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.

Dollar Exchange Rate Improves

28 July, 2011

CurrencyIndex

The best US Dollar exchange rate has improved around 4c today, on the back of speculation from the States that US interest rates may be cut again tomorrow evening.

With little cause for cheer for the beleagured Pound, if you are sending money to America it may be worth discussing your requirements with your currency broker – spikes like this tend to be short lived at the moment and trading levels of above 1.50 are now available again from some sources.

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Will the Pound reach £1 = €1?

28 July, 2011

CurrencyIndex

Newspaper reports over the weekend show airport Bureaux de Change offering Euro exchange rates below €1 for £1.

Of course, airports are usually the worst place to buy your currency, and reputable currency companies will currently offer you up to 10% more than this for overseas money transfers above £5,000.

But is the commercial rate heading down to parity too?

The Government has alreay said it will not intervene to prop up the Pound, and although there is not a full scale “run” on the currency yet, perhaps we are not too far off.

With worsening unemployment, falling interest rates, economic crises everywhere you look, and consumer confidence falling at record levels, the head of Barclays has even suggested we are only at the very beginning of the problems – not near the end.

The most important thing if you need to exchange foreign currency in relatively large amounts, is to make sure you speak to an experienced foreign currency broker and don’t just assume that exchange rates will improve – it could be an expensive mistake.

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Euro rate hits new low

28 July, 2011

CurrencyIndex

Sterling fell to new lows against the Euro yesterday, the worst rate for buying Euros since the single currency was launched in 2002.

For anyone buying property in the Eurozone, this is worrying news. The trap that a lot of people might fall into is to assume that “things can only get better”. Tony Blair said that in 1997, and look where it has got us!

The main tip if you need to send money overseas, is to make sure you speak to an experienced currency broker about your transaction. Don’t bury your head in the sand, because it could get much worse – some analysts are now predicting a rate of 1:1 against the Euro if the UK economy continues to decline.

Amongst the bad news, don’t forget that using a specialist FX broker can still save you significant amounts of money compared to using your bank.

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Currency and Exchange Rate News – December 8th

28 July, 2011

CurrencyIndex

The Pound improved over the weekend and on Monday morning, most notably against the US Dollar after very weak jobless data out of the States on Friday.

Exchange rates which are pegged to the Dollar have also improved, for example the best transfer rate to Dubai in Dirhams.

The Pound gained a couple of cents against the Dollar, and a similar amount against the Euro, making sending money overseas slightly cheaper for those of you buying overseas property.

The rally was halted, however, by UK PPI data out this morning. The Producer Price Index, which shows factory costs, fell in November as the cost of oil and other base products has come down in recent weeks. The figures, which showed a 0.7% drop in production costs, are likely to reinforce the view that inflation in the UK is not a problem, and therefore that UK interest rate cuts are sustainable.

Lower interest rates usually mean a weaker Pound (which is one of the main reasons for the Pound’s current weakness), so sterling fell back when the figures were announced.

If you need to buy or sell foreign currency, make sure you are in touch with a specialist FX company who can help you save time and money.

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UK Interest Rates down 1% – exchange rate reaction

28 July, 2011

CurrencyIndex

UK Interest rates have been cut a further 1% today, leaving the base rate at just 2%, its lowest since 1951.

Reaction on the foreign exchange markets has been negligible, although this morning Euro exchange rates fell to their lowest since the single currency was launched nearly 10 years ago.

Against the US Dollar, best exchange rates were also down, before a very slight rally for the Pound.

Eurozone interest rates are announced shortly, and we will wait to see the reaction (if any) and implications for Brits needing to send money overseas.

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Five Reasons the Pound could fall further

28 July, 2011

CurrencyIndex

We speak to many clients who want to hold out for the best exchange rates, before making their transfer to pay for overseas property. But a close look at the economic conditions might make them think – would it be better to buy currency now?

1. Severe Recession. The OECD are predicting the downturn to be “the most severe since the early 1980s”, and has forecast the UK as the worst affected country in the developed world.
2. Interest Rates. The Bank of England is widely expected to cut interest rates again on Thursday – and lower interest rates typically mean a weaker Pound.
3. Manufacturing in decline. British manufacturing in November shrank at the fastest rate since figures began 16 years ago.
4. UK Job Market. A survey out today shows the UK job market weakened significantly in November. The drop in jobs available was the fastest in the survey’s 11-year history.
5. World outlook. The United Nations says the world faces its worst downturn since the Great Depression of the 1930s.

