News

Bank of England split on QE

28 July, 2011

CurrencyIndex

Minutes released this morning showed that the Bank of England were split on their quantitative easing decision this month – raising fears that there could be further action ahead.

One member of the committee even voted for an extra £40bn of asset purchasing this month.

The Pound has fallen on the back of this news, and with UK mortgage approval data out tomorrow, there could be further volatility ahead.

Pound up on inflation news

28 July, 2011

CurrencyIndex

UK inflation figures, released this morning, were better than expected – with the core CPI measure showing a 1.8% increase in the year to October.

Higher inflation makes higher interest rates more likely, so the Pound has taken some strength today across the board.

Beware though, tomorrow morning’s Bank of England minutes could throw a spanner in the works if there are hints of more quantitative easing to come. Contact Currency Index if you would like to chat through your options.

This week’s news

28 July, 2011

CurrencyIndex

Please see our regular weekly article for this week’s foreign exchange news.

UK inflation tomorrow (Tuesday) at 9.30am, and Wednesday’s Bank of England minutes, also at 9.30am, are likely to be the main events this week on the foreign exchange markets.

US Dollar weaker on trade balance data

28 July, 2011

CurrencyIndex

US Dollar rates have continued to improve slightly, after Friday’s weaker-than-expected US trade balance figures.

September’s defecit was $36.5bn, over $4bn worse than market expectations.

The US consumer sentiment survey published on Friday was also negative, giving the US Dollar some further weakness – good news for anyone sending money to the USA.

Don’t forget, you can fix exchange rates up to 2 years ahead with Currency Index.

Unemployment & Inflation

28 July, 2011

CurrencyIndex

Yesterday’s unemployment figures showed a rise in the UK’s jobless total, although not as much as some analysts had feared.

The Bank of England’s quarterly inflation report was also slightly negative, with Governer King stating that UK interest rates are likely to remain low until 2011. The Pound is hampered by low interest rates, and dropped accordingly during King’s speech.

If other worldwide interest rates start to increase before the UK, exchange rates for sending money abroad could remain low throughout 2010.

Bank of England speech & news tomorrow

28 July, 2011

CurrencyIndex

Tomorrow sees 3 important events for the Pound:

1. UK unemployment figures (9.30am)
2. Quarterly Bank of England inflation report (10.30am)
3. Bank of England Governer Mervyn King’s speech (10.30am)

It is likely to be a volatile morning on the foreign exchange markets. The unemployment and inflation news are always key for the UK economy and therefore the Pound, and King’s speech will provide economic projections.

Often, King’s speeches are sterling-negative, as the Bank of England tries to maintain realistic expectations in financial markets.

This week’s currency update

28 July, 2011

CurrencyIndex

Please see our weekly article on the Move Channel for all this week’s data releases and the outlook for exchange rates.

Important news will be posted here throughout the week, or call us at Currency Index on 0800 043 2623 for the latest market update.

Worldwide Currency Roundup

28 July, 2011

CurrencyIndex

Please see our monthly article for views on major world currencies in the current economic climate, including an economic overview for the UK, USA and Europe containing what you need to know if you are sending money abroad in the next few months.

Bank of England prints another £25bn

28 July, 2011

CurrencyIndex

The Bank of England today announced an extra £25bn of quantitative easing – although it stopped short of adding £50bn as some analysts had expected.

The Pound gave a mixed reaction, gaining strength initially, before falling back as markets took the news in. ECB President Trichet also said this afternoon that Eurozone inflation would turn positive soon, signalling that European interest rates may start to go up before those in the UK. This would be likely to make the Euro more expensive.

As the dust settles on these announcements, sterling is back where it started the day against most currencies, although US Dollar exchange rates are slightly better than they were this morning.

Services data send GBP higher

28 July, 2011

CurrencyIndex

This morning’s PMI services data showed an unexpected expansion in the UK’s services sector – giving sterling a boost across the board.

There may be a 24 hour window to buy currency between now and the Bank of England’s vital quantitative easing announcement tomorrow lunch time – if more money is injected into the economy, analysts expect the Pound to fall significantly.

Speak to us today at Currency Index if you are sending money overseas. You can call free on 0800 043 2623.