Yearly Archives: 2011

Euro rate below 1.10 as unemployment soars

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

– 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. https://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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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?

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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.