All of these indicate that a weaker Pound is likely – but if you are buying a property overseas, you can secure a “forward contract” to guarantee your exchange rate for up to 2 years ahead.

Don’t forget, whatever your currency requirements, you should be in touch with a currency broker who can help you through these volatile times. Currency Index specialise in currency transactions for overseas property buyers.

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Sterling exchange rates plummet again

28 July, 2011

CurrencyIndex

Sterling recorded its biggest loss against the Dollar since 1992 yesterday – falling over 5% in one day.

Volatility on the equity markets, along with poor UK sentiment and speculation about interest rate cuts later this week, led to a terrible day for the Pound, although markets have been steady this morning.

If you need to transfer money overseas, these are worrying times. The US Dollar tends to gain value in times of worry, as investors buy other assets denominated in USD, pushing up the price of the currency.

Elsewhere, the best Australian dollar rates are down below 2.30 again, from nearly 2.40 a week or so ago. This means somebody emigrating with £200,000 of assets now has AU$20,000 less when they arrive down under, than if they had bought currency a week ago.

Euro exchange rates dipped down into the 1.16s this morning before levelling out again around 1.1750.

The Pound also hit a 13-year low against the Japanese Yen.

With interest rates likely to fall in the UK on Thursday, it seem unlikely that there will be much Christmas cheer for anybody buying overseas property and buying foreign currency to fund the purchase.

As hard as it sounds, buyers may just be better off biting the bullet and securing exchange rates now. Don’t forget that using a specialist forex broker, you can save money against your bank and make the best of a bad situation.

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Pound Falls on UK Mortgage Approvals

28 July, 2011

CurrencyIndex

The Pound has fallen sharply this morning, leading to worse exchange rates for those of you buying property overseas.

Bank of England figures, out this morning, show that UK mortgage approvals are still falling – despite aggressive interest rate cuts and government encouragement for more lending in the sector.

Only 32,000 mortgages were approved in October, down 1,000 on September’s figure. Approvals have slumped by 74% in the last year.

For overseas money transfers, for example if you are buying a holiday property, this is further bad news for already poor exchange rates. It means that interest rates are likely to be cut even further to help stimulate the UK economy – and lower interest rates mean less demand for the Pound, which falls in value.

Although the European Central Bank (ECB) are also likely to cut interest rates on Thursday, the developing picture is that the UK economy is in a worse state than most of Europe – and therefore I would not be surprised if we currently have the best exchange rates available for some time to come.

If you need to buy or sell any currency, make sure you contact a specialist foreign exchange company, who will help you through these volatile times.

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UK Consumer Confidence on the rise

28 July, 2011

CurrencyIndex

UK consumer confidence has risen slightly in November, especially in the “personal financial situation” and “major purchases” sections of the Consumer Confidence Barometer, which will have a positive effect on the pound.

Meanwhile, Eurostat, the EU’s statistics office has, announced unemployment in the Eurozone went up to 7.7% during October and also inflation in the eurozone fell to 2.1% in November. The steep fall in inflation and the rise in the jobless rate could spark the European Central Bank to cut interest rates sharply. After last month’s reduction of 0.5% ECB president Jean-Claude Trichet announced that further cuts could not be ruled out, and experts have predicted the interest rate could be cut by up to 1% when announced on Thursday.

Speculation on further interest rate cuts has been good news for Euro exchange rates, which have at last improved slightly after sterling’s recent dramatic decline. For those of you buying property overseas, and therefore needing to make transfers of money to France, Spain or elsewhere in Europe, this could provide an opportunity to secure your currency at better levels. Keep in touch with a foreign currency exchange broker to make the most of these volatile markets.

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House prices down again – but pace slows

28 July, 2011

CurrencyIndex

UK house prices fell by just 0.4% in November, according to figures out today from Nationwide. Usually, better than expected house price news means exchange rates for the Pound get better – but Nationwide warned the poor economy would continue to put pressure on the market – and therefore on sterling too..

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