Yearly Archives: 2011

Eurozone interest rates today

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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%

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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.