News

Euro cheaper on PPI data

28 July, 2011

CurrencyIndex

The Euro has lost ground (become cheaper) again today as Eurozone producer prices dropped 0.5% in February – leaving prices 1.8% weaker than in February last year.

This is the biggest annual drop in prices in Europe for almost 10 years, adding pressure to the European Central Bank to cut interest rates further in the coming months.

Lower interest rates tend to produce a weakening currency – so this is good news for anybody looking to send Euros to a foreign bank.

The exchange rate will struggle to improve much, however, as the Pound is dogged by one of the worst recessions in the western economies, according to analysts.

Speak to your UK currency broker to discuss any implications on your own currency requirements.

This week’s currency news 416

28 July, 2011

CurrencyIndex

Please see our weekly article for a list of this week’s currency data releases:
http://www.themovechannel.com/features/b455859f-1658/

The Pound improved last week for 3 reasons:

1. Surprise increase in UK house prices
2. Negative US data (poor non-farms employment data on Friday)
2. Negative Euro data (interest rates only cut by 0.25% last week)

This week it will be interesting to see if the Pound comes back down, or consolidates at a higher level. To make sure you achieve the best Euro rates or the best rate for sending dollars, contact your currency company today.

Sterling jumps after UK services PMI data

28 July, 2011

CurrencyIndex

Earlier today Sterling jumped against the Euro and US Dollar after a higher than expected service sector PMI data report, hitting a seven week high against the dollar. Bank of Scotland’s Treasury currency analyst Wahid had this to say “The UK PMI has snapped up quite sharply higher and we’re seeing sterling rally on the back of that”.

The Euro rose early on Thursday after the ECB cut interest rates by less than expected, down 25 basis points rather than 50 basis points. But before the Euro could push on the ECB President Jean-Claude Trichet signalled there may be another cut in interest rates next month, as well as a decision on non-standard measures.

Unemployment looks likely to rise over the next few months according to Alistair Darling. Unemployment hit a 12 year high last month, hitting 2 million unemployed.

If you would like any currency guidance during this hectic time, do not hesitate to contact one of our senior brokers at Currency Index on 0800 043 2623.

US Dollar Cheaper on Jobs Data

28 July, 2011

CurrencyIndex

Sending dollars to America is at its cheapest level for some weeks – today’s jobless data showed the highest level of benefit claimants in the USA since 1982.

Such bad news tends to weaken the US currency as it has today – mid-market levels are now at 1.4697.

Of course, if you are sending money to Dubai in UAE Dirhams, or need any other currency pegged to the US Dollar, your exchange rate has also improved.

Currency Index is a specialist currency company and can help you with any foreign transactions – call us for a friendly discussion.

ECB Cuts Euro Interest Rates

28 July, 2011

CurrencyIndex

The European Central Bank has cut the Eurozone interest rate by 0.25% to 1.25%.

This was a smaller cut than expected and may cause some Euro strength – making the best Euro exchange rates more expensive if you are sending money abroad.

Analysts were hoping for at least a 0.5% cut, which may have weakened the Euro and given a boost to the Pound.

House Prices in Shock Rise – Pound Up

28 July, 2011

CurrencyIndex

Nationwide this morning reported a surprise jump in house prices for February – up 0.9%.

This is the first rise reported in 16 months and some much needed good news. The Pound has responded by surging against the Euro and US Dollar – although it is yet to break 1.10 against the single currency.

Later today the ECB’s interest rate decision could provide the opportunity to buy Euros at better rates than have been available for some weeks. Contact your currency company to discuss your requirements.

Pound up on manufacturing data

28 July, 2011

CurrencyIndex

The Pound has surged this morning against the Euro and Dollar, after UK manufacturing data was not as bad as had been predicted by analysts.

The Bank of England has, however, warned that we are yet to feel all the negative effects of higher unemployment in the UK.

Euro exchange rates are also being buoyed by the prospect of an interest rate cut by the European Central Bank tomorrow. In theory this should make sending Euros to France, for example, cheaper – but the better exchange rate is often priced in prior to the announcement.

Therefore, anyone needing to buy Euros might have a good opportunity today and tomorrow to secure slightly better rates than we have seen in the last week.

This week’s exchange rate outlook

28 July, 2011

CurrencyIndex

This week’s data likely to affect exchange rates:

Tuesday – European Unemployment & Inflation – 9am and 10am
Wednesday – UK Industrial Production Data & House Price Survey – 9.30am and 10am
Thursday – ECB Interest Rate Decision & US Jobless Claims – 12.45pm and 1.30pm
Friday – US Non Farm Payrolls – 1pm

A busy week, specially for anybody looking for the best Euro rates or commercial exchange rates for the dollar.

Thursday’s Eurozone interest rate decision is an opportunity for the ECB to cut interest rates – they have been reluctant to do this so we could see some Euro weakness if a rate cut is announced.

For the USA, Friday’s non-farm payroll data is the key monthly employment statistic which often moves the dollar significantly one way or another, depending on the number of jobs reported.

Speak to your currency company if you would like more information on how any of these releases might change rates and therefore the price of your currency.

Today’s Currency News

28 July, 2011

CurrencyIndex

The UK’s GDP data is released today at 9.30am. This figure shows the total output of the UK economy, both quarterly and annually.

A lower than expected figure would be likely to bring further pressure on the Pound, making commercial exchange rates lower for anybody importing goods or buying overseas property.

At 12.30 today, American personal spending data is released – while this is not a major piece of news it may affect the rates for anyone needing to send money to the USA.

Retail Sales weigh on Pound

28 July, 2011

CurrencyIndex

This morning’s retail sales figures were much worse than expected, causing a sharp decline in the Pound and exchange rates.

Growth slowed to 0.4% last month, compared with a 3.6% rise in January.

Slowing retail sales will worry analysts as a sign of deepening recession, adding to deflationary fears. This is on the back of the government’s failed auction of bonds yesterday which added to the doom and gloom in the UK.

The Pound has fallen nearly a cent against the dollar and euro, although commercial exchange rates are still better than 10 days ago.