be affected as the report is released at 10.30, with UK unemployment first at 9.30 tomorrow.

Greek parliament approves austerity, but bailout still in question

Mon, 13 Feb 2012 00:00:00 GMT

The Greek parliament yesterday voted through the austerity measures needed for the bailout package which should keep Greece in the Euro, but riots and unrest mean the deal is still in doubt.

Riots and looting on the streets of Athens show that the government will not have an easy time implementing the measures, which the EU and IMF are demanding assurances on before handing over bailout funds. Greece needs €14.5bn by March 20th to avoid a default on its debt payments.

The Euro is likely to strengthen once the bailout is finally agreed, giving lower exchange rates for sending Euro payments. EU finance ministers meet on Wednesday and will be looking for assurances from Greece. Despite yesterday's vote, the Euro has only strenghtened slightly this morning, as markets await the next developments. Euro exchange rates could fall once there is a consensus that the bailout is definitely going to happen, but don't forget at Currency Index we can offer a guaranteed Euro rate up to 2 years in advance to take advantage of the current favourable rates.

This week's currency news

Sun, 12 Feb 2012 00:00:00 GMT

As well as the crucial Greek vote on austerity measures, needed to secure their bailout (and perhaps likely to lower rates for sending Euro payments), we have the following news due out this week:

Monday 13th
0030 - Australian home loans

Tuesday 14th
0930 - UK inflation (CPI)
1000 - Eurozone industrial production
1330 - US retail sales
2145 - New Zealand retail sales

Wednesday 15th
0700 - German GDP
0930 - UK unemployment & earnings
1000 - Eurozone GDP
1030 - Bank of England inflation report
1900 - Federal Reserve minutes

Thursday 16th
0030 - Australian unemployment
0900 - European Central Bank monthly report
1330 - US inflation (PPI)
1400 - Speech: Federal Reserve Chairman Bernanke

Friday 17th
0700 - German inflation (PPI)
0930 - UK retail sales
1200 - Canadian inflation (CPI)
1330 - US inflation (CPI)

QE extended as Greece agrees to cuts

Thu, 09 Feb 2012 00:00:00 GMT

The Bank of England has extended Quantitative Easing, but only by £25bn, as Greece finally agreed budget cuts with the EU.

The QE decision was widely expected, so while not good news for the Pound, there has not been a huge negative effect on exchange rates. There was a chance that £50bn would be injected, which would have been likely to make exchange rates fall, so we must wait to see if further extensions are made in future months.

Meanwhile in Greece, the government finally agreed to savage austerity cuts needed to secure their second bailout, which gave the Euro some strength and brought Euro money transfer rates down in the afternoon. Markets will watch closely for reaction in Greece where strikes are already planned, but if the bailout happens in March we would expect to see some stability return to the single currency area, and Euro strength as a result.

Sterling down ahead of QE decision

Wed, 08 Feb 2012 00:00:00 GMT

The Pound is under pressure ahead of the Bank of England's Quantitative Easing decision at noon on Thursday.

The Bank is wideley expected to inject more money into the UK economy by way of gilt purchases, which effectively dilute sterling and historically has brought exchange rates down dramatically.

UK industrial and manufacturing production is also due out at 9.30 on Thursday.

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Australian interest rates held

Tue, 07 Feb 2012 00:00:00 GMT

The Australian Dollar has gained further strength today, after the Reserve Bank of Australia left interest rates on hold.

Markets were expecting a cut from 4.25% to 4%, to improve confidence and spending. A cut had been priced in to exchange rates, so when interest rates were held at 3.30am, the Australian Dollar strengthened dramatically, giving already-low exchange rates a push even lower. Rates for sending money to Australia are at historic lows.

Euro weakens as Greece delays austerity acceptance

Mon, 06 Feb 2012 00:00:00 GMT

The Euro has weakened today, giving better rates for sending Euros, as Greek ministers delayed approval of austerity measures which are a pre-requisite for the new bailout deal. Chancellor Merkel is said to be losing patience with the Greek government, which needs the bailout in order to re-finance its debt in March. Without accepting the tough austerity measures, there will be no bailout - so the Euro has reacted to the latest delay by losing value. "We want Greece to stay in the euro," said Merkel. "I want to make clear once again that there can be no deal if the troika proposals are not implemented. They are on the table ... Something needs to happen quickly." If Greece does not accept the bailout, it is likely to default on its debts and would probably then have to leave the Euro.

Currency news due out this week

Sun, 05 Feb 2012 00:00:00 GMT

This week we have the prospect of further Quantitative Easing from the Bank of England which could put pressure on sterling. The weeks' full economic data likely to affect exchange rates is as follows. Monday 6th 0030 - Australian retail sales 0800 - UK house prices (Halifax) 1100 - German factory orders 1500 - Canadian purchasing inflation Tuesday 7th 0330 - Australian interest rate decision 2000 - US consumer credit Wednesday 8th 0645 - Swiss unemployment 0700 - German trade balance 2145 - New Zealand unemployment Thursday 9th 0930 - UK trade balance & industrial production 1200 - UK quantitative easing & interest rate decision 1245 - Eurozone interest rate decision 1330 - ECB President Draghi speech Friday 10th 0700 - German inflation (CPI) 0815 - Swiss inflation (CPI) 0930 - UK inflation (PPI) 1330 - US trade balance 1900 - US budget statement

New Euro blog launched

Sat, 04 Feb 2012 00:00:00 GMT

Currency Index dealer Simon Eastman has launched a new blog specifically to keep clients updated with sterling - euro news. The blog can be found at http://www.poundeuroexchange.co.uk.

UK manufacturing gives sterling a boost

Wed, 01 Feb 2012 00:00:00 GMT

Today's UK manufacturing data has given the Pound a welcome boost, with renewed optimism that a recession may yet be averted.

The manufacturing sector returned to growth in January, according to the Purchasing Manager Index (PMI) figures released this morning. This is the first time industrial orders have risen for 6 months, and has eased fears that the UK economy is slipping back into recession.

Sterling has reacted positively, gaining 1c against the US Dollar and 0.3c against the Euro.

Tomorrow morning we have Eurozone producer inflation and UK construction data; today has now seen the best rate for sending US dollars abroad since mid-November.

Eurozone unemployment hits highest level in single currency era

Tue, 31 Jan 2012 00:00:00 GMT

The Euro has weakened over 1c against sterling today, as Eurozone unemployment figures hit their highest level since 1998.

In a stark reminder of the disparity of Eurozone economies, Italian unemployment was up to 8.9%, its highest since 2004, and Germany's fell to historic lows.

This has weakened the Euro, giving better rates for sending money to the single currency zone, despite new optimism yesterday that the debt crisis might be brought under control by the new fiscal pact signed by 25 of the 27 EU member states.

Elsewhere today the market has stayed relatively flat, despite negative consumer credit and mortgage approval figures in the UK.

Tomorrow morning sees a lot of data released around the world, with Eurozone inflation at 10am perhaps the most important for exchange rates.

Caution ahead of EU summit today

Mon, 30 Jan 2012 00:00:00 GMT

EU leaders are meeting in Brussels today and are likely to sign off a new permanent rescue fund and balanced budget rules, with unresolved Greek debt concerns casting a shadow over proceedings.

Markets are cautious ahead of the results. While one could expect to see Euro strength based on a new stability pact and rescue fund, the lingering problems over Greece may stop the Euro from gaining too much value. Nevertheless we could see exchange rates for buying Euros start to slip back (Euro strength) as the day proceeds.

Elsewhere the only significant data out today is US personal consumption and expenditure at 1.30pm UK time, so currency markets are likely to be dominated by events in Brussels.

This week's economic calendar

Sun, 29 Jan 2012 00:00:00 GMT

This week's economic calendar, with data due out which is likely to affect exchange rates, is as follows:

Monday 30th
0700 - German retail sales
1330 - US personal income & consumption

Tuesday 31st
Overnight - UK consumer confidence
0855 - German unemployment
0930 - UK individual lending
1000 - Eurozone unemployment
1330 - Canadian GDP

Wednesday 1st
0815 - Swiss retail sales
1000 - Eurozone inflation (CPI)
1500 - US manufacturing & construction
2145 - New Zealand unemployment

Thursday 2nd
0030 - Australian trade balance
1000 - Eurozone inflation (PPI)
1330 - US jobless claims

Friday 3rd
1000 - Eurozone retail sales
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate

USD exchange rate at its highest since November

Thu, 26 Jan 2012 00:00:00 GMT

Weaker than expected US data, along with the prospect of further monetary easing in the States, have weakened the dollar to its cheapest level since November.

The dollar had also been stronger due to the Eurozone crisis, but with Greek negotiations perhaps back on track and an EU summit next week, the single currency has gained in value while the US Dollar has weakened off.

Today's US jobless claims and home sale figures came out below analysts' expectations, which have also made the dollar cheaper through today's trading. Sending money to the USA has not been as cheap since November, while the Pound-Euro rate has dipped nearly 1c from its high yesterday.

A day full of currency news dizzies the markets

Wed, 25 Jan 2012 00:00:00 GMT

Today saw a multitude of important news releases and developments around the world, all with a strong influence on exchange rates.

In the UK the figures for the fourth quarter 2011 GDP showed a disappointing 0.2% contraction in the British economy. At the same time, the Bank of England minutes revealed that the monetary policy committee are likely to add to quantitative easing in February, and public borrowing figures were not positive either. This should all have been disastrous for the Pound, but somehow sterling held its own on the markets for the most part of the day.

Next, we had Eurozone talks said by Greece to be close to concluding this week, which could bring at least a temporary solution to sovereign debt concerns. This may well strengthen the Euro, giving worse exchange rates for sending money to the single currency area.

Finally in the USA Federal Reserve chairman Ben Bernanke signalled that the US central bank is also considering more monetary easing, and that interest rates would remain near zero until 2014. This weakened the dollar, giving the best exchange rates for some weeks for sending money to the USA.

All in all, a very busy day with exchange rates proving unpredictable. There are opportunities to secure preferential rates in the current markets, whatever currency you need to buy or sell, so do contact us for some help with your own transaction.

Greek talks falter but positive data keeps Euro rates stable

Tue, 24 Jan 2012 00:00:00 GMT

This morning's better-than-expected Purchasing Manager Index (PMI) data gave the Euro a boost, before reported problems with Greek creditors reintroduced debt fears to the market. The PMI index, often seen as a growth indicator, was way above analysts' expectations, and strengthened the Euro, reducing exchange rates for sending Euro payments. However, The Euro later lost ground (making it cheaper again) as Eurozone ministers struggle to convince Greece's private creditors to accept a massive write-off of the value of their bonds, which is crucial for the new bailout package. Greece has until late March to refinance its existing debt. Elsewhere we have seen impmrovements for the Pound against the Canadian, US and New Zealand dollars, ahead of tomorrow's Bank of England minutes and GDP figure in the UK. Both are released at 9.30am.

This week's currency news

Mon, 23 Jan 2012 00:00:00 GMT

This week we have the following data releases scheduled, all of which will have an influence on exchange rates through the week. Monday 23rd 0030 - Australian producder inflation 0900 - Eurozone finance meeting 1500 - Euorzone consumer confidence Tuesday 24th 0930 - UK public sector borrowing 1000 - Eurozone industrial orders 1330 - Canadian retail sales Wednesday 25th 0030 - Australian consumer inflation 0900 - German business climate survey 0930 - Bank of England minutes & UK GDP 1915 - US interest rate decision 2000 - New Zealand interest rate decision Thursday 26th 1330 - US durable goods orders & jobless claims 1500 - US home sales 2145 - New Zealand trade balance Friday 27th 1330 - US GDP

UK unemployment hits 17 year high

Wed, 18 Jan 2012 00:00:00 GMT

This morning's UK unemployment rate showed an increase in the number of Britons out of work to 2.685m, the highest since 1994. In a stark illustration of the underlying weakness of the UK economy, this equates to 8.4% of the workforce, although the rate of increase does appear to be levelling off compared to recent months. The next couple of months will be crucial in determining whether the UK can stave off a second recession. Any signs that we may be heading back to negative growth would be likely to hurt sterling, resulting in lower exchange rates for curency transfer services. The next important UK data is for retail sales, due out on Friday morning.

UK inflation falls back as Bank of England mulls more QE

Tue, 17 Jan 2012 00:00:00 GMT

Today's UK inflation data showed consumer inflation falling to 4.2% in December, in line with Bank of England forecasts, hurting the Pound as more quantitative easing now becomes a possibility. The fall in inflation was helped by lower fuel prices and heavy high street discounting. While getting inflation under control is important for the economy at a time when wages are hardly rising, it is unfortunately not good for the Pound, since it gives the Bank of England more scope to increase quantitative easing which may happen in February. QE simply dilutes the value of sterling, usually giving significantly lower exchange rates, not good if you are sending money abroad. Tomorrow we have unemployment figures out which will be another important barometer of UK economic health and again could affect sterling when the announcement comes out at 9.30am.

Papademos promises debt deal will be done in time

Mon, 16 Jan 2012 00:00:00 GMT

Greek Prime Minister Lucas Papademos has promised a debt swap would be clinched in time (Greece needs a deal with the private sector, EU and IMF by late March to avoid default) and dispatched senior officials to Washington on Monday to break a deadlock in talks that has prompted new fears of a disorderly default. The swap deal is crucial to the second Greek bailout and therefore also crucial to the Euro, both in terms of short term exchange rates, and long term stability. Senior inspectors are due in Athens next week for talks to finalise the second, €130 billion bailout which was agreed in October. The debt swap should be watched carefully by buyers of all major currencies, since the Euro is very sensitive to any positive or negative sentiment on the issue, with knock on effects likely to be felt in most currencies around the world. For your own transaction, Currency Index are on hand to discuss how the upcoming developments might affect rates. Simply call us for an informal chat and of course some of the best rates currently available for transfers to or from any other currency.

This week's currency news

Sun, 15 Jan 2012 00:00:00 GMT

This week we have the following news releases likely to affect exchange rates: Monday 16th US bank holiday 1800 - ECB President Draghi's speech 2100 - New Zealand business confidence Tuesday 17th 0930 - UK inflation (CPI) 1000 - Bank of England Governor King's speech; Eurozone inflation (CPI) 1400 - Canadian interest rate decision Wednesday 18th 0930 - UK enemployment 1330 - US producer inflation 2145 - New Zealand inflation (CPI) Thursday 19th 0030 - Australian unemployment 0900 - European Central Bank monthly report 1330 - US inflation (CPI) Friday 20th 0700 - German producer inflation 0930 - UK retail sales 1200 - Canadian inflation (CPI) 1500 - US existing home sales

Euro drops back on rumours of French downgrade - USD moves opposite

Fri, 13 Jan 2012 00:00:00 GMT

Today's news, which was due to be dominated by economic data on both sides of the atlantic, has now focussed on a rumoured downgrade of several Eurozone countries' credit ratings by S&P. France could see its credit rating hit along with many other Eurozone countries. The rumours have caused Euro weakness, improving the exchange rate for buying Euros by over 1c this afternoon, while the USD has moved in the opposite direction giving us the lowest GBP-USD rate since July 2010.

Euro price rises as Italian and Spanish bond sales beat expectations

Thu, 12 Jan 2012 00:00:00 GMT

The Euro has strengthened against sterling in trading today, as Spain and Italy's borrowing costs fell sharply in auctions today. Spain borrowed 10bn Euros - twice as much as its original target - paying an average interest rate below 4%, while the interest rate on Italian 12-month bonds fell to 2.735% from 5.952% at the last similar auction in December. The cost of debt refinancing in Italy and Spain has been one of the main worries in the Eurozone crisis, so the cheaper auctions unsurprisingly caused the Euro price to increase, giving lower exchange rates for buying Euros. In addition, the ECB held interest rates at 1%, and in the UK we saw a drop in manufacturing and industrial production. Thankfully the Bank of England did not extend quantitative easing, although this could happen next month, putting additional pressure on the Pound. Weak retail sales in the US have kept the dollar rate steady today. Tomorrow we have UK producer inflation at 9.30am and the Eurozone trade balance at 10am. For the latest news and a quote on your own currency transfer please contact us on 0800 043 2623 or +44 1923 725725.

Markets quiet ahead of data tomorrow

Wed, 11 Jan 2012 00:00:00 GMT

Exchange rate volatility has taken a break today, as a quiet day for data releases has left the Pound relatively static. Tomorrow we have an important raft of data, including German inflation, UK & Eurozone industrial production, UK & Eurozone interest rates and QE, ECB President Draghi's speech, US jobless claims and retail sales, and Canadian house prices. All of this could lead to some movement in exchange rates, so make sure you contact us if you would like us to update you with any spikes in the market during the day to secure the rate for your own transaction.

This week's currency news

Mon, 09 Jan 2012 00:00:00 GMT

This week we have a packed calendar of economic data likely to move exchange rates. Most notably on Thursday there is key data out in the UK (Quantitative Easing & industrial production), USA (monthly budget report & retail sales) and Eurozone (interest rate & industrial production). Exchange rates for sending money abroad could be in for a volatile week. Further afield we have important data out from Australia and Canada in the next 2 days. Whichever currency you are buying or selling, contact us at Currency Index for the latest news and a money-saving quote on your own transaction. Monday 9th 0030 - Australian retail sales 0700 - German trade balance 0815 - Swiss retail sales 1200 - Canadian inflation (CPI) 2000 - US consumer credit Tuesday 10th 1315 - Canadian housing construction 2330 - Australian consumer confidence Wednesday 11th 1900 - Federal Reserve Beige Book Thursday 12th 0700 - German inflation (CPI) 0930 - UK industrial production 1000 - Eurozone industrial production 1200 - Bank of England QE & interest rate decision 1245 - European Central Bank interest rate decision 1330 - US retail sales 1500 - UK GDP estimate 1900 - US monthly budget statement Friday 13th 0930 - UK producer inflation 1000 - Eurozone trade balance 1330 - US trade balance

Euro hits 16-month low

Sun, 08 Jan 2012 00:00:00 GMT

The Eurozone has taken yet another beating this week, due to concerns over the state of Europe’s banks. Many of the problems seem to be situated in Italy, with shares in the UniCredit bank falling 14.5 pecent on Wednesday, followed by a 17.3 percent fall on Thursday, a 19 year low. In other European banking news, we’ve also seen falls in shares in Germany’s Deutsche Bank (6%), France’s BNP Paribas (5.3%) and Spain’s Santander (4.5%). Many European countries seem to have adopted further austerity measures, especially Spain, which is aiming to cut its spending by 8.9bn Euros this year. Whilst these measures will no doubt be welcomed in the Eurozone, it is unlikely they will have a large impact on the overriding problems prevalent in the region. Greece continues to be a problem with the announcement that it may have to default on its debts in March. Its not all bad news for Europe though, with higher than expected manufacturing figures for December and unemployment figures in Germany hitting a record low. France and Germany still seem to be keeping the Euro stable, and this is reflected in their improved business activity for December. These problems in Europe, combined with the effects of David Cameron’s decisions at December’s Eurozone summit, has dropped the value of the Euro against the Pound to its lowest level in 16 months, giving us the best rates for transferring pounds into Euros since September 2010. In the United States, we have seen increased growth in the service sector which, in turn has increased the value of the Dollar. As with the pound, it has hit a 16 month high against the Euro, giving us the best rates for transferring dollars into Euros. With the level of problems in the Europe, many people may be worried about the total collapse of the Euro, which may affect decisions to purchase property overseas. With regards to this, it seems that any concerns about the Euro completely collapsing appears to be the result of media sensationalism. While there is no doubt that the Euro is in trouble, the economic and political turmoil that would be caused by disbanding the Eurozone means that, while it is possible that nations with weaker economies (IE: Greece) may drop out, the chances of the entire currency collapsing are very small, and would take years to complete even if it did happen. The fears of recession in the UK are still looming in certain sectors, but higher figures in the services sector in December seemed to have delayed those fears somewhat. It is thought by many that the Bank Of England may vote for more quantitative easing in the coming months in order to keep the economy stable. Despite these concerns however, sterling is still holding its own against the Euro, offering the best rates for transferring pounds into euros that we’ve seen since 2010. Anyone looking to send money overseas or receive updates on the latest currency news can register free with Currency Index.

Dollar stronger on improved US jobs data

Fri, 06 Jan 2012 00:00:00 GMT

The US dollar has continued to strengthen in trading today, after the monthly labour market data improved the economic outloook. Non-farm payrolls increased 200,000 in December, way above expectations of 150,000, and the unemployment rate dropped to 8.6%. Stronger US data, as well as the weaker Euro, have been giving rise to USD strength in recent weeks, with lower exchange rates for sending money in USD as a result. If you have a requirement to move money to or from dollars, do give us a call at Currency Index to discuss your requirements and obtain a commercial exchange rate.

Pound still vulnerable, despite best Euro rates since Oct 2010

Thu, 05 Jan 2012 00:00:00 GMT

The economy remains at risk of recession despite a surprise pick-up in activity among services firms in December. Services and manufacturing data this week have given the Pound a boost, with the best rates for buying Euros since October 2010, but the threat of a recession and more monetary stimulus from the Bank of England still loom large. If the UK economy were to fall back into recession, OR the Euro crisis is resolved, OR we see more Quantitative Easing, sterling is likely to fall back. The Eurozone debt problems, along with surprisingly good UK data this week and fresh worries about Eurozone banking stability, have kept exchange rates relatively high, particularly against the Euro. But if Greek austerity measures are passed later in the month, and QE is extended in February, the Pound would come under severe pressure. Against the US dollar today, exchange rates fell as the dollar gained strength from better than expected jobless data, and President Obama's surprise cuts to the US defence budget.

UK manufacturing gives Pound a boost

Wed, 04 Jan 2012 00:00:00 GMT

This morning's UK manufacturing data showed growth gaining pace in December, providing hope that the UK may yet avoid another recession. Construction PMI rose to 53.2 against analysts' expectations for a drop to 51.7. "The survey suggests that the sector should make a positive contribution to the economy in the final quarter of the year, helping avoid a possible slide back into contraction," said Markit economist Sarah Bingham. Mortgage approvals and consumer credit figures were also slightly better than expected. Sterling rose this morning on the news against most currencies including the Euro and US Dollar, improving rates for sending money abroad.

Currency news this week

Mon, 02 Jan 2012 00:00:00 GMT

Happy new year - after the January bank holiday we are back in full swing with economic data due out this week as follows. Call Currency Index on 0800 043 2623 for the latest news and live rates for your own transaction as always. Monday 2nd Bank holiday Tuesday 3rd 0855 - German unemployment 0930 - UK manufacturing inflation 1500 - US manufacturing & construction 1900 - US Federal Reserve minutes Wednesday 4th 0930 - UK mortgage approvals & personal lending 1000 - Eurozone inflation (CPI) 1500 - US factory orders Thursday 5th 0030 - Australian trade balance 0700 - German retail sales 0930 - UK services PMI 1000 - Eurozone industrial orders & PPI inflation Friday 6th 0815 - Swiss inflation (CPI) 1000 - Eurozone retail sales, unemployment & consumer confidence 1100 - German factory orders 1200 - Canadian unemployment 1330 - US non-farm payrolls & unemployment rate

Currency update Thursday 22nd December

Thu, 22 Dec 2011 00:00:00 GMT

The Euro has weakened yet further this week as the ECB lent 523 banks a record 489 billion Euros on Wednesday. Having strengthened initially, the obvious massive demand for Euro loans led to market negativity, a weaker Euro and once again the best rates we have seen since February for sending Euro payments. Elsewhere the US Dollar has been volatile this week due to Eurozone movements as well as varying US economic data. In the UK, GDP was revised up slightly, while the Bank of England confimed there will be no more QE for the time being, and public borrowing fell for the third month in a row. In all the Pound looks to be finishing 2011 on a relative high, before the new year when we will see what is next for the ailing Euro, the fragile UK economy, and world events all of which promise to make for an unpredicatble and volatile year. Contact us at Currency Index for the latest news and live rates.

Currency news this week

Mon, 19 Dec 2011 00:00:00 GMT

This week we have a fairly full calendar of economic data, as well as the ongoing Eurozone saga. Currency Index will be here until Friday lunch time this week so do give us a call for the latest news and a quote on your own transaction. Monday 19th 1530 - ECB President Draghi's speech Tuesday 20th 0030 - Australian interest rate minutes 0700 - German inflation (PPI) & consumer confidence 1200 - Canadian inflation (CPI) 2145 - New Zealand current account Wednesday 21st 0930 - Bank of England minutes & UK public borrowing 1330 - Canadian retail sales 1500 - Eurozone consumer confidence 2145 - New Zealand GDP Thursday 22nd 0930 - UK GDP revision & current account 1330 - US GDP & jobless claims Friday 23rd 0930 - UK mortgage approvals 1330 - US personal income & durable goods orders; Canadian GDP 1500 - US new home sales

Hungary and Czech Republic question EU pact, while UK retail sales fall

Thu, 15 Dec 2011 00:00:00 GMT

Exchange rates have continued to bounce around today after UK retail sales showed a fall in November, and the EU stability deal agreed on Friday was thrown into further doubt by Hungary and the Czech Republic. UK retail sales fell 0.4% in November, despite heavy retail discounts, although the September and October figures were revised upwards giving overall growth of 0.7% over the 3 month period and 0.4% for the year. Analysts were expecting similar figures, so the Pound was not put under too much pressure. Later on today, the Czech and Hungarian prime ministers announced that they would not give tax control to the EU, as had been proposed at Friday's summit. The Eurozone can go ahead regardless, but markets already nervous about Euro stability are yet to be reassured that a solution has been found. Consequently we are still seeing Euro weakness with the best rates for sending Euro payments since February. Tomorrow we have Eurozone trade figures out at 10am and US inflation at 1.30pm.

UK unemployment as expected

Wed, 14 Dec 2011 00:00:00 GMT

This morning's UK unemployment figures showed the number of Britons out of work at its highest total for 17 years, but the overall rate of 8.3% was no worse than expected. Sterling fell slightly on the figures, although against the Euro in particular we still have excellent rates for sending payments abroad, after Angela Merkel yesterday rejected any increase to the European Stability Mechanism, causing further weakness in the single currency.

Rates stable as currency markets take stock

Tue, 13 Dec 2011 00:00:00 GMT

Currency markets have calmed down a little today, after UK inflation came in exactly as expected and there was little new Eurozone news. Inflation in the UK fell to 4.8%, in line with analysts' expectations and the Bank of England's prediction that inflation will fall significantly early in 2012. If that does happen there will be scope for more quantitative easing which will probably hurt the Pound but for now the focus on the Eurozone has kept sterling steady. Elsewhere, US retail sales came in lower than expected, although along with most exchange rates today we have not seen much movement for the US dollar. Tomorrow we have key UK unemployment numbers at 9.30am but until then at least we are seeing some extremely attractive rates for sending overseas payments.

Weaker Euro hits best rate since February

Mon, 12 Dec 2011 00:00:00 GMT

Fears that the EU summit has done little to ease Eurozone sovereign debt has pushed the single currency to its cheapest level against the Pound since March. The UK's apparent isolation does not seem to have hurt sterling, and Friday's initial Euro rally petered out in less than 24 trading hours due to legal uncertainty surrounding the new pact and the absence of an unlimited financial backstop for the single currency from the ECB. We now have the best exchange rate for buying Euros since February this year, ahead of a raft of potentially dangerous UK data due out over the next 3 days. The Pound is also up against the Canadian, Australian and New Zealand dollars, and flat against the US Dollar.

This week's currency news

Sun, 11 Dec 2011 00:00:00 GMT

This week sees the release of important data for the Pound, including retail sales, unemployment and inflation. After Friday's EU summit we also of course have the long running Euro debt crisis - will markets punish the Pound after the UK's lone position on treaty changes, or will it be seen as a show of strength and economic independence? Will the Euro strengthen as the single currency zone signs up to a new common fiscal policy? The week's important scheduled data releases are as follows: Monday 12th 0030 - Australian trade balance 1900 - US monthly budget statement Tuesday 13th 0030 - Australian business confidence 0930 - UK inflation (CPI) 1000 - Eurozone & German economic sentiment survey (ZEW) 1330 - US retail sales 1915 - US interest rate decision 2330 - Australian consumer confidence Wednesday 14th 0815 - Swiss industrial production 0930 - UK unemployment 1000 - Eurozone industrial production Thursday 15th 0830 - Swiss interest rate decision 0900 - German manufacturing & services PMI; ECB monthly report 0930 - UK retail sales 1000 - Eurozone inflation (CPI) 1330 - US producer inflation (PPI) & current account 1415 - US industrial production Friday 16th 1330 - US inflation (CPI)

Euro cheaper, Dollar stronger as ECB cuts interest rates

Thu, 08 Dec 2011 00:00:00 GMT

The European Central Bank today cut Eurozone interest rates to 1% ahead of tomorrow's crucial EU summit. While this, and the accompanying luke-warm support from the ECB to the proposed debt crisis plans, weakened the Euro, the Bank of England decided not to extend its Quantitative Easing programme this month, giving the Pound some support. The net result has been better rates for sending Euro payments, but rates for buying US Dollars have dropped a cent. This is due to the Euro weakness as well as better-than-expected US jobless claim figures. Against other currencies sterling is broadly 'as you were'. Tomorrow's crucial EU summit is likely to bring volatility to all currencies, so do make sure you contact us at Currency Index if you would like us to update you with any spikes in exchange rate through the day.

Pound up despite downbeat data

Wed, 07 Dec 2011 00:00:00 GMT

Sterling has risen across the board today, despite economic data showing industrial and manufacturing output showing their fastest decline in 6 months. Compared with the same month last year, industrial output was 1.7% lower, the biggest annual fall since April. Manufacturing output also fell 0.7% in October, the biggest monthly drop since April and three times the fall forecast by analysts. Despite this, sterling has made gains today, perhaps as German officials have played down prospects of a Eurozone debt agreement at Friday's summit, focussing attention back on the ailing single currency. The European Central Bank may also announce an interest rate cut tomorrow, and possibly some plans to buy up Euro government bonds and ease credit conditions. Any of these measures would be likely to weaken the Euro, improving exchange rates for sending Euro payments, and may be being priced in to the market today. Tomorrow also sees the Bank of England announcement on quantitative easing; check back here for the latest news or call us on +44 1923 725725 for the latest exchange rates on your own transaction as news develops.

Tuesday currency update

Tue, 06 Dec 2011 00:00:00 GMT

Today has seen a raft of news causing volatile exchange rates around the world. Apart from the headline Euro news, where Angela Merkel and Nicolas Sarkozy reaffirmed their commitment to reform the Eurozone ahead of Friday's summit, S&P have placed most of the Eurozone on 'credit watch' meaning their debt may be downgraded from AAA, giving some Euro weakness this morning. However news from elsewhere has been moving markets today: - Australian interest rates were cut to 4.25%, weakening the Australian Dollar and improving rates for money transfers to Australia - Canadian interest rates were held at 1%, but much better than expected construction figures send the CAD higher this afternoon - The British Retail Consortium announced 0.7% retail sales growth in the UK, the weakest since May - Eurozone GDP was unrevised at 1.4% - German factory orders increased more than expected The net effect has been volatility for the Pound against most major currencies today. Tomorrow we have industrial data from Italy and France, before Thursday's monthly announcements from the European Central Bank and Bank of England, on interest rates and quantitative easing. With so much going on be sure to contact Currency Index for the latest news affecting your own transaction.

Christmas Opening Hours

Mon, 05 Dec 2011 00:00:00 GMT

Currency Index Christmas Opening Hours 2011 are as follows: Monday 12th to Friday 16th December: As normal Monday 19th to Thursday 22nd December: As normal Friday 23rd December: 9am to 1pm Monday 26th and Tuesday 27th December: CLOSED Wednesday 28th to Friday 30th December: 9am to 12.30pm Monday 2nd January 2012: CLOSED Tuesday 3rd January onwards: as normal. If you have any payments to make over the Christmas period, please contact us for advice on payment times due to bank holidays around the world.

This week's currency calendar

Sun, 04 Dec 2011 00:00:00 GMT

This week's news due out around the world, likely to have an effect on exchange rates, includes interest rate decisions in Canada, Australia, New Zealand, the UK and Eurozone. The full calendar of important releases is as below. Monday 5th 0930 - UK services PMI 1000 - Eurozone retail sales 1500 - US factory orders Tuesday 6th 0330 - Australian monetary policy statement & interest rate decision 0815 - Swiss inflation (CPI) 1000 - Eurozone GDP 1100 - German factory orders 1400 - Canadian interest rate decision Wednesday 7th 0030 - Australian GDP 0930 - UK industrial & manufacturing production 2000 - New Zealand interest rate decision Thursday 8th 0030 - Australian unemployment rate 1200 - UK interest rate & Quantitative Easing decisions 1245 - Eurozone interest rate decision & speech Friday 9th All day - EU summit 0700 - German trade balance & inflation (CPI) 0930 - UK producer inflation 1330 - US trade balance

US jobless total falls, as ECB indicates it may provide Euro financing

Fri, 02 Dec 2011 00:00:00 GMT

Today's US jobs data showed a fall in the unemployment rate to 8.6%, while the European Central Bank may provide €200bn of funding through the IMF to help solve the Eurozone debt crisis. Both currencies have strengthened against the Pound today. Whether this is the beginning of the end of the Eurozone crisis remains to be seen, with plenty of work still going on behind the scenes and Angela Merkel fighting for the future of the Euro, and talking about "fiscal union" - a centralisation of tax and spend in the Eurozone, widely seen as one of the fundamental flaws in the single currency to date. If the US economy is improving, and the Euro crisis does look like abating, we would be likely to see the Euro and US Dollar both strengthen against sterling, giving worse rates for sending international payments. Many Euro buyers in particular have this week been fixing their exchange rates in advance, to take advantage of the weaker Euro.

UK manufacturing shrinks as Bank of England issues stark warning

Thu, 01 Dec 2011 00:00:00 GMT

This morning's UK manufacturing figures showed the fastest rate of decline for 18 months, as the Bank of England Governor Mervyn King warned of possible 'extraordinarily serious' climate ahead. "Output is falling at the fastest rate since early 2009 as order inflows from domestic and overseas markets continue to deteriorate.", said Rob Dobson, senior economist at Markit who carried out the manufacturing PMI survey. He added that the economic outlook was "darkening", although Eurozone manufacturing fell sharply too. Sterling fell this morning, and was not helped by Governor King's comments that British banks should build up capital reserves in case of a worsening Eurozone crisis affecting UK liquidity. "Resolving these wider problems is beyond the control of any UK authority," he added. Tomorrow we have UK house prices, Eurozone PPI inflation, and key US labour market figures due out and all likely to affect exchange rates for sending money abroad.

Central banks act to ease global credit - Euro rates fall, US Dollar cheaper

Wed, 30 Nov 2011 00:00:00 GMT

The world's main central banks, in the UK, USA, Canada, Japan, and Europe, have made mutual agreements to provide credit to each other, in a move designed to ease strains in world markets. The troubled Euro gained dramatically in value this afternoon, with rates for sending Euro payments falling nearly a cent in a few minutes. Conversely, the US Dollar (which is seen as helping out the Euro in the deal), weakened by 2c, improving rates for sending US Dollars. Elsewhere Eurozone leaders have stated that the single currency is in for a crucial 10 days, with finance ministers meeting today and the EU Summit next week. In earlier news, German unemployment has fallen to 6.9%, but Eurozone unemployment is up to 10.3%, further illustrating the disparity of European economies.

Exchange rate update for Tuesday 29th

Tue, 29 Nov 2011 00:00:00 GMT

Exchange rates continue to show volatility as the UK autumn statement, Eurozone debt auctions, and US financial news all dominate the headlines. At home, the Chancellor's autumn statement to Parliament has not had the negative effect on sterling that many were expecting. With the OECD already downgrading UK growth, perhaps the worst of the news was already out yesterday, and George Osborne announced several new measures intended to boost economic growth. Time will tell whether these are effective, and whether the Pound can hold its ground. UK house price and mortgage data out this morning was also better than expected. Meanwhile in Italy, a bond auction this morning again sold out but at interest rates of up to 7.9%. Eurozone finance ministers are meeting in Brussels later to discuss ways to expand the bailout fund, seen as key to stopping more countries being drawn into the debt crisis. The Euro remains weak with rates for sending Euro payments still at the better end of their recent trading range. In the USA, American Airlines has filed for bankruptcy protection, but today's house price and consumer confidence figures were both better than expected. Sterling is broadly up on today's trading, with US Dollar rates now nearly 2c better than overnight.

This week's currency news

Mon, 28 Nov 2011 00:00:00 GMT

This week's focus for the Pound is likely to be tomorrow's autumn statement from Chancellor Osborne. There is still a full week of data releases scheduled, all with the potential to move exchange rates, as follows. Check back for the latest currency news during the week. Monday 28th 0000 - New Zealand business confidence 1200 - German consumer confidence 1500 - US new home sales Tuesday 29th UK Chancellor's Autumn Statment 1000 - Eurozone consumer confidence 1330 - Canadian current account 1500 - US house price index & consumer confidence Wednesday 30th Overnight - UK consumer confidence 0855 - German unemployment 1000 - Eurozone unemployment & inflation (CPI) 1330 - Canadian GDP Thursday 1st 0030 - Australian retail sales 0645 - Swiss GDP 0930 - UK manufacturing (PMI) 1500 - US manufacturing & construction Friday 2nd 0815 - Swiss retail sales 1000 - Eurozone production inflation (PPI) 1200 - Canadian unemployment 1230 - US unemployment & non-farm payrolls

Euro cheaper as Italian debt rates rise

Fri, 25 Nov 2011 00:00:00 GMT

Italy paid a record 6.5% to borrow over 6 months at a bond auction this morning - the highest yield since the country joined the Euro, which has sent the single currency weaker in currency markets today. Rates for sending Euro payments are now back near their best levels since the debt crisis worsened in October. With the UK government's Autumn budget statement next week, we could see a window with preferential Euro rates for the next few days. Against other currencies today, the Pound is down slightly versus the US dollar, but up against the Canadian, Australian and New Zealand dollars. We have also seen a new 2 year high for the buying rate for the South African Rand.

UK GDP unchanged, as German bond sale turns sour

Thu, 24 Nov 2011 00:00:00 GMT

This morning's UK GDP figures were not revised from last month's reading - avoiding a potential banana skin for the Pound. Meanwhile in Germany a sale of government bonds resulted in half the €6bn on offer not being sold, as Eurozone worries spread further. The Eurozone 'dithering' on a coherent strategy to tackle the debt crisis has kept the Euro relatively weak, although exchange rates for buying Euros seem averse to moving much beyond their current trading range against sterling. Sterling is in fact falling back a little against most major currencies today. We also have a bank holiday in US markets, so payments to and from the USA will be delayed until tomorrow.

Bank of England unanimous on QE for November, Pound goes up

Wed, 23 Nov 2011 00:00:00 GMT

This morning's Bank of England minutes showed that all 9 committee members voted for 'no extension' to the existing Quantitative Easing (QE) programme in November. Given uncertainty in the Eurozone and possible inflation risks, the committee voted to keep QE to £275bn. There had been speculation that after the surprise £75bn increase in October that the Bank was minded to increase this further, which could have spelt trouble for the Pound. Instead, it now looks like we will not see an extension until the current round of purchases is completed in February. Sterling is up this morning, particularly against the beleaguered Euro. Other currencies are also looking relatively cheaper, for example sending South African Rand payments at the moment are at their best rate since mid-2009. Contact us at Currency Index for a quote on your own transaction and the latest news & views.

Public borrowing falls, but sterling drifts lower

Tue, 22 Nov 2011 00:00:00 GMT

This morning's UK public borrowing figures were better than expected, but the Pound has failed to gain any ground today. Official figures showed that public sector net borrowing fell to £6.5bn in October, down from £7.7bn a year earlier. Perhaps wary of the Chancellor's autumn budget statement next week, markets shrugged off the seemingly good news, with the Pound falling against most currencies this morning and making sending overseas payments more expensive. The Euro has also failed to weaken against sterling, despite the rising cost of Spanish debt which shows that the Eurozone debt crisis is far from over.

