News

Pound struggles despite data

28 July, 2011

CurrencyIndex

Yesterday’s US employment data (non-farm payrolls) was bad news for the US economy – but there was little improvement in the exchange rate. This is a worry for anyone needsing to send money to the USA, as normally a negative reading in the States would improve the exchange rate. Has the Pound reached the top for the moment?

In Europe, ECB President Jean-Claude Trichet said after the Eurozone held interest rates, that the decision was because of the “appropriate” cost of borrowing at present, dashing hopes of a Eurozone interest rate cut which would be likely to improve the Euro exchange rate for Brits.

Speak to your Currency Index dealer for some more opinions, but it may be that the good run the Pound has enjoyed in the last 2 months, has come to an end for the moment.

UK economy shrinks most in 50 years

28 July, 2011

CurrencyIndex

Figures out today showed the UK economy contracted by 2.4% in the first quarter of 2009, the worst figure in 50 years.

The figures were adjusted from earlier indications, and were much weaker than originally estimated.

The Pound has fallen sharply on the news, meaning the best exchange rates this year look like they may be a peak in the market for the moment.

This week’s currency news 347

28 July, 2011

CurrencyIndex

This week sees a number of data releases which are likely to bring some volatility back to the market, after a reasonably quiet week last week.

If you need to send money overseas, keep in touch with your currency broker for the latest news affecting your exchange rate.

For all rates against GBP
Tuesday – Nationwide house price survey
Tuesday – GDP data 9.30am
Wednesday – manufacturing inflation 9.30am

Australian Dollar
Tuesday – new home sales 1am
Wednesday – retail sales 2am
Thursday – Australian trade balance 2.30am

Euro
Thursday – unemployment rate 10.00am
Thursday – interest rate decision & speech 12.45pm
Friday – retail sales for May 10.00am

US Dollar
Tuesday – June consumer confidence 3.00pm
Wednesday – May home sales 3.00pm
Thursday – weekly earnings 1.30pm
Thursday – non-farm payroll data 1.30pm
Friday – market closed (US bank holiday)

Swiss Franc
Friday – Swiss CPI inflation (8.15am)

Euro weaker on ECB cash injection

28 July, 2011

CurrencyIndex

The Euro exchange rate has recovered most of its losses of the last couple of days, after the ECB pumped €442bn into credit markets to encourage liquidity to help resolve the Eurozone’s recession.

This is similar to the Bank of England’s quantitative easing programme, which initially weakened the Pound before seeing it strengthen weeks later.

If the same pattern happens for the Euro, we could therefore be entering a brief period where the single currency is at cheaper levels.

If you are worried about the increased cost in recent months of sending money abroad, don’t forget you can fix exchange rates up to 2 years ahead through a reputable currency broker.

Euro rate down on data releases

28 July, 2011

CurrencyIndex

Euro exchange rates have fallen today, after German consumer confidence and European factory prices both came out higher than expected.

The Euro has strenghtened [become more expensive] across the board, so if you need to send Euros to Spain, France or any other Eurozone country, keep a close eye on rates to make sure you don’t lose out.

GBP Outlook

28 July, 2011

CurrencyIndex

With little data released this week, the Pound has continued its upward trend after a blip on Thursday after poor UK retail sales figures.

We are currently very near the best Euro exchange rates this year so far, and whether the Pound can find any more strength from here will become apparent this week. Analysts were only expecting 1.20 to be achieved towards the end of the year, so we would be surprised to see much more movement in the short term.

This week:

Today 9am – German IFO business survey

Tuesday 9am – European PMI (inflation indicator)

Wednesday 7.15pm – American interest rate decision & speech

Thursday 7am – Nationwide UK house price survey

Thursday 7am – US GDP

Swiss Interest Rates Held

28 July, 2011

CurrencyIndex

In Switzerland, interest rates were kept on hold this morning at 0.25%. This was as expected, although the Swiss Franc has weakened slightly to 1.7670 [interbank] making money transfers to Switzerland slightly cheaper.

Pound falls on UK employment data

28 July, 2011

CurrencyIndex

Despite better-than-expected UK jobs data, the headling unemployment rate has risen to its highest level since Labour came to power in 1997.

The Pound has tumbled since the announcement, falling a cent against both the Euro and Dollar. The best Euro exchange rates are now trading around 1.17 as a mid-market rate.

Bank of England minutes today 353

28 July, 2011

CurrencyIndex

At 9.30 this morning the minutes from this month’s Bank of England meeting are released. Any clues about interest rates going back up later in the year are likely to have a positive effect on the Pound, and therefore the best exchange rates available if you are transferring money overseas.

Keep in touch with your currency company if you would like to be informed of the latest movements affecting your transaction.

5 pieces of good news boost Pound

28 July, 2011

CurrencyIndex

This morning’s data has been overwhelmingly positive for the Pound, with commercial exchange rates available for people sending money abroad improving across the board.

UK CPI for May was up 0.6% (expectations were 0.3%)
UK CPI for the year to May was up 2.2% (1.9%)
UK Retail Prices for May were up 0.6% (0.2%)
UK Retail Prices for year to May were down 1.1% (-1.5%)
UK CPI for year to May was up 1.6% (1.5%)

The Pound gained almost 2c against both the Euro and the Dollar on the release of the news.