News

Exchange Rate Improvement

28 July, 2011

CurrencyIndex

The Pound is up today on the back of a successful government auction of gilts (UK debt).

Confidence in the UK has been fragile in recent weeks, but this morning investors returned to buy UK assets and as a result the Pound has seen a boost.

That means if you are buying currency to send abroad, there’s a spike in exchange rates which is obviously good news.

There are further announcements due this week which could weigh heavy on the Pound, so get in touch with a currency broker to make sure you do not miss out on any opportunities in the market.

US Interest Rates Tonight

28 July, 2011

CurrencyIndex

Tonight the Federal Reserve’s FOMC announce the monthly interest rate change in the USA.

While the Fed currently has low interest rates at 0.25%, there is not much room for any further cuts. However, the accompanying statement is just as important, as it gives the central bank’s outlook for the US economy – which in turn is likely to affect US dollar exchange rates.

Money transfers to America have become more expensive recently, as the dollar rate has fallen from $2 last year, to below $1.40 to the Pound. A slight recovery in recent days has helped ease the pain.

If you do need to buy US dollars in the coming days, weeks, or months, make sure you speak to an expert currency broker who can help you keep the costs down as much as possible.

Money transfers to New Zealand

28 July, 2011

CurrencyIndex

New Zealand Dollar rates are likely to show some volatility this week – the Reserve Bank of New Zealand (RBNZ) announces its latest interest rate decision on Wednesday.

Currently rates are set at 5%, and a cut to around 4% is expected. Expectation of a rate cut has led to a weaker dollar – and better exchange rates for money transfers to New Zealand.

Of course, if the RBNZ doesn’t cut interest rates as much as expected, you could expect exchange rates to worsen accordingly.

Make sure you have a UK currency broker like Currency Index looking after you if you are moving to New Zealand, or sending money out there for any reason. Don’t forget, you can book exchange rates up to 2 years ahead to help keep your costs under control.

South Africa Rand Rates

28 July, 2011

CurrencyIndex

ZAR rates eased higher this morning on the back of a stronger US dollar and falling Government bond prices.

Sending money to South Africa from the UK is now over 1% cheaper than on Friday.

If you have a transfer to make in the coming weeks, make sure you are in touch with a reputable currency company who can keep you up to date with the latest developments.

Pound battered by bank bailout

28 July, 2011

CurrencyIndex

The Pound has suffered another awful time this week, as investors lose confidence in the UK economy following the government’s second round of banking bailouts this week.

Euro exchange rates are tumbling towards their all-time low set 2 weeks ago, while buying US dollars has become the most expensive since the 1980s.

Transferring money to Canada, South Africa and Dubai is also now much more expensive.

With no sign to the end of Britain’s economic troubles, we are unlikely to see dramatic improvement in the short term. If you need to buy a large quantity of currency, for example for an overseas property purchase, make sure you are in touch with a specialist currency company to discuss your options.

This week’s currency news 460

28 July, 2011

CurrencyIndex

Key data this week which might affect exchange rates – particularly for those of you looking for Euro exchange rates – are shown in our weekly economic calendar.

Bank of England Governer Mervyn King speaks tomorrow, so look for sterling volatility depending on the contents of the speech. On Wednesday, the minutes from the last Bank of England interest-rate setting meeting are released – this should give us clues as to whether further interest rate cuts are likely and again this will weigh on the Pound one way or another.

Eurozone payments will likely be affected even more on Wednesday as ECB president Trichet will be speaking – followed by the monthly ECB report on Thursday.

Finally on Friday, UK retail sales figures are released, and any further bad news from the high street is likely to filter through and drag the Pound lower again. Keep in touch with your currency company so that you don’t get caught out by any of the announcements this week.

Euro interest rates cut – cheaper Euros available

28 July, 2011

CurrencyIndex

The ECB have cut their interest rates by 0.5% to 2% today – although this was expected, the Euro has weakened this afternoon meaning that the best Euro exchange rates are now over 1.11.

It is unlikely that we will see a sustained movement on the exchange rate (bad news for those of you transferring money to Spain, France etc), as the cut was already priced in to the exchange rate. A 1% cut in EU interest rates would have been better news!

The Pound has gained nearly 10% since the start of January, meaning the same amount of Euros is now 10% cheaper than it was only 2 weeks ago. Do speak to a foreign currency broker to discuss your requirements for buying or selling Euros.

Eurozone interest rates today

28 July, 2011

CurrencyIndex

12.45 today sees the latest European Central Bank interest rate decision – this could move Euro exchange rates around considerably depending on the outcome.

Check back after 12.45 and we will have the lates currency news on this blog – keep in touch with your currency company if you need to buy and send Euros.

Canadian Exchange Rates

28 July, 2011

CurrencyIndex

The Bank of Canada makes its monthly interest rate decision next Tuesday, January 20th.

For anyone buying Canadian dollars, your exchange rate is likely to be affected. Typically a lower interest rate means a weaker (cheaper) currency, so an interest rate cut (or speculation leading up to the announcement in the coming days) could mean that sending money to Canada becomes slightly cheaper.

Canadian exchange rates are currently near their worst for the last 12 months, and with the UK economy struggling even more than most other developed nations, anyone moving to Canada should get in touch with a specialist foreign exchange company to make sure they are up to date with the latest currency news.

Euro Exchange Rates this week

28 July, 2011

CurrencyIndex

Buyers or sellers of Euros should be aware that this Thursday at 12.45pm the European Central Bank announces its latest interest rate decision for the Eurozone.

There has been much speculation that the ECB will cut rates, much as has happened in the UK and USA. Typically, lower interest rates mean a weaker currency, so Euro exchange rates might get better for those of you buying overseas property if there is a dramatic cut on Thursday.

Conversely, if the cut is not as much as expected, sending money to Portugal, France, Spain and Germany might become more expensive.

Make sure you use a reputable currency company if you have a transaction of over £5,000 to carry out – this should save you money compared to using your bank.