This week's currency news

Mon, 21 Nov 2011 00:00:00 GMT

As we move towards the end of the month, there is less scheduled important data this week. However we have the Bank of England minutes on Wednesday, which will reveal how close we were to having extended QE in November, which can have a major influence on exchange rates, as well as the revision to UK GDP on Thursday. Of course the Eurozone story continues to dominate financial markets and currencies alike. Check back later in the week or call us on 0800 043 2623 to find out how the latest developments are affecting rates for sending money abroad or repatriating to the UK. Monday 21st Overnight – Rightmove UK house prices 1500 – US existing home sales Tuesday 22nd 0700 – Swiss trade balance 0930 – Public sector net borrowing 1330 – Canadian retail sales 1330 – US GDP 1500 – Eurozone consumer confidence 1900 – US Federal Reserve Minutes Wednesday 23rd 0900 – Eurozone PMI 0930 – Bank of England minutes & UK mortgage approvals 1330 – US consumption, income & durable goods orders 2145 – New Zealand trade balance Thursday 24th US Bank Holiday 0700 – German GDP 0930 – UK GDP revision

Unemployment up to 2.62m

Wed, 16 Nov 2011 00:00:00 GMT

This morning's UK unemployment figures were slightly worse than expected, if not disastrous for the UK and the Pound. The headline rate is up to 8.3%, with 2.62m now unemployed. Worryingly the number of 16-24 year olds out of work is now above the 1m mark. Analysts were expecting a rate of 8.2% so the figures have not come as a huge surprise, and consequently sterling has fallen back only slightly this morning, losing around half a cent against the Euro and US dollar. The Bank of England's quarterly inflation report is also due out this morning and any indications of further Quantitative Easing could peg sterling back further.

UK inflation falls back

Tue, 15 Nov 2011 00:00:00 GMT

This morning's UK inflation figures have fallen slightly - with CPI inflation down to 5% from 5.2% last month. The Pound fell a little after the data was released, but analysts' expectations of 5.1% were very close to the actual figure, so there has been no major impact on sterling, which had strengthened overnight against the Euro but fallen against the US dollar. Tomorrow we have UK unemployment at 9.30am.

Currency news this week

Mon, 14 Nov 2011 00:00:00 GMT

This week as well as the ongoing developments in Italy and Greece we have a lot of important data out in the UK, Eurozone and USA. Particularly in the UK figures for retail sales, inflation and unemployment are all due out during the week, as well as the Bank of England's key quarterly inflation report on Wednesday morning. So we are likely to see another volatile week for exchange rates, perhaps with some Euro strength as a stable Italian government emerges and the Greek government looks more likely to ratify the recent bailout deal. If this happens and UK data is poor, sterling could potentially lose significant ground, keep in touch with us at Currency Index if you need to send money abroad. Economic releases this week are as follows: Monday 14th 1000 - Eurozone industrial production Tuesday 15th 0030 - Australian interest rate minutes 0700 - German GDP 0930 - UK inflation (CPI & RPI) 1000 - Eurozone GDP & trade balance 1330 - US retail sales & inflation (PPI) Wednesday 16th 0930 - UK unemployment 1000 - Eurozone inflation (CPI) 1030 - Speech: Bank of England Governer Mervyn King & Bank of England inflation report 1330 - US inflation (CPI) Thursday 17th 0930 - UK retail sales 1330 - US housing starts & initial jobless claims Friday 18th 0700 - German inflation (PPI) 1200 - Canadian inflation (CPI)

Bank of England keeps QE on hold as Eurozone growth stalls

Thu, 10 Nov 2011 00:00:00 GMT

The Bank of England today announced there would be no increase in Quantitative Easing (QE) this month, helping sterling to hold on to recent gains against other currencies. More QE would have been likely to hurt sterling, but there will be no extension to the current £275bn programme at least until November. Meanwhile in Europe amid the ongoing political turmoil in Italy and Greece, Eurozone growth forecasts for 2012 have been cut from 1.8% to just 0.5% - dangerously close to recession. The Euro would perhaps have weakened more today if new hope for Greek acceptance of a bailout deal hadn't emerged as new Prime Minister Lucas Papademos took office this morning. Any ratification of the deal is likely to strengthen the Euro significantly and could dramatically reduce rates for sending Euro payments.

Italian debt hits new record as Greek government fails to materialise

Wed, 09 Nov 2011 00:00:00 GMT

Italian debt costs have hit 7%, widely seen as a potential point of no return, as a new Greek government supposed to ratify the recent bailout deal has failed to materialise. The Euro has weakened further through trading today as the crisis intensifies. Silvio Berlusconi has agreed to step down, but without Greek approval of the Eurozone bailout, Italian and Spanish debt continues to mount in cost as investors flee from lending to potentially unsupported states. Euro rates against the Pound rose again today as the Euro weakened. Buried in the news today was the UK trade deficit which reached a new record of £9.8bn. The Pound fell sharply against the US Dollar, which also found some strength (giving worse rates for buying US Dollars) from the crisis in Europe. Tomorrow we have the Bank of England's Quantitative Easing decision, which could hurt sterling if further asset-buying is announced at midday.

Berlusconi faces crucial vote as EU finance ministers meet for crisis talks

Tue, 08 Nov 2011 00:00:00 GMT

Silvio Berlusconi's leadership of Italy hangs by a thread as Italian bond prices reach a record high today. More chaos in the Eurozone, where a destabilised Italian government could add to problems in Greece where a temporary coalition government has still not emerged to pass the EU bailout package. Mr Berlusconi faces a vote today on a routine financial bill, which is now seen as a vote of confidence in his leadership, and EU finance ministers are meeting in Brussels for more emergency talks. The Euro has remained weak with the recent developments, with exchange rates still around their best since March for sending payments in Euros. Meanwhile in the UK, stronger than expected manufacturing figures have helped keep sterling higher against most currencies in trading today.

Currency news out this week

Mon, 07 Nov 2011 00:00:00 GMT

This week's scheduled currency news is as follows - as well as the ongoing political situation in Greece which is heavily affecting rates for buying Euros we have the possibility of further Quantitative Easing in the UK on Thursday. This week's full calendar of news likely to affect exchange rates is as follows. Monday 7th 0645 - Swiss unemployment rate 1000 - Eurozone retail sales 1100 - German industrial production Tuesday 8th 0030 - Australian trade balance 0700 - German trade balance 0930 - UK industrial & manufacturing production 1315 - Canadian housing starts Wednesday 9th 0930 - UK goods trade balance 1330 - speech: Federal Reserve Chairman Bernanke Thursday 10th 0030 - Australian unemployment rate 0700 - German inflation (CPI) 0900 - European Central Bank monthly report 1200 - UK interest rate & quantitative easing decision 1330 - US trade balance 1900 - US monthly budget statement Friday 11th 0930 - UK inflation (PPI)

US jobs market improves, Dollar rate falls

Fri, 04 Nov 2011 00:00:00 GMT

Today's US jobs data showed that, although US firms hired fewer workers in October, the jobless rate fell to its lowest in 6 months. Jobless claims in the last 2 months were also revised down, pointing to some improvement in the US labour market. Non-farm payrolls rose 80,000 last month. The US Dollar has gained strength on the release of the figures, with GBP exchange rates for sending US Dollars nearly a cent lower than this morning.

Eurozone interest rates cut

Thu, 03 Nov 2011 00:00:00 GMT

The European Central Bank has cut Eurozone interest rates to 1.25%, amid chaos in Greece and the G20 summit. The move was not unexpected but has weakened the Euro slightly, giving better rates for sending Euros abroad. Sterling is also up today against the US Dollar, amid chaos in Greece where Prime Minister Papandreou is shortly expected to offer his resignation while talk of a Eurozone referendum on December 4th means the future of Greece in the Euro and contagion of debt crises hangs in the balance. For the latest news and exchange rates please call us on 01923 725725.

Germany warns Greece as Euro climbs

Wed, 02 Nov 2011 00:00:00 GMT

As Greek Prime Minister George Papandreou yesterday made the shock announcement that a Greek referendum was proposed ahead of accepting the Eurozone rescue package, Germany has warned that there is no room for renegotiation. Political plate-smashing seems to be the order of the day, as Mr Papandreou had not mentioned the referendum as a condition of accepting austerity measures in the deal announced last week. While the Euro weakened yesterday, improving exchange rates by 2c against the Pound, the Greek PM will now fly to emergency talks on Thursday - the same day that the European Central Bank announces whether there is to be an interest rate cue in the Eurozone. All in all the direction of the Euro is sensitive to developments in the next 48 hours. While we have relatively cheap rates for sending Euro payments at the moment, the potential for a reversal if the talks are successful and interest rates are not cut should not be underestimated.

Exchange Rate Outlook - November 2011

Wed, 02 Nov 2011 00:00:00 GMT

Currency Index's summary of the exchange rate outlook for November: Currency news and exchange rate volatility at the moment have been dominated by the Greek debt crisis, which has had knock on effects for many major currencies as well as the Euro. For those of you buying property abroad, who will need to make international payments in different currencies, the prospects for November are even less clear than usual. For the Euro, we have seen the single currency react strongly to developments in the Eurozone regarding the package to bailout the troubled Greek economy and in particular its inability to repay its debt to commercial banks around the world. While the UK and therefore sterling is exposed to European sovereign debt, the Euro itself has strengthened whenever the outlook has been positive (when last week’s deal was announced) and weakened, giving better exchange rates for sending Euros, whenever the outlook has been negative (as when George Papandreou made the shock referendum announcement). Much may depend in the coming weeks on whether Greece implodes with political plate-smashing (cheaper Euros) or comes up with a plan to ratify the deal – and quickly (more expensive Euros). There is also speculation that the European Central Bank may cut interest rates at its monthly meeting tomorrow (Nov 3rd) which would be likely to weaken the Euro further. Against the US Dollar, we have seen rates for sending money to America generally do the opposite to the Euro. Sterling is stuck somewhat in the middle of a currency see-saw, with a stronger Euro often meaning cheaper US Dollars, and vice versa. Generally the economic outlook for sterling is still negative. Although this week’s GDP figure was better than expected, 0.5% growth is still not a great sign of economic recovery, and there may well be more Quantitative Easing announced by the Bank of England next week, which is likely to be bad news for the Pound. Manufacturing is still struggling, and unemployment is still too high. The UK economy will also be affected by any further problems in the Eurozone.

Best rates for buying Euros since March

Tue, 01 Nov 2011 00:00:00 GMT

New fears about Greek debt default, and speculation that the ECB may cut interest rates on Thursday, have weakened the Euro in trading today. In addition, UK GDP for the third quarter this year (announced this morning) was better than expected at 0.5%, giving sterling a boost across the board. The European Central Bank announces its interest rate policy on Thursday lunch time, so those of you looking to send Euro payments may have a window of opportunity between now and then to buy at fantastic rates. Do contact us at Currency Index for a quote on your own transfer.

Currency news out this week

Mon, 31 Oct 2011 00:00:00 GMT

This week's economic data due out is as below; the main news for sterling is likely to be tomorrow's first reading of GDP in the third quarter. We also have the G20 meeting taking place on Thursday and Friday. Check back for the latest news or contact us at Currency Index for a chat and quote on your own currency transfer. Monday 31st 0930 - UK consumer credit, mortgage approvals & lending 1000 - Eurozone unemployment & inflation (CPI) 1230 - Canadian GDP Tuesday 1st 0330 - Australian interest rate decision 0815 - Swiss retail sales 0930 - UK GDP 1400 - US manufacturing & construction Wednesday 2nd 0855 - German unemployment rate 1630 - US interest rate decision & Federal Reserve minutes 1815 - Federal Reserve press conference 2145 - New Zealand unemployment rate Thursday 3rd 0030 - Australian retail sales 0930 - UK services PMI 1245 - Eurozone interest rate decision 1400 - US factory orders Friday 4th 1000 - German factory orders 1100 - Canadian unemployment rate 1230 - US non-farm payrolls & unemployment rate

Euro cheaper as Eurozone jobless reaches record high

Mon, 31 Oct 2011 00:00:00 GMT

This morning's Eurozone unemployment figures showed the worst data in the Euro-era, with 16.2million unemployed across the 17-nation single currency area. The Euro has weakened (become cheaper) throughout the day. The OECD also slashed its growth forecasts to show the eurozone economy expanding by only 0.3 percent in 2012, down from its previous forecast of 2 percent. As a result, Euro exchange rates have risen nearly 2c today, giving some of the best Euro-buying rates we have seen since late September. Focus will now turn to tomorrow morning's UK GDP figure, as well as the appointment of new European Central Bank President Mario Draghi, who takes over from outbound President Jean-Claude Trichet tomorrow.

Euro rates fall, USD cheaper, as Eurozone debt deal announced

Thu, 27 Oct 2011 00:00:00 GMT

Exchange rates for buying Euros have started to fall as leaders agreed a package to contain the Greek debt crisis. After late-night talks, private banks holding Greek debt have agreed to write off 50% of their losses, while banks must also raise more capital in the future to protect them against any future default. The European bailout fund has also been increased to about €1trillion. The deal is not as ambitious as some had hoped but is as good as was realistically achievable, according to analysts. The Euro has already strengthened (become more expensive) by 1c against the Pound, while in a knock-on effect we have seen rates for buying US Dollars improve. Sterling is down against most other currencies.

EU leaders hope to reach debt crisis plan

Wed, 26 Oct 2011 00:00:00 GMT

EU leaders are meeting at an emergency summit in Brussels to try to finalise plans to tackle the Eurozone debt crisis. There is growing speculation that a comprehensive deal may not be agreed, with German Chancellor Angela Merkel facing a vote in parliament on increasing the bailout fund's firepower without involving more German taxpayers' money. In Italy, Prime Minister Silvio Berlusconi is reported to have reached a last-minute limited deal on economic reforms. There are worries that the Greek debt crisis could spread to the larger economies of Spain and Italy; Euro exchange rates in particular are likely to be volatile and sensitive to developments this week. We would expect a stronger Euro (lower exchange rates for sending Euros) if there is a consensus and announcement of a cohesive rescue plan.

Currency news this week

Mon, 24 Oct 2011 00:00:00 GMT

This weeks' headlines are likely to revolve around the Eurozone summit - and there is not much other data due out likely to affect sterling or the Euro. Elsewhere around the world we have plenty of news due out to keep the currency markets moving. This week's calendar is as follows... Monday 24th 0130 - Australian inflation (PPI) 1000 - Eurozone industrial orders 2245 - New Zealand inflation (CPI) Tuesday 25th 0700 - German consumer confidence 0930 - UK current account & mortgage approvals 1330 - Canadian retail sales 1400 - Canadian interest rate decision 1500 - US consumer confidence Wednesday 26th 0130 - Australian inflation (CPI) 1330 - US durable goods orders 1500 - US new home sales 1530 - Canadian monetary policy report 2100 - New Zealand interest rate decision 2245 - New Zealand trade balance Thursday 27th 1330 - US GDP Overnight - UK consumer confidence Friday 28th 1330 - US personal income & expenditure

Retail sales up, but mortgage lending down

Thu, 20 Oct 2011 00:00:00 GMT

Today's data has been a mixed bag for the Pound, with retail sales better than expected, but mortgage lending still subdued. Retail sales were up 0.6% in September, better than analysts' forecasts of no growth, and up from a 0.4% contraction in August. Mortgage lending meanwhile was only £12.9bn in September, down 2% from August. The Pound lost some ground against the US Dollar and Euro in trading this morning, but has recovered since.

Bank of England considered more QE

Wed, 19 Oct 2011 00:00:00 GMT

This morning's Bank of England minutes revealed that the new Quantitative Easing (QE) announced earlier in October was voted for unanimously. Worryingly for exchange rates, there was a possibility that more than the £75bn announced may have been injected into the economy; expectations were that some committee members may have opposed QE altogether, so it appears that there may well be more on the way in the coming months. QE is generally negative for the Pound as it effectively dilutes sterling, reducing its value and therefore causing exchange rates to fall. Today we did not see a huge negative reaction to the news, perhaps in particular against the Euro, which was overshadowed by anti-austerity strikes and disturbances in Greece, and worries that the Greek debt crisis may not be solved as quickly as was hoped. Tomorrow the Greek parliament is likely to pass a string of tough measures, but whether they will be able to implement them without a serious public backlash remains to be seen. We could be in for more Euro volatility therefore. The Pound was relatively flat against other currencies, as we await tomorrow morning's retail sales figures.

Latest currency news this week

Sun, 16 Oct 2011 00:00:00 GMT

This week we have the following data releases, all of which are likely to affect exchange rates. Check back for the latest news or call Currency Index on 0800 043 2623 for a quote on your transfer. Monday 17th 1530 - Bank of Canada business outlook survey Tuesday 18th 0130 - Reserve Bank of Australia minutes 0930 - UK inflation (CPI) 1000 - Eurozone & German economic sentiment survey (ZEW) 1330 - US inflation (PPI) 1815 - Speech: US Federal Reserve Chairman Bernanke Wednesday 19th 0930 - Bank of England Minutes 1330 - US inflation (CPI) & building permits Thursday 20th 0700 - Swiss trade balance; German inflation (PPI) 0930 - UK retail sales 1500 - US home sales Friday 21st 0930 - UK public sector borrowing 1200 - Canadian inflation (CPI)

Sterling - Euro rate continues fall

Fri, 14 Oct 2011 00:00:00 GMT

The Pound has continued to fall against the Euro, as the UK's weakening economic outlook along with the probable Euro debt crisis resolution start to affect exchange rates. BNP Paribas are predicting a rate of around 1.08 by year end. "We have a euro recovery priced in and a key driver of that is stabilisation in Europe on the fiscal side, while we expect there's more QE to come in the UK which is bearish for the pound", said Steven Saywell, head of FX strategy. This morning's Eurozone trade balance and inflation figures were also better than expected, keeping the value of the Euro on the increase.

UK unemployment hits 17 year high

Wed, 12 Oct 2011 00:00:00 GMT

Unemployment in the UK has risen to 2.57m, the highest for 17 years, according to figures out this morning. The jobless rate is up to 8.1%, with the 16-24yr old sector rate now running at 21.3%. Analysts had expected the rate to be 7.1%. The Pound, which would normally fall back on bad news, is holding relatively stable as the Slovakian vote for the Euro bailout package is stealing the headlines. Once Slovakia approves the package we may see Euro strength and more focus back on fundamentals giving lower rates for buying Euros in particular.

Greece payout likely to go ahead as inspectors agree reforms

Tue, 11 Oct 2011 00:00:00 GMT

The Euro has begun to strengthen (become more expensive) as the EU, IMF and European Central Bank all now agree that Greece is likely to have €8bn of extra bailout funds approved. Several measures including privatisation, labour reforms, and private sector investment, passed auditors' tests but a "determined implementation" of the plans will be needed. We seem to be seeing Euro strength, and therefore worse exchange rates for buying Euros, when packages are close to being agreed which may help Greece avoid default on its debts. The next hurdle, bizarrely, is a vote in the Slovakian parliament, which is the only Eurozone member state yet to approve extra funds for the bailout fund. Even more strangely, the vote is likely to be lost, then repeated, and then passed, at which point we may see the value of the Euro climb back up significantly, so for those of you trying to time your Euro purchase, now could be a good time to buy.

This week's currency news

Mon, 10 Oct 2011 00:00:00 GMT

This week we do not have any major UK data due out except unemployment on Wednesday, although it's a busy week in the USA which will be of note to clients looking to buy or sell USD. As well as the trade balance and monthly budget statement on Thursday, we have US retail sales on Friday and the FOMC (interest rate setting committee) minutes on Tuesday. There is not much due out in the Eurozone either, except the ECB's monthly report on Thursday, and industrial figures on Wednesday. Monday 10th 0700 - German trade balance 0930 - Eurozone investor confidence Tuesday 11th 0930 - UK industrial and manufacturing production 1900 - US Federal Reserve minutes Wednesday 12th 0030 - Australian consumer confidence 0930 - UK unemployment figures 1000 - Eurozone industrial production Thursday 13th 0130 - Australian unemployment rate 0700 - German CPI inflation 0900 - European Central Bank monthly report 1330 - US trade balance 1900 - US monthly budget statement Friday 14th 1000 - Eurozone CPI inflation 1330 - US retail sales

King fears ciris is 'worst ever' as banks hit by credit downgrade

Fri, 07 Oct 2011 00:00:00 GMT

The Bank of England Governer, Mervyn King, fears the current economic crisis could be the worst ever seen in the UK, in an interview with Sky News. The claim comes as Moody's, the credit agency, has downgraded its ratings for LloydsTSB, RBS and Santander UK. Additional Quantitative Easing, announced yesterday, has already hit the Pound, and if King and Moody's are right, then things could get worse before they get better for the value of sterling. When QE was first introduced in 2008-9, the Pound fell very significantly against most major currencies in the following months. Further afield, employment figures out today in the USA and Canada both showed better than expected results, giving the USD and CAD a little strength in afternoon trading.

Bank of England injects £75bn into the economy

Thu, 06 Oct 2011 00:00:00 GMT

Sterling fell rapidly as the Bank of England announced plans for an additional £75bn of Quantitative Easing today. This was significantly more than the £50bn that analysts thought may be injected, while many observers thought the Bank would wait until November before acting. For the Pound, we saw an immediate drop of 1.5c against the Euro and a fall of nearly 2c against the USD. QE effectively dilutes sterling, which makes it less valuable, as well as signalling to markets that the economic recovery is far from secure. Clients who are looking to send money abroad in the coming weeks may want to consider acting now to secure an exchange rate, as the Pound will now be vulnerable to any further bad news.

UK economic growth slower than expected

Wed, 05 Oct 2011 00:00:00 GMT

UK GDP has been revised down, showing growth of just 0.1% between April and June, less than the 0.2% previously estimated. Thankfully the figure remains positive, going some way to ease fears of another recession, and separate data showed the UK services sector (which represents 70% of the UK economy) did grow during September. Sterling has remained broadly flat in trading this morning, with Euro rates still around their best since March, as we await tomorrow's decision from the Bank of England on any extension in Quantitative Easing.

Euro rate comes off 9 month high, while US Dollar continues to increase in price

Tue, 04 Oct 2011 00:00:00 GMT

The Sterling to Euro hit a new 9-month high overnight, but has fallen back against sterling today, as we await UK GDP figures tomorrow morning at 9.30am. Meanwhile, US Dollar rates are now at their most expensive for the whole of 2011, as we see investors moving funds out of the Eurozone and into the US currency amid the continuing debt turmoil. For the latest rates for your own transaction contact us at Currency Index for a quote.

This week's currency news

Mon, 03 Oct 2011 00:00:00 GMT

As the Eurozone soverign debt crisis continues, a focus on news releases scheduled around the world this week which are likely to affect exchange rates. For sterling, we have GDP on Wednesday and the prospect of more Quantitative Easing on Thursday - for the latest news and live rates please contact Currency Index on +44 1923 725725. Monday 3rd 0815 - Swiss retail sales 0900 - Eurozone PMI manufacturing 0930 - UK PMU manufacturing 1500 - US manufacturing and construction Overnight - Halifax UK house prices Tuesday 4th 0130 - Australian trade balance 0430 - Australian interest rate decision 1000 - Eurozone production inflation 1500 - Speech: Federal Reserve President Bernanke Overnight - UK BRC retail sales monitor Wednesday 5th 0130 - Australian retail sales 0930 - UK GDP and current account 1000 - Eurozone retail sales Thursday 6th 1100 - German factory orders 1200 - UK interest rate and QE decision 1245 - Eurozone interest rate decision Friday 7th 1100 - German indsutrial production 1200 - Canadian unemployment rate 1330 - US non-farm payrolls and unemployment rate

German parliament supports Greece bailout

Thu, 29 Sep 2011 00:00:00 GMT

As international auditors arrive in Greece to assess the extent of the country's debt problems, Germany's parliament has this morning approved new powers for the Eurozone's crisis fund. It is not yet clear whether Chancellor Merkel will be undermined by the breakdown of votes from her own coalition partners, with political instability in Germany a distinct possibility over opposing views on the crisis. "We're borrowing money from our children to put in a showcase and it is money that we don't have," said one rebel in Merkel's Christian Democratic Union. For Euro exchange rates, we have today seen Euro strength against the US Dollar, but against the Pound rates are relatively stable, which is perhaps not surprising given the exposure to the crisis faced by UK banks and our reliance on trading with the Eurozone. Our view remains that any Euro weakness in the coming days is likely to be matched by Sterling weakness, with no improvement generally expected in rates for buying Euros.

Pound, Euro both steady as rescue plan is discussed

Tue, 27 Sep 2011 00:00:00 GMT

As markets await news from Eurozone officials on a renewed strategy to help Europe's ailing banks, the Euro has remained relatively stable against sterling, with relatively good rates available for sending payments in Euros. It is the US Dollar which has weakened today, with USD rates recovering from overnight lows against both sterling and the Euro. Weaker US consumer confidence, along with some renewed hope for a Euro rescue package, have seen rates for USD transfers improve by 1.5c today. The next important scheduled data release for the Pound is tomorrow morning's credit report by the Bank of England. As always do contact us at Currency Index if you would like to be alerted to any major movements in exchange rates for your own transaction.

Currency news this week

Mon, 26 Sep 2011 00:00:00 GMT

As we approach the end of September, there is not a huge amount of news scheduled for release this week. The ongoing sovereign debt problems around the world may be more significant than any individual data releases, although we have the following data which could affect exchange rates this week. Monday 26th 0900 - German business climate 1500 - US new home sales Tuesday 27th 0700 - German consumer confidence 1500 - US consumer confidence Wednesday 28th 0200 - Australian home sales 0930 - Bank of England credit report 1330 - US durable goods orders Thursday 29th 0930 - UK mortgage approvals 1000 - Eurozone consumer confidence 1330 - US GDP Overnight - UK consumer confidence Friday 30th 0700 - German retail sales 1000 - Eurozone unemployment and CPI inflation 1330 - US personal income and expenditure; Canadian GDP

Pound up slightly as G20 promise stability

Fri, 23 Sep 2011 00:00:00 GMT

Sterling has recovered somewhat overnight following losses this week, as the G20 group of nations promise to bring stability to financial markets. The risk that the economies of Europe and the USA may fall back into recession still looms large however. Sterling is particularly vulnerable to problems in economies around the world as well at here at home, due to our exposure to worldwide banks and trading relationships. We are also expecting further Quantitative Easing in October or November which will be likely to hurt the Pound in the medium term.

South African Rand cheapest for 18 months

Thu, 22 Sep 2011 00:00:00 GMT

The South African Rand rate improved to its best since January 2010, as investors sell off currencies in emerging markets. If you need to send money to South Africa, now could be a good time to take advantage of the current volatility around the world. As investors are shying away from currencies carrying any perceived risk, the Rand has weakened across the board. Against the US Dollar, it is now at its weakest for over 10 years.

Sterling falls on Bank of England minutes

Wed, 21 Sep 2011 00:00:00 GMT

The Pound has fallen this morning, as the Bank of England minutes revealed that all 9 committee members voted for interest rates to remain on hold, with 1 vote to increase Quantitative Easing (QE). Although the result is exactly the same as August's vote, there is a feeling that more QE will be implemented this year to stave off another recession. As widely reported, QE is very likely to weaken sterling. This morning's public borrowing figures also came in at a record August high of £13.2bn, UK consumer confidence has hit a 4-month low, and the UK growth forecast for this year has been slashed. In short, no good news at all for the Pound and perhaps a poor few months ahead for exchange rates.

Exchange rates steady despite Italian downgrade

Tue, 20 Sep 2011 00:00:00 GMT

Exchange rates are relatively flat today, despite Italy's debt rating being downgraded by Standard and Poor's. The agency said weak growth may limit Rome's ability to cut state spending and bring its finances in order. Markets shrugged off the decision, while Italian Prime Minister Silvio Berlusconi said the move was influenced by "political considerations". For the Euro, we have seen little change in exchange rates, while sterling remains stable against most currencies ahead of tomorrow's key Bank of England minutes, which are due out at 9.30am.

Currency news out this week

Sun, 18 Sep 2011 00:00:00 GMT

This week's economic calendar is below - we have the Bank of England minutes on Wednesday which will reveal how close we were to seeing more Quantitative Easing this month. This is likely to be the main news for sterling this week, but with data out all round the world, check back for the latest news during the week. Monday 19th Overnight – UK Nationwide consumer confidence Tuesday 20th 0230 – Australian interest rate minutes 0700 – Swiss trade balance; German PPI inflation 1000 – German economic sentiment 1330 – US housing starts and building permits 2345 – New Zealand current account Wednesday 21st 0930 – Bank of England minutes; UK public sector borrowing 1200 – Canadian CPI inflation 1730 – US interest rate decision 1900 – US interest rate minutes 2345 – New Zealand GDP Thursday 22nd 0900 – Eurozone manufacturing inflation 1000 – Eurozone industrial orders 1330 – Canadian retail sales 1500 – US house price index; Eurozone consumer confidence Friday 23rd No major data

Sterling retreats further over night

Thu, 15 Sep 2011 00:00:00 GMT

The retail sales figures were negative, as expected, mainly down to a rise in prices putting consumers off. However, the figures came in slightly better than expected at -0.2% rather than -0.3% for the month and 0% growth for the year compared to expected -0.2% which did give the pound a brief boost of 20 points against the Euro. Following European PPI data which came out as expected these gains were reversed. Whilst the Eurozone is awash with debt problems the problem the pound has is the exposure we have to any debt bailout. Problems in the Eurozone also affect our exports, hampering the UK economic recovery so while one may think the problems should lead to better exchange rates the reality is not the case. Against the US dollar the slightly better retail figures gave the pound the steam to push up from an 8 month low but analysts expect gains to be capped as the chance of more quantitative easing remains on the cards. Amid all the volatility in the markets, contact Currency Index who can monitor rates on your behalf, and alert you to favorable movements, whichever currency you are buying or selling.

The Pound opens lower for the second day running

Wed, 14 Sep 2011 00:00:00 GMT

UK unemployment figures released this morning came out as expected with average earnings coming out slightly better. The number of people claiming job seekers allowance also came some 10,000 less than was forecast which is seen as positive from the side of consumer spending and therefore for economic growth. We will see if this is the case tomorrow when the retail sales figures for August are released. The gain was small though indicating the pound has little strength behind it and with the gains seen at the end of last week trickling away as this week goes on anyone with a Euro requirement in the coming months might want to consider locking in by way of a forward contract. Contact your dealer at Currency Index today to discuss the available options for securing your funds.

Sterling drops as UK inflation increases

Tue, 13 Sep 2011 00:00:00 GMT

Normally an inflation rise would lead investors to speculate over an increase in interest rates giving the pound a boost but with the Bank of England firmly against this over worries of UK economic growth the opposite happened and the pound dropped, losing a quarter cent against the euro. Trade balance figures also released showed a drop of nearly half a billion pounds, when a slight improvement from last month was predicted, also adding to sterling’s woes. Despite the poor results, we are still trading just off a six month high so if you need to send payments in Euros it could be a good time to look at securing your rate. Don't forget Currency Index can offer fixed rates of exchange up to 2 years ahead, useful if you do not need your currency yet but do not want to miss out on some respite for sterling. UK unemployment figures and average earning figures are out tomorrow morning with retail sales out for the UK and Eurozone inflation figures on Thursday, so plenty in the next couple of days to cause market volatility so keep in touch with your dedicated broker to avoid missing out.

Euro rate hits 6 month high

Fri, 09 Sep 2011 00:00:00 GMT

Following yesterday's decisions by the European and UK central banks, the Euro has weakened off to give us the best rates for buying Euros since March. The Bank of England decided not to extend its Quantitative Easing (QE) programme, and the European Central Bank announced there were no further interest rate rises imminent in the single currency area. Both these releases were sterling-positive, since QE would have been bad for sterling, and further Euro interest rate rises would have made the Euro more expensive. The Bank of England is still tipped to increase QE in the coming months if the UK's recovery does not kick into gear, so if you need to send payments in Euros it could be a good time to look at securing your rate. Don't forget Currency Index can offer fixed rates of exchange up to 2 years ahead, useful if you do not need your currency yet but do not want to miss out on some respite for sterling.

Interest rates and QE left on hold

Thu, 08 Sep 2011 00:00:00 GMT

The Bank of England has left UK interest rates at 0.5%, and has decided not to extend its Quantitative Easing (QE) programme - yet. The Pound has gained around a cent against the Euro and US dollar this morning. More QE may be used in the coming months to prop up the UK's ailing economic recovery. The last round was completed in February 2010 and, since effectively printing money reduces the value of sterling, had decimated the value of the Pound. We will find out in 2 weeks how near the Bank were to extending QE this month, and any signals that they may do so in October will be likely to send exchange rates tumbling. The only possible saviour, for those of you looking to send payments overseas, is that high inflation could cause the Bank to pause for thought for a little longer. Therefore, as well as the minutes in 2 weeks, any inflation data published during September will also likely have a strong influence on the direction of exchange rates. Do contact us for an award winning currency transfer service at Currency Index and for the latest live rates and quotes on your own transactions.

Swiss franc rate improves by 8pc

Tue, 06 Sep 2011 00:00:00 GMT

The Swiss National Bank (SNB) this morning announced that it would take steps to devalue the Swiss Franc, which has increased in cost by over 30% since the collapse of Lehman Brothers in 2008. In an unprecedented move in recent times, the SNB said it would buy other currencies in "unlimited amounts" to stop the Franc's appreciation and stave off possible recession. The Swiss Franc immediately fell on foreign exchange markets, improving rates for buying Swiss francs by over 10c (8%) against sterling. The Swiss Franc has been used as a "safe haven" currency recently for investors moving out of other currencies, so the news has had a knock on effect; the Euro rate against sterling fell by nearly a cent in early trading this morning. Against the US Dollar, sterling has fallen over 2c during the course of the day. Amid all the volatility in the markets, contact Currency Index who can monitor rates on your behalf, and alert you to favourable movements, whichever currency you are buying or selling.

Currency news this week

Mon, 05 Sep 2011 00:00:00 GMT

This week we have a lot of major data out around the world likely to affect exchange rates. If you are sending money abroad or receiving funds in a foreign currency, here are the announcements to check this week. As well as interest rate decisions in the UK, Eurozone, Canada and Australia, we are due some unemployment figures, and early inflation and industrial figures. Monday 5th US Bank Holiday 0930 – UK services 1000 – Eurozone retail sales Overnight – UK retail sales monitor Tuesday 6th 0530 – Australian interest rate decision 0815 – Swiss CPI inflation 1000 – Eurozone GDP 1100 – German factory orders Wednesday 7th 0230 – Australian GDP 0930 – UK manufacturing & industrial production 1100 – German industrial production 1400 – Canadian interest rate decision 1500 – UK GDP estimate Thursday 8th 0230 – Australian unemployment rate 0645 – Swiss unemployment rate 1200 – UK interest rate decision 1245 – Eurozone interest rate decision 1330 – US trade balance & jobless claims Friday 9th 0700 – German CPI inflation 1200 – Canadian unemployment rate

US job data boosts rates

Fri, 02 Sep 2011 00:00:00 GMT

This afternoon US non-farm payroll data was far below analysts' expectations, weakening the US Dollar and boosting exchange rates for the Pound by nearly a cent. Employment growth ground to a halt as weak consumer confidence filters through to the economy. June and July's figures were also revised down. Non-farm payrolls is one of the most important monthly data releases for the USA, so the weak data has provided a good opportunity to buy dollars at improved exchange rates this afternoon.

House prices and manufacturing both fall

Thu, 01 Sep 2011 00:00:00 GMT

In further damaging news for the UK economy, house prices and factory manufacturing both fell significantly in August, in further bad news for the outlook for the Pound. - House prices fell at their fastest rate since October last year, posting a 0.6% drop in August, according to Nationwide - Factory activity shrank at its fastest pace in over 2 years The recurring theme of poor data is reinforcing the view that UK interest rates may not now rise until early 2013. The Pound, which reacts strongly to interest rate expectations, is now more unlikely to stage any kind of general medium term recovery. Talk of further Quantitative Easing, to stop a double-dip recession, could also weigh on sterling in the coming weeks.

This week's currency news

Mon, 29 Aug 2011 00:00:00 GMT

This week sees a number of data releases due, before the monthly interest rate decisions & inflation figures start to come out in the first full week of September. There is no major data due out from the UK, except house prices and consumer confidence, both of which could affect sterling. The Pound lost ground last week (except perhaps against the USD) as fundamentals in the economy are not strong, and against the Euro fell particularly as Eurozone debt problems were not as much in the news. Monday 29th UK bank holiday 1330 - US personal income & consumption Tuesday 30th 0930 - UK mortgage approvals & net lending 1000 - Eurozone consumer & economic confidence 1330 - Canadian current account 1500 - US consumer confidence 1900 - US Federal Reserve interest rate minutes Overnight - UK consumer confidence Wednesday 31st 0700 - German retail sales 0900 - German unemployment 1000 - Eurozone unemployment & CPI inflation 1330 - Canadian GDP 1500 - US factory orders Overnight - UK Nationwide house prices Thursday 1st 0230 - Australian retail sales 0645 - Swiss GDP 0700 - German GDP 0900 - Eurozone manufacturing 0930 - UK manufacturing Friday 2nd 0230 - Australian trade balance 1000 - Eurozone PPI inflation 1330 - US non-farm payrolls & unemployment rate

No improvement for GDP

Fri, 26 Aug 2011 00:00:00 GMT

This morning's GDP revision was unchanged, at just 0.2% growth in the second quarter of 2011. Sterling has not been affected hugely, fortunately for those of you looking to make a currency transfer from the UK, although the Pound continues to struggle in general. Barclays Capital are now predicting a Euro rate below 1.10 within 6 months for example. The only exception at the moment seems to be the US Dollar, where rates for sending funds remain relatively strong. US GDP figures are released at 1.30 this afternoon.

Fears of UK recession hit Pound

Thu, 25 Aug 2011 00:00:00 GMT

Sterling has fallen over the last 2 days, after new Bank of England MPC member Martin Weale commented that the UK is at risk of falling back into recession. Mr Weale said the UK "faced a significant risk of falling back into recession and that growth forecast could be too optimistic", as well as hinting that more Quantitative Easing, both of which have given markets the jitters in the absence of any other economic news out in the last 2 days. We have the revision to the second quarter GDP tomorrow morning, which could add weight to Mr Weale's comments (and put significant pressure on sterling) if revised down.

Currency news this week

Tue, 23 Aug 2011 00:00:00 GMT

This week's currency calendar has some important data releases likely to affect exchange rates - most notably the updated reading of UK GDP due out on Friday morning. The full schedule of significant releases is shown below - contact us for the latest news and a quote on your own transaction, whichever currency you are buying or selling. Tuesday 23rd 0930 - UK mortgage approvals 1000 - German& Eurozone economic sentiment 1330 - Canadian retail sales 1500 - Eurozone consumer confidence & US home sales 2345 - New Zealand trade balance Wednesday 24th 1000 - Eurozone industrial orders 1330 - US durable goods 1500 - US house price index 2345 - New Zealand retail sales Thursday 25th 0700 - German consumer confidence Friday 26th 0930 - UK GDP 1330 - US GDP 1500 - speech: US Federal Reserve Chairman Ben Bernanke

Public Sector borrowing gives sterling a boost

Fri, 19 Aug 2011 00:00:00 GMT

This was enough to push the pound even higher against a basket of currencies including the US dollar as investors wary of a double dip recession took solace in sterling. The pound hit a 3 month high against the dollar touching 1.66 by late afternoons trade although against the Euro gains from the previous day were reversed slightly as there is still the worry the Bank of England may introduce another round of quantitative easing to help boost our economy. Next week is fairly sparse for UK data releases with the key one being GDP on Friday. With plenty of data out in the Eurozone and US it could mean another volatile week for the pound so the recent gains as we have seen before could easily be reversed. If you have a requirement to send funds abroad, it could be worth getting a rate secured sooner rather than later to protect yourself against any further adverse movements; if you would like to discuss your options please contact us at Currency Index on 0800 043 2623 or 01923 725725.

UK Retail Sales figures show near zero growth

Thu, 18 Aug 2011 00:00:00 GMT

The sales figures came in slightly worse than expected, showing a 0.2 percent increase for the month and zero growth year on year. As a result the pound tailed off against most major currencies although has since rebounded back to trade opening levels. This is a fairly minor data release so the markets will be looking to the array of US data release later today which includes inflation data. Over the past few weeks problems in the US have had an effect on sterling and the Euro so we could well see some volatility during the afternoon session. Tomorrow we have Public Sector Borrowing figures out at 9.30am which is expected to have reduce dramatically from last month. If this is not the case then it’s likely sterling could be in for further losses in the coming days and weeks. If you have a requirement to send funds abroad, it could be worth getting a rate secured sooner rather than later to protect yourself against any further adverse movements; if you would like to discuss your options please contact us at Currency Index on 0800 043 2623 or 01923 725725.

UK unemployment hurts sterling

Wed, 17 Aug 2011 00:00:00 GMT

This morning’s UK unemployment figures have shown the largest jump in 2 years, with 37,100 new claimants. This is the largest increase since May 2009 and has pushed the UK unemployment rate up to 7.9%, above analysts’ forecasts and a disappointing reading for the UK economy and therefore the Pound. Sterling has lost nearly a cent against the Euro and US Dollar, along with similar drops against other currencies, in trading this morning. In further bad news, the Bank of England minutes revealed that all 9 committee members voted to keep interest rates on hold this month, rather than the 7-2 split which has been the case in most recent months. An interest rate rise would be welcome news for sterling, but the prospect of any rises this year now looks lost. Tomorrow we have retail sales figures out at 9.30am but unless there is some unexpected good news, sterling could be in for further losses in the coming days and weeks. If you have a requirement to send funds abroad, it could be worth getting a rate secured sooner rather than later to protect yourself against any further adverse movements; if you would like to discuss your options please contact us at Currency Index on 0800 043 2623 or 01923 725725.

