News

FSA advises use of regulated currency companies

28 July, 2011

CurrencyIndex

The FSA has issued guidance to individuals and businesses sending funds abroad – only use a company that is regulated (either ‘Registered’ or ‘Authorised’) by the FSA.

The BBC has run a news story here: http://news.bbc.co.uk/1/hi/business/8505568.stm

Currency Index is fully Authorised and fits into the most secure category of companies for overseas money transfers.

Bank of England report sends sterling plummeting

28 July, 2011

CurrencyIndex

The Bank of England’s quarterly inflation report has sent jitters through markets, with predictions that inflation & interest rates are likely to stay low for the rest of 2010.

Low interest rates usually mean a weak currency, and analysts had expected UK interest rates to start increasing towards the end of 2010.

The Bank of England has moved to dampen these expectations, and the Pound has fallen across the board this morning in reaction.

Good news if you are sending money back to the UK, but for those of you buying property abroad, do contact your currency company straight away if you are worried about falling exchange rates.

Tuesday’s data hurts sterling

28 July, 2011

CurrencyIndex

This morning’s data has not been helpful for those of you sending money overseas. In the UK, the BRC reported retail sales down 7%, and the official trade balance figure at -£3.3bn was much worse than expected. Both have brough sterling under pressure and exchange rates have fallen.

If you are following exchange rates for buying Euros, further bad news from Germany where the trade balance came out at +€16.7bn, better than expected, which has made the Euro more expensive.

Tomorrow’s UK quarterly inflation report is now crucial, and a low reading could send GBP back to very low levels across the board.

This week’s currency news 238

28 July, 2011

CurrencyIndex

This week’s major data releases are tomorrow’s trade balance and Wednesday’s inflation report in the UK. For the latest news please contact your currency company as exchange rates are fluctuating every second.

Monday 8th

No major data

Tuesday 9th

0700 – German CPI inflation

0930 – UK trade balance

Wednesday 10th

0930 – UK industrial production

1030 – UK Bank of England quarterly inflation report & King’s speech

1330 – US trade balance

Thursday 11th

0030 – Australian unemployment rate

0815 – Swiss CPI inflation

1330 – US retail sales (Jan)

Friday 12th

1000 – Eurozone GDP

US Employment Data today

28 July, 2011

CurrencyIndex

This afternoon at 1.30 sees the monthly release of US “non-farm payrolls” – the main employment statistic in the States each month.

Non-farms often causes a lot of volatility in the best rates for sending money to the USA, because the figure released is often a lot better or worse than expected. If more jobs have been created than the expected figure of 15,000, the US Dollar is likely to gain strength, making exchange rates worse again.

The US Dollar is gaining some momentum now, with rates significantly below $1.60. If you have payments to make in USD, contact your currency broker for the latest information and commercial exchange rates.

Bank halts QE as expected

28 July, 2011

CurrencyIndex

The Bank of England has decided not to extend is programme of quantitative easing (printing of money), as expected, at its monthly policy announcement today.

The move is widely seen as positive for sterling, and was ‘priced in’ over the last week, resulting in better exchange rates across the board for sending money overseas.

The next major data out in the UK is not until Tuesday’s industrial and manufacturing production figures.

Australian interest rates held

28 July, 2011

CurrencyIndex

The Reserve Bank of Australia has suprirsed markets by keeping interest rates on hold at 3.75%.

Most analysts had expected an increase to 4% – and the price of the AUD has fallen, making sending payments to Australia unexpectedly cheaper.

If you or someone you know is moving to Australia, speak to your currency broker about taking advantage of a spike in exchange rates.

Economic news this week

28 July, 2011

CurrencyIndex

This week’s economic data likely to affect exchange rates is as follows. In addition there are house price surveys from Hometrack (Monday) and Halifax (Friday). The key day for the Pound is likely to be Thursday when the Bank of England announce whether or not quantitative easing is at an end.

Monday 1^st

0930 – UK PMI manufacturing data

1330 – US personal expenditure

Tuesday 2^nd

0330 – Australian interest rate decision

1500 – US home sales figures

Wednesday 3^rd

0030 – Australian trade balance

0900 – UK PMI services data

1000 – Eurozone retail sales figures

2145 – New Zealand unemployment rate

Thursday 4^th

0030 – Australian monetary policy statement

0715 – Swiss trade balance

1100 – German factory orders

1200 – Bank of England monthly policy announcement

1245 – European Central Bank monthly policy announcement

Friday 5^th

1200 – Canadian unemployment rate

1330 – US non-farm payrolls & unemployment rate

Dollar stronger on US GDP

28 July, 2011

CurrencyIndex

The US dollar has strengthened this afternoon after the Q4 GDP figure came out at 2.1%, much better than the 1.3% expected.

The surprise hike in growth in the US economy is increasing the cost of a dollar – specially against sterling which had a much worse GDP figure earlier this month.

Anyone sending money to America should contact their currency company for the latest news.

House prices up… but no gains for Pound

28 July, 2011

CurrencyIndex

Sterling seems to have run its course for the moment – this morning’s Nationwide house price index showed a 1.2% increase in January, much better than expected. Usually the Pound would expect a boost but not so this morning.

Perhaps Tony Blair’s appearance at the Iraq enquiry is causing jitters, or perhaps markets think that sterling has had enough of a run in the last 3 weeks. Either way, the only major data out later today is a raft of numbers from the States at 1.30pm – likely to affect rates for buying US dollars for international transfers.