News

Rate Alert – Pound Falling

28 July, 2011

CurrencyIndex

The Pound is being sold off this today, making exchange rates worse for sending money abroad. If you have a transfer to make, contact your currency company for the latest news.

Today’s Data Releases

28 July, 2011

CurrencyIndex

A good day for the Pound yesterday, continuing Monday’s improvement against the Euro and Dollar. The sterling-dollar rate has now improved around 5% in the last week.

Watch out for the following data releases today (all times GMT):

9.00am German business climate and expectation survey
2.00pm US Home Sale data

If you are sending money in Euros or Dollars these could affect commercial exchange rates today – keep in touch with your Currency Index account manager if you would like us to inform you of any significant movement.

Rates spike on UK inflation data

28 July, 2011

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The Pound improved significantly against the Euro and Dollar this morning after UK inflation data showed static prices, instead of the anticipated deflation which would have been seen as very negative for the UK economy.

Commercial exchange rates are therefore considerably better than yesterday, although they are already dropping down from a peak at about 9.45am.

Sending payments to Eurozone countries in particular is over 1% cheaper than yesterday evening.

This week’s currency news 428

28 July, 2011

CurrencyIndex

Data out this week which could affect exchange rates – if you need to send money overseas or transfer money to the UK, speak to a currency broker to check the implications of these releases.

Monday 1230 – Canadian economic indicators (Canadian Dollar)
Monday 1400 – US home sale data (US Dollar)
Tuesday 0930 – UK key monthly and yearly inflation numbers (Pound)
Wednesday 0900 – German business climate survey results (Euro)
Thursday 1230 – US jobless claims and GDP (US Dollar)
Friday 0930 – UK GDP (Pound)

Dollar weaker on Fed cash injection

28 July, 2011

CurrencyIndex

The dollar has weakened today, making money transfers to the USA cheaper, after the surprise news that the Federal Reserve has injected $1.2tn into the US economy to stimulate lending.

While this is a positive action, the creation of more dollars (similar to the Bank of England’s quantitative easing 2 weeks ago) is that the value of the currency is actually decreased.

Therefore exchange rates have got better, and a pound buys around 3c more today than it would have done yesterday.

Currency companies can help if you need to send or receive dollars from abroad.

UK Recession to last longest?

28 July, 2011

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This morning’s Metro reported on the UK recession being likely to last longer than any other in the worldwide slowdown. Unemployment figures out this morning may show unemployment over 2 million for the first time since 1997.

All this is bad news for the Pound. Sending money overseas is likely to continue to become expensive as the UK reels from a constant flow of negative news.

If you do need to buy or sell currency, speak to a currency broker to make sure you don’t lose out.

This week’s exchange rate news

28 July, 2011

CurrencyIndex

After last week’s fall in the value of sterling, this week some important figures which could make it a week of volatility for exchange rates.

Tuesday morning’s UK house price index and German economic sentiment numbers may both have an effect on the best Euro exchange rates. A larger than expected drop in UK house prices would not be good news for the struggling Pound, while conversely we might see German business confidence taking a knock which would be likely to make the Euro slightly cheaper.

On Wednesday, the minutes from the Bank of England’s monetary policy committee meeting are released, with notes on the state of the economy and the UK’s trial of quantitative easing. Volatility is probable, specially as unemployment data is released at the same time.

For anyone needing to send money to Canada or the USA, Thursday brings Canadian inflation data at 11am, followed by US employment data at 12.30 and manufacturing data at 2pm. There is also US data on Tuesday and Wednesday lunchtimes which will be of interest to anyone wiring funds to the USA.

Finally on Friday we have EU trade balance followed by Federal Reserve chief Bernanke’s speech at 4pm.

Any individuals or businesses sending money abroad would be well advised to contact a specialist currency broker to keep an eye on the relevant rates this week. The fragility of the Pound is likely to last for some time, but there are still opportunities to secure reasonable rates for buyers and sellers in the know.

Euro exchange rates

28 July, 2011

CurrencyIndex

Euro exchange rates have lost another cent today, now trading at 1.0826.

UK manufacturing data out this morning was poor, which weighs on the Pound, while German data out at lunch time was more positive, making the Euro more expensive.

Sending money in Euros is now approaching record price levels.

Tomorrow’s UK trade balance figures should give a clue as to the next movement – keep in touch with your currency broker if you have any requirments. Don’t assume the exchange rate will improve – it could be an expensive mistake.

Pound falling this week

28 July, 2011

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Monday has started with the Pound in sharp decline following a wave of uncertainty on the markets amidst speculation that the banking sector has more bad news to come.

If you need to send money abroad, speak to your currency broker today.

Of course, if you have money to bring back to the UK, now could be a great time to secure exchange rates in advance.

Non Farm Payrolls Today

28 July, 2011

CurrencyIndex

1.30pm today sees the release of key monthly employment data in the USA – “non-farm payrolls”. This is an estimate of the number of workers in the US drawing a salary, excluding seasonal industries like farming.

It is not unusual for the figures to be wildly different to expectations, which can cause volatility in the US dollar exchange rate. Those of you looking to either buy American dollars, or even to bring Dollars back to the UK, would be well advised to look at rates this afternoon as there may be opportunities to buy.

A reputable foreign exchange broker will of course be able to provide help for your specific circumstances.