News

This week’s economic releases

28 July, 2011

CurrencyIndex

There are a lot of important figures due out around the world this week likely to affect commercial exchange rates. For the latest updates, please contact Currency Index.

Tuesday 1st
0530 – Australian interest rate decision
0645 – Swiss GDP
0855 – German unemployment
0930 – UK manufacturing inflation
1000 – Eurozone unemployment rate
1400 – Canadian interest rate decision

Wednesday 2nd
0230 – Australian GDP
0930 – UK consumer lending & mortgage approvals

Thursday 3rd
0230 – Australian trade balance
1000 – Eurozone retail sales
1330 – US jobless claims
1500 – US factory orders

Friday 4th
1000 – European GDP
1200 – Canadian unemployment rate
1330 – US non-farm payrolls & unemployment rate

GDP figures as expected

28 July, 2011

CurrencyIndex

UK GDP figures released this morning show a 0.3% growth in the UK economy, for the first quarter of 2010 compared to 2009.

The figures were exactly as expected by analysts, so there has been little effect on the Pound. Exchange rates for buying Euros remain at around the best levels since last summer.

Economic releases this week

28 July, 2011

CurrencyIndex

This week’s data likely to affect exchange rates is as follows; notably UK GDP on Tuesday morning will give an indication of the growth rate in the economy and is very likely to have a strong effect on sterling.

Monday 24th
1500 – US home sales

Tuesday 25th
0400 – New Zealand Reserve Bank inflation report
0930 – UK GDP
1500 – US consumer confidence

Wednesday 26th
0700 – German GfK consumer confidence
1330 – US durable goods orders
1500 – US new home sales
2345 – New Zealand trade balance

Thursday 27th
0815 – Swiss employment level
1330 – US GDP & initial jobless claims

Friday 28th
Overnight – UK GfK consumer confidence
1330 – US personal consumption

Sterling falls

28 July, 2011

CurrencyIndex

This week has seen a huge flow on the money markets away from AUD and NDZ, which has strengthened both the US Dollar and Euro significantly. The Pound is now trading below €1.15 and $1.45, with no help from economic data showing UK mortgage approvals lower then expected in April.

One piece of good news was that UK public borrowing was £10bn in April, less than the £11.2bn forecast, which has given the Pound a small boost this morning.

For the latest live trading rates for overseas transfers, contact Currency Index on 0800 043 2623.

Australian Dollar rates up 5c

28 July, 2011

CurrencyIndex

Rates for sending money to Australia have improved dramatically today, after the Reserve Bank of Australia indicated that there will be no further interest rate rises for the time being.

Interest rate rises tend to keep currencies expensive, so when interest rates stop going up, a currency can become cheaper accordingly.

Those of you looking to move down under or transfer funds to Australia in the coming weeks and months should follow the rate closely for opportunities to buy.

Inflation hits 17-month high

28 July, 2011

CurrencyIndex

This morning’s UK inflation figures showed a rise to 3.7%, higher than analysts expected and the highest UK inflation for over a year.

Although this means the Bank of England might need to raise interest rates sooner than might have been the case, which would normally give the Pound a boost, the news has not been taken well, because it puts the Bank’s predictions of inflation to come back down to its target levels in the shade.

Sterling has therefore actually fallen slightly on the news.

Tomorrow morning’s interest rate minutes from the Bank of England will now be of increased interest for the Pound’s fortunes.

This week’s economic data

28 July, 2011

CurrencyIndex

A very busy week ahead with key inflation data out in the UK, Europe and the USA, all likely to affect exchange rates this week.

Keep in touch with Currency Index for the latest news affecting your currency purchase.

Monday 17th
No major data

Tuesday 18th
0230 – Australian interest rate minutes
0930 – UK CPI & RPI inflation
1000 – Eurozone CPI inflation & trade balance; German economic sentiment
1330 – US housing starts & PPI inflation

Wednesday 19th
0030 – Australian consumer confidence
0930 – Bank of England policy minutes
1330 – US CPI inflation
1700 – European Central Bank speech
1900 – US interest rate minutes

Thursday 20th
0700 – German PPI inflation
0930 – UK retail sales
1330 – US jobless claims

Friday 21st
0700 – German GDP
0900 – German IFO business survey
1200 – Canadian CPI inflation
1330 – Canadian retail sales

UK Trade Balance worsens

28 July, 2011

CurrencyIndex

Yesterday’s UK trade balance figures have hurt the Pound, as data showed a £3.6bn defecit for March, against analysts’ expectations of £2.4bn.

Sterling remains vulnerable to further losses as the dust settles after the election and the new government faces up to the economic challenges ahead. There is no major data due out in the UK today.

David Cameron is Prime Minister

28 July, 2011

CurrencyIndex

The political events of last night, confirming David Cameron as Prime Minister at the head of a Conservative-Liberal coalition, have given the Pound a boost. We now have the best rate for buying Euros since June 2009.

Today’s Bank of England Inflation Report, published at 10.30, will give some insight into the UK economy and the Bank’s forecasts for inflation for the rest of the year. It is a potential ‘banana skin’ for the Pound – any downbeat news could bring exchange rates down in the current volatile environment.

Quarterly inflation report tomorrow

28 July, 2011

CurrencyIndex

Tomorrow sees the Bank of England’s quarterly inflation report published – a major insight into the strength (or otherwise) of the UK’s economic recovery, and prospects for inflation and interest rates in the coming months.

The Pound is certainly vulnerable to poor economic figures at the moment, with the continuing uncertainty around who will be in government. At the same time, the European Central Bank is propping up the Euro with a comprehensive rescue package for Greece.

If you are concerned about the current volatility in the foreign exchange markets, speak to Currency Index about your options.