News

You can see our currency news market reports, published daily, on this page. Jargon-free and with our archive back to 2011, bookmark this page to stay on top of the latest currency news relating to your transfers.

This week’s currency news 355

28 July, 2011

CurrencyIndex

This week’s major economic data which is like to affect commercial exchange rates:

Monday:
Eurozone – employment change (10am)

Tuesday:
UK – CPI inflation data (9.30am)
Eurozone – CPI inflation data (10am)
Germany – ZEW economic sentiment (10am)
USA – PPI inflation data (1.30pm)

Wednesday:
USA – Federal Reserve chairman Bernanke’s speech (5pm)

Thursday:
Switzerland – interest rate decision (8.30am)
UK – retail sales (9.30am)
Canada – CPI inflation data (12pm)

All these releases are likely to move exchange rates. If you are sending money to Switzerland, Thursday’s interest rate decision will be key, while in Europe and the USA there are several important figures to show how each economy is coping with the recession.

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New high for Pound

28 July, 2011

CurrencyIndex

The Pound has continued to recover well after last week’s uncertainty, and is currently trading at its best level in 2009 against the Euro.

Rates for sending money to Austria, Spain, Italy France and the other Eurozone countries are now over 1.17 on the interbank markets for the first time in 2009.

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Pound recovers on government stability

28 July, 2011

CurrencyIndex

The Pound has recovered somewhat as Gordon Brown held the first cabinet meeting since his emergency reshuffle.

Markets have reacted positively to Alistair Darling’s continuation as Chancellor, while the immediate threat to Brown’s leadership seems to have abated.

Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.

We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.

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Dollar strenghtens on non-farm data

28 July, 2011

CurrencyIndex

This afternoon’s key American employment data (non-farm payrolls) was much more positive than expected – leading to further strength for the US Dollar against the Pound.

Anyone transferring money in US Dollars will now find their exchange rate 6c lower than its peak only a few days ago, as political trouble in the UK continues to undermine sterling.

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Pound plummets on UK political uncertainty

28 July, 2011

CurrencyIndex

As the pressure increases on Gordon Brown, the Pound is falling rapidly across the board.

If you need to send money abroad contact your currency company urgently to discuss your requirements. Today sees the local election results throughout the day, followed by Euro poll results on Sunday.

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Interest rates today

28 July, 2011

CurrencyIndex

This lunchtime sees interest rate announcements both in the UK (12.00) and Eurozone (12.45).

Although neither central bank has much room for manouevre, the Eurozone announcement at 12.45 is accompanied by a speech from ECB President Jean-Claude Trichet, which often causes some volatility in the Euro exchange rates.

In the UK, there is no accompanying speech, but the interest rate announcement also includes a policy statement on quantititive easing, which can mean all commercial exchage rates against the pound can be affected.

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But sterling weakens, is the upward run finished for now?

28 July, 2011

CurrencyIndex

Wednesday afternoon has seen Euro and Dollar rates start to come back down – have we seen the best exchange rates for now?

– Sterling fell sharply against the dollar on Wednesday, erasing earlier gains after Asian monetary officials said they would keep buying US Bonds

– Weak American employment and services sector data hurt the outlook for global economy hitting riskier assets such as sterling

– The deteriorating market sentiment prompted investors to dismiss earlier strong UK services sector data, as UK shares tumbled 2.3%

– A worsening political crisis for Gordon Brown also helped take some shine from sterling

– Profit taking, “Sterling has had a very good run recently and people are also thinking it may be prudent to take some profit off the table now,”

– Investors are nervous ahead of the Bank of England and the European Central Bank policy decisions, as well as key US jobs data on Friday

– Hazel Blears’ decision to step down follows Tuesday’s resignation by Jacqui Smith. Both are seen as undermining Brown’s authority on the eve of European and local elections

– Investors will also be looking to see whether there are any further announcements on quantitative easing on Thursday

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PMI Grows

28 July, 2011

CurrencyIndex

This morning another good surprise for the Pound – UK PMI (Purchasing Managers Index) showed expansion for May, as opposed to a small contraction expected.

PMI is a measure of the health of the UK services sector, which has been struggling during the recession – so the news is the latest in some boosts for the Pound this week. Sending dollars to the USA is, for example, now at its best level for 9 months.

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UK Consumer Confidence Up

28 July, 2011

CurrencyIndex

This month’s Nationwide Consumer Confidence data showed an increase in sentiment in the UK – above analysts’ expectations.

The announcement has given the Pound a further boost against both the Euro and US Dollar – making sending money overseas cheaper again as the recent rally for sterling continues.

If you are sending money to Dubai, don’t forget that the AED rate is also pegged to the US Dollar, so in both cases the exchange rate is currently the best it’s been since Autumn.

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UK Elections & Exchange Rates

28 July, 2011

CurrencyIndex

Anyone needing to transfer money overseas is encouraged to contact their currency company in advance of this Thursday’s European and local UK elections.

Historically, confidence in a country has been eroded by landslide defeats for incumbent parties – so international markets (and sterling) may not react well to any Labour wipeout this week.

The Pound is relatively strong at the moment but is still sensitive to negative news.

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