Friday market update
4 May, 2012
Thursday saw sterling have another strong performing day making gains against a basket of currencies. Most notably was the mid-market pound to euro exchange rates climbing back above the 1.23 level, the best we have seen for nearly two years. This was driven by fresh concerns over debt and economic weakness in the single area forcing investors to hold a more risk averse stance and putting money into the seemingly “safe haven” pound. This was also the reason behind gains the pound made against the antipodean currencies (New Zealand and Australian dollars). The New Zealand dollar rate which overnight weakened off following poor unemployment data continued its slide well above the key resistance point of 2 to the pound, losing nearly 3 cents in 24 hours and opening this morning another cent and a half lower.
If you are looking at sending money to any of the EU countries or down under to Australia or New Zealand in the coming weeks now is a fantastic time to be looking at locking in the exchange rate. This can be done on a forward basis, using a small deposit to fix the rate – speak to one of the team for more information on this and how it can potentially save you thousands.
Today we have already had Halifax house price data out in the UK which has come in lower than expected. With the problems in the Eurozone, the single currency remains weak but the pound has lost a bit of ground against the US dollar. Despite this, mid-market trading is still well above the 1.6 mark and so still excellent for those sending money to the USA.
Elsewhere, we have PMI and retail sales data from the EU and later a raft of US employment data including average earnings and the key non-farm payrolls figure. This latter release tends to throw up some volatile trading dependent on the results coming in better or worse than expected so keep in touch at lunchtime (1.30pm) if you have a dollar requirement which may be affected.
Have a good weekend.
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