Inflation higher than expected

Tue, 16 Aug 2011 00:00:00 GMT

This morning's UK inflation figures are slightly higher than expected, moving the Pound a little higher. Retail prices were unchanged in July, taking the annual inflation rate up to 4.4%, a little higher than the 4.3% expected, while the core CPI measure increased from 2.8% to 3.1%. The news has improved exchange rates slightly if you are booking a rate for a currency transfer this morning, more so against the Euro than elsewhere as the Eurozone trade balance and GDP were worse than expected, giving some Euro weakness. Tomorrow we have the Bank of England minutes and UK unemployment figures both released in the morning.

This week's currency news

Sun, 14 Aug 2011 00:00:00 GMT

This week we are due for some important UK economic data, all of which is likely to affect the Pound. A quiet Monday is followed by inflation, unemployment, Bank of England minutes, and retail sales from Tuesday to Thursday. Exchange rates could be in for another volatile week, contact us at Currency Index for the latest news and live exchange rates for your transaction. Monday 15th No major data Tuesday 16th 0230 – Australian interest rate minutes 0700 – German GDP 0930 – UK RPI & CPI inflation 1000 – Eurozone GDP 1415 – US industrial production Wednesday 17th 0930 – UK unemployment 1230 – Bank of England interest rate minutes 1000 – Eurozone CPI inflation 1330 – US PPI inflation Thursday 18th 0930 – UK retail sales 1330 – US CPI inflation 1500 – US home sales 1530 – Bank of Canada monetary policy report Friday 19th 0700 – German PPI inflation 0930 – UK public sector borrowing 1200 – Canadian CPI inflation

Volatility continues in currency markets

Thu, 11 Aug 2011 00:00:00 GMT

Fluctuations have continued in most exchange rates, as focus continues on debt problems around the world and in the aftermath of the UK riots. In the last few days US debt has been downgraded for the first time in history on Friday, the ECB reluctantly decided to buy Italian and Spanish bonds at the weekend, and the UK's international reputation was soured by the scenes in our cities. The only significant data still due out this week is US retail sales tomorrow, if you still need to make a currency transfer you should be aware of the scale of recent swings in rates. Against the Pound, we have seen the following fluctuations in the last 7 days: Euro: +/- 2.7c (difference of €2,700 on a £100,000 transfer) US Dollar: +/- 3.6c (difference of $3,600 on a £100,000 transfer) Canadian Dollar: +/- 4.4c (difference of $4,400 on a £100,000 transfer) Australian Dollar: +/- 7.6c (difference of $7,600 on a £100,000 transfer) New Zealand Dollar: +/- 9.4c (difference of $9,400 on a £100,000 transfer) Swiss Franc: +/- 10.2c (difference of CHF 10,200 on a £100,000 transfer) South African Rand: +/- R0.93 (difference of R93,000 on a £100,000 transfer) With volatility like this, do alert us if you are looking to take advantage of any moves in your favour, whichever currency you are buying or selling.

Bank of England cuts UK growth forecasts - sterling falls

Wed, 10 Aug 2011 00:00:00 GMT

The Bank of England has cut its growth forecasts, with a UK interest rate rise not now likely until late 2012. In a downbeat report, there appears to be no room for UK interest rates to increase in the foreseeable future, which is not good news for the Pound and those of you looking to transfer funds abroad. Sterling has fallen heavily against the Euro and US Dollar in the last 24 hours, despite continuing Eurozone debt worries and the US Federal Reserve yesterday making a similar statement on US interest rates which are to be held near zero for the next 2 years. Governer King also noted that the biggest current risk to the UK economy is the Eurozone crisis, as the UK is so exposed to European banks and bonds. Any further spreading of European debt problems are perhaps therefore unlikely to improve the sterling to Euro exchange rate.

Sterling gives up gains as UK reels from London riots

Tue, 09 Aug 2011 00:00:00 GMT

The sickening events in London and elsewhere in the UK are doing nothing to help sterling, which has fallen back after gaining ground over the last week. "Just a few days ago we were talking about sterling as a new safe haven but these riots taking place are another blemish that must have soured anyone's taste for the currency," said Neil Mellor, currency strategist at Bank of New York Mellon. Meanwhile, factory output figures out this morning showed an unexpected fall in June, and the trade deficit hit its worst level since December, in a stark reminder that the UK economy is still failing to show significant signs of recovery. While the well publicised debt crises in Europe and the USA have generally given better exchange rates for sending payments abroad in recent weeks, it can pay to remember that sterling is just as vulnerable to fall as any other currency at the present time.

Currency News this week

Sun, 07 Aug 2011 00:00:00 GMT

A busy week ahead for currency markets, as recent volatility caused by sovereign debt problems looks to continue alongside regular data releases. The ECB are holding an emergency meeting to decide whether to buy Italian government bonds to stave off the need for a full bailout package, and worries in the US over a double-dip recession are continuing. The debt problems which seem to appear whichever way you turn, are unlikely to disappear quickly and are giving short term spikes in exchange rates with opportunities to buy currency at advantageous rates. This week we also have key announcements in the UK (inflation report - Wednesday), USA (interest rate decision & monthly report - Tuesday) and Eurozone (monthly report - Thursday). Each of these could have a significant impact on exchange rates. Whatever currency you need to buy or sell, contact us at Currency Index so we can update you with the latest news and any movement of rates in your favour. You can call us on 0800 043 2623 or 01923 725725. Monday 8th 0645 - Swiss unemployment rate Tuesday 9th 0700 - German trade balance 0930 - UK industrial & manufacturing production, and trade balance 1915 - US interest rate decision & Fed press conference Wednesday 10th 0700 - German CPI inflation 1030 - Bank of England governor Mervyn King's speech; Bank of England quarterly inflation report 1900 - US monthly budget statement Thursday 11th 0230 - Australian unemployment rate 0900 - European Central Bank monthly report 1330 - US trade balance & jobless claims Friday 12th 1330 - US retail sales

Interest rates stay on hold as Pound holds firm

Fri, 05 Aug 2011 00:00:00 GMT

Yesterday's interest rate announcements in the UK and Eurozone, as expected, were for no change in both cases. The UK's base rate remains at 0.5% with the Eurozone at 1.5%. Of more interest will be the accompanying minutes from the UK's monetary policy committee in 2 weeks, and the Bank of England's quarterly inflation report which is out next week and usually shapes interest rate policy which in turn has a considerable effect on the value of sterling. Elsewhere volatility continunes amidst concerns that the USA is heading for a second recession, and further worries in Europe that the debt crisis could spread to more countries requiring EU bailouts. This week has seen opportunities to buy both currencies at favourable levels, as breaking news has been affecting exchange rates and may continue to do so. This afternoon we also have crucial US employment data released at 1.30 UK time which is can have a signiifcant effect on US Dollar rates.

Turmoil continues as debt fears spread

Wed, 03 Aug 2011 00:00:00 GMT

Cyprus has become the latest country to worry about possible bailouts, as President Obama at the last minute signed the US debt extension into law. Financial markets around the world are reacting to the US agreement, which extends the borrowing limit for the American government to cover US debt until the end of 2012. The US Dollar has remained relatively weak, giving rates for sending money to the USA around their best for a month. In Europe, the Bank of Cyprus has warned that the Cypriot economy is not far from requiring Eurozone assistance, as Italian PM Berlusconi prepares to speak in Parliament on the Italian debt situation. The Greek bailout last month was supposed to buy the EU some time over the summer, but endemic problems seem to be emerging across the Eurozone. As a result we also have a weaker Euro, with rates for buying the single currency approaching the best in the recent trading range. What will happen next appears to be anyone's guess, but it does look like buying currencies where debt problems are in the news is giving preferential rates at present. In other news, this morning's UK services data was better than expected, giving the Pound a timely boost. For the latest live rates, contact Currency Index and make sure you are positioned to buy or sell your currency during any advantageous changes in rates.

Euro cheaper as US nears key debt vote

Tue, 02 Aug 2011 00:00:00 GMT

The Euro has continued to weaken in morning trade today, as the US Dollar gains value ahead of today's debt vote. As often happens when there is major news in the Eurozone or USA, sterling has been stuck between a weakening Euro and stronger US Dollar, as markets react to the likely approval around 5pm today of the US debt package, which is likely to raise the American lending limit enough to last through the November 2012 elections. The result today has been rates for buying US Dollars falling back (although still relatively good) with rates for buying Euros now at their best for 2 months. If you would like a quote on your own transaction please call us on 0800 043 2623 or 01923 725725.

This week's currency news

Mon, 01 Aug 2011 00:00:00 GMT

This week sees a number of important data releases due out around the world, as well as the developing debt problems in the USA. The week's full calendar of data likely to affect exchange rates is below, and we expect a volatile week. If you are looking to buy or sell a particular currency, contact us at Currency Index and we will be happy to alert you to any movements in your favour during the week. Monday 1st 0930 - UK PMI manufacturing data 1000 - Eurozona unemployment rate 1500 - US manufacturing & construction figures Tuesday 2nd 0230 - Australian house prices 0530 - Australian interest rate decision 0815 - Swiss retail sales 0930 - UK PMI construction figures 1000 - Eurozone PPI inflation 1330 - US personal consumption & expenditure Wednesday 3rd 0230 - Australian trade balance & retail sales 1000 - Eurozone retail sales 1500 - US factory orders 2345 - New Zealand unemployment rate Thursday 4th 1200 - UK interest rate decision 1245 - Eurozone interest rate decision & press conference Friday 5th 0815 - Swiss CPI inflation 0930 - UK PPI inflation 1200 - Canadian unemployment rate 1330 - US non-farm payroll and unemployment rate

FX markets volatile as US debt crisis worsens

Fri, 29 Jul 2011 00:00:00 GMT

The political crisis surrounding the US debt problems is causing volatility in exchange rates and providing buyers of overseas property with short-lived spikes in which to buy their currency. This week we have had the vote on measures to limit government spending, proposed by Republican Senators, delayed by their own rebels, as well as President Obama threatening to veto the plans as the Democrats seek instead to increase the agreed limits within which US debt must operate. By Tuesday, the current limit is said to be likely to expire, meaning a solution must be found to avoid a US default and possible downgrading of the country’s debt. All this has led to weakness in the US Dollar, which today has become cheaper by 1.5c against the Pound. The knock on effect to the Euro, which has well documented problems of its own, has been further volatility with 1.5c between the high and low rates this week for sending payments in Euros. In addition, US growth figures out this afternoon showed a disappointing 1.3% annual rate in the 3 months to June, leading economists to warn of another possible US recession. Next week is likely to be a rollercoaster ride for the US Dollar, Euro and Pound. Monday and Tuesday could well see further weakness in the US Dollar, which in turn could lead to strength in the Euro and perhaps worse rates for buying Euros for UK buyers. Whatever your requirements for buying or selling foreign currency, be it for an overseas property purchase or a payment on behalf of your business, make sure you have a professional currency exchange company on hand to keep you updated with the latest developments. Monday also sees the release of Eurozone unemployment data at 10am UK time.

US Debt crisis nears crucial vote

Thu, 28 Jul 2011 00:00:00 GMT

The US Congress is scheduled to vote today on a package of measures to avert the American debt problem becoming a full-blown crisis. With a deadline of August 2nd looming, rival Democratic and Republican proposals have paralysed Washington, with the US economy likely to run out of money to pay its debts within the week if a solution is not found. The US Dollar has been weaker this week as the problems have unfolded, giving better rates for those of you sending money to the USA. If a vote can be won and measures agreed, we could see the Dollar strengthen and rates fall back, although if President Obama vetos the Republican bill the crisis could deepen and improve rates even further. If you are looking to buy or sell US Dollars in the short term, contact us at Currency Index and we will be pleased to keep you up to date with the latest news and live rates.

GDP slows to 0.2pc, but stays above zero

Tue, 26 Jul 2011 00:00:00 GMT

This morning's first estimate of GDP for March to June showed a 0.2% growth in the economy - hardly signs of an imminent economic recovery, but at least a positive figure which has eased fears of a 'double dip' recession. Sterling found some strength when the figures were announced, as there had been genuine fears that a contraction in the economy may have been announced. The Pound gained around 0.5c against both the Euro and US Dollar in trading this morning.

This week's currency news - GDP out tomorrow

Mon, 25 Jul 2011 00:00:00 GMT

By far the most important data release this week in the UK will be Tuesday's GDP figure - the first estimate of growth in the UK economy from March to June. There is a real worry that we could see a negative result, which would mean the economy had contracted, sparking fears of a double dip recession. Needless to say, that could in turn be catastrophic news for the value of Sterling. We also have UK house prices, mortgage approvals, and consumer confidence out this week, all of which could have an effect on the Pound's value. Our calendar below shows other data due out around the world which could move exchange rates. Contact us for the latest news and live rates for your own particular transaction. Monday 25th 0930 - UK mortgage approvals 2345 - New Zealand trade balance Tuesday 26th 0930 - UK GDP Q2 2011 1500 - US consumer confidence & new home sales Wednesday 27th 0230 - Australian CPI inflation 0700 - German CPI inflation 2200 - New Zealand interest rate decision Thursday 28th 0855 - German unemployment 1000 - Eurozone consumer confidence Friday 29th Overnight - UK consumer confidence 0700 - UK house prices (Nationwide) 1000 - Eurozone CPI inflation 1330 - Canadian GDP

Europe agrees new bailout package for Greece

Fri, 22 Jul 2011 00:00:00 GMT

Eurozone leaders have announced a second bailout package for Greece, this time involving private as well as government investors. This may in time be seen as a partial default by Greece, when the credit agencies next produce ratings, but for now the perception is that the outcome is as good as it could have been - leading to some strength for the Euro. Sterling has done reasonably well out of the crisis against other currencies, with US Dollar rates showing their biggest weekly increase since May. Rates for sending payments in US Dollars are now near their best levels for 6 weeks. With very little data due out on Monday, markets might now settle down, with two main points to consider for the short term: - Will the Euro strengthen further if the Greek bailout package is seen as positive by the rating agencies? - Will the Pound weaken if the phone hacking scandal continues to reduce confidence in the stability of the UK government? With these in mind it is worth remembering that you can fix exchange rates in advance, to eliminate the risk of falling exchange rates, using a small deposit. Contact Currency Index to discuss your options.

Retail sales give Pound a boost

Thu, 21 Jul 2011 00:00:00 GMT

This morning's UK retail sales figures showed a surprise 0.4% increase in June, at the same time as Germany and France agreed to allow Greece to slip into temporary default if necessary. The Franco-German deal has given us some Euro weakness, improving exchange rates for those of you sending payments to the Eurozone. Across the board, sterling has also taken some strength from the retail sales figures, which were expected to show a small decrease in June. Before we get carried away however, there is still a risk that Q2 GDP may show a negative reading, sparking fears of a 'double dip' recession. Public borrowing figures, also out this morning, showed that the public deficit indicates more fundamental problems in the British economy. For the lates live exchange rates and news, contact us on 0800 043 2623 or 01923 725725.

Bank of England unchanged on interest rates

Wed, 20 Jul 2011 00:00:00 GMT

This morning's Bank of England minutes revealed their Monetary Policy committee voted 7-2 in favour of keeping interest rates on hold in July. While widely expected, the minutes revealed that "recent developments had reduced the likelihood that a tightening in policy would be warranted in the near term", meaning that the prospect of UK interest rate rises this year are at a low. This is a blow to those of you looking for better exchange rates for your overseas payments, since higher interest rates would be likely to increase the value of sterling. With David Cameron's poll ratings taking a hit and more news emerging around the phone hacking scandal all the time, further political implications for the UK could also hurt sterling in the shorter term.

Euro strengthens ahead of Thursday's summit

Tue, 19 Jul 2011 00:00:00 GMT

The Euro has gained some strength this morning, as investors juggle their concerns with the Eurozone debt crisis on one hand, and US fiscal problems on the other. Rates for sending payments in Euros have therefore fallen slightly from yesterday's 1-mont high. This morning's European and German economic data was also better than expected. European leaders are due to meet on Thursday to discuss a possible second round of bailouts for Greece. Elsewhere, Gold prices have hit a new record high this morning as investors move to 'safe' assets - and as usual the same has applied to the Swiss Franc which is becoming more expensive as debt problems around the world continue.

Currency News This Week

Mon, 18 Jul 2011 00:00:00 GMT

Friday saw the much anticipated results of the European banks’ “stress test”, in which only 8 relatively small banks failed the European Banking Authority’s supposedly stringent tests of capital adequacy. It will be some time until markets react to the detail in the results, but fortunately for clients looking to send Euro payments the single currency has not strengthened over the weekend. This week, we have the Bank of England minutes on Wednesday, which are unlikely to show any change from the 7-2 split in votes to keep interest rates on hold this month. Thursday’s retail sales figures may be more important overall for the direction of sterling, as the UK has seen some poor economic data releases recently and recovery in high street activity would be a welcome change. Elsewhere, rates for sending money to Canada may be in for some volatility this week, with interest rates, monetary policy, inflation and retail sales all due to be announced. In the USA we have new home sales and in Europe just consumer confidence, construction, and industrial orders. Call Currency Index on 01923 725725 for the latest news and live rates, or subscribe to our RSS feed for news delivered direct to your inbox or mobile device. Data releases this week Monday 18th No major data Tuesday 19th 0230 – Australian interest rate minutes 1000 – German ZEW survey & Eurozone construction output 1400 – Canadian interest rate decision Wednesday 20th 0700 – German PPI inflation 0930 – Bank of England interest rate minutes 1500 – US home sales & Eurozone consumer confidence 1530 – Bank of Canada monetary policy report Thursday 21st 0700 – Swiss trade balance 0830 – German PPI inflation 0930 – UK retail sales & public sector borrowing Friday 22nd 1000 – Eurozone industrial orders 1200 – Canadian CPI inflation 1330 – Canadian retail sales

European Stress Test – What Next for Euro Rates?

Fri, 15 Jul 2011 00:00:00 GMT

Markets around Europe are bracing themselves for the release of the ‘stress test’ results at 4pm UK time today – which will be the result of the most comprehensive review of banking and credit in the EU since the global financial crisis in 2008. Between 10 and 15 European banks are expected to fail the test, and will be given until September to submit plans to plug any gaps in their capital adequacy. Is this likely to weaken the Euro, improving the best rates for sending Euros abroad from the UK? The answer to this will depend on how bad the results are perceived as being, specially given recent worries over the Italian economy, which have added to the well documented problems in Ireland, Greece and Portugal. If more than 15 banks fail the test, we could expect some Euro weakness, but on the other hand the transparency of the new tougher tests and the fact that the EBA (European Banking Authority) at least have a strategy to deal with the weaker banks, could be seen by markets as a sign of strength thus making the Euro more expensive. This also explains recent Euro strength in the face of bond ratings falling across the Eurozone and talk of further bailouts, which has not provided the Euro weakness many of you buying property overseas had been hoping for. When the dangerous exposure of the UK banking sector to many of the ‘problem’ Eurozone countries is also considered, perhaps it is easy to see why the Pound has been suffering and not making the gains against the Euro that at first sight might have been expected. So, even if the stress test results this afternoon are worse than expected, it might be unlikely that exchange rates will improve, and whether you are sending a payment to Spain, France or anywhere else it could pay to consider fixing an exchange rate now. The problems in the Eurozone have a track record of producing a stronger (more expensive) Euro, even though that may seem strange at first. Until we have sight of more interest rate rises in the UK (not expected until November at the earliest), sterling is likely to remain weak, and higher interest rates in the Eurozone will only continue to fuel demand for the single currency, keeping exchange rates low for some time to come.

Jobless claims show biggest jump in 2 years

Wed, 13 Jul 2011 00:00:00 GMT

There was further bad news for the UK economy today as the number of unemployment claimants in the UK jumped to the highest total since March 2010, with the single biggest monthly increase in 2 years. However the unemployment rate itself remained steady at 7.7%. While the news initially hurt sterling, reducing exchange rates for sending money overseas, the Pound later recovered as the worries about a second Greek bailout raged in the Eurozone, and the US Dollar also weakened off significantly in afternoon trading. Tomorrow we have Eurozone inflation at 10am and US retail sales and jobless claims at 1.30pm. Contact Currency Index for the latest news and live rates.

Sterling hit by triple dose of bad news

Tue, 12 Jul 2011 00:00:00 GMT

The Pound's recent run was brought to an abrupt halt this morning by 3 pieces of economic news it could have done without. Inflation, the trade defecit and house prices all fell - meaning that an interest rate rise in the UK is even less likely than had been the case previously. In turn sterling weakened against most major currencies, losing over half a cent against both the Euro and US Dollar when the figures were releases at 9.30 this morning. Tomorrow's unemployment data is the next major UK news due out, and in the current climate it might be wise to expect more bad news.

Currency News This Week

Mon, 11 Jul 2011 00:00:00 GMT

This week we have a lot of key data releases in the UK, USA and Eurozone all likely to affect exchange rates. Tuesday to Thursday are likely to be the busiest days, particularly tomorrow morning when monthly UK inflation figures are released. Any further fall in inflation rates is likely to reduce the value of sterling, and US Dollar and Euro exchange rates still look vulnerable to any negative news in the UK. With so much due out this week, call Currency Index on 01923 725725 for the latest news and live rates, or subscribe to our RSS feed for news delivered direct to your inbox or mobile device. Monday 11th 1315 – Canadian new house builds Tuesday 12th 0700 – German CPI inflation 0930 – UK RPI & CPI inflation, trade balance and house price index 1330 – US trade balance 1900 – US Federal Reserve interest rate minutes Wednesday 13th 0130 – Australian consumer confidence 0930 – UK earnings and unemployment rate 1000 – Eurozone industrial production 1900 – US monthly budget statement 2345 – New Zealand GDP Thursday 14th 0900 – ECB monthly report 1000 – Eurozone CPI inflation 1330 – US retail sales, jobless claims and PPI inflation Friday 15th 1330 – US CPI inflation

Non farm payrolls weaken USD

Fri, 08 Jul 2011 00:00:00 GMT

Figures out this afternoon have shown a suprise drop in new jobs created in the USA, with the monthly "non-farm payroll" figure showing only 18,000 jobs created in June, compared to expectations of 90,000. The figure is notorious for causing volatility in US Dollar rates, and the weak figures have reduced the cost of sending money to the USA with exchange rates up around a cent against sterling.

Eurozone interest rates up as expected

Thu, 07 Jul 2011 00:00:00 GMT

Both the Bank of England and European Central Bank have acted as expected in their interest rate decisions today. The Bank of England has kept UK rates on hold at 0.5%, while European rates have been increased to 1.5% as the ECB retains its tough stance on the Greek crisis. Both decisions were already priced in to the currency markets, with the Euro gaining strength (becoming more expensive) on the speculation in recent weeks. Investors are now more likely to hold funds in Euros rather than sterling, due to the higher rate of return, creating demand whic makes the single currency more expensive and reduced exchange rates for sending money to the Eurozone. ECB President Trichet will now give his accompaning press conference, while we will have to wait 2 weeks for the publication of the Bank of England minutes detailing the split in voting on the decision here.

Service sector grows as Euro retail sales fall

Tue, 05 Jul 2011 10:00:00 GMT

We have seen a slight improvement in exchange rates this morning, as UK services growth showed a slight increase beyond analysts' expectations.

Along with weaker Euro retail sales data, this has given sterling a small boost against the Euro and most other currencies this morning.

However, alongside other data in the last week showing poor performances in manufacturing and construction, it looks as though Britain's recovery failed to gain momentum in the second quarter.

Sterling improves on UK services data, but outlook remains poor

Tue, 05 Jul 2011 00:00:00 GMT

We have seen a slight improvement in exchange rates this morning, as UK services growth showed a slight increase beyond analysts' expectations. Along with weaker Euro retail sales data, this has given sterling a small boost against the Euro and most other currencies this morning. However, alongside other data in the last week showing poor performances in manufacturing and construction, it looks as though Britain's recovery failed to gain momentum in the second quarter.

This week's currency news

Mon, 04 Jul 2011 09:55:00 GMT

The first full week of the month is always busy with data releases, and July is no exception.

The main news due out for those of you buying or selling Euros is likely to be Thursday's Eurozone interest rate decision. The ECB are widely tipped to increase the base rate to 1.5%, which markets have been pricing in over recent weeks giving a stronger (more expensive) Euro. The UK interest rate decision on the same day is very likely to be 'no change'.

In the USA, we have a holiday today for Independence Day, and will wait until Friday for the main data of the week, non-farm payrolls which is the main monthly indicator of the health of the US jobs market and can cause volatility in the dollar.

In general sterling remains vulnerable and until we see some improvements in confidence and the outlook in the UK, we don't expect any major upward movement for the Pound.

Monday 4th
US Bank Holiday
0815 - Swiss retail sales
0930 - UK manufacturing

Tuesday 5th
0530 - Australian interest rate decision
0930 - UK services
1000 - Eurozone retail sales
1500 - US factory orders

Wednesday 6th
1000 - Eurozone GDP
1100 - German factory orders
2345 - New Zealand GDP

Thursday 7th
0230 - Australian unemployment
0930 - UK industrial & manufacturing production
1200 - UK interest rate decision
1245 - Eurozone interest rate decision

Friday 8th
0645 - Swiss unemployment rate
0930 - UK PPI inflation
1200 - Canadian unemployment rate
1330 - US non-farm payrolls

Currency News this week

Mon, 04 Jul 2011 00:00:00 GMT

The first full week of the month is always busy with data releases, and July is no exception. The main news due out for those of you buying or selling Euros is likely to be Thursday's Eurozone interest rate decision. The ECB are widely tipped to increase the base rate to 1.5%, which markets have been pricing in over recent weeks giving a stronger (more expensive) Euro. The UK interest rate decision on the same day is very likely to be 'no change'. In the USA, we have a holiday today for Independence Day, and will wait until Friday for the main data of the week, non-farm payrolls which is the main monthly indicator of the health of the US jobs market and can cause volatility in the dollar. In general sterling remains vulnerable and until we see some improvements in confidence and the outlook in the UK, we don't expect any major upward movement for the Pound. Monday 4th US Bank Holiday 0815 - Swiss retail sales 0930 - UK manufacturing Tuesday 5th 0530 - Australian interest rate decision 0930 - UK services 1000 - Eurozone retail sales 1500 - US factory orders Wednesday 6th 1000 - Eurozone GDP 1100 - German factory orders 2345 - New Zealand GDP Thursday 7th 0230 - Australian unemployment 0930 - UK industrial & manufacturing production 1200 - UK interest rate decision 1245 - Eurozone interest rate decision Friday 8th 0645 - Swiss unemployment rate 0930 - UK PPI inflation 1200 - Canadian unemployment rate 1330 - US non-farm payrolls

List of all currencies bought and sold by Currency Index

Thu, 30 Jun 2011 00:00:00 GMT

Here is a comprehensive list of all the currencies we deal in at Currency Index along with their official currency codes. Each one can be bought or sold against most others; please contact us to confirm any exact requirements. Sterling GBP Euro EUR US Dollar USD UAE Dirham AED Australian Dollar AUD Bahraini Dinar BHD Canadian Dollar CAD Egyptian Pound EGP Czech Koruna CZK Danish Krone DKK Hong Kong Dollar HKD Hungarian Forint HUF Israeli Shekel ILS Indian Rupee INR Japanese Yen JPY Kenyan Shillings KES Kuwaiti Dinar KWD Moroccan Dirham MAD Mauritian Rupee MUR Mexican Peso MXN Norweigan Krone NOK New Zealand Dollar NZD Omani Real OMR Polish Zloty PLN Saudi Arabian Real SAR Swedish Krone SEK Singapore Dollar SGD South African Rand ZAR Swiss Franc CHF Thai Baht THB Tunisian Dinar TND Turkish Lire TRY Outbound Transfers Only (we can send these currencies for you, but cannot receive them in) Barbados Dollar BBD East Caribbean Dollar XCD Jamaican Dollar JMD

GDP as expected

Tue, 28 Jun 2011 09:48:00 GMT

This morning's final revision to UK Q1 GDP showed 'no change' to the previous reading of 0.5% growth in the 3 months to March.

Those of you following exchange rates for sending money abroad will have been hoping for better news to turn around the Pound's recent decline.

With house price and mortgage data still to come this week, further losses could be on the cards unless there is some (unlikely) positive news.

GDP as expected

Tue, 28 Jun 2011 00:00:00 GMT

This morning's final revision to UK Q1 GDP showed 'no change' to the previous reading of 0.5% growth in the 3 months to March. Those of you following exchange rates for sending money abroad will have been hoping for better news to turn around the Pound's recent decline. With house price and mortgage data still to come this week, further losses could be on the cards unless there is some (unlikely) positive news.

Currency news this week

Mon, 27 Jun 2011 10:41:00 GMT

As we near the end of June, a quiet week ahead for economic data, with the notable exception of UK GDP released tomorrow morning at 9.30am. This is the final revision of economic growth in the first quarter of 2011, and one of the main measures which influences markets' views on the UK economy - therefore any revision to the previous figures is likely to have an immediate impact on sterling.

Don't forget that next week the European Central Bank are likely to raise their interest rates too, which could well give the Euro strength, reducing rates for buying Euros. We also have the ongoing Greek crisis with votes due on austerity measures, and the prospect of UK strikes later in the week unlikely to help the Pound's cause either.

Monday 27th
1330 - US personal income & expenditure

Tuesday 28th
0930 - UK GDP & business investment
1500 - US consumer confidence

Wednesday 29th
0930 - UK mortgage approvals
1000 - Eurozone consumer confidence
1200 - Canadian CPI inflation
Overnight - UK consumer confidence

Thursday 30th
0700 - German retail sales
0855 - German unemployment
1000 - Eurozone CPI inflation
1330 - Canadian GDP

Friday 1st
1500 - US construction spending

Latest Currency News; UK interest rates to lag behind Europe

Mon, 27 Jun 2011 00:00:00 GMT

The Pound fell last week against most major currencies, as news reached the markets that the new Bank of England MPC member, Ben Broadbent, voted against a UK interest rate rise this month. His predecessor Andrew Sentance had been voting for a rate rise for some time, but the prospect now seems further away and as a result we are not expecting a UK interest rate rise this year. With European interest rates likely to go up next week and further in the coming months, investors are more likely to hold Euros than sterling (for a better return on their funds), so the cost of Euros tends to go up according to this demand. As we near the end of June, a quiet week ahead for economic data, with the notable exception of UK GDP released tomorrow morning at 9.30am. This is the final revision of economic growth in the first quarter of 2011, and one of the main measures which can influence markets' views on the UK economy - therefore any revision to the previous figures is likely to have an immediate impact on sterling. We also have the ongoing Greek crisis with votes due on austerity measures, and the prospect of UK strikes later in the week unlikely to help the Pound's cause either. Data releases this week: Monday 27th 1330 - US personal income & expenditure Tuesday 28th 0930 - UK GDP & business investment 1500 - US consumer confidence Wednesday 29th 0930 - UK mortgage approvals 1000 - Eurozone consumer confidence 1200 - Canadian CPI inflation Overnight - UK consumer confidence Thursday 30th 0700 - German retail sales 0855 - German unemployment 1000 - Eurozone CPI inflation 1330 - Canadian GDP Friday 1st 1500 - US construction spending

Bank of England votes 7-2 as Greece survives vote

Wed, 22 Jun 2011 09:34:00 GMT

The Bank of England has revealed its interest-rate setting committee voted 7-2 to keep interest rates on hold in June.

New member Ben Broadbent voted for no change, replacing ex-member Andrew Sentance who was a supporter of higher interest rates.

In a blow for the Pound, interest rate rises this year are now seen as even less likely, causing the value of sterling to fall this morning.

In Greece, the government has also passed a vote of confidence ahead of proposed austerity measures and another ECB/IMF bailout, adding strength to the Euro and decreasing exchange rates further for those of you sending money to Europe.

Getting the best Exchange Rate? Don't Bank on it!

Tue, 21 Jun 2011 00:00:00 GMT

Chris Hall, payments manager with commercial foreign exchange brokers, Currency Index, explains how foreign currency exchange services can save you money when transferring funds overseas while providing a direct alternative to the banks. Banks Vs brokerages Specialist currency brokers exist because they can provide better exchange rates than high street banks. Most large currency brokers turn over enough currency to buy at similar levels to the banks, but because they do not have anywhere near the amount of overheads, they can pass these exchange rates on to their clients and remove any additional charges, depending on the figure involved. Keeping an eye on the market Currency brokers are more professionally equipped to deal with clients’ needs relating to currency transfers because they know what is happening in the market each and every day. Local banks tend to have one rate to give their customers which they won’t relate to any market movements during the day. The exchange rates can change by a few percent points each day, which the banks do not always take into account with their flat rate. Meeting your particular needs There are many advantages for individuals in using a currency brokerage, on many occasions clients will be dealing with a dedicated manager who understands their particular requirements and the importance of meeting these needs. By contrast, most high street banks will simply hand over a form to be completed, without asking what the transfer is for. On many occasions, a different type of contract will be of more use - an option a client won’t receive at many banks. Business transactions made easy Businesses can thrive on expanding internationally by using suppliers in different countries to reduce costs. Using a currency broker who can provide the client with competitive rates and a dedicated account manager can make the tasks of paying overseas suppliers quick and easy. Getting it right The client always has to be 100% sure they are agreeing to the correct type of contract and understand the difference between a Spot and Forward contract. Clients also need to make sure they are sending the funds to the correct location. If they are settling a deposit on a transfer for overseas property and miss the deadline because they have given the brokerage the wrong details, they risk losing the property. It is always worth double checking with the agent that they have the correct details. Try to get something via email or fax so that it can be directly passed on to the broker, this will avoid any risk of mis-keying and entering the wrong details. Making sure the currency brokerage is bona-fide The best clients can do to check on a currency brokerage is to make sure they are registered with Her Majesty's Revenue and Customs (HMRC) as a ‘Money Service Business’ and the FSA to ensure they are listed as an 'Authorised Payments Institution'. Saving money Due to the fact that currency exchange rates can change on a second-by-second basis, there are always savings to be made. Across the board, currency brokers normally give clients better exchange rates than the banks - anything between 1% and 4%, which can provide substantial savings. Most brokerages also give free transfers if the client transfers over a certain amount. Peace of mind Using a currency brokerage over a bank during the financial turmoil is generally a safe option. Currency brokers will not speculate while they are in possession of the clients’ money, they understand that on many occasions the sums involved are large and are often life savings or money gained from the sale of a property. In addition, reputable brokers do not lend or borrow money, so are largely unaffected by the credit crisis.

This week's currency news

Mon, 20 Jun 2011 10:01:00 GMT

This week's main news for the Pound is likely to be Wednesday's Bank of England Minutes, which will show the split in the vote to keep interest rates on hold earlier this month. With a new committee member, Ben Broadbent, voting for the first time, there may be some change from the 6-3 split seen in the last few months.

With ongoing severe debt problems in Greece, planned public sector strikes in the UK next week, and lots of other economic news due out around the world, there could be volatility in the currency markets.

Monday 20th
0700 - German PPI inflation

Tuesday 21st
0230 - Australian interest rate minutes
0930 - UK public sector net borrowing
1000 - Eurozone & German ZEW sentiment survey
1330 - Canadian retail sales
1500 - US home sales
2345 - New Zealand current account

Wednesday 22nd
0930 - Bank of England minutes
1000 - Eurozone industrial orders
1500 - Eurozone consumer confidence
1730 - US interest rate decision

Thursday 23rd
0715 - Swiss trade balance
0900 - Eurozone manufacturing & services inflation
0930 - UK mortgage approvals

Friday 24th
1330 - US GDP

Retail sales fall 1.4%

Thu, 16 Jun 2011 10:08:00 GMT

May's disappointing retail sales figures, showing a 1.4% drop in May, have held sterling back this morning.

High street activity was expected to fall after April's spike due to the royal wedding and run of bank holidays, but the decline was much more than expected.

We have now had all major UK data for the week, although for those of you tracking Euro rates we have the ECB monthly report and Eurozone trade balance due out tomorrow morning.

Mixed bag for unemployment

Wed, 15 Jun 2011 10:17:00 GMT

Unemployment figures this morning showed a drop of 88,000 in the 3 months to April, the biggest fall since 2000, with the jobless total now 2.43m.

However, the number of jobseekers' allowance claimants rose by 19,600 to 1.4m, the biggest rise since July 2009.

Earnings growth also fell.

Given the mixed data, the Pound intially fell but has since recovered against the Euro, although is losing ground against the US Dollar. Call us at Currency Index for the latest live rates.

UK inflation stays at 4.5%

Tue, 14 Jun 2011 09:54:00 GMT

Sterling has fallen back this morning after inflation figures showed 'no change' in May at 4.5%.

High inflation has been one of the main arguments for raising UK interest rates, and the Bank of England expects inflation to go up further throughout the summer. This morning's figures were lower than expected, and coupled with Halifax's announcement this morning that May house prices were 4.2% lower than a year ago, the Pound has started to lose value again.

Currency news this week

Mon, 13 Jun 2011 09:33:00 GMT

This week's economic calendar is below, and in the UK we have 3 main releases: inflation, unemployment and retail sales, at 9.30 each morning from Tuesday to Thursday.

Each of these has the potential to impact the value of sterling.

Retail sales & inflation are also due out in the USA, and inflation in Europe, so we could see some volatility this week in GBP-EUR and GBP-USD. Call Currency Index on 0800 043 2623 for the latest rates and news.

Monday 13th
No major data

Tuesday 14th
Overnight - UK consumer confidence & RICS house price balance
0930 - UK inflation (RPI & CPI)
1330 - US retail sales
2345 - New Zealand retail sales

Wednesday 15th
0930 - UK unemployment rate
1000 - Eurozone industrial production
1330 - US inflation (CPI)

Thursday 16th
0830 - Swiss interest rate decision
0930 - UK retail sales
1000 - Eurozone inflation (CPI)

Friday 17th
0900 - ECB monthly report
1000 - Eurozone trade balance

Europe and UK keep interest rates on hold

Thu, 09 Jun 2011 14:28:00 GMT

Both today's interest rate decisions, in the UK and Eurozone, were 'no change' as expected. The Bank of England is widely tipped to keep interest rates on hold until late 2011, while the European Central Bank may raise rates further in the summer.

European Central Bank Trichet, in the accompanying press conference, again states "strong vigilance" was warranted, which is taken to mean that European interest rates could well be increased to stave off inflation over the summer.

Higher interest rates tend to make a currency more expensive, so the cost of exchanging sterling to Euros might be likely to increase if analysts start to 'price in' Eurozone interest rate rises before we see any in the UK.

For further analysis please see Reuters or call us at Currency Index (0800 043 2623) for the latest views and live rates.

This week's currency news

Sun, 05 Jun 2011 17:43:00 GMT

This week sees the monthly round of interest rate decisions in the UK, Europe, New Zealand and Australia. Rates are expected to remain on hold in the UK for several more months, so any other currencies where interest rates start to rise further will probably gain momentum, leaving their currencies more expensive.

We also have the UK trade balance out on Thursday, but little else to potentially give the Pound a boost. Releases due out around the world are listed below.

Monday 6th
1000 - Eurozone PPI inflation

Tuesday 7th
0530 - Australian interest rate decision
1000 - Eurozone retail sales

Wednesday 8th
1000 - Eurozone GDP
2200 - New Zealand interest rate decision

Thursday 9th
0230 - Australian unemployment rate
0930 - UK trade balance
1200 - UK interest rate decision
1245 - Eurozone interest rate decision
1330 - US trade balance

Friday 10th
0930 - UK industrial & production manufacturing
1200 - Canadian unemployment rate
1530 - UK GDP estimate

Manufacturing, mortgages and money supply all fall

Wed, 01 Jun 2011 14:58:00 GMT

Sterling fell this morning on 3 worse-than-expected data releases in the UK. Mortgage approvals fell to 45,000 in April, signalling more problems in the housing market, while manufacturing growth fell and the measure of money supply in the economy was also below expectations.

There is not much else due out this week in terms of UK data, so the Pound may struggle to recover much ground. Exchange rates fell nearly a cent against the Euro and US Dollar this morning.

