News

Retail sales fall as Euro rate continues down

28 July, 2011

CurrencyIndex

This morning’s UK retail sales showed a 0.2% decline in September (worse than expected), which has done nothing to help the ailing pound.

The rate for buying Euros is now at its worst since April, and there is no major data due out for the rest of the week to give cause for optimism.

US dollar rates, however, are still holding up due to weakness in the US economy.

Bank of England split 3 ways on policy

28 July, 2011

CurrencyIndex

This morning’s Bank of England Minutes revealed a 3-way split in the monetary policy committee’s views on interest rates and quantitative easing.

While 7 of the 9 members voted for no change, one (Andrew Sentance) voted again for an interest rate rise, while one (Adam Posen) voted for a £50bn extension to QE.

Any extensions to QE are likely to hurt sterling and it now seems plausible that this will happen in the coming months.

On top of September’s Public Borrowing figures, which showed record levels of UK debt, the Pound could easily fall further in the short term.

The government is also revealing its spending review cuts today.

Currency Index wins OPP Award

28 July, 2011

CurrencyIndex

We are pleased to announce that Currency Index has won the prestigious “Best Currency Company” award in the 2010 OPP Awards for Excellence, in recognition of our industry-leading client service levels and exchange rates.

Overseas Property Professional editor Geoff Hadwick presented the award to Currency Index at last week’s OPP / Property Investor Live show at ExCeL in London.

This week’s currency news 138

28 July, 2011

CurrencyIndex

This week, focus in the UK is likely to be on Wednesday’s Bank of England minutes, which will reveal to what extent the MPC considered extending the UK’s Quantitative Easing programme this month. Any likelihood of further QE could hurt the pound.

Also on Wednesday, the government publishes its key spending review, with details of the billions of pounds of cuts planned in the forthcoming spending round. Markets are concerned whether there will be an impact on the economy, and therefore we feel Wednesday could be a doubly hard day for sterling.

Don’t forget, if you are worried about a falling pound, that you can fix exchange rates up to 2 years ahead using a Forward Contract from Currency Index.

This week’s economic calendar is as follows:

Monday 18th
1415 – US industrial production

Tuesday 19th
1000 – Eurozone construction output & ZEW economic sentiment survey
1330 – US housing starts
1400 – Canadian interest rate decision

Wednesday 20th
0930 – Bank of England minutes & UK public borrowing

Thursday 21st
0715 – Swiss trade balance
0830 – Eurozone manufacturing inflation
0930 – UK mortgage approvals & retail sales
1500 – Eurozone consumer confidence

Friday 22nd
All day – G20 meeting
1200 – Canadian CPI inflation
1330 – Canadian retail sales

UK Data Update

28 July, 2011

CurrencyIndex

The data out from the UK this week so far has been mixed at best, unfortunately leading to a fall in the value of sterling against most currencies.

Trade Balance: worse than expected (-£8.2bn)
House prices: worse than expected (up 8.3% in last 12 months but now falling)
Unemployment rate: better than expected (7.7%)
Jobless claimants: worse than expected (up 5,300)

It is worth noting that Bank of England MPC member Andrew Sentance is giving a speech at 6.40pm today, and his views on interest rates and quantitative easing are likely to be taken as signals as to the Bank of England’s intentions for the next few months, with implications for the Pound.

This week’s currency news 140

28 July, 2011

CurrencyIndex

This week’s economic data, likely to affect currency exchange rates:

Monday 11th
US/Canada bank holiday (Columbus Day/Thanksgiving)
No major data releases

Tuesday 12th
0930 – UK CPI & RPI inflation and DCLG house price index, plus August trade balance
1900 – US Federal Reserve minutes

Wednesday 13th
0930 – UK unemployment rate & jobless claims
1900 – US monthly budget statement

Thursday 14th
0900 – Eurozone ECB monthly report
1330 – US PPI inflation & jobless claims

Friday 15th
1000 – Eurozone CPI inflation & trade balance
1330 – US CPI inflation & retail sales

Contact Currency Index for our views on how these figures could affect exchange rates for your own currency transfers.

House prices fell 3.6% in September

28 July, 2011

CurrencyIndex

UK house prices fell 3.6% in September, according to Halifax – the biggest monthly fall since the survey started in 1983.

Although it is too early to say that prices are in decline, there is a worry for the UK economy that further falls in the housing market could cause serious problems for the economy. The Pound has continues its fall against the Euro and may other major currencies.

Currency Index in the news

28 July, 2011

CurrencyIndex

Further to the collapse of Crown Currency Exchange, who are not Authorised by the FSA, Currency Index has today been commenting to the media regarding the enhanced safety and security offered by Authorised currency companies.

We are due to be featured on the BBC 6.00 news this evening, Wednesday October 6th.

Economic data due out this week

28 July, 2011

CurrencyIndex

A busy week this week for data releases so we expect some volatility in exchange rates. Contact your account manager at Currency Index for the latest news relating to your currency transactions.

Monday 4th
1000 – Eurozone PPI inflation
1500 – US pending home sales
2000 – Federal Reserve Chairman Bernanke speaks
2200 – New Zealand business confidence

Tuesday 5th
0130 – Australian retail sales & trade balance
0530 – Australian interest rate decision
1000 – Eurozone retail sales

Wednesday 6th
1000 – Eurozone GDP
1100 – German factory orders
1315 – US non-farm employment change

Thursday 7th
0230 – Australian unemployment rate
0930 – UK industrial & manufacturing production
1200 – UK interest rate & QE decision
1245 – Eurozone interest rate decision
1330 – ECB press conference; US jobless claims

Friday 8th
0745 – Swiss unemployment rate
1200 – Canadian unemployment rate
1330 – US non-farm payrolls & unemployment rate

Euro rate continues to fall

28 July, 2011

CurrencyIndex

Despite this morning’s Q2 GDP revision showing no change to the 1.2% UK growth figure released earlier this year, the Pound has continued to fall significantly this afternoon, losing nearly 2c against both the Euro and US Dollar.

We are seeing an increasing number of clients worried about the falling Pound and fixing their rates for any currency requirements in the next few months. To discuss your options, do call us at Currency Index for an informal but informative chat.