News

UK unemployment rises to 2.5m

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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 97

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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 102

28 July, 2011

CurrencyIndex

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)

This week’s currency news 103

28 July, 2011

CurrencyIndex

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

28 July, 2011

CurrencyIndex

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.