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.
Interest Rates Cut 0.5%
28 July, 2011
The Bank of England has cut interest rates by 0.5% to 1.5% – the lowest level in its 300 year histrory.
Some analysts had expected a 1% cut, which would have been bad news for the ailing Pound. As 0.5% was the minimum cut expected, the Pound has found some strength which has improved Euro exchange rates, Dollar exchange rates, and most others this afternoon.Read more
Exchange Rate Outlook
28 July, 2011
Prospects for the Pound in 2009 are as uncertain as ever – a look at this week’s upcoming events which are likely to affect exchange rates at the beginning of the year.
After a quiet Christmas, there is lots of data out this week from around the world. “If you are looking to transfer money overseas at the best exchange rates, it’s worth speaking to your currency broker to keep up to date with market movements”, says Chuck Hall, payments manager at Currency Index Ltd.
UK Nationwide House Prices – will give an indication of likely interest rate cuts from the Bank of England
UK and EU Purchasing Managers Index – manufacturer inflation figures for the UK and Europe
US FOMC Minutes – released by the Federal Reserve in the USA, gives overview of economic conditions
UK Nationwide Consumer Confidence – key economic indicator for UK confidence
EU Producer Price Index – main inflation figure for the Eurozone
EU Consumer Confidence – European confidence survey
EU GDP – is the Eurozone contracting and in deep recession?
UK BoE Interest Rate Decision – this month’s central interest rate decision
UK Producer Price Index – main inflation figure for the UK
EU Retail Sales – another important economic indicator
US Non Farm Payrolls – the main US employment metric showing jobs created last month
All these releases are likely to have an impact on the Pound’s relative value to (in particular) the Euro and US Dollar rates. If UK interest rates are cut heavily on Thursday, we could be in for plummeting exchange rates yet again, while readers buying property in France, Spain and the rest of Europe, will be hoping for weak Eurozone data on Wednesday and Thursday.
Keep in touch with a currency specialist, who can save you money against your bank’s exchange rate.Read more
Euro rates up… at last
28 July, 2011
The reason? Some over-selling at Christmas, and relatively positive data out today. Beware however, the Bank of England are due to cut interest rates again on Thursday and that is not usually good news for sterling.
There is a lot of data out this week which could make a difference to the value of the Pound against all other currencies – keep in touch with a currency broker who can help you get the best foreign exchange deal.Read more
New Year Currency News
28 July, 2011
Happy New Year from Currency Index Ltd – provider of some of the best exchange rates available in the UK.
The main news this month is likely to be the Bank of England’s interest rate decision on Thursday January 8th. Further cuts in the UK base rate are expected, and that does not bode well for the Pound – normally lower interest rates mean a weaker currency. With the European Central Bank tipped to keep their interest rates higher than ours, that means that predictions of sterling – Euro rates falling to parity (€1 = £1) are perhaps not wide of the mark.
Elsewhere, the Pound continues to struggle across the board. The next 4-6 weeks will be crucial as we see how bad the UK recession becomes – any negative news in the UK is likely to push the vulnerable Pound further still. Your currency broker should be able to help if you would like to discuss your own circumstances and requirements in detail.Read more
No Christmas Cheer for Pound
28 July, 2011
The Pound sank to another historic low against the Euro today, buying just €1.0210 on commercial markets.
Weak house price data and unemployment figures showed that there is no sign of any improvement for the British economy. Instead of cashing in equity from property values, Brits are now focussing on paying back their mortgages, instead of spending on cars, overseas property and other big items, figures from the Bank of England showed.
For exchange rates, more bad news for UK PLC means investor confidence in the Pound is at its lowest for years. If you’re sending money to America, a Pound buys just $1.4670 and if you’re emigrating to Australia, each Pound gets only $2.10, compared to $2.40 a few weeks ago.
Trading is thin between Christmas and new year, so volatility is more pronounced than usual, so make sure you contact Currency Index to keep in touch with the latest news.Read more
Exchange Rates at Christmas
28 July, 2011
Exchange Rates at Christmas can be particularly volatile, due to low volumes of trading in the market. Therefore any movements can be pronounced – which means there can be opportunities to buy.
So, if you have Euros to buy, dollars to sell, or any other currency transaction to complete in the next few weeks, it’s worth your while informing your currency broker of what you are looking for. They will be able to keep an eye on the market and, if you like, alert you to any opportunities for a bargain.
This has been one of the most volatile and unpredictable years ever for exchange rates – so don’t miss out on any potential opportunities between now and January.
Currency Index is open every working day from now to the new year.Read more
Interest Rates and Euro Exchange Rates
28 July, 2011
With press speculation that Sterling – Euro exchange rates might reach parity (£1 = €1), what is driving sterling down against the single currency at the moment?