Financial Security when using Currency Brokers

Wed, 01 Jun 2011 00:00:00 GMT

When considering using a currency broker instead of your bank, how do you know you are dealing with a reputable company and that your funds are safe? The answer to this vital question can be found with a little research. The main check you should make it that any currency broker you are dealing with should be an "Authorised Payment Institution", which you can check on the FSA's website at http://www.fsa.gov.uk/register/psdFirmSearchForm.do. Currency Index was one of the first firms to become an "API" in November 2009 under the new Payment Services Regulations. This means that we have shown (and continue to have) the following: - Safeguarded client accounts. Your funds are held in separate accounts to the main business, and would be protected from creditors in the event of any problems - Minimum capital requirements. Currency Index is required at all times to keep a substantial amount of its own funds in the business, to cover any unforeseen problems or expenses - Treating customers fairly. Currency Index's terms and conditions of business are required to be clear and fair - Speed of payments. Client payments will be sent as quickly as possible in all cases and we will never hold on to your money unless you ask us to The full FSA interpretation of the regulations, should you wish to check them, are also available at http://www.fsa.gov.uk/pubs/other/PSD_approach.pdf. One important factor when checking the safety of a currency company, is when exactly your funds are held in safeguarded accounts, and when they are not. The regulations only ensure that currency brokers hold your funds in safeguarded accounts AFTER they have been converted to another currency, which means for example if you are exchanging £100,000 to Euros that your money might be at risk if a company falls into difficulty before that money is physically exchanged into Euros. Currency Index, as a leader in its field, has gone one step further than these requirements, and guarantees that ALL client funds are held in safeguarded client accounts, whether or not they have been exchanged and whichever currency they are held in, at all times. We have called for the FSA to clarify this issue and ensure that clients are protected at all times. Aside from the regulations, there are several reasons why exchanging your currency with us is safe. - We do not speculate on the markets, and only buy currency when instructed by clients. There is therefore virtually no exposure to market risk. - Currency Index does not lend or borrow money under any circumstances, and therefore has negligible exposure to default. - Payments are only sent on a client's behalf once full settlement has been received and cleared. Dealing with a professional currency company should be safe, secure, and of course save you time and money. At Currency Index that is our aim, and we are delighted to have assisted a large number of clients transfer millions of pounds per month around the world while maintaining complete integrity and maximum security. If you have any further questions on the processes involved, please contact us and we will be pleased to assist.

Currency news this week

Tue, 31 May 2011 11:04:00 GMT

After the long weekend we have a mixed bag of news releases scheduled this week, with the only main UK figures being mortgage approvals and services & manufacturing growth.

There are various other pieces of news due around the world, with the details below of anything likely to affect exchange rates in each country. Contact us at Currency Index for the latest news and live rates.

Monday 30th
1330 - Canadian GDP

Tuesday 31st
0200 - New Zealand business confidence
0230 - Australian current account
0645 - Swiss GDP
0700 - German retail sales
0855 - German unemployment rate
1000 - Eurozone CPI inflation & unemployment rate
1400 - Canadian interest rate decision

Wednesday 1st
0230 - Australian GDP
0930 - UK mortgage approvals & PMI manufacturing

Thursday 2nd
0230 - Australian trade balance
1500 - US factory orders

Friday 3rd
0930 - UK PMI services
1330 - US unemployment rate & non-farm payrolls

GDP unchanged

Wed, 25 May 2011 10:06:00 GMT

This morning's revision to the first quarter UK GDP showed no change from the 0.5% first estimate, meaning the UK economy had not grown at all in the 6 months to the end of March.

While a downward revision would have caused trouble for the Pound, there has been little impact from the figures this morning, although we have seen rates for buying USD spike up by nearly 0.5c

UK public borrowing hits record high

Tue, 24 May 2011 10:18:00 GMT

This morning's public borrowing figures showed the worst April on record with a net public borrowing figure of £7.71bn. Analysts had expected a figure nearer £4bn, so fears have grown that the UK economy is still far from a sustainable road to recovery.

The Pound fell sharply on the news, and now tomorrow's GDP revision is even more critical, as any further disappointing data will be likely to weigh strongly on sterling. The GDP revision is published at 9.30am tomorrow.

Currency news this week

Mon, 23 May 2011 09:23:00 GMT

This week's main news will be Wednesday's adjustment to UK GDP. Any improvement on the previous estimate of 0.5% growth in Q1 will likely be positive for the Pound, while any revision downwards would have a negative effect on sterling.

Monday 23rd
0900 - Eurozone manufacturing & services PMI

Tuesday 24th
0400 - New Zealand inflation report
0700 - German GDP
0930 - UK public borrowing
1500 - US home sales

Wednesday 25th
0930 - UK GDP
1330 - US durable goods orders

Thursday 26th
0715 - Swiss trade balance
1020 - Speech: European Central Bank President Trichet

Friday 27th
Overnight - UK consumer confidence
1330 - US personal income & expenditure

Retail sales better than expected

Thu, 19 May 2011 17:51:00 GMT

This morning's UK retail sales figures were better than expected, showing a 2.8% increase in the 12 months to April.

Sterling found some strength this morning, and combined with weak US manufacturing numbers this afternoon, has recovered nearly a cent against the US Dollar.

Unfortunately the Euro had a rally of its own during the afternoon, leaving rates for buying Euros back where they started at the beginning of the day.

With little important data out tomorrow (except in Canada), we are not expecting any improvements in the outloook for sterling this week.

Unemployment falls, but so does Pound

Wed, 18 May 2011 11:52:00 GMT

Sterling has fallen across the board this morning, despite figures showing a slight fall in unemployment to 2.46m at the end of March. The official rate is now 7.7%.

Meanwhile the Bank of England minutes showed that the MPC voted 6-3 in favour of keeping interest rates on hold in May. This was as expected, although the minutes revealed that 2 of the members who did vote for an interest rate rise are not entirely convinced that the policy would be on the right path.

Interest rate rises would be a major factor in increasing the value of the Pound and therefore would be good news if you need to make international payments. The fact that the committee is even less committed to a rate rise than was previously thought, is the reason behind the fall in the Pound this morning.

Inflation reaches 2.5 year high, sterling rises

Tue, 17 May 2011 10:46:00 GMT

The Pound has risen this morning after inflation figures showed a 4.5% rise in prices in the year to April. This was higher than analysts expected, adding to recent expectations that the Bank of England will have to raise interest rates in the next 6 months.

Sterling spiked up sharply on the news, but has fallen back a little since, as we look to tomorrow's Bank of England minutes to see how the committee voted on interest rates earlier this month.

Currency news this week

Mon, 16 May 2011 09:42:00 GMT

This week we have inflation, Bank of England minutes and retail sales released in the UK on Tuesday, Wednesday and Thursday, so the Pound could be in for a volatile week. Whatever currency you need to buy or sell, contact Currency Index for the latest news and live rates.

Monday 16th
1000 - Eurozone trade balance & CPI inflation
1400 - Speech: Federal Reserve Chairman Bernanke

Tuesday 17th
0230 - Australian interest rate decision minutes
0930 - UK CPI & RPI inflation
1000 - German ZEW survey
1330 - US building permits & housing starts
2345 - New Zealand PPI inflation

Wednesday 18th
0930 - Bank of England interest rate decision minutes

Thursday 19th
0930 - UK retail sales
1400 - Speech: European Central Bank President Trichet
1500 - US existing home sales

Friday 20th
1200 - Canadian CPI inflation
1500 - Eurozone consumer confidence

Inflation report sends Pound higher

Thu, 12 May 2011 09:12:00 GMT

Yesterday's Bank of England inflation report signalled that UK interest rates may yet go up this year (around November), which has given sterling some strength despite the downbeat growth prospects.

The Pound has gained around 4c against the Euro in the last week.

Currency news this week

Mon, 09 May 2011 11:48:00 GMT

This week's most important data for the Pound is Wednesday's quarterly inflation report, where the Bank of England sets out projections for UK inflation, which in turn are a significant influence on its interest rate policy and therefore the value of the Pound.

Elswhere we are in for a quiet couple of days, until Thursday where there are a few releases likely to affect exchange rates.

Do contact us at Currency Index for the latest news and live rates for any currency transfers you need to make.

Monday 9th
No major data

Tuesday 10th
0815 - Swiss CPI inflation
1330 - US import price index

Wednesday 11th
0700 - German CPI inflation
1030 - Bank of England quarterly inflation report
1330 - US trade balance

Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
0930 - UK manufacturing & industrial production
1330 - US retail sales, PPI inflation & jobless claims
1500 - UK GDP estimate
2345 - New Zealand retail sales

Friday 13th
0700 - German GDP
1000 - Eurozone GDP
1330 - US CPI inflation

Bank of England and ECB both hold interest rates

Thu, 05 May 2011 15:43:00 GMT

Today's interest rate decisions saw the Bank of England and European Central Bank both keeping rates on hold.

Although the Bank of England are very unlikely to raise rates in the coming few months, the European policy makers may be raising rates sooner, which has led to Euro strength and worse exchange rates for sending money to Europe.

The ECB President, Jean-Claude Trichet, also indicated in his accompanying speech that European interest rates are unlikely to go up in June. The Euro has weakened off accordingly, giving exchange rates a 2c improvement during the course of the day.

We will have to wait another 2 weeks to find out the basis of the Bank of England's decision, when the Minutes are released.

UK interest rates to remain low until 2013?

Wed, 04 May 2011 14:50:00 GMT

As we await tomorrow's interest rate decisions from the Bank of England and European Central Bank, an article which may be of interest discusses UK interest rates potentially remaining low well into 2012: http://uk.finance.yahoo.com/news/Why-afford-rate-rise-yahoofinanceuk-3340835426.html

Interest rate changes have a strong affect on exchange rates, to discuss your own situation and currency strategy please call us on 0800 043 2623

Currency calendar this week

Mon, 02 May 2011 14:34:00 GMT

This week sees interest rate decisions in the UK, Eurozone and Australia; and unemployment, retail sales and house price figures all coming out around the world.

Of the interest rate decisions, the Eurozone will be watched most closely by markets, as any further rate hikes would be likely to strengthen the Euro and send exchange rates lower for buying Euros. European inflation is running high, so interest rates should rise further, however with concerns about the impact on weaker economies such as Spain, Portugal and Ireland, the decision is not an easy one for the ECB.

Call us at Currency Index for the latest news and live rates.

Monday 2nd
UK Bank Holiday

Tuesday 3rd
0530 - Australian interest rate decision
1000 - Eurozone PPI inflation
1500 - US factory orders

Wednesday 4th
0730 - Nationwide UK house price survey
0930 - UK mortgage approvals & money supply
1000 - Eurozone retail sales
2345 - New Zealand unemployment rate

Thursday 5th
1200 - UK interest rate decision
1245 - Eurozone interest rate decision

Friday 6th
0230 - Australian monetary policy statement
0930 - UK PPI inflation
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate

Economy grows by 0.5% in first quarter

Wed, 27 Apr 2011 11:49:00 GMT

This morning's GDP figures showed a 0.5% growth in the UK economy in the first 3 months of 2011.

The growth cancels out the contraction seen at the end of 2010, but means the UK economy has effectively not grown in 6 months.

While the numbers are nothing exciting in terms of the recovery, some analysts expected worse, so the Pound has taken a little strength from the news, gaining around a cent against both the USD and Euro.

Rates for buying US Dollars are now at their best since November 2009.

Currency news this week

Tue, 26 Apr 2011 09:14:00 GMT

Although we have a short week, there is important data out around the world likely to affect exchange rates. Particularly tomorrow we have the Q1 GDP figures for economic growth in the UK which is the main indicator of recovery for the economy.

Elsewhere we have news due out from the USA, Eurozone and Canada, New Zealand and Australia - whichever currency you are looking to buy or sell, contact Currency Index for the latest news and commercial exchange rates.

Tuesday 26th
1500 - US consumer confidence

Wednesday 27th
0230 - Australian CPI inflation
0700 - German consumer confidence
0930 - UK GDP
1730 - US interest rate decision
1915 - Speech: Federal Reserve chairman Bernanke
2200 - New Zealand interest rate decision

Thursday 28th
0855 - German unemployment rate
1330 - US GDP
2345 - New Zealand trade balance

Friday 29th
UK Bank Holiday
1000 - Eurozone economic & consumer confidence and unemployment rate
1330 - Canadian GDP

Currency Index bank holiday opening times

Tue, 19 Apr 2011 14:58:00 GMT

With Easter and the royal wedding coming up, Currency Index will be open at the following times. While many markets around the world will be closed over Easter, don’t forget that the bank holiday next Friday 29th only affects the UK, and therefore currency markets will still be active.

Monday 18th - Wednesday 20th: 9.00am - 5.30pm
Thursday 21st: 9.00am - 5.00pm
Friday 22nd - Monday 25th: CLOSED (Easter)
Tuesday 26th & Wednesday 27th: 9.00am to 5.30pm
Thursday 28th: 9.00am to 5.00pm
Friday 29th to Monday 2nd: CLOSED (Royal Wedding & May bank holiday)
Tuesday 3rd Onwards: as normal

Please call us on 0800 043 2623 (+44 1923 725725) if you have payments to make over the bank holiday periods.

Economic calendar this week

Mon, 18 Apr 2011 10:10:00 GMT

This week's 2 main events for the UK economy, and therefore the Pound, are Wednesday's Bank of England minutes (where we will find out how many of the 9-strong monetary policy committee voted for an interest rate rise this month) and Thursday's retail sales and public borrowing figures.

It looks like the Bank of England are now unlikely to raise interest rates in the coming few months, which has been sending sterling lower against most major currencies.

Monday 18th
1500 - Eurozone consumer confidence

Tuesday 19th
0230 - Australian interest rate minutes
0900 - Eurozone current account & purchasing inflation
1200 - Canadian CPI inflation

Wednesday 20th
0700 - German PPI inflation
0930 - Bank of England minutes
1500 - US existing home sales

Thursday 21st
0930 - UK retail sales, public borrowing & mortgage approvals
1330 - Canadian retail sales & US jobless claims
1500 - US house price index

Friday 22nd
Good Friday - bank holiday

UK unemployment falls... slightly

Thu, 14 Apr 2011 15:43:00 GMT

Sterling's tumble against the Euro has taken a pause for the last 24 hours, after UK unemployment figures were slightly better than expected yesterday morning.

Tomorrow we have important data in Europe and the USA, although nothing due out in the UK. Eurozone inflation figures are out at 10am, and in the States the same figures are announced at 12.30pm. Both are likely to influence monetary policy, and therefore exchagne rates for buying both Euros and Dollars.

Inflation falls - and takes Pound with it

Tue, 12 Apr 2011 10:12:00 GMT

The UK's headline inflation rate has fallen from 4.4% to 4% - making interest rate rises less likely and causing losses for sterling in FX markets.

The Pound has lost around a cent against both the Euro and US Dollar.

Tomorrow we have unemployment figures at 9.30am.

Currency news this week

Mon, 11 Apr 2011 09:41:00 GMT

A busy week ahead, which those of you sending money abroad will hope can give sterling some strength. The Pound has been stuck between a weaker US Dollar and stronger Euro for the last 2 weeks, with rates for buying USD now looking very healthy, while Euro rates are at their worst since October and still falling.

Tuesday is the busiest day for UK data this week, with the trade balance and key inflation data both released at 9.30am.

Monday 11th
UK: RICS house price balance; BRC retail sales monitor

Tuesday 12th
0700 - German CPI inflation
0930 - UK trade balance, RPI & CPI inflation
1000 - Eurozone & German ZEW economic sentiment surveys
1330 - US trade balace & import price index
1400 - Canadian interest rate decision
1900 - US budget statement

Wednesday 13th
0930 - UK unemployment rate & claimant count
1330 - US retail sales
1530 - Canadian monetary policy report

Thursday 14th
G20 meeting
0900 - Eurozone monthly budget report
1330 - US PPI inflation & jobless claims

Friday 15th
G20 meeting
1000 - Eurozone trade balance & CPI inflation
1330 - US CPI inflation

US Dollar rate reaches new highs

Fri, 08 Apr 2011 12:42:00 GMT

The weakening US Dollar has given us near the best exchange rates since the end of 2009 today, for anybody sending money to the USA.

The Euro continues to strenghten, despite the Portuguese bailout plans, which won't necessarily give us better EUR rates. When the Greek economy was bailed out last year, the Euro actually became more expensive, as these moves are seen as a sign of unity and strength in the Eurozone.

The Pound is also vulnerable to European problems, due to the UK's exposure to Eurozone banks and institutions.

Eurozone raise interest rates, as Bank of England holds on

Thu, 07 Apr 2011 12:56:00 GMT

The European Central Bank has today raised interest rates in the single currency zone, for the first time since July 2008, to 1.25%. The Bank of England in its own meeting today, has kept UK interest rates on hold at 0.5%.

The ECB's move was generally expected, and had been 'priced in' in advance to give a stronger (more expensive) Euro over the last couple of weeks. ECB President Trichet will now give a press conference explaining the move, while we will have to wait 2 weeks to discover how close the Bank of England came to raising UK rates today too.

Interest rates are a key driver of exchange rates, so to discuss the implications on your own transaction, contact us at Currency Index.

Currency news this week

Mon, 04 Apr 2011 11:28:00 GMT

This week's main economic news releases are the interest rate decisions in the UK and Eurozone on Thursday lunchtime. We expect the UK rate to remain unchanged at 0.5%, while the ECB may well raise rates to 1.25%. Speculation of a rate hike in Europe has led to the Euro gaining strength against sterling, giving worse exchange rates for buying Euros.

If you are looking to buy or sell Euros in the near future, contact Currency Index for the latest news. As Thursday approaches we may see some volatility and chances to buy or sell at preferential rates.

Monday 4th
0930 - UK construction PMI (Mar)
1000 - Eurozone PPI inflation (Feb)

Tuesday 5th
0015 - Speech: Ben Bernanke (US Federal Reserve Chairman)
0230 - Australian trade balance (Feb)
0530 - Australian interest rate decision
0930 - UK services PMI (Mar)
1000 - Eurozone retail sales (Feb)
1900 - Federal Reserve interest rate minutes

Wednesday 6th
0930 - UK industrial & manufacturing production (Feb)
1000 - Eurozone GDP (Q4 2010)
1500 - UK GDP estimate

Thursday 7th
0230 - Australian unemployment (Mar)
1200 - Bank of England interest rate decision
1245 - Eurozone interest rate decision

Friday 8th
0645 - Swiss unemployment (Mar)
0700 - German trade balance (Feb)
1200 - Canadian unemployment (Mar)

US employment figures boost dollar

Fri, 01 Apr 2011 14:18:00 GMT

Today's US 'non-farm payroll' figures - the main monthly measure of new jobs in the USA - came out better than expected at 216,000.

The American unemployment rate also dropped slightly to 8.8%.

As both of these measures boost confidence in the US economy, the Dollar has gained strength (become more expensive), with the market rate now back below $1.60 against sterling.

No good news for Pound

Wed, 30 Mar 2011 19:14:00 GMT

This week's lack of data releases has done nothing to help sterling, as speculation that the Eurozone interest rate could go up next week continues. In the absence of UK interest rate rises, the Eurozone base rate could leap further away, causing Euro strength and worse exchange rates for sending money to Europe from the UK.

If you have a requirement to send or receive foreign currency in the coming weeks, contact Currency Index who will be happy to keep you informed of the latest news and rates.

Currency calendar this week

Mon, 28 Mar 2011 09:23:00 GMT

This week we return to a little less important data as the month nears its end; although tomorrow's Q4 GDP revision in the UK is likely to be important. The Pound seems to have very little support at the moment, and fell significantly against most currencies last week.

Monday 28th
1230 - US consumption (Feb)
1600 - Speech: ECB President Trichet
2145 - New Zealand trade balance (Feb)

Tuesday 29th
0930 - UK mortgage approvals (Feb), net lending, business investment & GDP revision (Q4 2010)
1400 - US consumer confidence (Mar)

Wednesday 30th
1000 - Eurozone economic, industrial & consumer confidence (Mar)

Thursday 31st
0700 - German retail sales (Feb) & UK Nationwide house price index
0855 - German unemployment rate (Mar)
1330 - Canadian GDP (Jan)

Friday 1st
1000 - Eurozone unemployment rate (Feb)
1330 - US unemployment rate, average earnings & non-farm payrolls (Mar)

Retail sales down

Thu, 24 Mar 2011 09:39:00 GMT

This morning's retail sales figures have troubled the Pound further after a drop yesterday - February's figures were down 0.8%, and only showed a 1.3% increase over the last 12 months compared to expectations of 2.4%.

Sterling seems to have very little support at the moment, and there is no more major UK data expected this week.

No change from Bank of England

Wed, 23 Mar 2011 10:45:00 GMT

The minutes of this month's Bank of England meeting on interest rates showed the same results as February's vote: 3 of the 9 committee members voted for an interest rate rise in the UK, with the remaining 6 voting for no change.

With inflation running high we may still see a rate rise in the coming months, but while growth is still fragile it looks like the Bank remains cautious. The Pound fell when the news was announced, as markets look to higher interest rates to boost the value of the currency.

Next, we have the Budget announcement at 12.30 today.

UK inflation up to 4.4%

Tue, 22 Mar 2011 09:38:00 GMT

This morning's UK inflation figures have come out higher than expected, with the headline CPI rate now at 4.4%, up from 4% in January.

Retail prices, which include mortgage payments, are up 5.5% - the highest rate for 20 years.

Although this is not great news for consumers, it does mean that the Bank of England might be more likely to raise interest rates in the next few months, so the Pound tends to gain value in anticipation of interest rate rises. We have seen some small gains this morning against most major currencies, although with the Budget and Bank of England Minutes due out tomorrow, any gains may well be short lived.

Currency news this week

Mon, 21 Mar 2011 09:47:00 GMT

This week we have some crucial economic events in the UK - notably on Wednesday when the Chancellor releases ths budget at 1230, as well as the Bank of England minutes earlier in the morning. The UK's economic prospects and future interest rate policy will both be in the limelight, with immediate effects likely to weigh on the value of sterling.

Do keep in touch with your account manager at Currency Index to ensure you are not exposed to exchange rates moving against you during the week.

Monday 21st
Overnight - Rightmove house price index (March)
1400 - Speech: ECB President Trichet
1400 - US home sales (Feb)

Tuesday 22nd
0700 - Swiss trade balance (Feb)
0930 - UK inflation & public borrowing (Feb)
1230 - Canadian retail sales (Jan)

Wednesday 23rd
0930 - Bank of England minutes (Feb)
1230 - UK budget report
1400 - US new home sales (Feb)
2145 - New Zealand GDP (Q4 2010)

Thursday 24th
0930 - UK retail sales (Feb)
1230 - US durable goods sales (Feb) & jobless claims (Mar)

Friday 25th
EU economic summit
0900 - German business climate survey

Jobless total rises

Wed, 16 Mar 2011 10:51:00 GMT

This morning's labour market statistics showed a rise of 27,000 in unemployment to 2.53million at the end of January - the highest total since 1996.

The number of people claiming jobseekers allowance, however, fell to 1.45million.

The jobless rate of 8% is also the highest since 1996.

The Pound has been largeley unaffected, although better figures would have been likely to improve the outlook for the UK and therefore the Pound.

The only other important news due in the UK this week is public sector borrowing, announced on Friday.

This week's currency calendar

Mon, 14 Mar 2011 23:44:00 GMT

This week is relatively quiet for scheduled economic announcements, but the following all have the potential to move exchange rates. Contact Currency Index for the latest news and quotes.

Tuesday 15th:
1000 - German & Eurozone ZEW sentiment survey
1815 - US Federal Reserve interest rate decision

Wednesday 16th:
0930 - UK unemployment & average earnings (Jan)
1000 - Eurozone CPI inflation (Feb)
1230 - US PPI inflation (Feb)

Thursday 17th:
0830 - Swiss interest rate decision
1000 - Eurozone construction output (Jan)
1230 - US CPI inflation (Feb)

Friday 18th:
0930 - UK public borrowing (Feb) & mortgage approvals
1100 - Canadian CPI inflation (Feb)

Trade balance narrows sharply in January

Wed, 09 Mar 2011 14:39:00 GMT

Figures out this morning showed the UK trade gap is at its narrowest level for nearly a year, down to £7bn in January from £9.7bn in December.

Although good news for the UK economy, the figures are relatively volatile, so it is too early to say whether we are seeing a longer-term rebalancing of trade.

Tomorrow is a crucial day for sterling, with GDP estimate, industrial & manufacturing production, and the Bank of England's interest rate decision all released throughout the day.

Housing market stabilises, but retail sales fall

Tue, 08 Mar 2011 10:24:00 GMT

Today's 2 pieces of UK economic news were mixed - with RICS reporting some better stability in the housing market, but the British Retail Consortium showing the second weakest sales figures since May 2009.

The Pound remains vulnerable to any further negative news, with tomorrow's trade balance figures due at 9.30am.

Currency news this week

Sun, 06 Mar 2011 23:33:00 GMT

A busy week ahead, with the following data all with the potential to affect exchange rates:

Monday 7th
0930 - Eurozone investor confidence
1200 - Speech: ECB President Trichet

Tuesday 8th
Overnight - UK RICS house price balance
0030 - Australian business confidence
0645 - Swiss unemployment rate
1315 - Canadian housing starts
2330 - Australian consumer confidence

Wednesday 9th
0815 - Swiss CPI inflation
0930 - UK trade balance
1100 - German industrial production
2000 - New Zealand interest rate decision

Thursday 10th
0030 - Australian unemployment rate
0700 - German trade balance
0900 - European Central Bank monthly report
0930 - UK industrial & manufacturing production
1200 - UK interest rate decision
1330 - US trade balance
1900 - US monthly budget statement

Friday 11th
0700 - German CPI inflation
0930 - UK PPI inflation
1200 - Canadian unemployment rate
1330 - US retail sales

US labour market improves

Fri, 04 Mar 2011 16:19:00 GMT

The US Dollar has been gaining value this afternoon, after data showed unemployment down to 8.9% and 192,000 new jobs being created in February.

Rates for sending US Dollars are still excellent, but with this data and the uncertainty around the UK recovery, we may have seen rates peaking for the time being.

Eurozone interest rates "could rise next month"

Thu, 03 Mar 2011 16:37:00 GMT

Jean-Claude Trichet, the President of the European Central Bank, gave a clear indication today that Eurozone interest rates could go up as early as April, as the ECB kept rates at 1.0% at its March meeting.

Although fears over the costs of servicing debt in the likes of Portugal and Ireland may cause the Euro to weaken, overall if the Eurozone raise interest rates before the UK, analysts are convinced that the net effect will be positive for the Euro - and therefore negative for sterling.

If you are sending money to Europe in the foreseeable future, March might therefore provide some of the best opportunities to secure a rate for some time.

Positive data keeps sterling strong

Wed, 02 Mar 2011 09:37:00 GMT

Yesterday's data was generally good for sterling, giving exchange rates a little room to improve during trading through the day.

Tomorrow we have the Eurozone interest rate decision, so do think about securing rates today - after so much positive data in one day yesterday, is it likely that rates will improve further?

Yesterday's summary for the Pound:
- Nationwide survey showed house prices UP 0.3% in February
- Lending to individuals UP to £1.5bn in January
- Mortgage approvals UP above 45,000 in January
- Manufacturing PMI on target
- Money supply UP

Latest currency news - data out this week

Mon, 28 Feb 2011 10:57:00 GMT

This week we have a huge amount of important data releases likely to affect currency rates. If you are sending money abroad in the short or medium term, this week could be particularly volatile so get in touch with us at Currency Index to ensure we can make you aware of any opportunities to buy at preferential rates.

Monday 28th
1000 - Eurozone CPI inflation (Jan)
1330 - Canadian GDP & current account (Q4)

Tuesday 1st
0030 - Australian current account (Q4) & retail sales (Jan)
0330 - Australian interest rate decision
0645 - Swiss GDP (Q4)
0700 - UK Nationwide house price index
0855 - German unemployment rate (Feb)
0930 - UK money supply, individual lending, mortgage approvals & manufacturing inflation
1000 - Eurozone unemployment rate (Jan)
1400 - Canadian interest rate decision
1500 - Speech: Federal Reserve Chairman Ben Bernanke

Wednesday 2nd
0300 - Australian GDP (Q4)
0500 - UK Halifax house price survey (Feb)

Thursday 3rd
0030 - Australian trade balance (Jan)
0815 - Swiss retail sales (Jan)
1000 - Eurozone GDP (Q4) & retail sales (Jan)
1245 - Eurozone interest rate decision

Friday 4th
1330 - US non-farm payrolls & unemployment rate (Feb)

GDP revised down

Fri, 25 Feb 2011 16:28:00 GMT

This morning's revision to Q4 2010 GDP showed a disappointing contraction in the economy of 0.6%. The Pound quickly lost half a cent against both the Euro and US Dollar when the figures were released.

We have seen some revoery this afternoon, but with the European Central Bank poised to potentially increase interest rates next week, we could see Euro strength and worse rates for buying Euros during the first week in March.

Pound falls on Libya problems & weaker retail sales

Thu, 24 Feb 2011 16:11:00 GMT

Sterling is falling across the board today, as a CBI report showed weaker growth in retail sales, and global fears over the Libyan crisis also hit confidence.

Tomorrow morning we have the first revision of the disastrous GDP figures from Q4 last year, and unless the 0.5% contraction is revised to something more positive, we could see further losses for the Pound.

If you are worried about falling exchange rates, Currency Index can provide fixed and guaranteed rates up to 2 years ahead. Contact us for more details.

More policy-makers vote for interest rate rise

Wed, 23 Feb 2011 09:46:00 GMT

Today's Minutes of February's Bank of England interest rate meeting showed that 3 members voted for a rate rise this month, an increase from the 2 members who have been supporting a rise recently.

The Committee is made up of 9 members, with the other 6 voting for interest rates to stay at 0.5%.

The vote shows that there is increasing appetite for interest rate rises, which should help control inflation. Rate rises also tend to help the Pound, resulting in better exchange rates for sending money abroad.

The Pound has gained 0.5c against both the Euro and US Dollar this morning.

UK borrowing falls... but European confidence rises

Tue, 22 Feb 2011 15:31:00 GMT

This morning's UK public borrowing figures showed a surplus of £3.7bn, much better than expected, in a timely boost for the UK economy.

However, much of the surplus is down to January's income tax deadline payments, although discounting these still puts UK borrowing in line to come in under the government's target of £185.5bn for the financial year.

Unfortunately for those of you looking to send funds abroad, particularly in Euros, the strong UK data was followed by rising German consumer confidence, higher Eurozone factory output, and speculation about European interest rate rises. As a result, the Euro has strengthened, making buying Euros more expensive despite the upbeat UK data.

Tomorrow's Bank of England minutes will now be crucial in determining the next direction of sterling's movement.

This week's currency calendar

Sun, 20 Feb 2011 23:25:00 GMT

This week's main news releases are likely to be the Bank of England minutes (Wednesday) and the second reading of UK GDP on Friday. For the latest news and exchange rates, call Currency Index on 0800 043 2623 (+44 1923 725725 from abroad).

Monday 21st
USA Bank Holiday
Overnight - UK Rightmove house price index
0900 - Eurozone services & manufacturing PMI

Tuesday 22nd
0200 - New Zealand inflation expectations
0700 - German GfK consumer confidence
0930 - UK public sector net borrowing (January)
1330 - Canadian retail sales (December)
1500 - US consumer confidence (February)

Wednesday 23rd
0930 - Bank of England minutes
1500 - US home sales (January)

Thursday 24th
0700 - German GDP
1330 - US jobless claims & durable good orders (January)

Friday 25th
Overnight - UK GfK consumer confidence
0930 - UK GDP (Q4 2010)
1330 - USA GDP (Q4 2010)

This week's currency calendar

Mon, 14 Feb 2011 11:47:00 GMT

We are due a lot of very important data this week, particularly on home soil where we have inflation, retail sales, unemployment, and a Bank of England speech on the inflation outlook. These are all potentially of great influence on the short term value of sterling.

For the latest news and rates, please call us on 0800 043 2623 (+44 1923 725725 from overseas).

Monday 14th
1000 - Eurozone industrial production (December)

Tuesday 15th
0030 - Australian interest rate minutes
0700 - German GDP (Q4 2010)
0930 - UK inflation (January)
1000 - Eurozone GDP (Q4 2010), trade balance (December) & ZEW condidence survey
1330 - US retail sales (January)

Wednesday 16th
Overnight - UK consumer confidence
0930 - UK unemployment rate (December)
1030 - Bank of England quarterly inflation report & speech
1330 - US PPI inflation (January)
1415 - US industrial production (January)
1900 - US interest rate minutes
2145 - New Zealand PPI inflation (December)

Thursday 17th
0900 - Eurozone current account (December)
1330 - US jobless claims & CPI inflation (January)
1500 - Eurozone consumer confidence
1530 - Bank of Canada monetary policy report

Friday 18th
0700 - German PPI inflation (January)
0930 - UK retail sales (January)
1200 - Canadian CPI inflation (January)

Double blow for UK plc

Wed, 09 Feb 2011 16:19:00 GMT

The UK economy - and therefore sterling - has suffered a double blow today, as the CBI lowered its growth forecasts for the year to just 1.8%, and the trade gap widened to a new record high of £9.2bn in December.

With the Bank of England unlikely to move interest rates tomorrow, based on the fragility of the recovery, there does not seem to be any good news for the Pound, which has dropped 0.6c against the Euro during the course of today.

This week's economic news

Mon, 07 Feb 2011 11:27:00 GMT

Although we do not expect any major news such as an interest rate change from the Bank of England this week, there is plenty of data out in the UK and Eurozone which is likely to have an effect on exchange rates. With rates for buying Euros and Dollars currently enjoying some improvement, make sure you don't miss out on any opportunities to buy this week.

Contact us at Currency Index for the latest news and live trading rates.

Monday 7th
0030 - Australian retail sales (December)
0930 - Eurozone investor confidence
1100 - German factory orders (December)
2000 - US consumer credit (December)

Tuesday 8th
Overnight - UK BRC retail sales & RICS house price balance
0500 - German retail sales (December)
0645 - Swiss unemployment rate
2330 - Australian consumer confidence

Wednesday 9th
0700 - German trade balance (December)
0930 - UK trade balance (December)
1500 - Speech - US Federal Reserve chariman Bernanke

Thursday 10th
0030 - Australian unemployment rate
0500 - UK GDP estimate (NIESR)
0900 - European Central Bank monthly report
0930 - UK industrial & manufacturing production (December)
1200 - UK interest rate decision
2230 - Speech - Australian RBA governor Stevens

Friday 11th
0700 - German CPI inflation
0930 - UK PPI inflation
1330 - US trade balance (December)
1730 - Speech - European Cental Bank president Trichet

Sterling given lift by services sector

Thu, 03 Feb 2011 10:36:00 GMT

The Pound has enjoyed a strong start to the week, with this morning's PMI Services figures showing a pleasing return to growth in January.

Added to yesterday's industrial figures, the gloom left by last week's disappointing GDP figures has been somewhat lifted.

The Pound is now at its best level against the US Dollar for 3 months, and is also up against the Euro, which has been hit by the yesterday's downgrading of Ireland's credit rating.

Manufacturing sector boosts Pound

Tue, 01 Feb 2011 11:43:00 GMT

This morning's manufacturing inflation data showed activity grew at its fastest pace since 1992 in January - and manufacturing employment also rose at its quickest pace since records began.

Higher manufacturing inflation will theoretically lead to consumer inflation increasing - and therefore increase pressure on the Bank of England to increase interest rates which would be likely to increase the value of sterling.

The Pound rose to its best level against the US Dollar for 11 weeks on the release of the news, and is also up against the Euro.

The moves come despite depressing mortgage approvals and house price data also announced today.

News releases this week

Mon, 31 Jan 2011 11:11:00 GMT

This week we have the following news releases scheduled, all of which are potential influences on exchange rates. Contact us at Currency Index for the latest opinions & live trading rates for your own transaction.

Monday 31st
0700 - German retail sales (December)
1330 - Canadian GDP (November); US personal income & expenditure (December)
2230 - Australian manufacturing index

Tuesday 1st
0330 - Australian interest rate decision
0700 - UK house prices (Nationwide)
0900 - German unemployment rate
0930 - UK mortgage approvals (December) & money supply
1000 - Eurozone unemployment rate

Wednesday 2nd
1000 - Eurozone PPI inflation (December)
2145 - New Zealand unemployment rate

Thursday 3rd
1000 - Eurozone retail sales (December)
1245 - Eurozone interest rate decision

Friday 4th
0500 - UK house prices (Halifax)
1200 - Canadian unemployment rate
1330 - US unemployment rate & non-farm payrolls

Biggest drop in confidence since 1992

Fri, 28 Jan 2011 10:53:00 GMT

This morning's UK consumer confidence survey has shown its biggest fall since 1992.

Consumers are increasingly expecting a painful 2011, both in their own financial circumstances and the economy overall. With VAT up to 20% and negative growth, talk of a double-dip recession is increasing.

This is all bad news for sterling, which is continuing to fall. Unless the Bank of England decides to raise interest rates soon (which seems very unlikely), the Pound could be in for a negative period ahead.

To avoid the risk of falling currency rates making your own overseas purchase more expensive, remember you can fix and guarantee your exchange rate up to 2 years ahead with Currency Index.

Bank of England did consider interest rate rise

Wed, 26 Jan 2011 09:47:00 GMT

This morning's Bank of England minutes showed that the MPC did consider an interest rate rise in January - and the Pound has recovered slightly this morning as a result.

For the first time since rates were slashed to 0.5%, 2 of the 9 members voted for a 0.25% hike in rates. Higher interest rates would be likely to increase the value of sterling, and therefore improve exchange rates for sending money abroad.

However, the decision was made before yesterday's disastrous GDP figures were announced, and Mervyn King's speech last night suggested that rate rises may be off the agenda until the economy returns to stable growth.

For further review of the Bank's minutes, click here.

Disastrous GDP sends sterling lower

Tue, 25 Jan 2011 09:37:00 GMT

The first estimate of GDP for Q4 2010 shows the UK economy shrank by 0.5% - much worse than analysts' expectations of a 0.5% growth figure.

The Pound has fallen a cent against both the Euro and US Dollar this morning.

Mervyn King's speech this evening is unlikely to help, with many observers thinking that the Bank of England will not raise interest rates for some time to come, so sterling does not look likely to have any support in the short term.

This week's currency news

Mon, 24 Jan 2011 09:27:00 GMT

This week's main UK data releases are GDP (Tuesday 0930), Mervyn King's speech (Tuesday 1940) and Wednesday's Bank of England minutes (Wednesday 0930).

The Pound is vulnerable to any negative news, so any indications from the Bank of England that interest rates are not likely to be increasing in the short term, could bring exchange rates lower this week.

Monday 24th
No major data

Tuesday 25th
0030 - Australian CPI inflation
0700 - German business confidence
0930 - UK GDP (Q4 2010) and public borrowing (Dec)
1200 - Canadian CPI inflation
1500 - US consumer confidence
1940 - Speech: Bank of England governer Mervyn King

Wednesday 26th
0930 - Bank of England minutes
1915 - US interest rate decision
2000 - New Zealand interest rate decision

Thursday 27th
1000 - Eurozone consumer confidence
1330 - US jobless claims

Friday 28th
1330 - US GDP

Retail sales & mortgage approvals down

Fri, 21 Jan 2011 14:46:00 GMT

Sterling has been held back today by poor retail sales and mortgage figures in the UK, which showed:

- Only 40,000 new mortgages were approved in November
- Retail sales fell 0.8% in December, and were flat for the year

Analysts were hoping for a slight rise in retail sales, given the Christmas period, and for around 20% more mortgage approvals - both of which would have been indicators of better recovery in the UK economy.

With the sterling-euro rate falling away, aiming for rates of 1.20 may now not be realistic for some time to come.

UK unemployment rises to 2.5m

Wed, 19 Jan 2011 10:06:00 GMT

This morning's UK unemployment data showed a 49,000 rise to 2.5m at the end of November - although the official unemployment rate remains at 7.9%

Some analysts are warning of a 'double dip' in unemployment, with the jobless total set to rise further in 2011 before improving.

As unemployment is a key measure of the UK's economic recovery, the Pound can be affected. This morning we have seen a slight fall in sterling's value on the back of the releases.

There is no more major UK data due out until Friday's retail sales figures at 9.30am.

UK inflation up to 3.7% in December

Tue, 18 Jan 2011 12:39:00 GMT

This morning's inflation figures showed an increase to 3.7% in December - the highest in 8 months.

Sterling surged higher this morning, as analysts factored in an increased likelihood of interest rate rises, which are the Bank of England's main weapon against rising inflation.

The Pound was up nearly a cent against both the US Dollar and Euro by 10am, although it has fallen back a little since.

Note that tomorrow's UK unemployment rate, released at 9.30am, could cause sterling to fall back further if the labour market is still struggling.

This week's currency news

Sun, 16 Jan 2011 22:56:00 GMT

This week's economic data likely to affect exchange rates is listed below. Call Currency Index on 0800 043 2623 for the latest trading rates and opinions for your own overseas currency transfer.

