News

Problems in Greece, Portugal continue cheaper Euro

28 July, 2011

CurrencyIndex

If you are transferring money to Italy, France or any other Eurozone country, we have the best Euro rates since August again today, with the mid-market rate touching 1.16 in morning trading.

The economic problems in Greece and Portugal are weighing on the Euro and decreasing its value. In addition, comments from the Bank of England that Quantitative Easing is likely to be ended next week have given sterling a boost.

There is no major European data due out this afternoon, so it may be a good time to look at securing your exchange rate today.

The end of QE end next week?

28 July, 2011

CurrencyIndex

The Pound has shrugged off a few negative data releases this week, on speculation that the Bank of England might bring an end to Quantitative Easing at their monthly policy meeting next week. If they do, it would be seen as a positive sign for the UK economy, and for sterling.

Exchange rates have held up well, particularly against the Euro, given how bad this week’s GDP figures were. If you are sending money abroad, it often pays to take advantage of speculation in case the outcome is not as expected. Don’t forget it is possible to fix an exchange rate up to 2 years ahead.

Economy stutters out of recession

28 July, 2011

CurrencyIndex

This morning’s Q4 GDP figures showed that the UK has finally emerged from recession – months after most other major economies – but only just.

The first estimate for the fourth quarter of 2009 showed a miserly 0.1% growth in the UK economy, against analysts’ expectations of 0.4%.

The very disappointing figure has led to losses of over 1c against the Euro, US Dollar and similar drops for the Pound against most other currencies. Losses may continue after the Pound’s recent fragile gains – contact Currency Index if you need to send or receive any currency.

UK GDP figures out this week – are we out of recession?

28 July, 2011

CurrencyIndex

This week’s economic calendar is as follows – most important for anyone sending money abroad or bringing funds back to the UK will be tomorrow’s GDP figure released at 9.30am. If the UK is only just emerging from recession, expect sterling weakness, while a very positive growth figure would probably give the Pound further value.

Other news likely to affect commercial exchange rates:

Monday 25th

7am – German consumer confidence

Tuesday 26th

9am – German business climate survey

9.30am – UK GDP first estimate

3pm – US consumer confidence

Wednesday 27th

12.30am – Australian CPI inflation

6.15pm – US interest rate decision

8pm – New Zealand interest rate decision

Thursday 28th

8.55am – German unemployment rate

10am – Eurozone consumer confidence

1.30pm – US jobless claims & goods orders

9.45pm – New Zealand trade balance

Friday 29th

9am – Eurozone unemployment rate

1.30pm – Canadian GDP

Retail sales bring Pound back down

28 July, 2011

CurrencyIndex

This morning’s UK retail sales data came in worse than expected – prompting a drop in value for the Pound across the board.

December’s retailers reported a 0.3% rise in sales compared to November, down from market forecasts of a 1.2% increase.

Exchange rates are still much better than 10 days ago for virtually every currency – so if you are sending money abroad, contact Currency Index for the latest rates.

Public borrowing hits record level

28 July, 2011

CurrencyIndex

After an amazing run in the last week, sterling has fallen back this morning as public borrowing has hit a new all-time record of 61% of GDP. This is the worst level since records began in 1974.

Despite the bad news, the Pound is only falling back slowly – however with the Bank of England’s deputy governer speaking tonight there could be more bad news in the pipeline. If you want to take advantage of the recent improvements in commercial exchange rates, consider securing your deal today.

More good news for GBP

28 July, 2011

CurrencyIndex

Further boosts for the Pound this morning – unemployment is down slightly (15,000 less claims in Decemeber compared to November), and the Bank of England revealed that its decision to keep quantitative easing on hold this month was unanimous.

Both announcements gave the Pound further momentum against the Euro as well as other European currencies, and rates have also improved for buying the Australian, Canadian and New Zealand Dollars.

Tomorrow morning’s UK public borrowing numbers are the next focus. If you are worried that the run of good news might come to an end tomorrow, contact Currency Index today to discuss securing your rate for your overseas currency transfer.

Inflation moves sterling higher

28 July, 2011

CurrencyIndex

This morning’s UK CPI inflation figures have given the Pound a further boost, with rates against the Euro now the best since August, if you are sending money to France, Spain, Italy or Portgual for example.

With the Bank of England’s minutes from their last meeting due out tomorrow lunch time, it may be worth looking at securing exchange rates TODAY for any foreign currency transfers, in case the Pound falls back later in the week.

Currency news this week 253

28 July, 2011

CurrencyIndex

Here are this week’s important news releases – important inflation data from the UK, Europe, New Zealand and Canada which is likely to affect commercial exchange rates.

Monday 18th
US Bank Holiday
Midnight – Rightmove house price index

Tuesday 19th
0930 – UK CPI inflation
1000 – German ZEW confidence survey
1330 – Canadian interest rate decision
2145 – New Zealand CPI inflation

Wednesday 20th
0700 – German PPI inflation
0930 – Bank of England minutes & UK unemployment rate
1200 – Canadian CPI inflation
1330 – USA PPI inflation
2145 – New Zealand retail sales

Thursday 21st
0900 – European Central Bank monthly report
1330 – US jobless claims

Friday 22nd
0930 – UK retail sales
1330 – Canadian retail sales

Best Euro rates for 4 months

28 July, 2011

CurrencyIndex

ECB President Trichet’s speech yesterday stated “uncertainty” about the Eurozone recovery – which has sent jitters through the market and decreased the price of a Euro today.

This is good news if you are sending money to France, Spain or anywhere else in Europe – the exchange rate is at its best since September.

With a lack of UK data today the probability of further gains might be small, specially with traders likely to take profits before the weekend which could bring the rate back down later today.