One of the main drivers is interest rates. The Bank of England have cut rates from 5.75% last December, to 2% now. This means that international investors (pension funds, hedge funds and other investments) get a lower rate of return on sterling-denominated assets, so they move their money elsewhere.
This, in turn, means that there is less demand for Pounds. The simple rule of supply and demand applies, and the price of the Pound drops. Therefore, the price of other currencies relatively, increases.
As the Bank of England is likely to cut interest rates again in January, there is little stimulus to bring funds into the UK – specially in the current economic climate with all the other problems our economy is facing. Therefore, the selloff continues, and the Pound continues to fall.
In Europe, interest rates have also come down – but not as much. From 3.75% in the Spring, recent cuts now leave the single currency at 2.5%. Further, ECB President Jean-Claude Trichet said this week that there is little room for further cuts (analysts expect another 0.25% trim in January) which means that returns on Euro assets are seen as significantly higher than in the UK.
The Euro is quickly becoming a “safe haven” currency in these difficult times. Massive movements into Euro-held assets are driving up the price of a Euro – and it’s a relentless acceleration in the single currency’s value.
Euros are currently around 15% more expensive than just 2 months ago.
If you are sending money overseas in the coming weeks and months, this is not comfortable reading. Of course, things can change very quickly, and if the Eurozone finds itself in more economic trouble than we currently know about, then its currency could weaken and the best exchange rates could improve. But the risk is that the run will continue.
In addition, shopping around for the best Euro rates can save you money against your bank. Tom Arnold, Sales Director at Currency Index Ltd, said “now more than ever, buyers of overseas property are checking what deals are available on their currency purchases. Using a specialist broker such as ourselves can make a huge difference to the amount paid for a place in the sun or retirement property abrad”.
Specialist companies can also offer services like advance booking of exchange rates. Any volatility over Christmas would therefore not affect orders placed in advance, to give some peace of mind.
Whatever happens, we are in unchartered territory on the money markets, and buyers or sellers of any foreign currency should beware of assuming that things will move in their favour. Indecision, as the saying goes, can be much more expensive than a poor decision.Read more
Euro rate below 1.10 as unemployment soars
28 July, 2011
Today’s unemployment figure showed the worst jobless total since 1997, up to 1.86million.
The Pound dropped accordingly, now buying less than €1.10 for the first time in history.
The Euro has also been strengthened (become more expensive) by ECB President Trichet’s comments on Monday that interest rates in the Eurozone are unlikely to fall as much as those in the UK. This makes the Euro a better bet for investors, and increased demand makes the single currency more expensive. The best Euro exchange rate is now at a new all time low.
Transferring money overseas has therefore become more expensive again today, particularly in the Eurozone. Make sure you speak to a specialist currency company if you need to make any payments to foreign soil in the coming weeks and months.Read more
Simplyzigzag.com Partners with Currency Index Ltd
28 July, 2011
– Currency service for Simplyzigzag clients to save money on overseas purchases
– Dedicated account manager for personal service
Simplyzigzag.com has partnered with leading foreign exchange specialists, Currency Index Ltd, to offer preferential exchange rates for all their clients. Compared to the high street banks, Currency Index can save clients up to 4%, which can easily translate into thousands of pounds difference on the price paid for an overseas property.
This is achieved by Currency Index’s high turnover, which allows them to buy at market-leading exchange rates, passing savings on directly to their customers. In addition, there are no commission charges and overseas transfers are usually free too.
Simon Eastman, Senior Broker at Currency Index, said “It is a pleasure to deal for all Simplyzigzag’s clients and be a part of their buying process. We strive to make the process of buying currency and sending money overseas as stress-free and cost effective as possible”.
About Currency Index Ltd
Currency Index is part of the PropertyIndex.com group, and specialises in currency transactions at commercial rates, for UK buyers and sellers of overseas property. By multi-sourcing large volumes of currency from various sources, Currency Index are usually able to offer the best exchange rates in the marketplace, with no need to charge any additional commission or hidden charges.
Enquiries: Simon Eastman; 0845 371 1444, +44 207 903 5444. https://www.currencyindex.co.uk/, firstname.lastname@example.org
Simplyzigzag.com is a flat fee online estate agency. Launched to the public in June 2008, Simplyzigzag.com is dedicated to providing a better way of selling your home, at a lower cost, without the experience of being charged a large commission. Since its inception it has over 400 properties in the UK, Europe and the Middle East. One of the few international websites with no hidden costs aimed at developers, investors and private sellers.
Inflation falls – but not as much as expected
28 July, 2011
Inflation data out this morning showed a drop to 4.1% in November – not as low as many analysts had predicted.
The Pound rose slightly on the news, because the Bank of England will be less inclined to cut interest rates if inflation is running higher than anticipated.
Money transfers to Canada, for example, are buying a cent more per Pound than first thing this morning.Read more
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