News

This week for the Pound

28 July, 2011

CurrencyIndex

9.30am on Tuesday and Wednesday see this week’s main data releases for the Pound – UK CPI/RPI inflation figures on Tuesday, and Bank of England Minutes on Wednesday.

Anyone sending money abroad this week should be aware that both releases are likely to affect exchange rates across the board.

For data releases overseas which might affect individual currencies, please check back here later in the week or contact a currency broker to advise you of all relevant news.

Eurozone GDP posts largest drop on record

28 July, 2011

CurrencyIndex

European GDP showed a 4.6% year-on-year decline – the biggest fall on record for the economic area.

Against the Pound, there has been little movement – surprising given the negative Euro-news which might have weakened the single currency off and provided better exchange rates for sending money to Europe.

The next major data out is from the USA, where Consumer Price Index (a leading inflation indicator) is announced at 1.30pm. We expect some volatility for US Dollar exchange rates.

Amercan data this afternoon

28 July, 2011

CurrencyIndex

1.30pm sees some important data out if you are sending money to America.

Jobless claims and Producer Price Indicator figures are likely to affect the value of US Dollar exchange rates.

Mid-market rates against the Pound are currently at 1.5150.

Inflation report today

28 July, 2011

CurrencyIndex

10.30am today is Bank of England Governer Mervyn King’s speech and the release of the Bank’s quarterly inflation report.

We would expect volatility in all commercial exchange rates around this time. If you are looking to buy or sell any currency against the Pound, contact your currency exchange broker who will be able to monitor the situation for you.

Unemployment up to 7.1%

28 July, 2011

CurrencyIndex

UK unemployment has risen to 7.1%, a bigger increase than expected. The Pound has not reacted too badly, although a slight dip from the day’s highs against both the Euro and US Dollar have made sending money abroad slightly more expensive.

Exchange rates remain reasonably stable but are likely to be sensitive to data releases for the rest of the week.

UK Data Boosts Pound

28 July, 2011

CurrencyIndex

This morning’s UK manufacturing and trade balance data has given the Pound a welcome boost for anyone looking to transfer money abroad.

Exchange rate are up across the board after better-than-expected figures were released at 9.30am.

Data out this week

28 July, 2011

CurrencyIndex

This is a busy week for foreign exchange news – commercial exchange rates are likely to be volatile across the board.

12th May (Tuesday)
0030 US Federal Reserve Chairman Bernanke’s speech – likely to affect US Dollar rates for sending money to the USA
0930 UK industrial and manufacturing data, likely to affect the Pound significantly

13th May (Wednesday)
0930 UK unemployment data
1030 Bank of England quarterly inflation report and accompanying speech
1330 USA retail sales data

14th May (Thursday)
0200 Australian inflation expectations
1330 US factory inflation
2345 New Zealand retail sales data

15th May (Friday)
0700 German GDP
1000 European inflation figures, likely to cause movements in the Euro exchange rate

American and UK data out Friday

28 July, 2011

CurrencyIndex

Friday sees the monthly “non-farm payroll” data from the USA – a key indicator of the employment market and typically a volatile moment for the US Dollar.

If you need to send money to America, 1.30pm is the key moment. If more jobs have been created in the US economy than expected, the dollar is likely to strengthen and become more expensive.

Also on Friday, UK PPI (Producer Price Index) figures are out at 9.30am. This is an important measure of inflation and can give the Pound a boost – or the opposite – which will affect all exchange rates if you are sending money abroad.

UK & Eurozone interest rates

28 July, 2011

CurrencyIndex

As expected, at today’s MPC and ECB meetings, the UK interest rate has been held at 0.5%, while the Eurozone rate has been cut to 1%.

The cut was already priced in to forex markets, meaning the exchange rate for buying Euros did not improve much. Jean-Claude Trichet’s accompanying speech has however caused some volatility, as the Eurozone for the first time discussing a quantitative easing programme similar to those in the UK and USA.

The net result has been strength for the Euro, which is back down around the 1.12 level, having peaked at 1.1409 in earlier trading today. Currency brokers will be able to advise you of the latest movements.

UK and EU interest rates today

28 July, 2011

CurrencyIndex

The Eurozone’s ECB and UK’s MPC today release their monthly interest rate decisions – the UK at 12.00 and Eurozone at 12.45.

A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.

The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 – so anyone sending money to France, Spain or Portugal will be pleased.

If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.