Monday 17th
Overnight - Rightmove house price index

Tuesday 18th
Overnight - RICS house price balance & Nationwide consumer confidence
0930 - UK CPI & RPI inflation
1000 - German & Eurozone ZEW economic sentiment survey
1400 - Canadian interest rate decision

Wednesday 19th
0930 - UK unemployment rate
1000 - Eurozone construction output
1330 - US housing starts
1530 - Bank of Canada monetary policy report
2145 - New Zealand CPI inflation

Thursday 20th
0900 - European Central Bank monthly report
1500 - US existing home sales
2145 - New Zealand retail sales

Friday 21st
0900 - German business climate survey
0930 - UK retail sales & public borrowing
1330 - Canadian retail sales

Factory inflation gives Pound a boost

Fri, 14 Jan 2011 11:12:00 GMT

After yesterday's losses, sterling has recovered this morning after higher than expected producer inflation rasied the likelihood of interest rate rises in the UK sooner rather than later.

Inflation is running well above target, and an interest rate rise would help to control it - as well as giving the Pound a boost.

The Bank of England yesterday voted for interest rates to remain at 0.5%, but we will not know how the committee vote was split until the minutes are released in a couple of weeks.

To take advantage of improved rates for your own transfers, call Currency Index on 0800 043 2623.

Euro stronger on bond sale, as interest rates held

Thu, 13 Jan 2011 16:33:00 GMT

The Euro strengthened (became more expensive) today as Spain and Italy held successful bond sales, easing fears of further financial difficulties in the Eurozone (see Reuters' article for more).

As interest rates were held in the UK and Eurozone, USA inflation figures were weaker than expected - resulting in cheaper US Dollars and more expensive Euros this afternoon.

Trade gap widens

Wed, 12 Jan 2011 16:05:00 GMT

The Pound's recent run came to a halt this morning, as the UK's trade balance worsended slightly for November, compared to expectations of a slight improvement.

Stronger than expected industrial production in the Eurozone and import figures in the USA have not helped exchange rates either.

The Pound has recovered a little this afternoon however, and we now await tomorrow's round of interest rate decisions along with UK manufacturing figures at 9.30.

Euro rate improves 3% in 10 days

Tue, 11 Jan 2011 08:52:00 GMT

So far in 2011 the Euro exchange rate has improved by over 3% - great news for those of you needing to send payments to Europe.

A weaker Euro against the USD has also helped sterling, and with no fresh bad economic news out recently in the UK, we have seen a sharp spike in rates.

Contact Currency Index for the latest rates available for your own transaction, whether for immediate transfer or fixed for a date in the future.

This week's currency news

Sun, 09 Jan 2011 20:09:00 GMT

This week we have the following data due out, which may affect exchange rates:

Monday 10th
0030 - Australian retail sales trends
1530 - Bank of Canada business outlook survey

Tuesday 11th
Overnight - British Retail Consortium retail sales monitor
0030 - Australian trade balance
1315 - Canadian housing starts

Wednesday 12th
Overnight - UK consumer confidence
0930 - UK trade balance (November)
1330 - US import price index

Thursaday 13th
Overnight - UK GDP estimate (December)
0030 - Australian unemployment rate
0930 - UK industrial & manufacturing production (November)
1200 - UK interest rate & QE decision
1245 - Eurozone interest rate decision
1330 - Speech: ECB President Trichet
1330 - US trade balance (November)

Friday 14th
0700 - German CPI inflation (December)
0930 - UK PPI inflation (December)
1000 - Eurozone CPI inflation (December) & trade balance (November)
1330 - US CPI inflation & retail sales (December)

Nice to learn more about Pound currency. Forex Trading

Pound steerling is my favorite currency yet becaus...

Mon, 27 Dec 2010 18:36:49 GMT

Pound steerling is my favorite currency yet because it has its own reputation and keeps on improving its exchange rates as well.
Gold rates

This week's currency news

Mon, 20 Dec 2010 09:39:00 GMT

This week looks fairly quiet for data, with the Christmas holiday approaching. We do however have a triple-whammy of important UK data on Wednesday morning, with the Bank of England minutes, GDP and current account all released at the same time.

Given the Pound's volatility in recent weeks, contact Currency Index if you would like to be kept informed of any movement and opportunities to secure your rate.

Monday 20th
1500 - Eurozone consumer confidence

Tuesday 21st
Overnight - UK consumer confidence
0715 - Swiss trade balance
0930 - UK public borrowing
1200 - Canadian CPI inflation
1330 - Canadian retail sales
2145 - New Zealand current account

Wednesday 22nd
0930 - UK current account, GDP & Bank of England minutes
1500 - US home sales
2145 - New Zealand GDP

Thursday 23rd
0930 - UK mortgage approvals
1330 - Canadian GDP & US durable goods orders

Friday 24th
No major data - Christmas Eve

Retail sales up 0.3% in November

Thu, 16 Dec 2010 10:07:00 GMT

This morning's retail sales figures showed a 0.3% increase in November, broadly in line with expectations. October's figure was revised up to 0.3% from 0.1%, which improved the year-on-year figure further.

The Pound gained a little strength on the release of the figures, although nothing like enough to counter the losses we have seen this week.

UK consumer confidence is released overnight but there is no other major data due out.

Unemployment figures hurt sterling

Wed, 15 Dec 2010 11:55:00 GMT

This morning's figures showed UK unemployment has risen to 2.5m - the first monthly rise for 6 months. The new number equates to an unemployment rate of 7.9%.

As the Pound is so sensitive to any news around economic recovery, sterling has predictably been falling. We have lost nearly a cent against both the Euro and US Dollar.

Tomorrow morning's retail sales data have the potential to bring exchange rates back up a little, but any more bad news for the UK is likely to weigh heavy on the Pound through the Christmas period.

Pound finds no support

Tue, 14 Dec 2010 14:52:00 GMT

Sterling has fallen across the board today, as a few neutral or negative UK data releases were accompanied by stronger figures in the Eurozone and USA.

UK: CPI inflation as expected, house prices lower than expected
Eurozone: economic sentiment better than expected
USA: retail sales double expected growth

The net result has been a stronger (more expensive) Euro and US Dollar, with other currencies following suit.

Tomorrow morning we have UK unemployment data at 9.30am, and the Pound remains vulnerable to any further negative news.

This week's currency news

Mon, 13 Dec 2010 09:38:00 GMT

As 2010 draws to a close, this week sees the last round of inflation data from the UK, Europe and USA. Inflation is crucial as it dictates how much flexibility there is in an economy to change interest rates, which in turn are a major influence on exchange rates.

This week may provide opportunities to buy before we enter the quieter Christmas period. Whatever your requirements for exchanging currency, contact Currency Index to make sure we can keep you updated with the latest news and rates.

Monday 13th
Overnight - Rightmove house prices
0930 - UK PPI inflation
2145 - New Zealand retail sales

Tuesday 14th
0930 - UK CPI & RPI inflation
1000 - German ZEW survey
1330 - US retail sales & PPI inflation
1915 - US interest rate decision

Wednesday 15th
0930 - UK unemployment & earnings
1330 - US CPI inflation

Thursday 16th
0730 - Swiss interest rate decision
0930 - UK retail sales
1000 - Eurozone CPI inflation
1330 - US jobless claims

Friday 17th
1000 - Eurozone trade balance

Currency Index in the news

Thu, 09 Dec 2010 18:09:00 GMT

Currency Index were interviewed again on BBC One today, as the collapse of Crown Currency Exchange was investigated on the programme "Rip Off Britain". You can see the programme on the BBC iPlayer here.

No change from Bank of England

Thu, 09 Dec 2010 14:13:00 GMT

The Bank of England left interest rates and quantitative easing on hold at its monthly policy meeting today, as expected.

Elsewhere, the European Central Bank in its monthly report reduced its forecast for Eurozone growth next year, while maintaining that the single currency area is still on track for recovery. It added that current interest rates are appropriate, given the debt problems in some Euro countries.

In the USA, jobless claims came out better than expected, but for the Pound, exchange rates across the board remain broadly unchanged.

Pound improves

Wed, 08 Dec 2010 12:01:00 GMT

Rates for sending money abroad have improved across the board in the last 24 hours, after weak German trade balance data this morning helped to further weaken the Euro in particular.

Tomorrow we have some more important announcements, all likely to affect rates: UK house prices and trade balance, along with the ECB monthly report and German CPI inflation.

Egyptian Pounds now available

Mon, 06 Dec 2010 09:54:00 GMT

If you need to send money to Egypt, Currency Index can now supply Egyptian Pounds for transfers at commercial rates.

Contact us for a quote if you are buying property in Egypt, and see how much you can save compared to using your bank.

This week's currency news

Sun, 05 Dec 2010 23:40:00 GMT

This week we have interest rate decisions in the UK, Australia, New Zealand and Canada, along with Quantitative Easing policy at the same time in the UK.

Problems in the Eurozone continue to make the headlines, along with the prospect of further monetary easing in the USA. For the latest news and live exchange rates for your own transaction, contact Currency Index.

Monday 6th
0930 - Eurozone investor confidence

Tuesday 7th
0330 - Australian interest rate decision
0645 - Swiss unemployment rate
0930 - UK industrial & manufacturing production
1400 - Canadian interest rate decision

Wednesday 8th
0700 - German trade balance
2000 - New Zealand interest rate decision

Thursday 9th
0030 - Australian unemployment rate
0700 - German CPI inflation
0900 - European Central Bank monthly report
1200 - UK interest rate decision

Friday 10th
0930 - UK producer price index
1330 - US trade balance
1900 - US monthly budget statement

German unemployment weakens Euro further

Tue, 30 Nov 2010 14:08:00 GMT

This morning's German unemployment figures have added to the problems in the Eurozone, with a recorded fall of 9,000 compared to expectations of 18,000. Unemployment in the Eurozone overall is now running at 10.1%.

The Euro has weakened further (become cheaper) today while the US Dollar, which is mirroring the Euro's movements at the moment, has strengthened.

For the latest rates please contact your account manager at Currency Index.

This week's currency update

Mon, 29 Nov 2010 09:35:00 GMT

This week the main story is likely to be the continuing developments of the Irish bank bailout - and whether there will be any knock-on effects elsewhere in the Eurozone. For now the Euro has started to strengthen.

Elsewhere we have economic releases in Australia, Canada, the USA and Switzerland, all likely to affect rates for sending money abroad. Contact your foreign exchange broker for the latest rates and news.

Monday 29th
0930 - UK mortgage approvals & money supply
1000 - Eurozone economic & consumer confidence
1330 - Canadian current account

Tuesday 30th
Overnight - UK consumer confidence
0030 - Australian current account
1000 - Eurozone unemployment & CPI inflation
1330 - Canadian GDP
1500 - US consumer confidence

Wednesday 1st
0030 - Australian GDP
0700 - UK Nationwide house prices
0900 - Eurozone manufacturing inflation
0930 - UK manufacturing inflation
1500 - US manufacturing & construction

Thursday 2nd
0030 - Australian retail sales & trade balance
0645 - Swiss GDP
1000 - Eurozone GDP & PPI inflation
1245 - Eurozone interest rate decision
1330 - US jobless claims

Friday 3rd
0815 - Swiss CPI inflation
1000 - Eurozone retail sales
1200 - Canadian unemployment
1330 - US non-farm payrolls & unemployment rate

Portugal next for EU bailout?

Fri, 26 Nov 2010 11:28:00 GMT

The Eurozone is urging Portugal to seek aid. Portugal’s bonds fell on concern they will follow Ireland and Greece and present a formal request to Europe's rescue fund, similar to that of Ireland earlier in the week.

As a result the Euro has been slowly weakening (getting cheaper) this week, and we now have the best rates for sending Euro payments since mid-September. Conversely, investors are buying up US Dollars, which has brought the exchagne rate down to its worst level for a month.

GDP revised slightly upwards

Wed, 24 Nov 2010 12:34:00 GMT

This morning's GDP figures showed a slight upward adjustment to previous figures for the third quarter of the year.

The UK economy grew 0.8% in the 3 months to the end of September, or 2.8% in the 12 month period.

Sterling gained slightly on the news, and with no more major UK data out this week, securing a rate for your overseas transfer now is looking reasonable.

Euro falls, Dollar rises

Tue, 23 Nov 2010 17:10:00 GMT

The Euro has weakened significantly today, as the political problems in Ireland continue.

The main move has been between the Euro and US Dollar, which has been back in demand as a "safe haven" currency.

The result is something of a see-saw with the Pound stuck in the middle. We have improved rates for sending money in Euros, but worse rates for buying US Dollars.

Tomorrow's UK GDP figures are likely to turn focus back to sterling, so if you need to secure Euros in particular you might like to contact Currency Index for a quote before the data release at 9.30 am.

Currency news this week

Mon, 22 Nov 2010 09:46:00 GMT

The main release this week is the second estimate of Q3 GDP, which is published on Wednesday. Any downward adjustment in the UK's official growth figures would be likely to hurt sterling.

We also have the breaking news of the EU bailout of the Irish economy. Although you might expect the Euro to weaken as a result, the UK is also likely to contributing billions via the EU, so the Pound is not immune to any fallout.

This week's full calendar of releases likely to affect exchange rates is below. Contact Currency Index for the latest rates for your own transactions, and views on what might happen this week and further ahead.

Monday 22nd
1500 - Eurozone consumer confidence
1615 - Speech: European Central Bank President Trichet

Tuesday 23rd
0200 - New Zealand inflation expectations
0700 - German GDP
0900 - Eurozone manufacturing & services growth
0930 - UK mortgage approvals
1200 - Canadian CPI inflation
1330 - US GDP & Canadian retail sales
1900 - US Federal Reserve minutes

Wednesday 24th
0930 - UK GDP second estimate Q3
1330 - US jobless claims & personal expenditure

Thursday 25th
US bank holiday (Thanksgiving)
0815 - Swiss employment level

Friday 26th
No major data

Sterling recovers yesterday's losses

Thu, 18 Nov 2010 16:40:00 GMT

Having fallen back yesterday, sterling has recovered somewhat today, despite public borrowing figures this morning being much worse than expected at £9.77bn for October.

Retail sales figures were not so bad, and with the possibility of an Irish economic bailout looking more likely, the Euro is also struggling. Against the US Dollar, rates have also recovered, as volatility continues in fragile economic recoveries.

There is no major data out tomorrow, but we have speeches from the Federal Reserve chairman (Ben Bernake) and European Central Bank president (Trichet), at 2.15pm and 9.15am respectively.

Please contact Currency Index for the latest live rates for your own transaction.

Bank of England split 3 ways again

Wed, 17 Nov 2010 14:43:00 GMT

The Bank of England did not move nearer to further Quantitative Easing in their November meeting, according to their minutes released today.

7 of the 9-strong committee voted for no change, with one voting for more QE, and one voting for an interest rate rise - exactly the same result as October.

The Pound gained a small amount of value after the minutes were released.

Meanwhile EU finance ministers are meeting to discuss a possible bail-out of the Irish economy. The Euro could be affected if the Irish government asks for help, although when a rescue package was announced for Greece earlier this year, the Euro strenghtened (became more expensive) as markets saw the bailout as helping the single currency zone.

High inflation forces letter to Chancellor

Tue, 16 Nov 2010 16:25:00 GMT

This morning's UK inflation figures (3.2% for the previous 12 months) are again above the government's targets, forcing Bank of England Governer Mervyn King to write another explanatory letter to the Chancellor.

While the figures are unlikely to spark any short-term interest rate rises, they should be viewed as sterling-positive. Unfortunately, half an hour after the announcement, Eurozone inflation and economic sentiment were released at higher than expected levels, giving the Euro some retaliatory strength and reducing exchange rates for the rest of the day.

Tomorrow morning's Bank of England Minutes, to be released at 9.30am, are now crucial to the short-term movement of the Pound. If any of the committee voted for further quantitative easing this month, we could see the Pound's gains of the last week quickly disappear.

This week's economic news

Mon, 15 Nov 2010 10:13:00 GMT

We have plenty of important data out this week which is likely to move exchange rates - including key inflation, unemployment and retail sales figures in the UK, as well as the all-important Bank of England minutes on Wednesday, which will reveal whether more Quantitative Easing was considered this month.

With sterling still vulnerable to any negative news, speak with your Currency Index broker about your own transaction to avoid being caught out by any sudden moves in the market.

Monday 15th
1000 - Eurozone trade balance
1330 - US retail sales

Tuesday 16th
0930 - UK CPI & RPI inflation
1000 - Eurozone CPI inflation & German ZEW sentiment survey
1330 - US PPI inflation
1415 - US industrial production

Wednesday 17th
0930 - UK earnings, unemployment & Bank of England minutes
1000 - Eurozone construction output
1330 - US CPI inflation & housing starts

Thursday 18th
0715 - Swiss trade balance
0930 - UK public borrowing & retail sales
1500 - US manufacturing

Friday 19th
0700 - German PPI inflation

Pound pushes higher against Euro

Thu, 11 Nov 2010 17:08:00 GMT

Rates for sending money in Euros are now at their best for 6 weeks, after the Bank of England inflation report was followed by news of economic woe in Spain (where growth is approaching zero) and Ireland which weakened the Euro.

Worries about Quantitative Easing in the UK are now receding a little, although with 6 consecutive days of improvement in the Pound-Euro rate, there may be some profit-taking by investors as the weekend approaches, which could bring the rate back down.

Inflation report boosts sterling

Wed, 10 Nov 2010 16:38:00 GMT

This morning's Bank of England inflation report has given the Pound a timely boost, as Governer King took a neutral approach and did not mention further quantitative easing.

Furthermore, with the outlook still likely to give high inflation in the coming months, there may even be talk of UK interest rate rises next year, depending on the stability of the recovery. The Bank do not see a significant likelihood that we will slide back into recession.

As a result of the report, the Pound has spiked against the Euro and US Dollar, gaining over a cent against both currencies.

Contact Currency Index for the latest quote on your own transaction.

UK data as expected

Tue, 09 Nov 2010 11:24:00 GMT

This morning's UK manufacturing data and trade balance have come out close to expectations, with no resulting effect on most exchange rates. Attention will now turn to tomorrow's inflation report at 10.30am.

This week's currency news

Mon, 08 Nov 2010 09:36:00 GMT

The main news for the Pound this week is likely to be Wednesday's inflation report, which is an important economic indicator affecting decisions about interest rates and quantitative easing, and therefore the strength of sterling.

Tomorrow's manufacturing figures will also be important, otherwise there is no other significant UK data out this week. Other important data releases around the world are listed below.

Monday 8th
0645 - Swiss unemployment rate
1315 - Canadian housing starts
1800 - Speech - Federal Reservce - Fisher

Tuesday 9th
0930 - UK industrial & manufacturing production; UK trade balance
1400 - unofficial UK GDP estimate
1730 - Speech - Bank of Canada - Carney

Wednesday 10th
1030 - UK inflation report; Speech - Bank of England - King
1330 - US & Canadian trade balance; US jobless claims

Thursday 11th
0030 - Australian unemployment rate
0900 - ECB monthly report

Friday 12th
0700 - German GDP
1000 - Eurozone GDP

Federal Reserve pumps $600bn into economy

Wed, 03 Nov 2010 22:52:00 GMT

The US Federal Reserve has announced an extra $600bn of Quantitative Easing to boost the ailing American economy.

The amount was slightly more than most analysts had expected, but represents a middle-of-the-road approach, which had already been priced into the US Dollar exchange rate.

US Dollar rates are still around their best since February, but there has been no sudden movement in exchange rates which could have been expected if the figure was much higher.

Anybody needing to send money to the USA might like to consider fixing a rate now on the back of current US Dollar weakness.

US Dollar cheaper ahead of Fed decision

Wed, 03 Nov 2010 10:44:00 GMT

Rates for sending US Dollars have improved again in the last 24 hours, ahead of tonight's Federal Reserve decision on Quantitative Easing. Analysts are expecting more money to be pumped into the US economy, which is making the dollar cheaper.

Tonight's decision at 6.15pm is likely to cause strong volatility in the USD rate.

This morning's UK PMI services data showed good growth in the UK's services sector, which has also injected some sterling strength across the board.

Australian interest rates increased

Tue, 02 Nov 2010 17:48:00 GMT

The Australian Dollar gained strength today, after the RBA's decision to increase interest rates to 4.75% sparked increased demand for the Aussie currency.

If you need to make a money transfer to Australia, the next major news is overnight on Wednesday, when retail sales and trade balance figures are released. For the latest rates for Australian Dollars or any other currency, please contact us.

Economic data this week

Sun, 31 Oct 2010 17:39:00 GMT

This week we have interest rate decisions in the UK, Eurozone, Australia and USA. As the various policies of interest rate changes, austerity measures and quantitative easing are revealed, which are variously being touted in the US, UK and Europe, we are likely to see some volatility in exchange rates through the week.

For the latest market reactions and how your own exchange rate may be affected, contact your currency broker for a jargon-free chat.

Monday 1st
0030 - Australian house price index
0900 - Eurozone manufacturing inflation
0930 - UK manufacturing inflation
1230 - US personal consumption & expenditure
1400 - US manufacturing

Tuesday 2nd
0330 - Australian interest rate decision
0800 - UK Halifax house price index
0815 - Swiss retail sales
0930 - UK construction PMI

Wednesday 3rd
0930 - UK services PMI
1400 - US factory orders
1815 - US interest rate decision
2145 - New Zealand unemployment rate

Thursday 4th
0030 - Australian retail sales & trade balance
1000 - Eurozone PPI inflation
1200 - UK interest rate decision
1245 - Eurozone interest rate decision

Friday 5th
0030 - Australian interest rate minutes
0930 - UK PPI inflation
1000 - Eurozone retail sales
1100 - Canadian unemployment rate
1230 - US non-farm payrolls & unemployment rate

Currency Index in the news

Thu, 28 Oct 2010 21:10:00 GMT

To see our interviews on the One Show, Sky News and Five News, regarding rogue traders Crown Currency Exchange and better regulation in the currency industry, please click here to view our YouTube channel.

Nationwide says house prices are falling

Thu, 28 Oct 2010 09:14:00 GMT

Nationwide this morning unveiled its report gauging housing prices in the UK with a worrying downward trend. The monthly comparison of prices showed a 0.7% decline coming after a no-change result last month and plummeting past the forecasted fall at 0.3%.

The official release deals with the potential consequences of the drops in price: "If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010. This would compare to a rate of +5.9% at the end of 2009."

Falling house prices are a worry for the economy as a whole, and tend to cause a fall in sterling. The Pound has dropped around 0.5c against the Euro and US Dollar this morning.

Pound boosted by GDP figures

Tue, 26 Oct 2010 09:54:00 GMT

This morning's Q3 GDP figures showed that the economy grew more than expected from July to September, showing a 0.8% growth rather than the 0.4% expected by analysts.

This reduced the likelihood of futher Quantitative Easing (QE) next month, and the Pound has spiked up nearly a cent against the Euro and US Dollar on the back of the figures.

This week's economic data releases

Sun, 24 Oct 2010 22:39:00 GMT

As we near the end of October, this week's economic data releases are as follows. For the Pound, Tuesday's GDP figure is the most important, as we learn how much the economy looks to have grown from July to September.

Monday 25th
1000 - Eurozone industrial orders
1500 - US home sales

Tuesday 26th
0930 - UK GDP
1500 - US consumer confidence

Wednesday 27th
0230 - Australian CPI inflation
1500 - US new home sales
2100 - New Zealand interest rate decision

Thursday 28th
0855 - German unemployment rate
1000 - Eurozone economic confidence
1330 - US jobless claims

Friday 29th
0700 - German retail sales
0930 - UK mortgage approvals
1000 - Eurozone unemployment rate
1330 - Canadian GDP

Retail sales fall as Euro rate continues down

Thu, 21 Oct 2010 09:41:00 GMT

This morning's UK retail sales showed a 0.2% decline in September (worse than expected), which has done nothing to help the ailing pound.

The rate for buying Euros is now at its worst since April, and there is no major data due out for the rest of the week to give cause for optimism.

US dollar rates, however, are still holding up due to weakness in the US economy.

Bank of England split 3 ways on policy

Wed, 20 Oct 2010 11:29:00 GMT

This morning's Bank of England Minutes revealed a 3-way split in the monetary policy committee's views on interest rates and quantitative easing.

While 7 of the 9 members voted for no change, one (Andrew Sentance) voted again for an interest rate rise, while one (Adam Posen) voted for a £50bn extension to QE.

Any extensions to QE are likely to hurt sterling and it now seems plausible that this will happen in the coming months.

On top of September's Public Borrowing figures, which showed record levels of UK debt, the Pound could easily fall further in the short term.

The government is also revealing its spending review cuts today.

Weekly Market Outlook

Mon, 18 Oct 2010 19:54:00 GMT

Monday 29th November 2010 to Friday 3rd December 2010

This week the main story is likely to be the continuing developments of the Irish bank bailout - and whether there will be any knock-on effects elsewhere in the Eurozone. For now the Euro has started to strengthen.

Elsewhere we have economic releases in Australia, Canada, the USA and Switzerland, all likely to affect rates for sending money abroad. Contact your foreign exchange broker for the latest rates and news.

Monday 29th
0930 - UK mortgage approvals & money supply
1000 - Eurozone economic & consumer confidence
1330 - Canadian current account

Tuesday 30th
Overnight - UK consumer confidence
0030 - Australian current account
1000 - Eurozone unemployment & CPI inflation
1330 - Canadian GDP
1500 - US consumer confidence

Wednesday 1st
0030 - Australian GDP
0700 - UK Nationwide house prices
0900 - Eurozone manufacturing inflation
0930 - UK manufacturing inflation
1500 - US manufacturing & construction

Thursday 2nd
0030 - Australian retail sales & trade balance
0645 - Swiss GDP
1000 - Eurozone GDP & PPI inflation
1245 - Eurozone interest rate decision
1330 - US jobless claims

Friday 3rd
0815 - Swiss CPI inflation
1000 - Eurozone retail sales
1200 - Canadian unemployment
1330 - US non-farm payrolls & unemployment rate

Currency Index wins OPP Award

Mon, 18 Oct 2010 10:04:00 GMT

We are pleased to announce that Currency Index has won the prestigious “Best Currency Company” award in the 2010 OPP Awards for Excellence, in recognition of our industry-leading client service levels and exchange rates.

Overseas Property Professional editor Geoff Hadwick presented the award to Currency Index at last week’s OPP / Property Investor Live show at ExCeL in London.

This week's currency news

Sun, 17 Oct 2010 21:41:00 GMT

This week, focus in the UK is likely to be on Wednesday's Bank of England minutes, which will reveal to what extent the MPC considered extending the UK's Quantitative Easing programme this month. Any likelihood of further QE could hurt the pound.

Also on Wednesday, the government publishes its key spending review, with details of the billions of pounds of cuts planned in the forthcoming spending round. Markets are concerned whether there will be an impact on the economy, and therefore we feel Wednesday could be a doubly hard day for sterling.

Don't forget, if you are worried about a falling pound, that you can fix exchange rates up to 2 years ahead using a Forward Contract from Currency Index.

This week's economic calendar is as follows:

Monday 18th
1415 - US industrial production

Tuesday 19th
1000 - Eurozone construction output & ZEW economic sentiment survey
1330 - US housing starts
1400 - Canadian interest rate decision

Wednesday 20th
0930 - Bank of England minutes & UK public borrowing

Thursday 21st
0715 - Swiss trade balance
0830 - Eurozone manufacturing inflation
0930 - UK mortgage approvals & retail sales
1500 - Eurozone consumer confidence

Friday 22nd
All day - G20 meeting
1200 - Canadian CPI inflation
1330 - Canadian retail sales

UK Data Update

Wed, 13 Oct 2010 10:00:00 GMT

The data out from the UK this week so far has been mixed at best, unfortunately leading to a fall in the value of sterling against most currencies.

Trade Balance: worse than expected (-£8.2bn)
House prices: worse than expected (up 8.3% in last 12 months but now falling)
Unemployment rate: better than expected (7.7%)
Jobless claimants: worse than expected (up 5,300)

It is worth noting that Bank of England MPC member Andrew Sentance is giving a speech at 6.40pm today, and his views on interest rates and quantitative easing are likely to be taken as signals as to the Bank of England's intentions for the next few months, with implications for the Pound.

This week's currency news

Sun, 10 Oct 2010 22:41:00 GMT

This week's economic data, likely to affect currency exchange rates:

Monday 11th
US/Canada bank holiday (Columbus Day/Thanksgiving)
No major data releases

Tuesday 12th
0930 - UK CPI & RPI inflation and DCLG house price index, plus August trade balance
1900 - US Federal Reserve minutes

Wednesday 13th
0930 - UK unemployment rate & jobless claims
1900 - US monthly budget statement

Thursday 14th
0900 - Eurozone ECB monthly report
1330 - US PPI inflation & jobless claims

Friday 15th
1000 - Eurozone CPI inflation & trade balance
1330 - US CPI inflation & retail sales

Contact Currency Index for our views on how these figures could affect exchange rates for your own currency transfers.

House prices fell 3.6% in September

Thu, 07 Oct 2010 08:55:00 GMT

UK house prices fell 3.6% in September, according to Halifax - the biggest monthly fall since the survey started in 1983.

Although it is too early to say that prices are in decline, there is a worry for the UK economy that further falls in the housing market could cause serious problems for the economy. The Pound has continues its fall against the Euro and may other major currencies.

Currency Index in the news

Wed, 06 Oct 2010 17:11:00 GMT

Further to the collapse of Crown Currency Exchange, who are not Authorised by the FSA, Currency Index has today been commenting to the media regarding the enhanced safety and security offered by Authorised currency companies.

We are due to be featured on the BBC 6.00 news this evening, Wednesday October 6th.

Economic data due out this week

Mon, 04 Oct 2010 09:27:00 GMT

A busy week this week for data releases so we expect some volatility in exchange rates. Contact your account manager at Currency Index for the latest news relating to your currency transactions.

Monday 4th
1000 - Eurozone PPI inflation
1500 - US pending home sales
2000 - Federal Reserve Chairman Bernanke speaks
2200 - New Zealand business confidence

Tuesday 5th
0130 - Australian retail sales & trade balance
0530 - Australian interest rate decision
1000 - Eurozone retail sales

Wednesday 6th
1000 - Eurozone GDP
1100 - German factory orders
1315 - US non-farm employment change

Thursday 7th
0230 - Australian unemployment rate
0930 - UK industrial & manufacturing production
1200 - UK interest rate & QE decision
1245 - Eurozone interest rate decision
1330 - ECB press conference; US jobless claims

Friday 8th
0745 - Swiss unemployment rate
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate

Euro rate continues to fall

Tue, 28 Sep 2010 18:10:00 GMT

Despite this morning's Q2 GDP revision showing no change to the 1.2% UK growth figure released earlier this year, the Pound has continued to fall significantly this afternoon, losing nearly 2c against both the Euro and US Dollar.

We are seeing an increasing number of clients worried about the falling Pound and fixing their rates for any currency requirements in the next few months. To discuss your options, do call us at Currency Index for an informal but informative chat.

Currency news this week

Mon, 27 Sep 2010 09:04:00 GMT

Last week saw a significant drop in the GBP-EUR exchange rate, while the GBP-USD rate has gone the other way. With the UK budget cuts due next month, the Pound could be vulnerable to any bad news; this week's data releases are as follows:

Monday 27th
0800 - European Central Bank speech (Trichet)
0900 - Eurozone money supply

Tuesday 28th
0700 - German retail sales
0930 - UK GDP (Q2)
1500 - US consumer confidence
2245 - New Zealand trade balance

Wednesday 29th
0930 - UK money supply & mortgage approvals
1000 - Eurozone economic confidence
Overnight - UK consumer confidence

Thursday 30th
0400 - New Zealand business confidence
0855 - German unemployment
1330 - US GDP & jobless claims

Sending Money Abroad

Fri, 24 Sep 2010 16:33:00 GMT

Buying a property abroad, bringing money back to the UK, or sending funds to a supplier, can be complicated. Thankfully, at Currency Index, we are on hand to help you, whether you are buying a villa in Valencia, or importing ink from India. Click below for our country-by-country guides which will tell you all you need to know about the currency and local banking procedures. Call us on 0800 043 2623 (or +44 1923 69 53 53 from abroad), or click here to make an enquiry online.

Buying Euros?

Click here to find out how Currency Index Ltd can supply the very best Euro Exchange Rates.

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About Us

Fri, 24 Sep 2010 16:05:00 GMT

Currency Index Ltd. is part of the PropertyIndex.com group of companies.

Company background

PropertyIndex.com is the UK's fastest growing overseas property website with hundreds of agents and developers signing up to advertise on a cost per lead basis since the site launched on 17 September 2007. The website now features hundreds of thousands of properties for sale and rent, across more than 4,000 destinations worldwide, as well as in the UK.

As part of the PropertyIndex.com group of companies, Currency Index Ltd is able to offer additional benefits to its clients. We achieve this by bringing many of the services, required when purchasing property overseas, under one umbrella. We are also able to help clients who have not used PropertyIndex.com, by giving them access to this money saving service as well.

Saving you money

As a client of Currency Index, you can save money when transferring funds overseas, either for property purchases or simply for general use. You are able to achieve this because we offer our clients access to commercial exchange rates which are not normally available to private individuals – rates which are far more competitive than the levels normally offered by high street banks.

Meeting your personal needs

Choosing Currency Index for your foreign exchange transactions means you will also benefit from a set of services specifically tailored to meet your personal needs. This bespoke service is aimed at making sure your exact requirements are carefully considered and the most appropriate options offered accordingly. In this way, we will ensure that your currency is sourced at the right time and in the right way for you.

Financial Security

As an execution only organisation, we do not lend, borrow or speculate with any funds, we are therefore unaffected by market movements or problems, in contrast to banks.

We take the responsibility of handling your funds very seriously, and are fully regulated and registered with the relevant authorities, for your complete peace of mind.

Authorised and Regulated by the Financial Services Authority (Firm Reference 504353)
Registered with HM Revenue and Customs as a Money Service Business (Registration Number 0000012358614)
Safeguarded bank accounts held with Barclays Bank plc in the UK
Registered with the ICO under the Data Protection Act 1998 (Registration Number Z1495263)
Members of the UKMTA

If you would like more information on our processes and relevant expertise, just ask.

Telephone UK: 0800 043 2623
International: Your UK dialling code + 44 1923 777 562Fax: 01923 777 994
Email: sales@currencyindex.co.uk

Best USD rate for 6 weeks

Fri, 24 Sep 2010 15:44:00 GMT

Weakness in the US Dollar has led to the best rates for sending money to the States since early August. If you have USD requirements, call Currency Index for a quote to take advantage of the spike in rates.

Euro rate falling as Bank hints at more QE

Wed, 22 Sep 2010 10:15:00 GMT

The Bank of England's policy minutes, released this morning, show that the committee is discussing the possibility of further quantitative easing to stimulate the economy.

With the forthcoming economic cuts also looming, the Pound has started to fall significantly, losing 2.5c against the Euro already this week.

If further QE is implemented, we are likely to see further drops in the value of sterling, as was the case this time last year. Contact Currency Index if you are concerned about falling rates and would like to discuss the possibility of fixing a rate now for delivery later in the year.

Currency news week commencing September 30th

Mon, 20 Sep 2010 09:05:00 GMT

This week's focus in the UK will be on the Bank of England's September minutes, due out on Wednesday morning, particularly whether any members voted for an extension in Quantitative Easing. If this proves to be the case, it would not be good news for sterling.

Elsewhere the following data is out around the world:

Monday 20th
0930 - UK mortgage approvals

Tuesday 21st
0230 - Reserve Bank of Australia minutes
1200 - Canadian CPI inflation
1330 - US housing starts
1915 - US interest rate decision

Wednesday 22nd
0930 - Bank of England minutes
1330 - Canadian retail sales

Thursday 23rd
0930 - UK mortgage approvals
1330 - US continuing jobless claims
1500 - US existing home sales

Friday 24th
0900 - German IFO business climate survey
1330 - US durable goods orders
1500 - US new home sales

UK Retail Sales tumble

Thu, 16 Sep 2010 10:41:00 GMT

This morning's UK retail sales figures are much worse than expected - showing a 0.5% drop in August, compared to analysts' predictions of a 0.3% increase.

The Pound fell on the release, as worries about the state of the recovery continue. If you are worried about falling rates, remember that you can fix and guarantee a rate up to 2 years ahead by using a Forward Contract from Currency Index.

Eurozone & UK Unemployment

Wed, 15 Sep 2010 10:30:00 GMT

UK unemployment has fallen slightly, to 2.47m in the 3 months to July. The unemployment rate remains at 7.8%. In Europe, there has also been a slight fall.

The Pound rose slightly this morning when the figures were released, but continues to struggle due to worries over cuts and the recovery overall. Tomorrow's retail sales figures, due at 9.30am, provide the next test for sterling.

Economic data releases this week

Mon, 13 Sep 2010 09:36:00 GMT

This week's major economic data releases are shown below - a busy week ahead, particularly on Wednesday with key relesases out in the UK, US, Eurozone, New Zealand, Australia and Canada.

For a simple explanation of any of these, and the possible implications on the currency markets, contact Currency Index.

Monday 13th
1900 – Monthly US budget statement
2345 – New Zealand retails sales

Tuesday 14th
0930 – UK CPI & RPI inflation
1000 – German ZEW economic sentiment
1330 – US retail sales

Wednesday 15th
0130 – Australian consumer confidence
0930 – UK unemployment & jobless claims
1000 – Eurozone CPI inflation & employment change
1200 – US mortgage applications
1330 – Canadian manufacturing shipments
2200 – New Zealand interest rate decision

Thursday 16th
0930 – UK retail sales
1300 – Swiss interest rate decision
1330 – US PPI inflation

Friday 17th
1330 – US CPI inflation

Pound down as trade balance worsens

Thu, 09 Sep 2010 12:01:00 GMT

The Pound's recovery this week has been swiftly halted by UK trade balance figures released this morning, which showed a defecit of some £4.8bn in July - £500m worse than expected.

The next major data release in the UK are tomorrow's inflation figures, and with the recovery still fragile, any bad news could spell trouble for the Pound.

Weekly economic roundup

Mon, 06 Sep 2010 09:52:00 GMT

This week we return to the usual monthly data releases from around the world relating to inflation, unemployment and interest rates in many key economies.

The most important day for exchange rates this week will likely be Thursday, when we have the European Central Bank report, Australian and US unemployment, German inflation and UK interest rates and trade balance.

The full calendar is as follows:

Monday 6th
Bank holiday – US & Canada
0930 – Eurozone investor confidence

Tuesday 7th
0530 – Australian interest rate decision
0645 – Swiss unemployment rate
1100 – German factory orders

Wednesday 8th
0700 – German trade balance
0930 – UK industrial & manufacturing production
1400 – Canadian interest rate decision

Thursday 9th
0230 – Australian unemployment rate
0700 – German CPI inflation
0900 – ECB monthly report
0930 – UK trade balance
1200 – UK interest rate decision
1330 – US jobless claims & trade balance

Friday 10th
0930 – UK PPI inflation
1200 – Canadian unemployment rate

Euro rate below €1.20

Fri, 03 Sep 2010 11:01:00 GMT

The Euro mid-market rate has dropped below €1.20 today for the first time since July, prompting fears for buyers of overseas property in Europe.

The Pound has been faltering over the last fortnight, and this morning's Eurozone retail sales data, which showed strong growth of 1.1% in the year to July, has also given the Euro more strength [made it more expensive].

Currency data this week

Mon, 30 Aug 2010 19:16:00 GMT

Major currency data released this week around the world is as follows. To discuss the possible implications on exchagne rates for your own transaction, please contact us at Currency Index.

Tuesday 31st
0130 – Australian current account balance
0855 – German unemployment rate
0930 – UK consumer lending and money supply
1000 – Eurozone unemployment rate
1330 – Canadian GDP
1900 – US FOMC minutes

Wednesday 1st
0400 – New Zealand commodity prices
0900 – Eurozone manufacturing
0930 – UK manufacturing

Thursday 2nd
0230 – Australian trade balance
0645 – Swiss GDP
1000 – Eurozone GDP & PPI inflation
1245 – Eurozone interest rate decision
1330 – US jobless claims
1500 – US factory orders & pending home sales

Friday 3rd
1000 – Eurozone retail sales
1330 – US non-farm payrolls & unemployment rate

Bloomberg analysts warn of falling Pound

Tue, 24 Aug 2010 11:22:00 GMT

Sterling rose to an eight-week high against the euro yesterday despite fears the pound's rally is coming to an end. Currency traders warned sterling will soon go into reverse as spending cuts and tax rises outlined in the Budget curb economic growth in the UK.

Foreign exchange forecasters are the most pessimistic they have been about the pound since May 2009 when rating agency Standard & Poor's said the UK was at risk of losing its AAA status, according to Bloomberg.

