News

US labour market improves

28 July, 2011

CurrencyIndex

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”

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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)