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.

Australian Dollar dips below 2.00

28 July, 2011

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The Australian Dollar has fallen below $2 to the Pound for the first time in recent memory this morning, due to a combination of factors which have combined to make sending money to Australia yet more expensive this week.

1. Australian interest rates were held on Tuesday
2. Retail sale in Australia rose more than expected (2.2% in March)
3. Australian inflation increased
4. Investors are switching back to higher-yielding currencies like the Aussie

All these have placed the Aussie in high demand, increasing the price and therefore decreasing the exchange rate. If you have to send Australian dollars abroad for any reason in the next few weeks or months, contact your UK currency company for some help.

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Euro cheaper on interest rate speculation

28 July, 2011

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The Pound pushed above 1.13 against the Euro in trading today, following speculation that the ECB will cut interest rates this Thursday from 1.25% to 1%.

Lower interest rates tend to mean a weaker currency – and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.

The ECB’s announcement comes on Thursday lunch time – if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.

Speak to your currency broker if you have any forthcoming Euro requirements, and don’t forget you can fix exchange rates in advance for up to 2 years.

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Eurozone PMI falls

28 July, 2011

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European factory prices are still declining faster than expected, according to figures out this morning.

In a Euro-negative announcement, Euro exchange rates have improved against the Pound, good news for anyone sending money to a French notaire for a property purchase for example.

Producer prices fell 0.7% for March and 3.1% for the year to end of March, against analysts’ expectations of 0.5% and 2.9% respectively.

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Australian interest rates held

28 July, 2011

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Overnight the RBA kept Australian interest rates on hold at 3%. Those of you sending money to Australia would have been hoping for a cut, which could have improved the exchange rate.

Aussie retail sales and emplyment data are also out this week.

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Euro & Dollar Rates Up

28 July, 2011

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European markets have been open on Monday, during the UK bank holiday, and a fall in retail sales figures in Germany has weakened the Euro slightly. Mid market rates were nearly back at 1.12 late on Monday – the best Euro exchange rates for a couple of weeks.

At the same time, investors have moved to slightly riskier assets again, resulting in the ‘safe’ US Dollar being sold off over the weekend. A reduction in demand means a cheaper dollar and better rates if you are sending money to the USA to pay for a property or importing goods.

There is more data out in the USA, Europe and the UK this week which could affect your rates – check back here for the latest news or contact your UK currency company directly for news & analysis relevant to your exact requirements.

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Australian Dollar rates this week

28 July, 2011

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Any of you looking to emigrate down under will need to think about sending money to Australia and be worried about recent poor exchange rates.

This week, a few important data releases will give us a clue as to the future direction of the rate – and may provide opportunities to buy or fix exchange rates for the future.

At 4.30am on Tuesday the RBA interest rate decision is announced – a cut in Aussie interest rates would do no harm to the prospects of better Australian exchange rates. Retail sales data is then released at 2.30am on Wednesday, followed by employment figures at 2.30am on Thursday.

Check with your currency broker each morning for any differences in exchange rates and full analysis of the figures.

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UK PMI gives Pound a boost

28 July, 2011

CurrencyIndex

This morning’s Purchasing Managers Index data, a measure of business conditions in the UK manufacturing sector, has come out significantly higher than expected.

The Pound has received a welcome boost. Exchange rates against the Euro and US Dollar are up around 2c each, so property buyers sending Euros to Spain for example will be pleased with the news.

With the long weekend approaching, be aware that the markets still trade in many countries, so rates can move over the bank holiday. Call your currency broker to discuss your options.

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House prices decline again

28 July, 2011

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The monthly Nationwide house price survey out today shows a 0.4% fall in April, although the pace of decline has slowed.

The news is a blow to the beleagured housing market after HMRC’s figures recently showed an increase in the number of property transactions.

Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand – so exchange rates are unlikely to improve.

The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.

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Fed expects weakness to persist

28 July, 2011

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At the monthly Federal Reserve interest rate meeting in the USA last night, as expected there was no change to the 0.25% base rate in operation.

Following news that ths US economy contracted more than expected during the first quarter, the Fed said “the economy has continued to contract”, adding that it would “remain weak for some time”.

The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.

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UK Mortgage Lending falls back

28 July, 2011

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Mortgage lending in the UK fell for the first time in 4 months during March, figures out today show.

6.8% less new mortgages were issued than in February.

The news is a blow after some encouraging recent data suggesting the housing market may at last be picking up – and the news has hit the Pound on foreign exchange markets this afternoon.

The Pound fell around 1c against the Euro and US Dollar, while sending money to Australia is now over 1% more expensive than yesterday. Candian Dollar exchange rates have also fallen.

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