This week's economic releases

Sun, 22 Aug 2010 19:41:00 GMT

Week commencing August 23rd 2010; this week's data releases which are likely to have an effect on exchange rates are shown below.

For valuable opinions on what could happen to rates this week, contact Currency Index.

Monday 23rd
0830 - German manufacturing PMI
1500 - Eurozone consumer confidence

Tuesday 24th
0400 - New Zealand inflation expectations
0700 - German GDP
1330 - Canadian retail sales

Wednesday 25th
0900 - German business climate survey
1200 - US mortgage applications
1330 - US durable goods orders
1500 - US new home sales

Thursday 26th
0900 - Eurozone money supply
1330 - US jobless claims

Friday 27th
0930 - UK GDP revision
1330 - US GDP & personal consumption

Retail sales up - Pound gains strength

Thu, 19 Aug 2010 11:51:00 GMT

Most exchange rates have improved this morning, after UK retail sales figures released at 9.30am showed a much better performance in the sector than analysts had expected.

Retail sales in July were up 1.1%.

The Pound has gained 1c against the US Dollar and nearly 1c against the Euro in morning trading.

Bank of England minutes reveal no surprises

Wed, 18 Aug 2010 15:55:00 GMT

This morning's minutes from the Bank of England's interest rate setting committee showed that 8 of the 9 members voted to keep interest rates on hold.

UK interest rates have now been at 0.5% for 17 months.

Currencies are linked strongly to interest rate rises, so anybody hoping for better exchange rates for sending money abroad, will want interest rates to go up sooner rather than later.

Following the Bank's assessment last week that inflation is likely to fall, and that we are in for a "choppy" recovery, we are unfortunately unlikely to see an interest rate rise in the short to medium term.

Pound falls on UK inflation drop

Tue, 17 Aug 2010 15:13:00 GMT

This morning's inflation figures were lower than expected - which, although good news for the economy, is not positive for the Pound. We have lost a cent against the Euro and more against the US Dollar in trading today.

The single currency was boosted by solid demand at an Irish bond auction.

This week's currency data

Mon, 16 Aug 2010 10:43:00 GMT

This week's news releases, likely to affect exchange rates, are as follows:

Monday 16th
1000 - Eurozone CPI inflation
1800 - US housing market index

Tuesday 17th
0230 - Reserve Bank of Australia minutes
0930 - UK inflation
1000 - Eurozone economic sentiment survey
1330 - US housing starts & PPI inflation

Wednesday 18th
0130 - Australian wage price index
0930 - Bank of England minutes

Thursday 19th
0930 - UK money supply, public borrowing & retail sales

Friday 20th
1200 - Canadian CPI inflation

For the latest live rates, please call Currency Index on 0800 043 2623.

Downbeat inflation report

Thu, 12 Aug 2010 08:49:00 GMT

Yesterday's quarterly Bank of England inflation report predicted a "choppy" recovery ahead for the UK, with interest rates low for some time, and the possibility of more quantitative easing in the future.

Coming after an increase in long-term unemployment was announced, the Pound fell yesterday against most currencies, although curiously the weakening Euro has actually provided an improvement in rates for buying Euros over the last 24 hours.

House prices fall, but trade balance improves

Tue, 10 Aug 2010 10:11:00 GMT

Mixed news this morning, as UK house prices have fallen slightly over the last 2 months according to the main 3 UK housing market surveys, casting further doubt on the UK's economic recovery. On the other hand, Britain's trade balance figures out this morning showed something of an improvement.

The Pound has fallen slightly but is continuing to trade in tight ranges, ahead of tomorrow's Bank of England quarterly inflation report.

For the latest live rates for your transfer of money to the UK or overseas, please call us on 0800 043 2623.

This week's FX news

Mon, 09 Aug 2010 09:13:00 GMT

This week sees a number of important data releases likely to affect exchange rates, notably the Bank of England's key quarterly inflation report, released on Wednesday morning. There are also important monthly reports from the European and US central banks, along with GDP and inflation figures from other economies.

If you are sending money abroad, speak to Currency Index this week as there is likely to be volatility in rates which could provide opportunities to buy your currency at preferential rates.

Monday 9th
0230 - Australian home loand
0930 - Eurozone investor confidence

Tuesday 10th
0700 - German CPI inflation
0930 - UK trade balance
1915 - US interest rate decision

Wednesday 11th
0930 - UK unemployment rate
1030 - Bank of England quarterly inflation report
1330 - US trade balance
1900 - US monthly budget statement

Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
2345 - New Zealand retail sales

Friday 13th
0700 - German GDP
1000 - Eurozone GDP
1330 - US CPI inflation & retail sales

Interest Rates Held

Thu, 05 Aug 2010 13:25:00 GMT

As expected today, both the Bank of England and European Central Bank have kept interest rates on hold at their monthly meetings today.

The ECB are currently giving their monthly press conference, which may have an effect on Euro rates, while there are no further clues due from the Bank of England until next week's quarterly inflation report.

The Pound is steady against the Euro in trading today, and up against the US Dollar following yesterday's decline.

Currency data released this week

Mon, 02 Aug 2010 09:56:00 GMT

This week's main economic data releases (likely to cause volatility in exchange rates) are as follows. As in the first week of any month, there are a lot of key figures out from around the world. Contact Currency Index for the latest live rates and information.

Monday 2nd
0200 - Australian new home sales
0900 - Eurozone PMI manufacturing data
0930 - UK PMI manufacturing data
1330 - US personal consumption expenditure

Tuesday 3rd
0530 - Australian interest rate decision
0815 - Swiss CPI inflation
1330 - US core personal consumption & income
1500 - US pending home sales
2200 - US consumer confidence

Wednesday 4th
0130 - Australian house price index
0230 - Australian trade balance
1000 - Eurozone retail sales
2345 - New Zealand unemployment rate

Thursday 5th
1200 - UK interest rate decision
1330 - Canadian building permits

Friday 6th
0230 - Australian interest rate minutes
0645 - Swiss unemployment rate
0930 - UK industrial & manufacturing production & inflation
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate

Bank of England voice concerns over recovery

Wed, 28 Jul 2010 11:43:00 GMT

Mervyn King, the Governor of the Bank of England, has suggested this morning that UK interest rates will stay low for the foreseeable future, given concerns about the strength of the UK recovery.

Low interest rates usually translate to a weak currency, so it is perhaps unlikely that we will see any significant gains for the Pound in the coming months.

Current exchange rates for sending money overseas are still around the best levels we have seen in 2010.

Best US Dollar rates since February

Mon, 26 Jul 2010 17:29:00 GMT

A weaker US Dollar has resulted in the best Dollar exchange rates against the Pound since February.

With the Pound still exposed to any further bad news in the UK economy, if you need to send money to the States in the coming weeks or months it might be a good time to consider fixing your exchange rate now.

Please contact Currency Index on 0800 043 2623 (+44 1923 777562 from abroad) if you would like to chat through your options.

Currency markets this week

Mon, 26 Jul 2010 09:11:00 GMT

As we enter the last week of the month, most major data releases have already been published, so there is no important news due out of the UK likely to have a huge effect on the Pound. Elsewhere around the world, the week's data is as follows; contact Currency Index for the latest news and rates.

Monday 26th
0230 - Australian PPI inflation
1500 - USA new home sales

Tuesday 27th
0700 - German retail sales
1500 - US consumer confidence

Wednesday 28th
0230 - Australian CPI inflation
0400 - New Zealand business confidence
2200 - New Zealand interest rate decision
2345 - New Zealand trade balance

Thursday 29th
0855 - German unemployment
0930 - UK mortgage approvals

Friday 30th
1000 - Eurozone unemployment rate
1330 - Candian & US GDP

GDP figures send Pound higher

Fri, 23 Jul 2010 11:08:00 GMT

This morning's GDP figures, estimating growth in the UK economy from March to June, have been released and are much better than expected. The figures showed a growth of 1.1%, compared to expectations of 0.6%.

Sterling has pushed higher on the news, so anyone considering fixing an exchange rate may like to request a quote from Currency Index today.

Retail Sales fall

Thu, 22 Jul 2010 09:33:00 GMT

This morning's UK retail sales figures showed a decline of 1.3% in the previous 12 months, compared to expectations of an increase 2.4%. This is worrying news for the UK economy and the Pound's prospects.

Don't forget you can secure an exchange rate up to 2 years ahead, using a Forward Contract from Currency Index.

Euro rate outlook worsens

Wed, 21 Jul 2010 15:04:00 GMT

This morning's Bank of England minutes have done the Pound few favours, as only one of the MPC's members voted for an interest rate rise this month. Higher interest rates are widely seen as a pre-requisite for further sterling strength.

"The euro is generally weaker so euro/sterling is down but overall I think the outlook for the pound is negative after the MPC questioned the UK's growth outlook," said Ian Stannard, senior currency analyst at BNP Paribas.

The euro slipped broadly after a Portuguese treasury-bill auction showed yields more than doubling from the previous sale

This week's economic data

Wed, 21 Jul 2010 10:48:00 GMT

Major economic news due out in the next 3 days, all likely to affect exchange rates, is as follows:

Today
0930 - Bank of England minutes
1900 - Federal Reserve chairman's speech

Thursday 22nd
0930 - UK retail sales
1330 - Canadian retail sales
1500 - Eurozone consumer confidence & US home sales

Friday 23rd
0930 - UK GDP
1200 - Canadian CPI inflation

This week in currency news

Mon, 05 Jul 2010 09:08:00 GMT

Most of this week's data releases come from the Eurozone, so those of you who are looking at sending payments in Euros should keep a close eye on exchange rates. The only major UK data is Friday's trade balance and PPI figures, while in the States we have a bank holiday today and very little of interest later in the week.

Monday 5th
0815 Swiss retail sales
0930 Eurozone investor confidence
1000 Eurozone retail sales

Tuesday 6th
0815 Swiss CPI inflation

Wednesday 7th
1000 Eurozone GDP

Thursday 8th
0230 Australian unemployment rate
0645 Swiss unemployment rate
0700 German trade balance

Friday 9th
0700 German CPI inflation
0930 UK goods trade balance & PPI inflation
1200 Canadian unemployment

GDP Release Delayed

Tue, 29 Jun 2010 15:03:00 GMT

The release of key UK GDP data, due out tomorrow, has been delayed to July 12th.

The Pound is currently enjoying a positive run, giving us the best Euro rates for over 18 months. Contact us to discuss your requirements if you are considering locking into an exchange rate now.

This week's currency news

Mon, 28 Jun 2010 17:49:00 GMT

After the bustle of last week's budget and Bank of England Minutes, this week is relatively quiet in terms of economic data likely to affect exchange rates. However, look out for UK GDP on Wednesday and Eurozone inflation figures on the same day, both of which could give some volatility to rates. In the USA, Friday's key monthly employment figures often cause movement in USD rates.

Do contact Currency Index for the latest rates and news.

Monday 28th
0400 - New Zealand business confidence
1330 - US personal consumption

Tuesday 29th
1000 - Eurozone consumer confidence
Overnight - UK consumer confidence

Wednesday 30th
0930 - UK Q1 GDP
1000 - Eurozone CPI inflation

Thursday 1st
No major data

Friday 2nd
1330 - US non-farm payrolls and unemployment rate

Budget tomorrow

Mon, 21 Jun 2010 15:42:00 GMT

Tomorrow we have the new UK government's emergency budget - and who knows what the effects might be on the currency markets. There is bound to be some reaction from the Pound, depending on how George Osborne's new policies and cuts go down in the City.

Meanwhile, we also have the following data out around the world:

Monday 21st
No major data

Tuesday 22nd
0715 - Swiss trade balance
0900 - German business climate survey
1130 - UK emergency budget
1200 - Canadian CPI inflation

Wednesday 23rd
0930 - Bank of England policy minutes
1330 - Canadian retail sales
1500 - US new home sales
1915 - US interest rate decision
2345 - New Zealand GDP

Thursday 24th
1330 - US durable good orders
2345 - New Zealand trade balance

Friday 25th
1330 - US GDP

Retail Sales Up

Thu, 17 Jun 2010 12:17:00 GMT

The Pound has had a boost this morning as May's UK retail sales came out better than expected. Overnight losses, following George Osborne's speech last night regarding banking regulation, have nearly been recouped for most exchange rates.

The Budget next Tuesday will now be the next area of focus; speak to us at Currency Index before the big day if you would like an informal discussion around your requirements.

Unemployment fails to rally Pound

Wed, 16 Jun 2010 13:30:00 GMT

This morning's UK unemployment figres up to 7.9% in the 3 months to April, up from 7.8% in the previous quarter.

Although the number of people claiming benefit fell slightly in May, the overall figures made for mixed reading and following a short boost there was little impact for the Pound.

Tomorrow's public borrowing numbers are the next major UK economic figres, and the last before Tuesday's emergency budget.

UK inflation falls

Tue, 15 Jun 2010 13:23:00 GMT

This morning's UK CPI inflation figure for May showed the headline inflation rate fell to 0.2%, from April's 0.6% figure. Although this is good news for the economy as the Bank of England is keen to keep inflation under control, the effect on sterling is the opposite, since lower inflation means that interest rates may not need to rise as had been feared.

The Pound gave back its overnight gains against both the Euro and US Dollar, and particularly against the Euro, where exchange rates for buying Euros have been falling throughout the day.

Currency news this week

Mon, 14 Jun 2010 13:11:00 GMT

This week's economic releases likely to affect exchange rates:

Monday 14th
0815 - Swiss producer & import prices
1000 - Eurozone industrial production

Tuesday 15th
0230 - Australian interest rate minutes
0930 - UK inflation
1000 - Eurozone employment & trade balance
1000 - German ZEW survey
1330 - US import price index
1330 - Canadian manufacturing figures

Wednesday 16th
0930 - UK earnings & unemployment rate
1000 - Eurozone inflation
1200 - US mortgage applications
2245 - US Federal Reserve Chairman's speech

Thursday 17th
0830 - Swiss interest rate decision
0900 - European Central Bank monthly report
0930 - UK retail sales
1330 - US CPI inflation & jobless claims

Friday 18th
0700 - German PPI inflation
0930 - UK public sector borrowing & mortgage approvals

Trade balance worse than expected

Wed, 09 Jun 2010 10:06:00 GMT

Figures this morning show the UK's trade balance has worsened slightly, to £3.3bn. This is only slightly worse than expected, so has not weighed too heavily on sterling on the money markets this morning.

Tomorrow's interest rate decision is unlikely to cause any surprises, so rates for sending money abroad could be influenced more by local events in each economy for the rest of the week. For the latest news, contact Currency Index.

Currency news this week

Mon, 07 Jun 2010 09:46:00 GMT

This week's main economic data releases around the world:

Monday 7th
No major data

Tuesday 8th
0645 - Swiss unemployment rate
0700 - German trade balance
0815 - Swiss CPI inflation
Overnight - UK consumer confidence

Wednesday 9th
0130 - Australian consumer confidence
0930 - UK trade balance
2200 - New Zealand interest rate decision

Thursday 10th
0230 - Australian unemployment rate
1200 - Bank of England interest rate decision
1245 - European Central Bank interest rate decision
1330 - US jobless claims & trade balance
1900 - US monthly budget statement

Friday 11th
0930 - UK industrial production & PPI inflation
1330 - US retail sales

Euro rate flirts with €1.20

Wed, 02 Jun 2010 09:47:00 GMT

Problems in the Eurozone have contributed to a cheaper Euro, with rates now at their best since the financial crisis. If you are buying Euros to send overseas, consider fixing your rate now for at least part of your requirements.

This week's economic releases

Tue, 01 Jun 2010 10:37:00 GMT

There are a lot of important figures due out around the world this week likely to affect commercial exchange rates. For the latest updates, please contact Currency Index.

Tuesday 1st
0530 - Australian interest rate decision
0645 - Swiss GDP
0855 - German unemployment
0930 - UK manufacturing inflation
1000 - Eurozone unemployment rate
1400 - Canadian interest rate decision

Wednesday 2nd
0230 - Australian GDP
0930 - UK consumer lending & mortgage approvals

Thursday 3rd
0230 - Australian trade balance
1000 - Eurozone retail sales
1330 - US jobless claims
1500 - US factory orders

Friday 4th
1000 - European GDP
1200 - Canadian unemployment rate
1330 - US non-farm payrolls & unemployment rate

GDP figures as expected

Tue, 25 May 2010 09:51:00 GMT

UK GDP figures released this morning show a 0.3% growth in the UK economy, for the first quarter of 2010 compared to 2009.

The figures were exactly as expected by analysts, so there has been little effect on the Pound. Exchange rates for buying Euros remain at around the best levels since last summer.

Economic releases this week

Mon, 24 May 2010 16:53:00 GMT

This week's data likely to affect exchange rates is as follows; notably UK GDP on Tuesday morning will give an indication of the growth rate in the economy and is very likely to have a strong effect on sterling.

Monday 24th
1500 - US home sales

Tuesday 25th
0400 - New Zealand Reserve Bank inflation report
0930 - UK GDP
1500 - US consumer confidence

Wednesday 26th
0700 - German GfK consumer confidence
1330 - US durable goods orders
1500 - US new home sales
2345 - New Zealand trade balance

Thursday 27th
0815 - Swiss employment level
1330 - US GDP & initial jobless claims

Friday 28th
Overnight - UK GfK consumer confidence
1330 - US personal consumption

Sterling falls

Fri, 21 May 2010 09:38:00 GMT

This week has seen a huge flow on the money markets away from AUD and NDZ, which has strengthened both the US Dollar and Euro significantly. The Pound is now trading below €1.15 and $1.45, with no help from economic data showing UK mortgage approvals lower then expected in April.

One piece of good news was that UK public borrowing was £10bn in April, less than the £11.2bn forecast, which has given the Pound a small boost this morning.

For the latest live trading rates for overseas transfers, contact Currency Index on 0800 043 2623.

Australian Dollar rates up 5c

Wed, 19 May 2010 15:18:00 GMT

Rates for sending money to Australia have improved dramatically today, after the Reserve Bank of Australia indicated that there will be no further interest rate rises for the time being.

Interest rate rises tend to keep currencies expensive, so when interest rates stop going up, a currency can become cheaper accordingly.

Those of you looking to move down under or transfer funds to Australia in the coming weeks and months should follow the rate closely for opportunities to buy.

Inflation hits 17-month high

Tue, 18 May 2010 12:43:00 GMT

This morning's UK inflation figures showed a rise to 3.7%, higher than analysts expected and the highest UK inflation for over a year.

Although this means the Bank of England might need to raise interest rates sooner than might have been the case, which would normally give the Pound a boost, the news has not been taken well, because it puts the Bank's predictions of inflation to come back down to its target levels in the shade.

Sterling has therefore actually fallen slightly on the news.

Tomorrow morning's interest rate minutes from the Bank of England will now be of increased interest for the Pound's fortunes.

This week's economic data

Mon, 17 May 2010 11:35:00 GMT

A very busy week ahead with key inflation data out in the UK, Europe and the USA, all likely to affect exchange rates this week.

Keep in touch with Currency Index for the latest news affecting your currency purchase.

Monday 17th
No major data

Tuesday 18th
0230 - Australian interest rate minutes
0930 - UK CPI & RPI inflation
1000 - Eurozone CPI inflation & trade balance; German economic sentiment
1330 - US housing starts & PPI inflation

Wednesday 19th
0030 - Australian consumer confidence
0930 - Bank of England policy minutes
1330 - US CPI inflation
1700 - European Central Bank speech
1900 - US interest rate minutes

Thursday 20th
0700 - German PPI inflation
0930 - UK retail sales
1330 - US jobless claims

Friday 21st
0700 - German GDP
0900 - German IFO business survey
1200 - Canadian CPI inflation
1330 - Canadian retail sales

UK Trade Balance worsens

Fri, 14 May 2010 09:51:00 GMT

Yesterday's UK trade balance figures have hurt the Pound, as data showed a £3.6bn defecit for March, against analysts' expectations of £2.4bn.

Sterling remains vulnerable to further losses as the dust settles after the election and the new government faces up to the economic challenges ahead. There is no major data due out in the UK today.

David Cameron is Prime Minister

Wed, 12 May 2010 08:46:00 GMT

The political events of last night, confirming David Cameron as Prime Minister at the head of a Conservative-Liberal coalition, have given the Pound a boost. We now have the best rate for buying Euros since June 2009.

Today's Bank of England Inflation Report, published at 10.30, will give some insight into the UK economy and the Bank's forecasts for inflation for the rest of the year. It is a potential 'banana skin' for the Pound - any downbeat news could bring exchange rates down in the current volatile environment.

Quarterly inflation report tomorrow

Tue, 11 May 2010 12:47:00 GMT

Tomorrow sees the Bank of England's quarterly inflation report published - a major insight into the strength (or otherwise) of the UK's economic recovery, and prospects for inflation and interest rates in the coming months.

The Pound is certainly vulnerable to poor economic figures at the moment, with the continuing uncertainty around who will be in government. At the same time, the European Central Bank is propping up the Euro with a comprehensive rescue package for Greece.

If you are concerned about the current volatility in the foreign exchange markets, speak to Currency Index about your options.

Election, Greece and this week's currency news

Mon, 10 May 2010 12:42:00 GMT

A week is a long time in the currency markets - on Thursday we saw fluctuations of 5c for the Euro and Dollar exchange rates as the election results came in, and the economic crisis in Greece worsened.

This week, much will depend on whether there is a deal between the Conservatives and Liberal Democrats, as well as the Greek bailout, particularly if you are buying Euros to transfer abroad.

We also have the following data due out around the world:

Monday 10th
0700 - German trade balance
1200 - UK interest rate decision

Tuesday 11th
0700 - German CPI inflation
0930 - UK industrial production

Wednesday 12th
0700 - German GDP
0930 - UK jobless claims change
1000 - Eurozone GDP
1030 - Bank of England quarterly inflation report
1330 - US trade balance
1900 - US monthly budget statement

Thursday 13th
0230 - Australian unemployment rate
0930 - UK trade balance
1330 - US jobless claims
2345 - New Zealand retail sales

Friday 14th
1330 - Canadian manufacturing data
1330 - US retail sales

Pound slumps on hung parliament

Fri, 07 May 2010 13:35:00 GMT

The Pound's recent gains have been wiped out this morning as the UK election produced a hung parliament.

Those of you buying Euros or US Dollars have seen rates fluctuating up to 5c since the early hours of the morning.

This could spell the end of sterling's recent rise, depending on how quickly a government is formed and how stable the markets perceive the resultant deal.

Best Euro rate since August, but election looms

Wed, 05 May 2010 08:29:00 GMT

Further worries on the economic problems in Greece and Spain have weakened the Euro, which is now trading at the best rate for sending Euros abroad since August last year.

With the UK election looking tomorrow and the uncertainty around the result, today may be a good time to look at securing your rate. Don't forget you can fix a rate up to 2 years in advance with Currency Index.

Currency news from around the world

Tue, 04 May 2010 12:16:00 GMT

The UK election will be the main point of interest this week - will a hung parliament cause the Pound to drop? There is also news due out from around the world as follows:

Tuesday 4th
0530 – Australian interest rate decision
0930 – UK individual lending & purchasing inflation
1500 – US pending home sales

Wednesday 5th
1000 – Eurozone retail sales
1315 – US employment change
2345 – New Zealand unemployment rate

Thursday 6th
UK general election
0230 – Australian trade balance & retail sales
1245 – Eurozone interest rate decision
1330 – US initial jobless claims

Friday 7th
0230 – Australian monetary policy statement
0930 – UK PPI inflation
1200 – Canadian unemployment rate
1330 – US non-farm payrolls & unemployment rate

House prices up 10% in last year

Thu, 29 Apr 2010 09:18:00 GMT

This morning's Nationwide house price survey shows a 10.5% increase in prices in the year to April. This is an encouraging sign of economic growth in the UK and as such the Pound is performing relatively well this morning.

The Greek bailout continues to weigh on the Euro, although the rate for buying Euros seems to have peaked for now having increased over the last 10 days.

With the final leaders' debate before the election tonight, there could be a limited window to buy your currency before the uncertainty of the election takes over for the next 7 days.

International foreign exchange news out this week

Mon, 26 Apr 2010 10:19:00 GMT

This week is quiet in terms of UK data, but there are other releases around the world likely to affect exchange rates. Contact Currency Index for the latest news and live rates for your transfer.

Monday 26th
ECB President Trichet's speech

Tuesday 27th
0930 - UK mortgage approvals
1500 - US consumer confidence

Wednesday 28th
0230 - Australian CPI inflation
0400 - New Zealand business confidence
1915 - US interest rate decision
2200 - New Zealand interest rate decision
2345 - New Zealand trade balance

Thursday 29th
0700 - UK Nationwide house prices
1330 - US jobless claims

Friday 30th
Overnight - UK GfK consumer confidence survey
1000 - Eurozone unemployment & CPI inflation
1330 - Canadian & US GDP

More good news as sterling rises

Thu, 22 Apr 2010 11:58:00 GMT

This morning's mortgage approvals and public borrowng data came out better then expected - and even slightly worse retail sales could not dampen the Pound's momentum.

Against the Euro, US Dollar, Australian Dollar and South African Rand we have seen improvements in exchange rates for anyone sending money abroad.

Contact Currency Index for the latest commercial rates available.

Mixed figures but Pound is up

Wed, 21 Apr 2010 12:00:00 GMT

This morning's headline unemployment figure showed an increase to 8% - the highest since 1994 - but behind the figures there was a lower than expected number of UK citizens claiming unemployment benefit in March.

At the same time, average UK earnings figures were better than expected, so overall this morning there has been some support for sterling, with the mixed numbers being taken as positive overall for the UK economy.

With retail sales and public borrowing figures out tomorrow morning, today could present an opportunity for buying Euros, Dollars or whichever currency you need to send abroad, at a relatively good rate. Contact Currency Index for the latest live rates.

UK inflation rises - as does the Pound

Tue, 20 Apr 2010 11:15:00 GMT

In a data release seen as positive for sterling, UK inflation has come out higher than expected this morning, making sending money abroad slightly cheaper across the board.

The retail price index for March was up 0.7%, and up 4.4% for the year, compared with expectations of 0.4% and 4.1% respectively.

Currency news this week

Mon, 19 Apr 2010 09:13:00 GMT

This week focus for the Pound is likely to be fixed to the unfolding election news, as investors decide whether a surge in Lib Dem popularity is likely to be good for the economy.

We also have the following scheduled data releases:

Monday 19th
1000 - Eurozone construction data
1330 - Canadian foreign investments
2345 - New Zealand CPI inflation

Tuesday 20th
0230 - Australian interest rate minutes
0700 - German PPI inflation
0930 - UK CPI inflation & retail sales figures
1000 - German ZEW consumer confidence survey
1400 - Canadian interest rate decision

Wednesday 21st
0930 - Bank of England minutes, UK unemployment rate & UK earnings figures

Thursday 22nd
0715 - Swiss trade balance
0930 - UK net public borrowing
1330 - US jobless claims & PPI inflation
1500 - US house price index

Friday 23rd
0900 - German IFO business climate survey
0930 - UK Q1 GDP
1200 - Canadian CPI inflation
1330 - US durable goods orders & Canadian retail sales

Euro rate back up

Thu, 15 Apr 2010 14:51:00 GMT

Good news for anyone buying Euros - the rate is creeping back up as worried about Greece and Portugal persist in holding back the value of the single currency.

ECB President Trichet's speech yesterday was unusually strong in warning of further economic problems in the Eurozone to come, which has halted gains that the Euro was making earlier in the week.

For the latest commercial Euro exchange rates, contact Currency Index on 0800 043 2623.

Currency blog resources

Tue, 13 Apr 2010 11:50:00 GMT

For a list of other currency blogs available, please see our partner site at www.Mistercurrency.com.

Trade balance narrows

Tue, 13 Apr 2010 11:45:00 GMT

The Pound has taken some strength this morning from the UK trade balance figures, which were not as bad as expected.

February's defecit was £2.1bn, against expectations of £2.9bn. There is no further major UK data out this week.

Data out this week

Mon, 12 Apr 2010 09:27:00 GMT

A summary of data released from around the world this week likely to affect exchange rates:

Monday 12th
1315 - Canadian housing starts
1930 - US monthly budget statement

Tuesday 13th
0230 - Australian business confidence
0930 - UK trade balance
1330 - US import price index & Canadian house price index
2345 - New Zealand retail sales

Wednesday 14th
1000 - Eurozone industrial production
1330 - US CPI inflation & retail sales
1500 - Federal Reserve chairman Ben Bernanke's speech

Thursday 15th
0900 - European Central Bank monthly report & trade balance
1330 - US initial jobless claims
1415 - US industrial production

Friday 16th
0815 - Swiss producer & import prices
1000 - Eurozone CPI inflation
1330 - US housing starts

Sterling higher again - best rates since Feb

Fri, 09 Apr 2010 10:12:00 GMT

This morning's PPI inflation figures have come out much higher than expected and given the Pound a further boost. Rates for buying Euros and sending US dollars are now the best they have been since February - contact Currency Index for a quote on your overseas transfer today.

Triple dose of good news boosts sterling

Thu, 08 Apr 2010 10:54:00 GMT

3 pieces of positive news have given the Pound a boost this morning:

- UK industrial and manufacturing production up more than expected
- UK house prices rose 1.1% last month, according to Halifax
- UK car sales are up 26% on last year

Dollar and Euro prices agains the Pound are now at their cheapest for over a month, with the next news scheduled being the Bank of England and ECB due to announce their monthly policy statements at lunch time today.

Pound improves as election campaign gets underway

Wed, 07 Apr 2010 15:40:00 GMT

The Pound seems to have taken some strength from the official start of the UK election campaign - with better rates across the board for transferring money overseas, compared to before Easter.

Tomorrow we have Industrial and Manufacturing figures out in the UK, as well as the Bank of England's monthly policy statement, so do keep in touch with Currency Index if you would like the latest news on exchange rates.

This week's currency news

Tue, 06 Apr 2010 10:25:00 GMT

Data due out this week which is likely to affect exchange rates:

Tuesday 6th
0530 - Australian interest rate decision
0815 - Swiss CPI inflation
1900 - US interest rate minutes

Wednesday 7th
1000 - Eurozone GDP

Thursday 8th
0230 - Australian unemployment rate
0645 - Swiss unemployment rate
0930 - UK manufacturing production
1000 - Eurozone retail sales
1100 - German industrial production
1200 - UK interest rate & quantitative easing decisions
1245 - Eurozone interest rate decision

Friday 9th
0930 - UK PPI inflation
1200 - Canadian unemployment rate

GDP revised up

Tue, 30 Mar 2010 10:27:00 GMT

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

Mon, 29 Mar 2010 10:45:00 GMT

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

Thu, 25 Mar 2010 13:47:00 GMT

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

Tue, 23 Mar 2010 12:15:00 GMT

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

Mon, 22 Mar 2010 09:44:00 GMT

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

Thu, 18 Mar 2010 15:30:00 GMT

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

Wed, 17 Mar 2010 09:50:00 GMT

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

Tue, 16 Mar 2010 08:03:00 GMT

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

Wed, 10 Mar 2010 09:37:00 GMT

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

Tue, 09 Mar 2010 08:32:00 GMT

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

Wed, 03 Mar 2010 13:45:00 GMT

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

Tue, 02 Mar 2010 09:14:00 GMT

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

Mon, 01 Mar 2010 13:43:00 GMT

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

Mon, 01 Mar 2010 09:36:00 GMT

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

Thu, 25 Feb 2010 11:42:00 GMT

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

Tue, 23 Feb 2010 12:04:00 GMT

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

Mon, 22 Feb 2010 09:18:00 GMT

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

Fri, 19 Feb 2010 11:10:00 GMT

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

Thu, 18 Feb 2010 10:46:00 GMT

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

Wed, 17 Feb 2010 10:07:00 GMT

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

Tue, 16 Feb 2010 09:44:00 GMT

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

Mon, 15 Feb 2010 10:27:00 GMT

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

Thu, 11 Feb 2010 10:21:00 GMT

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

Wed, 10 Feb 2010 10:42:00 GMT

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

Tue, 09 Feb 2010 10:40:00 GMT

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

Mon, 08 Feb 2010 09:11:00 GMT

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

Fri, 05 Feb 2010 09:32:00 GMT

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

Thu, 04 Feb 2010 14:01:00 GMT

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

Tue, 02 Feb 2010 10:01:00 GMT

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

Mon, 01 Feb 2010 09:22:00 GMT

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

Fri, 29 Jan 2010 14:00:00 GMT

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

Fri, 29 Jan 2010 09:39:00 GMT

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

Thu, 28 Jan 2010 11:49:00 GMT

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?

Wed, 27 Jan 2010 17:03:00 GMT

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

Tue, 26 Jan 2010 10:10:00 GMT

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?

Mon, 25 Jan 2010 09:20:00 GMT

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

Fri, 22 Jan 2010 10:19:00 GMT

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

Thu, 21 Jan 2010 10:11:00 GMT

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

Wed, 20 Jan 2010 10:25:00 GMT

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

Tue, 19 Jan 2010 10:24:00 GMT

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

Mon, 18 Jan 2010 09:19:00 GMT

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

Fri, 15 Jan 2010 10:17:00 GMT

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

Wed, 13 Jan 2010 09:58:00 GMT

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

Tue, 12 Jan 2010 17:41:00 GMT

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

Mon, 11 Jan 2010 09:56:00 GMT

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

Fri, 08 Jan 2010 14:05:00 GMT

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

Thu, 07 Jan 2010 15:23:00 GMT

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

Thu, 07 Jan 2010 14:25:00 GMT

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

Tue, 05 Jan 2010 11:00:00 GMT

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

Mon, 04 Jan 2010 13:51:00 GMT

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.

GDP revised down

Tue, 22 Dec 2009 10:17:00 GMT

The final revision of UK Q3 GDP, released this morning, showed worse growth figures than previously expected, showing that the UK is still stuck in recession.

The news comes as a blow for anybody sending money overseas, as the Pound has struggled due to the UK recession, while other European economies have recovered much more quickly.

With no further major UK data out this side of Christmas, do speak to Currency Index now if you have any overseas payments to make.

Forex news this week

Mon, 21 Dec 2009 11:51:00 GMT

Although Christmas is just round the corner, there are still some significant data releases in the next 3 days, particulalry UK GDP which is revised tomorrow morning at 9.30am.

Please click here to see our weekly article with all the news likely to affect exchange rates this week.

Best rate for buying Euros this month

Tue, 15 Dec 2009 11:19:00 GMT

This morning's UK inflation figures came out higher than expected - giving the Pound a boost particularly against the Euro, which is now trading at its cheapest level for 3 weeks.

With more data due out this week, this could be a chance to get a relatively good rate for sending payments in Euros. Contact Currency Index for the latest live rates.

Inflation & unemployment this week

Mon, 14 Dec 2009 11:07:00 GMT

Last week's pre-budget report and this morning's Rightmove house price index have done nothing to help the struggling Pound - there is a lot of data out this week before the Christmas period, which you can see on our weekly article by clicking here.

Contact Currency Index if you would like to discuss any aspect of your own foreign exchange requirements.

House prices up... but manufacturing down

Tue, 08 Dec 2009 16:57:00 GMT

Mixed news in the UK today, as the Halifax house price survey showed a 1.4% increase in house prices in November - but official industrial production figures showed a drop of 8.4% in the year to October.

The Pound fell slightly this morning on release of the figures.

Meanwhile, if you need to send money to Canada, Canadian housing data showed a better-than-expected pick up, although interest rates were kept on hold as expected. The Canadian Dollar is currently trading around $1.72 against sterling [mid-market levels].

This week's currency news

Mon, 07 Dec 2009 12:05:00 GMT

Please click here to see our weekly article for this week's currency news.

With interest rate decisions around the world, the pre-budget report in the UK, and plenty of other data out, this week could see some volatility. Contact Currency Index for the latest news and opinions.

GDP and Economic Recovery

Fri, 04 Dec 2009 14:48:00 GMT

Please click here to see our article on the UK's slow recovery compared to elsewhere in the world - and what it means for exchange rates.

This week's foreign exchange news

Mon, 30 Nov 2009 16:01:00 GMT

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

Wed, 25 Nov 2009 13:11:00 GMT

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

Wed, 25 Nov 2009 10:03:00 GMT

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

Mon, 23 Nov 2009 11:58:00 GMT

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

Sterling outlook for 2010

Mon, 23 Nov 2009 09:15:00 GMT

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

Wed, 18 Nov 2009 11:42:00 GMT

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

Tue, 17 Nov 2009 12:26:00 GMT

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

Mon, 16 Nov 2009 11:30:00 GMT

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

Sun, 15 Nov 2009 16:00:00 GMT

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

Thu, 12 Nov 2009 10:09:00 GMT

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

Tue, 10 Nov 2009 17:20:00 GMT

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

Mon, 09 Nov 2009 12:56:00 GMT

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

Fri, 06 Nov 2009 18:24:00 GMT

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

Thu, 05 Nov 2009 14:27:00 GMT

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

Wed, 04 Nov 2009 09:58:00 GMT

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

Tue, 03 Nov 2009 09:05:00 GMT

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

Mon, 02 Nov 2009 17:35:00 GMT

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

Mon, 02 Nov 2009 11:52:00 GMT

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

Wed, 28 Oct 2009 18:10:00 GMT

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

Mon, 26 Oct 2009 10:56:00 GMT

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

Fri, 23 Oct 2009 09:33:00 GMT

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

Thu, 22 Oct 2009 08:45:00 GMT

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

Wed, 21 Oct 2009 11:07:00 GMT

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?

Tue, 20 Oct 2009 12:13:00 GMT

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

Tue, 20 Oct 2009 08:35:00 GMT

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

Fri, 16 Oct 2009 13:34:00 GMT

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

Wed, 14 Oct 2009 14:59:00 GMT

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

Tue, 13 Oct 2009 14:10:00 GMT

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

Mon, 12 Oct 2009 13:03:00 GMT

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

Mon, 12 Oct 2009 10:53:00 GMT

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

Mon, 12 Oct 2009 08:57:00 GMT

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

Fri, 09 Oct 2009 10:12:00 GMT

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

Tue, 06 Oct 2009 21:35:00 GMT

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

Tue, 06 Oct 2009 09:51:00 GMT

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

Tue, 22 Sep 2009 10:41:00 GMT

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

Rate alert - GBP falling

Fri, 18 Sep 2009 09:05:00 GMT

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

Wed, 16 Sep 2009 08:46:00 GMT

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

Mon, 14 Sep 2009 19:35:00 GMT

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

Thu, 10 Sep 2009 12:23:00 GMT

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

Thu, 10 Sep 2009 09:00:00 GMT

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

Mon, 07 Sep 2009 09:54:00 GMT

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

Fri, 04 Sep 2009 14:04:00 GMT

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

Thu, 03 Sep 2009 14:42:00 GMT

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

Tue, 01 Sep 2009 12:36:00 GMT

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

Tue, 25 Aug 2009 09:14:00 GMT

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

Fri, 21 Aug 2009 12:19:00 GMT

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

Wed, 19 Aug 2009 15:57:00 GMT

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

Tue, 18 Aug 2009 11:15:00 GMT

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

Mon, 17 Aug 2009 10:31:00 GMT

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

Mon, 17 Aug 2009 10:24:00 GMT

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

Australian dollar rate at 11 month low

Fri, 14 Aug 2009 12:36:00 GMT

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.

Germany and France out of recession

Thu, 13 Aug 2009 14:13:00 GMT

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.

Bank Downbeat on Recovery

Wed, 12 Aug 2009 10:56:00 GMT

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.

Inflation Report Tomorrow

Tue, 11 Aug 2009 18:46:00 GMT

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.

Pound continues down

Mon, 10 Aug 2009 16:01:00 GMT

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.

This week's FX news

Mon, 10 Aug 2009 09:53:00 GMT

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

US employment data boosts Dollar

Fri, 07 Aug 2009 14:07:00 GMT

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.

What goes up...

Thu, 06 Aug 2009 14:55:00 GMT

...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.

More good news for GBP

Wed, 05 Aug 2009 12:09:00 GMT

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.

Pound up - this week's FX news

Mon, 03 Aug 2009 15:49:00 GMT

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)

Property market gives UK PLC a boost

Thu, 30 Jul 2009 13:12:00 GMT

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.

Quiet week to come?

Mon, 27 Jul 2009 14:12:00 GMT

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)

Friday's Data

Thu, 23 Jul 2009 22:04:00 GMT

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.

Retail sales & mortgages bring some cheer

Thu, 23 Jul 2009 21:57:00 GMT

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.

Bank of England Boost

Wed, 22 Jul 2009 10:44:00 GMT

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.

This week on the markets

Mon, 20 Jul 2009 09:41:00 GMT

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:

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

Pound creeps up

Thu, 16 Jul 2009 11:42:00 GMT

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.

