News

This week’s FX news

28 July, 2011

CurrencyIndex

A quiet week ahead this week, with little major data out to affect commercial exchange rates. Contact Currency Index for our own views and opinions affecting any currency transactions.

Tuesday 11th

0930 – UK trade balance

1315 – Canadian new house builds

Wednesday 12th

0930 – UK average earnings, unemployment rate and jobless claims

1000 – Eurozone industrial production

Thursday 13th

0700 – German GDP

1330 – US retail sales and jobless claims

Friday 14th

1000 – Eurozone CPI inflation

1330 – US CPI inflation

US employment data boosts Dollar

28 July, 2011

CurrencyIndex

This afternoon’s non-farm payroll data is not the news you were looking for if you need to send money to the USA – the jobless total has fallen more than expected, as the US economy added more jobs in July than analysts had estimated.

The US Dollar has been volatile since the announcement, dropping below 1.67 [interbank rate] briefly but then rallying as the Pound has found some strength accross the board.

Those of you holding out for trading rates above 1.70 might like to reasses their targets following the main monthly employment news of the month from America.

What goes up

28 July, 2011

CurrencyIndex

…must come down. The Bank of England today unexpectedly announced a further £50bn injection of cash into the economy – a shock move which has dented the Pound significantly.

Exchange rates dropped over 1c against both the Euro and US Dollar immediately after the announcement at 12.30pm.

Next we look to tomorrow’s PPI inflation figures in the morning, and at 2.30 the key monthly US emplyment data is announced.

More good news for GBP

28 July, 2011

CurrencyIndex

The Pound has continued up this morning – breaking the 1.18 level against the Euro and 1.70 level against the US Dollar [mid-market rates] after more good economic news from the UK.

Manufacturing production was up 0.4% in June, while PMI services data was positive in the UK and negative in Germany. Retail sales also fell unexpectedly in the EU in June.

So the combination of good news in the UK and bad news elsewhere has pushed commercial exchange rates up today – however the interest rate decisions on the UK and Europe tomorrow could shake things up, so do consider looking at rates today if you’d like to take advantage of the recent movements when sending money overseas.

Pound up – this week’s FX news

28 July, 2011

CurrencyIndex

The Pound has soared to a 10-month high against the US Dollar and is near its best against the Euro this year, after Barclays and HSBC reported unexpectedly good profits today.

This week we have a number of important data releases which could make or break the recent rally – keep in touch with Currency Index for the latest news.

Tuesday 4th
Aussie retail sales (2.30am)
Aussie interest rates (5.30am)
Swiss CPI inflation (8.15am)
US income & consumption (1.30pm)

Wednesday 5th
UK manufacturing (9.30am)
European retail sales (10am)
US factory orders (3pm)
New Zealand unemployment rate (11.45pm)

Thursday 6th
Australian unemployment rate (2.30am)
Bank of England interest rates (12pm)
European interest rates (12.45pm)

Friday 7th
UK PPI core inflation (9.30am)
US non-farm payrolls and earnings (2.30pm)

Property market gives UK PLC a boost

28 July, 2011

CurrencyIndex

Exchange rates for sending money abroad are up across the board today – mostly due to Nationwide’s house price survey showing a 1.3% rise in house prices for July.

The UK’s biggest building society believes that we may even see house prices finish the year higher than they started – which would have been unthinkable just a few months ago.

This, along with a rise in mortgage approvals announced earlier in the week by the Bank of England, has given the Pound a welcome boost, as good economic news (along with the increased likelihood of higher interest rates in due course) tends to make the currency more attractive to investors.

As a result the Pound is now trading at nearly 1.65 against the US Dollar and for Euro exchange rates, the mid-market rate is back above 1.17 for the first time in weeks.

Quiet week to come?

28 July, 2011

CurrencyIndex

There is very little important data out this week, as much of the key inflation, interest rate, employment and housing data for the month has all been released earlier in July.

Look out for the following which may cause some volatility in exchange rates:

Today – US new homes sales (3pm)
Tomorrow – US consumer confidence (3pm)
Wednesday – Australian new home sales (1am)
Thursday – US jobless claims (1.30pm)
Thursday – UK consumer confidence survey (released overnight)
Friday – European CPI inflation (10am)
Friday – US GDP (1.30pm)

Friday’s Data

28 July, 2011

CurrencyIndex

Today’s figures likely to affect commercial exchange rates are as follows:

8.30am German PMI inflation
9.30am UK GDP
2.55pm US consumer sentiment

Monday also sees the monthly Nationwide house price survey at 7am which is likely to have an impact on UK markets, which are fragile to any news about the recovery (or lack of) in the economy. Contact Currency Index if you are concerned about the implications for your transaction.

Retail sales & mortgages bring some cheer

28 July, 2011

CurrencyIndex

Today’s mortgage approval figures and retail sales numbers for June were both better than expected, which gave the Pound some strength, in a choppy day on the markets.

Tomorrow’s UK GDP figure will be eagerly anticipated – if the nation’s income is improving significantly, there may be a spike tomorrow afternoon offering the opportunity to send money abroad more cheaply. If the news is bad, perhaps the Pound will end the week on a low note.

Bank of England Boost

28 July, 2011

CurrencyIndex

Today’s Bank of England minutes, unsurprisingly, showed a unanimous vote to keep UK interest rates on hold at 0.5%.

The slight surprise, however, was that the central bank has kept its quantitative easing programme at £1.25bn, resisting the temptation to ‘print more money’ (the maximum allowed under current legislation is £1.5bn), and noting the worst of the recession is probably behind us.

The pleasing news has given some support to what was a rapidly falling Pound – giving opportunities for foreign currency transfers at better rates than we were seeing.

In the last few days, sterling has been falling consistently – so there may be an opportunity today to secure currency at relatively good levels in case there is any further bad news later in the week.