News

Unemployment falls, but so does Pound

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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 47

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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 49

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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?

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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 54

28 July, 2011

CurrencyIndex

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