Inflation on target

Tue, 14 Jul 2009 10:34:00 GMT

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.

RICS House Price Boost

Tue, 14 Jul 2009 09:12:00 GMT

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...

Euro back below 1.15

Mon, 13 Jul 2009 10:49:00 GMT

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.

This week's exchange rate outlook

Mon, 13 Jul 2009 09:25:00 GMT

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

Pound better on monetary easing & trade balance

Thu, 09 Jul 2009 15:41:00 GMT

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.

Swiss unemployment up

Wed, 08 Jul 2009 12:36:00 GMT

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.

Industrial data negative

Tue, 07 Jul 2009 10:52:00 GMT

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.

Pound down as momentum shifts

Mon, 06 Jul 2009 09:59:00 GMT

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.

Pound struggles despite data

Fri, 03 Jul 2009 08:54:00 GMT

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.

UK economy shrinks most in 50 years

Tue, 30 Jun 2009 10:35:00 GMT

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.

This week's currency news

Mon, 29 Jun 2009 18:37:00 GMT

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

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)

Euro weaker on ECB cash injection

Wed, 24 Jun 2009 12:06:00 GMT

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.

Euro rate down on data releases

Tue, 23 Jun 2009 10:28:00 GMT

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.

GBP Outlook

Mon, 22 Jun 2009 11:19:00 GMT

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:

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

Swiss Interest Rates Held

Thu, 18 Jun 2009 09:04:00 GMT

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.

Pound falls on UK employment data

Wed, 17 Jun 2009 12:31:00 GMT

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.

Bank of England minutes today

Wed, 17 Jun 2009 09:18:00 GMT

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.

5 pieces of good news boost Pound

Tue, 16 Jun 2009 10:50:00 GMT

This morning's data has been overwhelmingly positive for the Pound, with commercial exchange rates available for people sending money abroad improving across the board.

UK CPI for May was up 0.6% (expectations were 0.3%)
UK CPI for the year to May was up 2.2% (1.9%)
UK Retail Prices for May were up 0.6% (0.2%)
UK Retail Prices for year to May were down 1.1% (-1.5%)
UK CPI for year to May was up 1.6% (1.5%)

The Pound gained almost 2c against both the Euro and the Dollar on the release of the news.

This week's currency news

Mon, 15 Jun 2009 15:51:00 GMT

This week's major economic data which is like to affect commercial exchange rates:

Monday:
Eurozone - employment change (10am)

Tuesday:
UK - CPI inflation data (9.30am)
Eurozone - CPI inflation data (10am)
Germany - ZEW economic sentiment (10am)
USA - PPI inflation data (1.30pm)

Wednesday:
USA - Federal Reserve chairman Bernanke's speech (5pm)

Thursday:
Switzerland - interest rate decision (8.30am)
UK - retail sales (9.30am)
Canada - CPI inflation data (12pm)

All these releases are likely to move exchange rates. If you are sending money to Switzerland, Thursday's interest rate decision will be key, while in Europe and the USA there are several important figures to show how each economy is coping with the recession.

New high for Pound

Thu, 11 Jun 2009 16:09:00 GMT

The Pound has continued to recover well after last week's uncertainty, and is currently trading at its best level in 2009 against the Euro.

Rates for sending money to Austria, Spain, Italy France and the other Eurozone countries are now over 1.17 on the interbank markets for the first time in 2009.

Pound recovers on government stability

Tue, 09 Jun 2009 16:14:00 GMT

The Pound has recovered somewhat as Gordon Brown held the first cabinet meeting since his emergency reshuffle.

Markets have reacted positively to Alistair Darling's continuation as Chancellor, while the immediate threat to Brown's leadership seems to have abated.

Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.

We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.

Dollar strenghtens on non-farm data

Fri, 05 Jun 2009 15:59:00 GMT

This afternoon's key American employment data (non-farm payrolls) was much more positive than expected - leading to further strength for the US Dollar against the Pound.

Anyone transferring money in US Dollars will now find their exchange rate 6c lower than its peak only a few days ago, as political trouble in the UK continues to undermine sterling.

Pound plummets on UK political uncertainty

Fri, 05 Jun 2009 09:11:00 GMT

As the pressure increases on Gordon Brown, the Pound is falling rapidly across the board.

If you need to send money abroad contact your currency company urgently to discuss your requirements. Today sees the local election results throughout the day, followed by Euro poll results on Sunday.

Interest rates today

Thu, 04 Jun 2009 11:01:00 GMT

This lunchtime sees interest rate announcements both in the UK (12.00) and Eurozone (12.45).

Although neither central bank has much room for manouevre, the Eurozone announcement at 12.45 is accompanied by a speech from ECB President Jean-Claude Trichet, which often causes some volatility in the Euro exchange rates.

In the UK, there is no accompanying speech, but the interest rate announcement also includes a policy statement on quantititive easing, which can mean all commercial exchage rates against the pound can be affected.

But sterling weakens, is the upward run finished for now?

Wed, 03 Jun 2009 16:16:00 GMT

Wednesday afternoon has seen Euro and Dollar rates start to come back down - have we seen the best exchange rates for now?

- Sterling fell sharply against the dollar on Wednesday, erasing earlier gains after Asian monetary officials said they would keep buying US Bonds

- Weak American employment and services sector data hurt the outlook for global economy hitting riskier assets such as sterling

- The deteriorating market sentiment prompted investors to dismiss earlier strong UK services sector data, as UK shares tumbled 2.3%

- A worsening political crisis for Gordon Brown also helped take some shine from sterling

- Profit taking, "Sterling has had a very good run recently and people are also thinking it may be prudent to take some profit off the table now,"

- Investors are nervous ahead of the Bank of England and the European Central Bank policy decisions, as well as key US jobs data on Friday

- Hazel Blears' decision to step down follows Tuesday's resignation by Jacqui Smith. Both are seen as undermining Brown's authority on the eve of European and local elections

- Investors will also be looking to see whether there are any further announcements on quantitative easing on Thursday

PMI Grows

Wed, 03 Jun 2009 15:50:00 GMT

This morning another good surprise for the Pound - UK PMI (Purchasing Managers Index) showed expansion for May, as opposed to a small contraction expected.

PMI is a measure of the health of the UK services sector, which has been struggling during the recession - so the news is the latest in some boosts for the Pound this week. Sending dollars to the USA is, for example, now at its best level for 9 months.

UK Consumer Confidence Up

Wed, 03 Jun 2009 09:28:00 GMT

This month's Nationwide Consumer Confidence data showed an increase in sentiment in the UK - above analysts' expectations.

The announcement has given the Pound a further boost against both the Euro and US Dollar - making sending money overseas cheaper again as the recent rally for sterling continues.

If you are sending money to Dubai, don't forget that the AED rate is also pegged to the US Dollar, so in both cases the exchange rate is currently the best it's been since Autumn.

UK Elections & Exchange Rates

Tue, 02 Jun 2009 13:55:00 GMT

Anyone needing to transfer money overseas is encouraged to contact their currency company in advance of this Thursday's European and local UK elections.

Historically, confidence in a country has been eroded by landslide defeats for incumbent parties - so international markets (and sterling) may not react well to any Labour wipeout this week.

The Pound is relatively strong at the moment but is still sensitive to negative news.

Australian interest rates held again

Tue, 02 Jun 2009 10:13:00 GMT

The Reserve Bank of Australia last night held interest rates, bad news for any of you making money transfers to Australia. A cut in interest rates may have weakened the Aussie currency, making exchange rates better for buying dollars.

The mid-market GBP-AUD rate has stayed at around the 2.02 level this morning.

Pound gains more strength

Mon, 01 Jun 2009 16:54:00 GMT

The Pound has continued on its recent run, now trading at the best rates for buying Euros and US Dollars since last year.

Sterling touched €1.16 and $1.6450 as traders continued to move out of Euros and Dollars into more risky assets.

Look out for Eurozone and UK interest rate decisions on Thursday which may have an effect on rates in general.

The Reserve Bank of Australia also makes its monthly interest rate decision overnight tonight, which could be important if you are sending money to Australia.

UK house prices in surprise increase

Fri, 29 May 2009 10:45:00 GMT

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

Thu, 28 May 2009 18:37:00 GMT

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

Wed, 27 May 2009 10:49:00 GMT

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

Tue, 26 May 2009 15:58:00 GMT

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

Thu, 21 May 2009 10:15:00 GMT

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

Thu, 21 May 2009 09:40:00 GMT

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

Tue, 19 May 2009 09:48:00 GMT

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

Mon, 18 May 2009 12:22:00 GMT

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

Mon, 18 May 2009 10:05:00 GMT

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

Fri, 15 May 2009 11:19:00 GMT

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

Thu, 14 May 2009 10:11:00 GMT

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

Wed, 13 May 2009 09:29:00 GMT

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%

Tue, 12 May 2009 16:10:00 GMT

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

Tue, 12 May 2009 10:12:00 GMT

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

Mon, 11 May 2009 11:02:00 GMT

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

Thu, 07 May 2009 23:23:00 GMT

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

Thu, 07 May 2009 16:46:00 GMT

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

Thu, 07 May 2009 10:56:00 GMT

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

Thu, 07 May 2009 10:32:00 GMT

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

Tue, 05 May 2009 18:10:00 GMT

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

Tue, 05 May 2009 13:30:00 GMT

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

Tue, 05 May 2009 08:09:00 GMT

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

Mon, 04 May 2009 18:53:00 GMT

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

Mon, 04 May 2009 18:46:00 GMT

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

Fri, 01 May 2009 09:55:00 GMT

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.

House prices decline again

Thu, 30 Apr 2009 12:43:00 GMT

The monthly Nationwide house price survey out today shows a 0.4% fall in April, although the pace of decline has slowed.

The news is a blow to the beleagured housing market after HMRC's figures recently showed an increase in the number of property transactions.

Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand - so exchange rates are unlikely to improve.

The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.

Fed expects weakness to persist

Thu, 30 Apr 2009 09:30:00 GMT

At the monthly Federal Reserve interest rate meeting in the USA last night, as expected there was no change to the 0.25% base rate in operation.

Following news that ths US economy contracted more than expected during the first quarter, the Fed said "the economy has continued to contract", adding that it would "remain weak for some time".

The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.

UK Mortgage Lending falls back

Wed, 29 Apr 2009 14:17:00 GMT

Mortgage lending in the UK fell for the first time in 4 months during March, figures out today show.

6.8% less new mortgages were issued than in February.

The news is a blow after some encouraging recent data suggesting the housing market may at last be picking up - and the news has hit the Pound on foreign exchange markets this afternoon.

The Pound fell around 1c against the Euro and US Dollar, while sending money to Australia is now over 1% more expensive than yesterday. Candian Dollar exchange rates have also fallen.

Pound Boosted by CBI Survey

Tue, 28 Apr 2009 13:52:00 GMT

The Confederation of British Industry has reported a shock rise in high street sales in April - the best result since January 2008.

Although the "green shoots of recovery" may be some way off, the majority of retailers reported increased sales for April, compared to analysts' expectations of 40% more who were expected to report declining sales.

As a result the Pound has dramatically come back in to demand, showing increases of over 1c against the Euro and US Dollar since the data was released this morning.

If you need to transfer money abroad do contact your currency company to discuss your options.

Aussie, New Zealand Rates Up

Tue, 28 Apr 2009 09:07:00 GMT

An opportunity this morning for anybody needing to send money to Australia or make money transfers to New Zealand. The Swine Flu panic has sent investors fleeing to hold assets in US Dollars (a so called "safe haven" currency) - instead of the Antipodeans.

As a result the Aussie and New Zealand have been sold off overnight leading to better exchange rates.

Although both currency rates are not as good as last year, in the current climate of weak sterling, any spike like this is good news. Speak to your UK currency company to find out your options.

Sterling down in Budget aftermath

Mon, 27 Apr 2009 08:53:00 GMT

The Pound is struggling in early Monday trading, further to a raft of negative data released last week including the Budget on Wednesday, along with GDP, unemployment and inflation figures which all worsened in a terrible week for the UK's economic prospects.

Sterling may struggle to recover for some time - so anybody looking to send money overseas in the coming months may do well to consider fixing an exchange rate for future delivery. Speak to your currency broker if you would like to discuss your options.

UK GDP falls, Pound down further

Fri, 24 Apr 2009 11:16:00 GMT

UK Gross Domestic Product (GDP) data out this morning came in worse than expected, causing the Pound to take a further tumble after an already miserable week for the UK currency.

First quarter GDP showed a decline of 1.9% and a decline of 4.1% for the 12-month period. This was worse than analysts' expectations of 1.5% and 3.8% respectively.

Negative news in the UK economy usually means lower exchange rates. This has been the case today with the best US dollar exchange rate falling over a cent this morning, and Euro exchange rates similarly affected.

Q&A: So why does public debt matter?

Thu, 23 Apr 2009 10:21:00 GMT

A lot has been written recently regarding the public debit and all the news surrounding Alistair Darling's second Budget, but why does public debt matter?

What is GDP and why is it significant?
Gross domestic product is, in effect, the income a country generates. As with individuals, you have to consider what is a sensible level of borrowing you can take out against the income you produce. The numbers now, in terms of borrowing levels, are increasing significantly – and in a relatively short period.

What is meant by net public debt and how will Britain’s change?
Net public debt is the amount a country has built up during years of borrowing. The chancellor is now forecasting that public debt will rise to close to 80 per cent of GDP by 2013-2014 – that’s roughly £1.4trillion, or £23,000 a person.

And how will we all be affected?
Ultimately, that debt has to be borrowed from international sources and will need to be paid back. As individuals, we will all pay for the borrowing in one way or another, through higher taxes or reduced spending.

Historically, how does this compare?
The level of net public debt is the highest since the 1950s, when we were paying off the cost of World War II. That’s a pretty high level of borrowing, seeing as its closest comparison is when we were emerging from a war. Back then, net public debit was 250 percent of GDP.

Will Britain’s credit rating be harmed?
The new figure is almost twice the previous public debt ceiling of 40 per cent of GDP. It raises the risk the bond markets will eventually push up the cost of government debt in response. Not only are we borrowing billions, but the cost of servicing the debt could well rise.

What will happen to exchange rates?
High public debt causes confidence in the UK economy to fall. Therefore sterling assets are less in demand and the value of the Pound can fall. This was demonstrated after the budget speech itself, when Euro exchange rates and GBPUSD both fell over 1%. Until confidence returns to the UK economy, there is unlikely to be much upward movement for sterling.

Pound falls further on Budget

Wed, 22 Apr 2009 13:49:00 GMT

The Pound has come under renewed pressure after the UK budget predicted the worst year for the British economy since 1945.

Euro exchange rates are 2c lower than at the start of this morning.

Growth forecasts have been revised down, borrowing is far higher than anticipated, and tax rises have been announced.

Anyone needing to send money abroad for a property purchase should contact their currency broker to discuss the options. If the market continues to slide, Euro rates of 1.10 or buying dollars above 1.40 do not look like they will last for long.

Borrowing Up, Unemployment Up, Pound Down

Wed, 22 Apr 2009 09:59:00 GMT

This morning's data has brought the Pound's recent surge to an abrupt halt - public borrowing has risen to £19.1bn for March and official unemployment figures show a rise to 6.7%.

The Pound has been suffering accordingly, dropping nearly 1c against both the US Dollar and Euro. We still have around the best exchange rates for dollars and euro for some time, but with the budget this lunch time analysts are concerned that there is further to fall for the UK currency.

UK currency companies will be happy to help with your requirements.

Canada cuts interest rates

Tue, 21 Apr 2009 14:07:00 GMT

The Bank of Canada has today unexpectedly cut its interest rate from 0.5% to 0.25%.

Analysts thought the rate would be held at today's meeting, and on top of weaker wholesale sales figures, the Canadian dollar is weakening significantly this afternoon.

Therefore if you are sending money to Canada there is an opportunity to take advantage of better exchange rates.

Don't forget a reputable currency broker will be able to offer you a fixed exchange rate up to 2 years ahead if you would like to remove the exchange rate risk from your transaction.

Inflation falls less than expected

Tue, 21 Apr 2009 10:05:00 GMT

CPI and RPI data has fell less than expected in March - in what is seen as a positive data release for the Pound. Sterling has found a little strength, making rates available from your currency broker slightly better if you are transferring money overseas.

Unfortunately the inflation figures were followed by consumer sentiment data in Germany which is much higher than expectations, leading to Euro exchange rates falling back straight away.

Against the US Dollar, the Pound is up nearly a cent from its lowest position this morning.

UK Inflation Data out Today

Tue, 21 Apr 2009 09:19:00 GMT

9.30 today sees UK Consumer and Retail Price Index data released - the monthly key inflation figures for the economy.

These can cause volatility for the Pound and are worth watching out for if you need to send money overseas. Results will be published here by 10am.

Sterling punished

Mon, 20 Apr 2009 12:18:00 GMT

The Pound is falling this morning on a decline in risk appetite from investors, who are selling off sterling assets on fears of further global economic weakness.

Other currencies to be affected are New Zealand and Australian dollar exchange rates, which are also being sold off, leading to slightly better rates against the Pound today.

The US Dollar is the main benefactor, strenghtening (becoming more expensive) over 2% against the Pound since Friday. US dollar exchange rates are heading down towards 1.45 (mid-market rate) compared to nearly 1.50 last week.

”Its failure to react positively to the housing data warns that sterling is heading towards a pronounced downward correction,” said Hans Redeker at BNP Paribas this morning.

Budget & Lots of UK Data This Week

Mon, 20 Apr 2009 09:57:00 GMT

This week's Budget on Wednesday will be grabbling most financial headlines, but there is also a lot of other UK data out which could affect the Pound and therefore exchange rates for sending money overseas.

Tomorrow's CPI and RPI (inflation figures) are important, and on Wednesday this month's Bank of England minutes are released along with jobless numbers and public borrowing.

On Friday, we also have retail sales and GDP.

All these are important releases which are likely to move exchange rates against sterling this week, as well as Wednesday's budget speech at lunch time.

The Pound has been on a good run in the last 2 weeks, however this morning you are losing ground if you need to send money in Euros or transfer dollars to the USA. Has the market peaked? Nobody knows of course, but speak to your currency broker today for an experienced opinions.

European Trade Data today

Fri, 17 Apr 2009 09:01:00 GMT

In a quiet day for data, European trade balance figures are released at 10am. The effect on the Euro is unlikely to be significant.

There is no other major data out today or Monday, but a lot of releases are due on Tuesday.

Consider taking advantage of current Dollar and Euro exchange rates, which are at their best for weeks. Currency Index is a UK based currency broker.

Has Euro Rate Peaked?

Thu, 16 Apr 2009 11:52:00 GMT

Sterling - Euro peaked this morning above 1.1350 (or 88.1p) - the best rate for buying Euros this year.

Slightly positive Euro data out this morning seems to have halted the Pound's momentum, and we have dropped the best part of a cent in the last 2 hours.

If you are considering transferring Euros abroad in the coming weeks, do contact your UK currency broker to discuss a currency strategy - with the budget next week and a lot of other figures released on the British economy on Tuesday, it could be good to consider securing a rate now.

Pound Up - no news is good news

Wed, 15 Apr 2009 15:43:00 GMT

The Pound has continues its upward movement against major currencies - producing the best exchange rates for Euros and Dollars for some weeks. If you need to send money to a notaire in France, a builder in Bulgaria or an escrow account in the States, you should speak to your currency company straight away.

There is no particular reason for the movement - except perhaps a break from the negative news which has been dogging the UK economy in recent months. There has been no significant negative data for a week, allowing the Pound to gain some value in the markets.

Tomorrow's European inflation data and US jobless numbers will perhaps give us the next indication as to which way rates will move in the short term.

Bank of England meets today

Thu, 09 Apr 2009 09:33:00 GMT

The Bank of England's Monetary Policy Committee announces its monthly interest rate decision today - and any changes to the Quantitative Easing policy.

No changes are expected so there is no reason to expect much effect on the Pound. Sterling is falling back this morning as overseas appetite for UK investments is easing slightly.

If you are making international money transfers make sure you speak to your currency broker for the latest news and views.

Rate Update

Wed, 08 Apr 2009 15:08:00 GMT

Please see our latest article on current market conditions and exchange rates for EUR and USD:
http://www.homesgofast.com/view_news/1431/

Euro, Dollar at Best Rates for Months

Wed, 08 Apr 2009 12:21:00 GMT

We are seeing the best exchange rates for Euros and Dollars for some time - trading at 1.11 and 1.47 respectively.

Fundamentally, UK data is still very negative, but renewed appetite from investors in sterling assets has boosted demand for the Pound - and therefore we have better exchange rates for sending money to the USA and Eurozone.

This spike may not last. The only data of note out today are Canadian housing starts at 1.30pm, and minutes from the Federal Reserve's last interest rate meeting, released at 7pm.

Euro holds at 1.10

Tue, 07 Apr 2009 10:30:00 GMT

The Sterling-Euro exchange rate is holding above 1.10 on interbank markets this morning after slightly better than expected UK industrial production data, and slightly worse than expected European GDP.

Sending Euros to France or any other Eurozone country is now at its cheapest for some weeks. Check back here for updates on currency news later in the week.

This morning's data

Tue, 07 Apr 2009 09:07:00 GMT

Some figures released this morning which could affect the Pound.

9.30am: UK Industrial Production and Manufacturing Production
(A weaker than expected number would be likely to hurt the Pound)

10am: European GDP data
(A stronger than expected number would be likely to strengthen the Euro)

If you need to make currency transfers to foreign bank accounts, call your currency broker in the UK to discuss your situation.

Euro cheaper on PPI data

Mon, 06 Apr 2009 13:26:00 GMT

The Euro has lost ground (become cheaper) again today as Eurozone producer prices dropped 0.5% in February - leaving prices 1.8% weaker than in February last year.

This is the biggest annual drop in prices in Europe for almost 10 years, adding pressure to the European Central Bank to cut interest rates further in the coming months.

Lower interest rates tend to produce a weakening currency - so this is good news for anybody looking to send Euros to a foreign bank.

The exchange rate will struggle to improve much, however, as the Pound is dogged by one of the worst recessions in the western economies, according to analysts.

Speak to your UK currency broker to discuss any implications on your own currency requirements.

This week's currency news

Mon, 06 Apr 2009 10:51:00 GMT

Please see our weekly article for a list of this week's currency data releases:
http://www.themovechannel.com/features/b455859f-1658/

The Pound improved last week for 3 reasons:

1. Surprise increase in UK house prices
2. Negative US data (poor non-farms employment data on Friday)
2. Negative Euro data (interest rates only cut by 0.25% last week)

This week it will be interesting to see if the Pound comes back down, or consolidates at a higher level. To make sure you achieve the best Euro rates or the best rate for sending dollars, contact your currency company today.

Sterling jumps after UK services PMI data

Fri, 03 Apr 2009 11:41:00 GMT

Earlier today Sterling jumped against the Euro and US Dollar after a higher than expected service sector PMI data report, hitting a seven week high against the dollar. Bank of Scotland's Treasury currency analyst Wahid had this to say "The UK PMI has snapped up quite sharply higher and we're seeing sterling rally on the back of that".

The Euro rose early on Thursday after the ECB cut interest rates by less than expected, down 25 basis points rather than 50 basis points. But before the Euro could push on the ECB President Jean-Claude Trichet signalled there may be another cut in interest rates next month, as well as a decision on non-standard measures.

Unemployment looks likely to rise over the next few months according to Alistair Darling. Unemployment hit a 12 year high last month, hitting 2 million unemployed.

If you would like any currency guidance during this hectic time, do not hesitate to contact one of our senior brokers at Currency Index on 0800 043 2623.

US Dollar Cheaper on Jobs Data

Thu, 02 Apr 2009 13:46:00 GMT

Sending dollars to America is at its cheapest level for some weeks - today's jobless data showed the highest level of benefit claimants in the USA since 1982.

Such bad news tends to weaken the US currency as it has today - mid-market levels are now at 1.4697.

Of course, if you are sending money to Dubai in UAE Dirhams, or need any other currency pegged to the US Dollar, your exchange rate has also improved.

Currency Index is a specialist currency company and can help you with any foreign transactions - call us for a friendly discussion.

ECB Cuts Euro Interest Rates

Thu, 02 Apr 2009 12:57:00 GMT

The European Central Bank has cut the Eurozone interest rate by 0.25% to 1.25%.

This was a smaller cut than expected and may cause some Euro strength - making the best Euro exchange rates more expensive if you are sending money abroad.

Analysts were hoping for at least a 0.5% cut, which may have weakened the Euro and given a boost to the Pound.

House Prices in Shock Rise - Pound Up

Thu, 02 Apr 2009 09:46:00 GMT

Nationwide this morning reported a surprise jump in house prices for February - up 0.9%.

This is the first rise reported in 16 months and some much needed good news. The Pound has responded by surging against the Euro and US Dollar - although it is yet to break 1.10 against the single currency.

Later today the ECB's interest rate decision could provide the opportunity to buy Euros at better rates than have been available for some weeks. Contact your currency company to discuss your requirements.

Pound up on manufacturing data

Wed, 01 Apr 2009 11:25:00 GMT

The Pound has surged this morning against the Euro and Dollar, after UK manufacturing data was not as bad as had been predicted by analysts.

The Bank of England has, however, warned that we are yet to feel all the negative effects of higher unemployment in the UK.

Euro exchange rates are also being buoyed by the prospect of an interest rate cut by the European Central Bank tomorrow. In theory this should make sending Euros to France, for example, cheaper - but the better exchange rate is often priced in prior to the announcement.

Therefore, anyone needing to buy Euros might have a good opportunity today and tomorrow to secure slightly better rates than we have seen in the last week.

This week's exchange rate outlook

Mon, 30 Mar 2009 15:25:00 GMT

This week's data likely to affect exchange rates:

Tuesday - European Unemployment & Inflation - 9am and 10am
Wednesday - UK Industrial Production Data & House Price Survey - 9.30am and 10am
Thursday - ECB Interest Rate Decision & US Jobless Claims - 12.45pm and 1.30pm
Friday - US Non Farm Payrolls - 1pm

A busy week, specially for anybody looking for the best Euro rates or commercial exchange rates for the dollar.

Thursday's Eurozone interest rate decision is an opportunity for the ECB to cut interest rates - they have been reluctant to do this so we could see some Euro weakness if a rate cut is announced.

For the USA, Friday's non-farm payroll data is the key monthly employment statistic which often moves the dollar significantly one way or another, depending on the number of jobs reported.

Speak to your currency company if you would like more information on how any of these releases might change rates and therefore the price of your currency.

Today's Currency News

Fri, 27 Mar 2009 09:01:00 GMT

The UK's GDP data is released today at 9.30am. This figure shows the total output of the UK economy, both quarterly and annually.

A lower than expected figure would be likely to bring further pressure on the Pound, making commercial exchange rates lower for anybody importing goods or buying overseas property.

At 12.30 today, American personal spending data is released - while this is not a major piece of news it may affect the rates for anyone needing to send money to the USA.

Retail Sales weigh on Pound

Thu, 26 Mar 2009 11:37:00 GMT

This morning's retail sales figures were much worse than expected, causing a sharp decline in the Pound and exchange rates.

Growth slowed to 0.4% last month, compared with a 3.6% rise in January.

Slowing retail sales will worry analysts as a sign of deepening recession, adding to deflationary fears. This is on the back of the government's failed auction of bonds yesterday which added to the doom and gloom in the UK.

The Pound has fallen nearly a cent against the dollar and euro, although commercial exchange rates are still better than 10 days ago.

Rate Alert - Pound Falling

Wed, 25 Mar 2009 11:58:00 GMT

The Pound is being sold off this today, making exchange rates worse for sending money abroad. If you have a transfer to make, contact your currency company for the latest news.

Today's Data Releases

Wed, 25 Mar 2009 08:22:00 GMT

A good day for the Pound yesterday, continuing Monday's improvement against the Euro and Dollar. The sterling-dollar rate has now improved around 5% in the last week.

Watch out for the following data releases today (all times GMT):

9.00am German business climate and expectation survey
2.00pm US Home Sale data

If you are sending money in Euros or Dollars these could affect commercial exchange rates today - keep in touch with your Currency Index account manager if you would like us to inform you of any significant movement.

Rates spike on UK inflation data

Tue, 24 Mar 2009 10:36:00 GMT

The Pound improved significantly against the Euro and Dollar this morning after UK inflation data showed static prices, instead of the anticipated deflation which would have been seen as very negative for the UK economy.

Commercial exchange rates are therefore considerably better than yesterday, although they are already dropping down from a peak at about 9.45am.

Sending payments to Eurozone countries in particular is over 1% cheaper than yesterday evening.

This week's currency news

Mon, 23 Mar 2009 12:33:00 GMT

Data out this week which could affect exchange rates - if you need to send money overseas or transfer money to the UK, speak to a currency broker to check the implications of these releases.

Monday 1230 - Canadian economic indicators (Canadian Dollar)
Monday 1400 - US home sale data (US Dollar)
Tuesday 0930 - UK key monthly and yearly inflation numbers (Pound)
Wednesday 0900 - German business climate survey results (Euro)
Thursday 1230 - US jobless claims and GDP (US Dollar)
Friday 0930 - UK GDP (Pound)

Dollar weaker on Fed cash injection

Thu, 19 Mar 2009 10:15:00 GMT

The dollar has weakened today, making money transfers to the USA cheaper, after the surprise news that the Federal Reserve has injected $1.2tn into the US economy to stimulate lending.

While this is a positive action, the creation of more dollars (similar to the Bank of England's quantitative easing 2 weeks ago) is that the value of the currency is actually decreased.

Therefore exchange rates have got better, and a pound buys around 3c more today than it would have done yesterday.

Currency companies can help if you need to send or receive dollars from abroad.

UK Recession to last longest?

Wed, 18 Mar 2009 09:16:00 GMT

This morning's Metro reported on the UK recession being likely to last longer than any other in the worldwide slowdown. Unemployment figures out this morning may show unemployment over 2 million for the first time since 1997.

All this is bad news for the Pound. Sending money overseas is likely to continue to become expensive as the UK reels from a constant flow of negative news.

If you do need to buy or sell currency, speak to a currency broker to make sure you don't lose out.

This week's exchange rate news

Mon, 16 Mar 2009 11:16:00 GMT

After last week’s fall in the value of sterling, this week some important figures which could make it a week of volatility for exchange rates.

Tuesday morning’s UK house price index and German economic sentiment numbers may both have an effect on the best Euro exchange rates. A larger than expected drop in UK house prices would not be good news for the struggling Pound, while conversely we might see German business confidence taking a knock which would be likely to make the Euro slightly cheaper.

On Wednesday, the minutes from the Bank of England’s monetary policy committee meeting are released, with notes on the state of the economy and the UK's trial of quantitative easing. Volatility is probable, specially as unemployment data is released at the same time.

For anyone needing to send money to Canada or the USA, Thursday brings Canadian inflation data at 11am, followed by US employment data at 12.30 and manufacturing data at 2pm. There is also US data on Tuesday and Wednesday lunchtimes which will be of interest to anyone wiring funds to the USA.

Finally on Friday we have EU trade balance followed by Federal Reserve chief Bernanke’s speech at 4pm.

Any individuals or businesses sending money abroad would be well advised to contact a specialist currency broker to keep an eye on the relevant rates this week. The fragility of the Pound is likely to last for some time, but there are still opportunities to secure reasonable rates for buyers and sellers in the know.

Euro exchange rates

Tue, 10 Mar 2009 14:03:00 GMT

Euro exchange rates have lost another cent today, now trading at 1.0826.

UK manufacturing data out this morning was poor, which weighs on the Pound, while German data out at lunch time was more positive, making the Euro more expensive.

Sending money in Euros is now approaching record price levels.

Tomorrow's UK trade balance figures should give a clue as to the next movement - keep in touch with your currency broker if you have any requirments. Don't assume the exchange rate will improve - it could be an expensive mistake.

Pound falling this week

Mon, 09 Mar 2009 09:40:00 GMT

Monday has started with the Pound in sharp decline following a wave of uncertainty on the markets amidst speculation that the banking sector has more bad news to come.

If you need to send money abroad, speak to your currency broker today.

Of course, if you have money to bring back to the UK, now could be a great time to secure exchange rates in advance.

Non Farm Payrolls Today

Fri, 06 Mar 2009 10:22:00 GMT

1.30pm today sees the release of key monthly employment data in the USA - "non-farm payrolls". This is an estimate of the number of workers in the US drawing a salary, excluding seasonal industries like farming.

It is not unusual for the figures to be wildly different to expectations, which can cause volatility in the US dollar exchange rate. Those of you looking to either buy American dollars, or even to bring Dollars back to the UK, would be well advised to look at rates this afternoon as there may be opportunities to buy.

A reputable foreign exchange broker will of course be able to provide help for your specific circumstances.

FAQs on Quantitative Easing

Fri, 06 Mar 2009 08:59:00 GMT

While the economy is going from bad to worse there always seems to be new buzz words that have not been mentioned for many years. We had parity, which has become used all over the finance world as GBP/EUR was getting close to 1 for 1, even sport commentators were using it.

The current buzz word, which probably won't make it into sports is quantitative easing, here are a few questions and answers;

How does Quantitative Easing work?
The Bank of England increases the amount of cash in the economy. But while it sounds good that the Bank of England is adding more cash into the economy, the more there is the less it is worth.

How much are they putting into the economy?
Initially they will be adding £75billion over the three months, but this could potentially rise to £150billion if the first attempt doesn't work.

What are the pros?
The Bank can buy gilts, which are very secure, or invest in shares. Buying gilts is, in effect, lending the government money.

What are the cons?
It decreases the value of money, you need more to buy something.

Why do it?
It can lower interest rates, which encourages spending.

Can't we just cut rates?
Interest rates cannot fall below zero per cent. Despite months of cuts, banks are still not lending.

Is money actually printed?
Most money in circulation never actually gets printed. When you buy large items, numbers just get transferred between accounts.

Won't the Bank just buy more bad debt?
No. It will buy government gilts and private IOUs in companies with the best credit ratings.

Who else has done this?
Zimbabwe has been doing it for years, to disastrous effect, to pay government bills. Germany did the same thing in the 1920s. Japan did it in 2005 and it helped end their 15 year recession. The US started in November.

Will Europe follow suit?
Unlikely. Countries with the Euro will probably not all agree on it.

If you would like any more guidance regarding quantitative easing and the effect on the currency market, call one of our experienced brokers today on 0800 043 2623.

Quantitative Easing and Exchange Rates

Thu, 05 Mar 2009 11:45:00 GMT

Speculation is rife that we will see the exchange of letters between Mervyn King and the Chancellor today at midday, relating to the Government's plans for quantitative easing (injection of funds into the economy).

The effect on exchange rates is not yet known, although US Dollar exchange rates have worsened significantly this morning. Check back on this blog later today to find out the latest currency news.

A Busy Day on the Markets

Wed, 04 Mar 2009 21:49:00 GMT

A potentially busy day on the markets today, depending on how much has been priced in by the traders. The day starts with the European Monetary Union announcing the change in Gross Domestic Product on Quarter on Quarter and Year on Year, both are reportedly predicted to be a drop, giving early strength to Sterling and US Dollar.

The strength may not last depending on how likely the Bank of England are to halve interest rates down to 0.5%. There is a positive consensus that a reduction to 0.5% will happen, which could be priced into the market already. Following on from that is the European Central Bank possibly reducing their interest rate to 1.5% from 2.0%. If they decide to only reduce the interest rate by 0.25% expect to see Euro strength early on after 12:45 while everyone waits to hear Trichet's speech at 13:30.

If you need any guidance regarding interest rate decisions contact any of our senior brokers today on 0800 043 2623. Exchange rate for buying Euros are likely to be volatile from midday onwards.

A Positive Sign Downunder

Tue, 03 Mar 2009 08:05:00 GMT

In a positive move for Australia, the Reserve Bank of Australia has frozen interest rates at 3.25% causing strength for the Australian Dollar against all major currencies.

Prior to the announcement GBP/AUD was trading at about 2.232, but since the positive news it was dropped to around 2.191.

There is no major news released today to effect cable against any of the major currencies. The Bank of Canada will be announcing their interest rate decision at 14:00 GMT, many believe the rate will be halved from 1.0% down to 0.5%, but this was also the consensus with the Australian Dollar as well.

If you would like to find out how you can be protected against adverse rate changes and assistance on when to buy your currency, contact one of our senior brokers today on 0800 043 2623 who will be able to explain you through the process. So if you are sending money to Australia or need to starting sending money to Canada contact us today and our foreign currency exchange specialists will be able to explain how it works.

More Negative Banking News

Mon, 02 Mar 2009 14:23:00 GMT

Another day, another bank needing extra funding. Today HSBC announced they are looking to raise £12.5bn from shareholders through rights issue in the UK.

This was announced after HSBC revealed pre tax profits for 2008 of £6.5bn. Unfortunately for the London stock market this was down 62% on the previous year. HSBC are looking at reducing their presence in North America after they recorded a $15.5bn loss, mainly due to the US sub-prime market.

Just when everyone thought HSBC had finished they announced 6,100 job cuts in America as well.

The European Monetary Union announced an improvement in the Consumer Price Index from 1.1% up to 1.2%. The earlier consensus was a slight drop between 0.9%-1.0% so an early rally for the Euro this morning against Sterling.

Both the Bank of England and the European Central Bank are predicted to lower their rates to 0.5% and 1.5% respectively.

If you are looking at sending money overseas in the near future and need some guidance, speak to one of our brokers today on 0800 043 2623. They will be able explain how it works and how we could potentially save you up to 4% against most high street banks.

House prices down in February

Thu, 26 Feb 2009 09:35:00 GMT

More bad news for the UK economy today as Nationwide announced a 1.8% drop in February house prices.

House prices need to stabilise in order for confidence to return to the UK economy - and the Pound is likely to remain low until that happens, says Chuck Hall, senior analyst at UK-based Currency Index Ltd.

"The low Pound is helping international investment into the UK, with sending money to the UK now around its cheapest for many years", says Hall.

However, for those of you wanting the best exchange rates to send money to Germany or the Eurozone, or needing to buy US dollars at the best rates, things are still looking gloomy.

Recession to last to 2010?

Tue, 24 Feb 2009 19:25:00 GMT

Ben Bernake, chairman of the Federal Reserve in the USA, said in his speech today that the US Recession my last into 2010.

This is the first time a central bank has indicated its concerns so far into the future.

As a result, the US Dollar weakened, making sending money in Dollars cheaper this afternoon. However, the Pound is also vulnerable to such comments (when America sneezes, we catch a cold in the UK) - so today some of the gains made in recent days have been wiped out in terms of exchange rates.

Euro money transfers are some of the worst affected, down 2c this afternoon, while South African Rand transfers have also got more expensive today.

Of course, if you are bringing Euros back to the UK, the news is the other way round - and you will get more sterling than you would have done yesterday.

Taxpayer liability over £1tn

Tue, 24 Feb 2009 09:45:00 GMT

Government insurance schemes to protect banks from further losses arising from their bad loans and investments, will bring the taxpayer's total liability to £1.3tn - more than the entire output of the British economy each year.

With Mervyn King telling an audience we are "deep in recession", it is unlikely the Pound will be able to recover much this year, meaning that foreign currency transfers will remain expensive for some time.

For those of you wanting to buy overseas property, the only good news is that bargains can be found in Europe and elsewhere, to make up for the poor exchange rate against the Euro and US Dollar.

Use a currency company to make sure you get the best deal on any currency transactions.

Sterling - Euro rallies

Mon, 23 Feb 2009 16:32:00 GMT

The Pound has gained nearly 2c against the Euro today - giving some of the best Euro exchange rates we have seen this year.

Positive news from the UK banking sector, including Northern Rock and RBS, have given some new-found confidence in the British economy.

While those of you who need to be sending Euros overseas will not be doing cartwheels just yet, it could at least be a good time to speak to your friendly currency broker if you have any Euro requirements in the coming weeks and months.

This week's data releases

Mon, 23 Feb 2009 09:40:00 GMT

Week Commencing Feb 23rd - important data releases for currency rates

Pound Sterling - sending money overseas? Receiving money from abroad?
Wednesday 0930 – GDP figures for the last quarter of 2008
Friday 0001 – Consumer Confidence survey

Eurozone
Tuesday 1000 – Industrial Orders
Friday 1000 – CPI inflation data

Canadian Dollar
Monday 1330 – Canadian Retail Sales

US Dollar exchange rates
Tuesday 1500 – Federal Reserve chairman Ben Bernanke’s speech
Wednesday 1500 – Home resales data
Thursday 1330 – Durable Goods orders
Thursday 1500 – New home sales
Friday 1330 – GDP and personal consumption data

Exchange Rate News

Mon, 23 Feb 2009 08:26:00 GMT

Weekly Exchange Rate and Currency Update 16/2/09

With uncertainty in the financial markets set to continue, a summary of this week’s major data announcements which could affect exchange rates and currency movements. All times are GMT.

Pound Sterling
Tuesday 0930 – UK consumer and retail price index
Wednesday 0930 – Bank of England minutes
Wednesday 1100 – UK industrial trends survey
Thursday 0930 – public sector net borrowing

If you are sending money abroad, the value of your Pound could be volatile during these announcements, specially the Bank of England minutes on Wednesday which give the results of the MPC’s last interest rate vote earlier this month.

Eurozone
Tuesday 1000 – Eurozone trade balance

Canadian Dollar
Monday 1330 – Canadian investment data

Sending money to Canada has been increasing in cost due to the weak Pound – this release is not a major one but could make a difference to your Canadian dollar exchange rate.

US Dollar
Tuesday 1800 – US housing market index
Wednesday 1330 – US housing starts and building permits
Thursday 1330 – US producer price index

As the US dollar has been strengthening in recent weeks, look to these data releases for clues as to the Greenback’s future direction.

Swiss Franc
Thursday 1000 – ZEW business sentiment survey

Transferring money to Switzerland, whose Franc is seen as a ‘safe haven’ currency, has not been helped by the recent financial problems in the UK. In risky climates, investors tend to buy safe currencies and assets such as the CHF, which means demand increases and the currency therefore becomes more expensive.

Canadian Dollar Exchange Rates

Fri, 20 Feb 2009 16:33:00 GMT

If you need to send money to Canada in the near future, keep an eye on Monday's Canadian retail sales data, released at 1.30pm UK time.

Canadian Dollar rates have been falling for some time, as the Pound has been losing ground across the board. A positive reading on Monday is likely to strengthen the Canadian Dollar, making exchange rates worse if you send funds across the pond.

Don't forget, a currency broker will enable you to save money against using your bank, and also offer the facility to fix exchange rates up to 2 years ahead. If you are emigrating, fixing your exchange rate can sometimes save you thousands of pounds, without needing all your sterling available.

South African Rand stays steady

Mon, 16 Feb 2009 10:32:00 GMT

Historically, the South African Rand has been a volatile currency while many others stayed steady against the Pound. However, with the recent financial volatility in the financial markets, the Rand has been relatively stable.

Sending money to South Africa is therefore becoming an increasingly attractive option for investors in overseas property. The best South African Rand rates have remained within a manageable range over the last 12-18 months.

Of course, using a currency broker such as Currency Index Ltd will save money compared to using typical high street banks.

Today’s Exchange Rate Update

Thu, 12 Feb 2009 17:48:00 GMT

Mid-market rates at 1700 GMT:

Sterling – Euro = 1.1090
Sterling – US Dollar = 1.4233
Sterling – Australian Dollar = 2.1829
Sterling – New Zealand Dollar = 2.7275
Sterling – South African Rand = 14.3150
Sterling – Canadian Dollar = 1.7758

The Pound has followed yesterday’s dip with further losses against major currencies, with US Dollar exchange rates particularly volatile after good retail sales data released earlier on.

European data out showed weak production figures, but the Euro failed to move much, finishing about a cent lower than yesterday. A Pound now buys Euros for overseas transfer just above the 1.10 mark.

Friday sees Eurozone GDP data released in the morning, as well as German data and US consumer sentiment in the afternoon. There are no major releases scheduled for the Pound.

Make sure you are in touch with a currency broker if you need to send or receive any payments in foreign currency.

Today’s Exchange Rate Update

Wed, 11 Feb 2009 17:15:00 GMT

The Pound has followed yesterday’s losses with a further drop against major currencies. The Bank of England’s governor Mervyn King spoke of a deep recession in the UK which has dented confidence further in the UK economy, leading to sell-offs for the Pound.

Tomorrow sees the monthly report from the European Central Bank’s, as well as US jobless claims in the afternoon, so it could be another volatile day on the forex markets. For those of you sending money to New Zealand, tomorrow night could also be key with NZ retail sales announced.

Whether you need to send or receive any currency, make sure you have a reliable currency broker working to get you the best available exchange rates.

Will the Pound continue upwards?

Mon, 09 Feb 2009 11:44:00 GMT

The Pound has had a fantastic run in the last 10 days, yielding the best exchange rates for Euros, Dollars and a basket of other currencies, that we have seen this year.

Is it set to continue? There is no easy way to tell of course, and with no major data releases today, there is unlikely to be much further movement until tomorrow morning's UK trade balance figures at 9.30am. Wednesday's quarterly inflation report will be more important still.

If you need to send money abroad it's easy to assume that exchange rates will continue on their way back up. But don't forget the UK's perilous economic situation - just one piece of bad news can knock confidence in the market and drag the Pound back down to where it came from.

The main thing to remember is that a specialist currency company can help you through the whole transaction as well as offering competitive exchnage rates. Anyone needing to buy or sell currency should get in touch sooner rather than later.

Exchange Rates Up on Bank of England cut

Thu, 05 Feb 2009 15:31:00 GMT

Exchange rates for Euros, Dollars and many other currencies are up this afternoon - the Bank of England cut UK interest rates, but only by 0.5%, giving the Pound a welcome boost on top of this morning's news that house prices were up in January.

The UK is still heading for a deep recession but some good news means that currency brokers can now offer the best exchange rates seen for some time. This could be a spike in the market, so if you need to send money overseas, have a think about getting a fixed exchange rate now.

Interest rates today

Thu, 05 Feb 2009 09:24:00 GMT

Today sees the Bank of England and European Central Bank both announcing their monthly interest rate decisions.

If the BoE cuts rates at mid-day, you might expect to see the Pound weaken and for those of you who need to send money abroad that would not be good news.

However, Euro exchange rates will also be affected by the ECB's announcement 45 minutes later, which could swing things either way.

Whatever happens, make sure you are in touch with an experienced dealer at a currency company who can help you with your individual requirements.

Pound drifting back down

Tue, 03 Feb 2009 17:07:00 GMT

After a surge last week and on Friday, the Pound today has fallen back a little giving slightly worse Euro rates and Dollar rates for those of you needing to make international payments.

However, exchange rates are still above 1.10 (€) and 1.43 ($) on international money markets, much better than just a week ago for buying Euros in particular.

Spikes in the market like this are not uncommon during these volatile times, get in touch with an expert currency broker to make sure you are aware of the day-to-day movement which can affect your payments so much.

Canadian Interest Rates Cut

Thu, 29 Jan 2009 11:47:00 GMT

The Bank of Canada last week cut interest rates from 1.5% to just 1%, in line with many other central banks around the world.

Normally an interest rate cut would be good news if you need to send money to Canada, however as the move was wideley expected there was little cheer on Canadian exchange rates.

Things have improved slightly in the last 2 days, but as the Pound is still under pressure on international markets, it may be that your rate gets worse before it gets better.

A reputable currency company will help guide you through these volatile times - make sure you don't leave your exchange rate to chance.

Exchange Rate Improvement

Thu, 29 Jan 2009 11:43:00 GMT

The Pound is up today on the back of a successful government auction of gilts (UK debt).

Confidence in the UK has been fragile in recent weeks, but this morning investors returned to buy UK assets and as a result the Pound has seen a boost.

That means if you are buying currency to send abroad, there's a spike in exchange rates which is obviously good news.

There are further announcements due this week which could weigh heavy on the Pound, so get in touch with a currency broker to make sure you do not miss out on any opportunities in the market.

US Interest Rates Tonight

Wed, 28 Jan 2009 12:03:00 GMT

Tonight the Federal Reserve's FOMC announce the monthly interest rate change in the USA.

While the Fed currently has low interest rates at 0.25%, there is not much room for any further cuts. However, the accompanying statement is just as important, as it gives the central bank's outlook for the US economy - which in turn is likely to affect US dollar exchange rates.

Money transfers to America have become more expensive recently, as the dollar rate has fallen from $2 last year, to below $1.40 to the Pound. A slight recovery in recent days has helped ease the pain.

If you do need to buy US dollars in the coming days, weeks, or months, make sure you speak to an expert currency broker who can help you keep the costs down as much as possible.

Money transfers to New Zealand

Mon, 26 Jan 2009 13:10:00 GMT

New Zealand Dollar rates are likely to show some volatility this week - the Reserve Bank of New Zealand (RBNZ) announces its latest interest rate decision on Wednesday.

Currently rates are set at 5%, and a cut to around 4% is expected. Expectation of a rate cut has led to a weaker dollar - and better exchange rates for money transfers to New Zealand.

Of course, if the RBNZ doesn't cut interest rates as much as expected, you could expect exchange rates to worsen accordingly.

Make sure you have a UK currency broker like Currency Index looking after you if you are moving to New Zealand, or sending money out there for any reason. Don't forget, you can book exchange rates up to 2 years ahead to help keep your costs under control.

South Africa Rand Rates

Mon, 26 Jan 2009 12:56:00 GMT

ZAR rates eased higher this morning on the back of a stronger US dollar and falling Government bond prices.

Sending money to South Africa from the UK is now over 1% cheaper than on Friday.

If you have a transfer to make in the coming weeks, make sure you are in touch with a reputable currency company who can keep you up to date with the latest developments.

Pound battered by bank bailout

Thu, 22 Jan 2009 11:00:00 GMT

The Pound has suffered another awful time this week, as investors lose confidence in the UK economy following the government's second round of banking bailouts this week.

Euro exchange rates are tumbling towards their all-time low set 2 weeks ago, while buying US dollars has become the most expensive since the 1980s.

Transferring money to Canada, South Africa and Dubai is also now much more expensive.

With no sign to the end of Britain's economic troubles, we are unlikely to see dramatic improvement in the short term. If you need to buy a large quantity of currency, for example for an overseas property purchase, make sure you are in touch with a specialist currency company to discuss your options.

This week's currency news

Mon, 19 Jan 2009 11:18:00 GMT

Key data this week which might affect exchange rates - particularly for those of you looking for Euro exchange rates - are shown in our weekly economic calendar.

Bank of England Governer Mervyn King speaks tomorrow, so look for sterling volatility depending on the contents of the speech. On Wednesday, the minutes from the last Bank of England interest-rate setting meeting are released - this should give us clues as to whether further interest rate cuts are likely and again this will weigh on the Pound one way or another.

Eurozone payments will likely be affected even more on Wednesday as ECB president Trichet will be speaking - followed by the monthly ECB report on Thursday.

Finally on Friday, UK retail sales figures are released, and any further bad news from the high street is likely to filter through and drag the Pound lower again. Keep in touch with your currency company so that you don't get caught out by any of the announcements this week.

Euro interest rates cut - cheaper Euros available

Thu, 15 Jan 2009 13:44:00 GMT

The ECB have cut their interest rates by 0.5% to 2% today - although this was expected, the Euro has weakened this afternoon meaning that the best Euro exchange rates are now over 1.11.

It is unlikely that we will see a sustained movement on the exchange rate (bad news for those of you transferring money to Spain, France etc), as the cut was already priced in to the exchange rate. A 1% cut in EU interest rates would have been better news!

The Pound has gained nearly 10% since the start of January, meaning the same amount of Euros is now 10% cheaper than it was only 2 weeks ago. Do speak to a foreign currency broker to discuss your requirements for buying or selling Euros.

Eurozone interest rates today

Thu, 15 Jan 2009 12:22:00 GMT

12.45 today sees the latest European Central Bank interest rate decision - this could move Euro exchange rates around considerably depending on the outcome.

Check back after 12.45 and we will have the lates currency news on this blog - keep in touch with your currency company if you need to buy and send Euros.

Canadian Exchange Rates

Mon, 12 Jan 2009 22:18:00 GMT

The Bank of Canada makes its monthly interest rate decision next Tuesday, January 20th.

For anyone buying Canadian dollars, your exchange rate is likely to be affected. Typically a lower interest rate means a weaker (cheaper) currency, so an interest rate cut (or speculation leading up to the announcement in the coming days) could mean that sending money to Canada becomes slightly cheaper.

Canadian exchange rates are currently near their worst for the last 12 months, and with the UK economy struggling even more than most other developed nations, anyone moving to Canada should get in touch with a specialist foreign exchange company to make sure they are up to date with the latest currency news.

Euro Exchange Rates this week

Mon, 12 Jan 2009 22:14:00 GMT

Buyers or sellers of Euros should be aware that this Thursday at 12.45pm the European Central Bank announces its latest interest rate decision for the Eurozone.

There has been much speculation that the ECB will cut rates, much as has happened in the UK and USA. Typically, lower interest rates mean a weaker currency, so Euro exchange rates might get better for those of you buying overseas property if there is a dramatic cut on Thursday.

Conversely, if the cut is not as much as expected, sending money to Portugal, France, Spain and Germany might become more expensive.

Make sure you use a reputable currency company if you have a transaction of over £5,000 to carry out - this should save you money compared to using your bank.

Interest Rates Cut 0.5%

Thu, 08 Jan 2009 12:23:00 GMT

The Bank of England has cut interest rates by 0.5% to 1.5% - the lowest level in its 300 year histrory.

Some analysts had expected a 1% cut, which would have been bad news for the ailing Pound. As 0.5% was the minimum cut expected, the Pound has found some strength which has improved Euro exchange rates, Dollar exchange rates, and most others this afternoon.

If you need to send money abroad or send money back to the UK, make sure you are in touch with your currency broker who can give you the latest market updates.

Exchange Rate Outlook

Wed, 07 Jan 2009 09:32:00 GMT

Prospects for the Pound in 2009 are as uncertain as ever – a look at this week’s upcoming events which are likely to affect exchange rates at the beginning of the year.

After a quiet Christmas, there is lots of data out this week from around the world. “If you are looking to transfer money overseas at the best exchange rates, it’s worth speaking to your currency broker to keep up to date with market movements”, says Chuck Hall, payments manager at Currency Index Ltd.

Tuesday 5th
UK Nationwide House Prices – will give an indication of likely interest rate cuts from the Bank of England
UK and EU Purchasing Managers Index – manufacturer inflation figures for the UK and Europe
US FOMC Minutes – released by the Federal Reserve in the USA, gives overview of economic conditions

Wednesday 6th
UK Nationwide Consumer Confidence – key economic indicator for UK confidence
EU Producer Price Index – main inflation figure for the Eurozone

Thursday 7th
EU Consumer Confidence – European confidence survey
EU GDP – is the Eurozone contracting and in deep recession?
UK BoE Interest Rate Decision – this month’s central interest rate decision

Friday 8th
UK Producer Price Index – main inflation figure for the UK
EU Retail Sales – another important economic indicator
US Non Farm Payrolls – the main US employment metric showing jobs created last month

All these releases are likely to have an impact on the Pound’s relative value to (in particular) the Euro and US Dollar rates. If UK interest rates are cut heavily on Thursday, we could be in for plummeting exchange rates yet again, while readers buying property in France, Spain and the rest of Europe, will be hoping for weak Eurozone data on Wednesday and Thursday.

Keep in touch with a currency specialist, who can save you money against your bank’s exchange rate.

Euro rates up... at last

Mon, 05 Jan 2009 14:39:00 GMT

Rates for buying Euros have improved slightly today - up nearly 3%. That will save you £6,000 if you need to transfer €200,000 abroad, for example the best rate for sending money to France.

The reason? Some over-selling at Christmas, and relatively positive data out today. Beware however, the Bank of England are due to cut interest rates again on Thursday and that is not usually good news for sterling.

There is a lot of data out this week which could make a difference to the value of the Pound against all other currencies - keep in touch with a currency broker who can help you get the best foreign exchange deal.

New Year Currency News

Fri, 02 Jan 2009 11:25:00 GMT

Happy New Year from Currency Index Ltd - provider of some of the best exchange rates available in the UK.

The main news this month is likely to be the Bank of England's interest rate decision on Thursday January 8th. Further cuts in the UK base rate are expected, and that does not bode well for the Pound - normally lower interest rates mean a weaker currency. With the European Central Bank tipped to keep their interest rates higher than ours, that means that predictions of sterling - Euro rates falling to parity (€1 = £1) are perhaps not wide of the mark.

Elsewhere, the Pound continues to struggle across the board. The next 4-6 weeks will be crucial as we see how bad the UK recession becomes - any negative news in the UK is likely to push the vulnerable Pound further still. Your currency broker should be able to help if you would like to discuss your own circumstances and requirements in detail.

No Christmas Cheer for Pound

Mon, 29 Dec 2008 12:04:00 GMT

The Pound sank to another historic low against the Euro today, buying just €1.0210 on commercial markets.

Weak house price data and unemployment figures showed that there is no sign of any improvement for the British economy. Instead of cashing in equity from property values, Brits are now focussing on paying back their mortgages, instead of spending on cars, overseas property and other big items, figures from the Bank of England showed.

For exchange rates, more bad news for UK PLC means investor confidence in the Pound is at its lowest for years. If you're sending money to America, a Pound buys just $1.4670 and if you're emigrating to Australia, each Pound gets only $2.10, compared to $2.40 a few weeks ago.

Even at the best exchange rates available through specialist foreign exchange companies, buyers of Euros are doing well to get much more than €1 for £1.

Trading is thin between Christmas and new year, so volatility is more pronounced than usual, so make sure you contact Currency Index to keep in touch with the latest news.

Exchange Rates at Christmas

Mon, 22 Dec 2008 11:12:00 GMT

Exchange Rates at Christmas can be particularly volatile, due to low volumes of trading in the market. Therefore any movements can be pronounced - which means there can be opportunities to buy.

So, if you have Euros to buy, dollars to sell, or any other currency transaction to complete in the next few weeks, it's worth your while informing your currency broker of what you are looking for. They will be able to keep an eye on the market and, if you like, alert you to any opportunities for a bargain.

This has been one of the most volatile and unpredictable years ever for exchange rates - so don't miss out on any potential opportunities between now and January.

Currency Index is open every working day from now to the new year.

Interest Rates and Euro Exchange Rates

Thu, 18 Dec 2008 14:00:00 GMT

With press speculation that Sterling – Euro exchange rates might reach parity (£1 = €1), what is driving sterling down against the single currency at the moment?

One of the main drivers is interest rates. The Bank of England have cut rates from 5.75% last December, to 2% now. This means that international investors (pension funds, hedge funds and other investments) get a lower rate of return on sterling-denominated assets, so they move their money elsewhere.

This, in turn, means that there is less demand for Pounds. The simple rule of supply and demand applies, and the price of the Pound drops. Therefore, the price of other currencies relatively, increases.

As the Bank of England is likely to cut interest rates again in January, there is little stimulus to bring funds into the UK – specially in the current economic climate with all the other problems our economy is facing. Therefore, the selloff continues, and the Pound continues to fall.

In Europe, interest rates have also come down – but not as much. From 3.75% in the Spring, recent cuts now leave the single currency at 2.5%. Further, ECB President Jean-Claude Trichet said this week that there is little room for further cuts (analysts expect another 0.25% trim in January) which means that returns on Euro assets are seen as significantly higher than in the UK.

The Euro is quickly becoming a “safe haven” currency in these difficult times. Massive movements into Euro-held assets are driving up the price of a Euro – and it’s a relentless acceleration in the single currency’s value.

Euros are currently around 15% more expensive than just 2 months ago.

If you are sending money overseas in the coming weeks and months, this is not comfortable reading. Of course, things can change very quickly, and if the Eurozone finds itself in more economic trouble than we currently know about, then its currency could weaken and the best exchange rates could improve. But the risk is that the run will continue.

In addition, shopping around for the best Euro rates can save you money against your bank. Tom Arnold, Sales Director at Currency Index Ltd, said “now more than ever, buyers of overseas property are checking what deals are available on their currency purchases. Using a specialist broker such as ourselves can make a huge difference to the amount paid for a place in the sun or retirement property abrad”.

Specialist companies can also offer services like advance booking of exchange rates. Any volatility over Christmas would therefore not affect orders placed in advance, to give some peace of mind.

Whatever happens, we are in unchartered territory on the money markets, and buyers or sellers of any foreign currency should beware of assuming that things will move in their favour. Indecision, as the saying goes, can be much more expensive than a poor decision.

Euro rate below 1.10 as unemployment soars

Wed, 17 Dec 2008 10:24:00 GMT

Today's unemployment figure showed the worst jobless total since 1997, up to 1.86million.

The Pound dropped accordingly, now buying less than €1.10 for the first time in history.

The Euro has also been strengthened (become more expensive) by ECB President Trichet's comments on Monday that interest rates in the Eurozone are unlikely to fall as much as those in the UK. This makes the Euro a better bet for investors, and increased demand makes the single currency more expensive. The best Euro exchange rate is now at a new all time low.

Transferring money overseas has therefore become more expensive again today, particularly in the Eurozone. Make sure you speak to a specialist currency company if you need to make any payments to foreign soil in the coming weeks and months.

Simplyzigzag.com Partners with Currency Index Ltd

Tue, 16 Dec 2008 12:59:00 GMT

- Currency service for Simplyzigzag clients to save money on overseas purchases

- Dedicated account manager for personal service

Simplyzigzag.com has partnered with leading foreign exchange specialists, Currency Index Ltd, to offer preferential exchange rates for all their clients. Compared to the high street banks, Currency Index can save clients up to 4%, which can easily translate into thousands of pounds difference on the price paid for an overseas property.

This is achieved by Currency Index’s high turnover, which allows them to buy at market-leading exchange rates, passing savings on directly to their customers. In addition, there are no commission charges and overseas transfers are usually free too.

Simon Eastman, Senior Broker at Currency Index, said “It is a pleasure to deal for all Simplyzigzag’s clients and be a part of their buying process. We strive to make the process of buying currency and sending money overseas as stress-free and cost effective as possible”.

About Currency Index Ltd
Currency Index is part of the PropertyIndex.com group, and specialises in currency transactions at commercial rates, for UK buyers and sellers of overseas property. By multi-sourcing large volumes of currency from various sources, Currency Index are usually able to offer the best exchange rates in the marketplace, with no need to charge any additional commission or hidden charges.
Enquiries: Simon Eastman; 0845 371 1444, +44 207 903 5444. http://www.currencyindex.co.uk/, simon.eastman@currencyindex.co.uk

About Simplyzigzag.com
Simplyzigzag.com is a flat fee online estate agency. Launched to the public in June 2008, Simplyzigzag.com is dedicated to providing a better way of selling your home, at a lower cost, without the experience of being charged a large commission. Since its inception it has over 400 properties in the UK, Europe and the Middle East. One of the few international websites with no hidden costs aimed at developers, investors and private sellers.

Inflation falls - but not as much as expected

Tue, 16 Dec 2008 10:10:00 GMT

Inflation data out this morning showed a drop to 4.1% in November - not as low as many analysts had predicted.

The Pound rose slightly on the news, because the Bank of England will be less inclined to cut interest rates if inflation is running higher than anticipated.

That means the best exchange rates available this morning are slightly up on yesterday, for those of you needing to send money abroad.

Money transfers to Canada, for example, are buying a cent more per Pound than first thing this morning.

Dollar Exchange Rate Improves

Mon, 15 Dec 2008 16:39:00 GMT

The best US Dollar exchange rate has improved around 4c today, on the back of speculation from the States that US interest rates may be cut again tomorrow evening.

With little cause for cheer for the beleagured Pound, if you are sending money to America it may be worth discussing your requirements with your currency broker - spikes like this tend to be short lived at the moment and trading levels of above 1.50 are now available again from some sources.

Will the Pound reach £1 = €1?

Mon, 15 Dec 2008 11:22:00 GMT

Newspaper reports over the weekend show airport Bureaux de Change offering Euro exchange rates below €1 for £1.

Of course, airports are usually the worst place to buy your currency, and reputable currency companies will currently offer you up to 10% more than this for overseas money transfers above £5,000.

But is the commercial rate heading down to parity too?

The Government has alreay said it will not intervene to prop up the Pound, and although there is not a full scale "run" on the currency yet, perhaps we are not too far off.

With worsening unemployment, falling interest rates, economic crises everywhere you look, and consumer confidence falling at record levels, the head of Barclays has even suggested we are only at the very beginning of the problems - not near the end.

The most important thing if you need to exchange foreign currency in relatively large amounts, is to make sure you speak to an experienced foreign currency broker and don't just assume that exchange rates will improve - it could be an expensive mistake.

Euro rate hits new low

Thu, 11 Dec 2008 11:04:00 GMT

Sterling fell to new lows against the Euro yesterday, the worst rate for buying Euros since the single currency was launched in 2002.

For anyone buying property in the Eurozone, this is worrying news. The trap that a lot of people might fall into is to assume that "things can only get better". Tony Blair said that in 1997, and look where it has got us!

The main tip if you need to send money overseas, is to make sure you speak to an experienced currency broker about your transaction. Don't bury your head in the sand, because it could get much worse - some analysts are now predicting a rate of 1:1 against the Euro if the UK economy continues to decline.

Amongst the bad news, don't forget that using a specialist FX broker can still save you significant amounts of money compared to using your bank.

Currency and Exchange Rate News – December 8th

Mon, 08 Dec 2008 11:43:00 GMT

The Pound improved over the weekend and on Monday morning, most notably against the US Dollar after very weak jobless data out of the States on Friday.

Exchange rates which are pegged to the Dollar have also improved, for example the best transfer rate to Dubai in Dirhams.

The Pound gained a couple of cents against the Dollar, and a similar amount against the Euro, making sending money overseas slightly cheaper for those of you buying overseas property.

The rally was halted, however, by UK PPI data out this morning. The Producer Price Index, which shows factory costs, fell in November as the cost of oil and other base products has come down in recent weeks. The figures, which showed a 0.7% drop in production costs, are likely to reinforce the view that inflation in the UK is not a problem, and therefore that UK interest rate cuts are sustainable.

Lower interest rates usually mean a weaker Pound (which is one of the main reasons for the Pound’s current weakness), so sterling fell back when the figures were announced.

If you need to buy or sell foreign currency, make sure you are in touch with a specialist FX company who can help you save time and money.

UK Interest Rates down 1% - exchange rate reaction

Thu, 04 Dec 2008 12:38:00 GMT

UK Interest rates have been cut a further 1% today, leaving the base rate at just 2%, its lowest since 1951.

Reaction on the foreign exchange markets has been negligible, although this morning Euro exchange rates fell to their lowest since the single currency was launched nearly 10 years ago.

Against the US Dollar, best exchange rates were also down, before a very slight rally for the Pound.

Eurozone interest rates are announced shortly, and we will wait to see the reaction (if any) and implications for Brits needing to send money overseas.

Five Reasons the Pound could fall further

Wed, 03 Dec 2008 14:54:00 GMT

We speak to many clients who want to hold out for the best exchange rates, before making their transfer to pay for overseas property. But a close look at the economic conditions might make them think – would it be better to buy currency now?

1. Severe Recession. The OECD are predicting the downturn to be “the most severe since the early 1980s”, and has forecast the UK as the worst affected country in the developed world.
2. Interest Rates. The Bank of England is widely expected to cut interest rates again on Thursday – and lower interest rates typically mean a weaker Pound.
3. Manufacturing in decline. British manufacturing in November shrank at the fastest rate since figures began 16 years ago.
4. UK Job Market. A survey out today shows the UK job market weakened significantly in November. The drop in jobs available was the fastest in the survey’s 11-year history.
5. World outlook. The United Nations says the world faces its worst downturn since the Great Depression of the 1930s.

All of these indicate that a weaker Pound is likely – but if you are buying a property overseas, you can secure a “forward contract” to guarantee your exchange rate for up to 2 years ahead.

Don’t forget, whatever your currency requirements, you should be in touch with a currency broker who can help you through these volatile times. Currency Index specialise in currency transactions for overseas property buyers.

Sterling exchange rates plummet again

Tue, 02 Dec 2008 12:03:00 GMT

Sterling recorded its biggest loss against the Dollar since 1992 yesterday - falling over 5% in one day.

Volatility on the equity markets, along with poor UK sentiment and speculation about interest rate cuts later this week, led to a terrible day for the Pound, although markets have been steady this morning.

If you need to transfer money overseas, these are worrying times. The US Dollar tends to gain value in times of worry, as investors buy other assets denominated in USD, pushing up the price of the currency.

Elsewhere, the best Australian dollar rates are down below 2.30 again, from nearly 2.40 a week or so ago. This means somebody emigrating with £200,000 of assets now has AU$20,000 less when they arrive down under, than if they had bought currency a week ago.

Euro exchange rates dipped down into the 1.16s this morning before levelling out again around 1.1750.

The Pound also hit a 13-year low against the Japanese Yen.

With interest rates likely to fall in the UK on Thursday, it seem unlikely that there will be much Christmas cheer for anybody buying overseas property and buying foreign currency to fund the purchase.

As hard as it sounds, buyers may just be better off biting the bullet and securing exchange rates now. Don't forget that using a specialist forex broker, you can save money against your bank and make the best of a bad situation.

Pound Falls on UK Mortgage Approvals

Mon, 01 Dec 2008 10:35:00 GMT

The Pound has fallen sharply this morning, leading to worse exchange rates for those of you buying property overseas.

Bank of England figures, out this morning, show that UK mortgage approvals are still falling - despite aggressive interest rate cuts and government encouragement for more lending in the sector.

Only 32,000 mortgages were approved in October, down 1,000 on September's figure. Approvals have slumped by 74% in the last year.

For overseas money transfers, for example if you are buying a holiday property, this is further bad news for already poor exchange rates. It means that interest rates are likely to be cut even further to help stimulate the UK economy - and lower interest rates mean less demand for the Pound, which falls in value.

Although the European Central Bank (ECB) are also likely to cut interest rates on Thursday, the developing picture is that the UK economy is in a worse state than most of Europe - and therefore I would not be surprised if we currently have the best exchange rates available for some time to come.

If you need to buy or sell any currency, make sure you contact a specialist foreign exchange company, who will help you through these volatile times.

UK Consumer Confidence on the rise

Fri, 28 Nov 2008 15:58:00 GMT

UK consumer confidence has risen slightly in November, especially in the "personal financial situation" and "major purchases" sections of the Consumer Confidence Barometer, which will have a positive effect on the pound.

Meanwhile, Eurostat, the EU's statistics office has, announced unemployment in the Eurozone went up to 7.7% during October and also inflation in the eurozone fell to 2.1% in November. The steep fall in inflation and the rise in the jobless rate could spark the European Central Bank to cut interest rates sharply. After last month’s reduction of 0.5% ECB president Jean-Claude Trichet announced that further cuts could not be ruled out, and experts have predicted the interest rate could be cut by up to 1% when announced on Thursday.

Speculation on further interest rate cuts has been good news for Euro exchange rates, which have at last improved slightly after sterling’s recent dramatic decline. For those of you buying property overseas, and therefore needing to make transfers of money to France, Spain or elsewhere in Europe, this could provide an opportunity to secure your currency at better levels. Keep in touch with a foreign currency exchange broker to make the most of these volatile markets.

House prices down again - but pace slows

Thu, 27 Nov 2008 09:47:00 GMT

UK house prices fell by just 0.4% in November, according to figures out today from Nationwide. Usually, better than expected house price news means exchange rates for the Pound get better - but Nationwide warned the poor economy would continue to put pressure on the market - and therefore on sterling too..

Property Sellers cash in on Euro Rates

Fri, 21 Nov 2008 11:31:00 GMT

Sellers of overseas property cash in

Specialist foreign exchange brokers Currency Index have reported an increase in UK owners of overseas property selling up and cashing in on record Euro exchange rates.

The Euro is currently 18% more valuable against the Pound than this time last year – up from 71p to over 84p. Brits who bought property in Europe in January 2007 bought at 66p and have seen a 26% increase in the value of the Euro.

On a £200,000 purchase, the changing exchange rate has effectively increased the property value by over £50,000 in a 2-year period.

Price falls in Spain have hit the headlines in recent months, however Brits selling up and moving home have plenty to cheer by securing a record price for selling Euros, even if they have lost out on the Euro sale price of their property.

Chris Hall, Payments Manager at Currency Index, reports a 37% increase in transactions from Euros to Sterling in the last 3 months.

“Clients are achieving fantastic currency rates when transferring money back to the UK, especially when they can gain even more by using a currency broker to get commercial exchange rates”, says Hall.

Barclays Capital are projecting some recovery for the Pound in the new year, so it may be wise for people selling overseas property to secure rates while we are at all-time record levels against the Euro. For the latest news, keep in touch with an FX company who will be able to keep you updated.

Spain Falling Into Recession?

Fri, 21 Nov 2008 10:14:00 GMT

The Bank of Spain this week announced that Spain is likely to slip into recession by the end of the year - and the entire Eurozone entered into recession officially last week.

What does this mean for Euro exchange rates? In theory, it should be good news if you're sending money to Spain or any Eurozone country. But there are two sides to the coin - and whichever economy fares worse, the UK or Europe, might expect their currency to lose most value.

As exchange rates are all relative, if you need to buy Euros you'll be hoping that the UK economy performs better in the coming weeks and months, while the extent fallout from the economic crisis becomes clear.

There is a worry that the UK is less well prepared than the rest of the world for the downturn, having spent heavily during the 'boom' years. If this is your worry, then booking exchange rates in advance now would be a safe option.

However, if you think that the inflexibility of the Euro economy is going to harm EU countries more, then you might be optimistic for the Pound to get relatively stronger and give better rates of exchange.

Unfortunately, there's no way of knowing what will happen, and markets are made of dividing opinions. Time will tell, but keep in touch with your forex broker who will keep you informed of developments..

Retail Sales down 0.1%

Thu, 20 Nov 2008 09:44:00 GMT

Some cheer this morning for the UK economy - retail sales 'only' dropped by 0.1% in October. This was against analysts forecasts of a 0.8% drop, so was much better than expected.

Despite this, the Pound has not shown much of a recovery in terms of the Euro exchange rate or US Dollar exchange rates this morning. Why? Some scaremongering in the press, perhaps - the BBC reported "Retail sales shrink" as their headline, even though the figure is much better than expected. Retail sales are still up on a year ago!

In other words, even good news is bad news at the moment, and the beleagured Pound does not seem to be able to gain any strength. The only gain of note has been the AUD (great news if you are transferring money to Australia) - but that was overnight and before the figures were released this morning.

To make sure you get a good deal on your currency, whatever the market is doing, use a specialist foreign currency broker to help you through the process..

Minutes Released by Bank of England

Wed, 19 Nov 2008 10:31:00 GMT

The Bank of England's MPC meeting minutes were released this morning - showing a 9-0 vote in favour of the shock 1.5% interest rate cut earlier in November.

Worryingly, for those of you buying foreign currency, they even considered a bigger cut.

Interest rate cuts are generally bad news for the currency concerned - so further rate cuts in the UK could see Sterling fall even further.

If you need to transfer money overseas, particularly if getting the best Euro exchange rate is your priority, make sure you speak to a specialist foreign currency broker rather than leave your transaction to chance.

Inflation falls at record rate - Pound vulnerable to further losses

Tue, 18 Nov 2008 10:33:00 GMT

Inflation figures out today showed UK prices in October grew 4.5%, down from September's record levels of 5.2%.

Falling inflation will make the Bank of England more likely to cut interest rates, which could lead to an even weaker Pound and therefore worse exchange rates for those of you needing to send money abroad.

Initial reaction on the FX markets has been guarded, so consider securing your exchange rate before the next Bank of England interest rate decision in just over 2 weeks.

Don't forget that commercial foreign exchange brokers can normally achieve better rates than you would get from your bank.

Sterling at all-time low against Euro

Mon, 17 Nov 2008 14:12:00 GMT

What next for overseas property buyers?

Sterling slumped to a fresh all-time low against the Euro in early November, further to the Bank of England’s shock 1.5% interest rate cut and a raft of negative economic news in the UK.

For buyers of property in France, Spain or elsewhere in the Eurozone, that means spending more for the same amount of Euros than before.

Exchanging currency for a €200,000 property would have cost around £141,000 a year ago, wheras now a UK buyer would need to fork out over £165,000.

Why the change in currency value? Quite simply, the UK economy heading into recession means that investors are less likely to hold assets in sterling, which means less demand for the Pound and therefore falling value. Add to this falling interest rates, lower inflation for producers and consumers, falling house prices and a stuttering economy, and it’s easy to see why sterling has taken such a beating in recent months.

There is some good news though. Eurozone property prices have also been tumbling, so negotiating a good price should be much easier than a year ago. There are less buyers around and properties are harder to sell, so make sure you get yourself a good deal.

Also, with global interest rates falling, if you are using an overseas mortgage to buy your place in the sun, financing may well be cheaper.

Finally, don’t forget that you can fix and guarantee your exchange rate up to 2 years ahead by using a specialist broker like Currency Index. As the Bank of England itself expects tough economic conditions through 2009, it’s hard to see the Pound recovering, and there may be worse times ahead. By fixing your exchange rate for a purchase or completion next year, you can safeguard against falling exchange rates and make sure your dream overseas purchase doesn’t become a nightmare.

Australian Dollar sent on rollercoaster ride

Mon, 17 Nov 2008 14:04:00 GMT

Australia has long been one of the top destinations for Brits looking to move abroad. If you are looking at sending money to Australia to fund a property purchase, you’ll have seen massive movements in exchange rate changing the cost during the recent turbulent times.

The “Aussie” plummeted in value against the Pound, making overseas property cheaper, in October before regaining some value in December. The differences are staggering – a property costing $300,000 would set you back nearly £143,000 in September, but only £118,000 just 6 weeks later.

GBP – AUD last 3 months

Against the US dollar, the Aussie depreciated by a massive 37% in the same timescale.

The reason for this volatility? In the global credit meltdown, investors have moved money around the globe in search of higher returns. Traditionally, Australian interest rates have been higher than most western economies, and “carry trades” have been popular where investors borrow in one currency to invest in another with higher interest rates. Demand for that currency increases, and the price goes up.

Recently however, these positions have been reversed as Australian interest rates have fallen and investors have needed to sell dollars to place money elsewhere. As dollars were sold off, demand for the Aussie fell, and the price therefore dropped significantly.

That’s what presented buyers of Australian property with the opportunity for a bargain.

Of course, the most important thing to check if you need to transfer money to Australia is that you obtain a competitive exchange rate. Typically, the high street banks do not offer very good deals on large amounts and significant savings can be made by using a specialist foreign exchange broker like Currency Index.

Foreign currency brokers can help you through the whole money transfer process and tell you what’s happening in the market, to help you decide when to make your purchase. In addition, rates can be secured and guaranteed up to 2 years ahead, so you can buy your Australian dollars well before you need them without having all the funds available, to take advantage of a preferential rate.

In volatile times, emigrating doesn’t need to be any more stressful – make sure you get a good deal on your foreign exchange and try to secure your rate when the time is right.

Market Commentary - 04/11/08

Tue, 04 Nov 2008 09:00:00 GMT

Market Commentary – 04/11/08 – Simon Eastman – Senior Broker

The past few days trading have been dictated by speculation over UK interest rates. Due to the current economic climate and fears of a deep recession, markets have been calling for an interest rate cut when the Bank of England meets this Thursday.

Gordon Brown requested drastic action by the governor Mervyn King to help bolster the flagging economy and the markets has widely expected another 50 point cut in rates, from 4.5 percent to 4 percent.

Yesterday exchange rates were affected very little by the purchasing managers index figures which showed the UK manufacturing sector contracted for the sixth consecutive month as demand for products both here and from abroad tipped the sector into recession (Recession is signified by two consecutive quarters of negative growth).

During afternoon trading the tables turned as the pound took a battering across the board. The cause, market speculation of a 1 percent cut in interest rates rather than just a 50 point cut. The pound dropped 1.5 percent against the euro and at one point was down 3 percent against the US dollar, 3.5 percent against the Canadian dollar and over 3 percent against the Australian and New Zealand dollars.

Although some analysts in the market are not putting the pounds weakness down to the chance of a cut but more to the lack of lack of decisive action by the central bank in helping the economy.

"There's been a lot of apprehension ahead of the BoE meeting, and in our view with good reason," said Robert Minikin, senior FX strategist at Standard Chartered. "It's the sluggishness of the policy that's been affecting sterling. The problem is not whether they move 50 or 100 basis points; the problem is that they should have been easing aggressively, probably since early 2008," he added.

So with the US cutting their interest rates last week by 50 points, the Reserve Bank of Australia cutting rates by 75 points today, the markets now await Thursday for interest rate decisions by the Bank of England and European Central Bank. Cuts should help to boost the economy but whether more will be needed will become apparent in the coming weeks.

If you are in the process of buying a property abroad these uncertain volatile currency markets could unravel your plans so speak with a Currency Index broker today to discuss the options available to you, like a forward contract, used for eliminating the market risk.

If you have any question relating to the content of the above article or for some friendly guidance on your upcoming currency purchase please contact Simon Eastman, Senior FX Broker at Currency Index on 020 7903 5444 or email simon.eastman@currencyindex.co.uk.