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Posted October 31st, 2006 by Charles Purdy

Smarts Daily Currency Note – 31st October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 31st October 2006


Currency

Rate

EURO

1.496

CY£

0.857

US$

1.898

CHF

2.377

CAN$

2.138

AUS$

2.471

Comments: Sterling is still pushing year highs against the Euro and US$. House prices are still buoyant. The high street on the whole seems to be doing okay and the probability of a 0.25% increase in interest rates next week is very high. Is sterling going to go much higher? Very difficult to say. Sentiment is in sterlings favour but the exchange rates are pushing against year highs and the “energy” to break through is going to be high. Any negative sentiment will have a detrimental effect and certainly against the Euro, which is also increasing interest rates there seems to be significant downside risk.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

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Posted October 27th, 2006 by Charles Purdy

Weekly Currency Note from Smart – 27th October 2006

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 27th October 2006

Currency
Rate Last
Week
Rate This
Week
EURO
1.492
1.491
CY£
0.855
0.854
US$
1.883
1.897
CAN$
2.118
2.122
AUS$
2.483
2.468
NZD
2.818
2.866

CHF

2.371
2.371

ZAR(Rand)

14.201
14.092

Charles’s Thoughts: Sterling had another steady week holding its own against the Euro and gaining ground against the US$. No real news flow to affect sterling. We await the next BOE meeting to find out what is happening with interest rates [ a 0.25% increase is expected] and what the BOE’s view is on inflation and the UK economy.

The US$ has shown weakness following the Feds meeting on Wednesday. US interest rates were kept on hold [which was expected]. However the language that accompanied the announcement was less hawkish than expected on inflation and the need for further interest rate rises. The pendulum is now swinging back in favour of interest rate cuts. However, unless something goes completely wrong with the US economy, this is unlikely short term.

The Euro and sterling hovered around 1.49 inter bank. Economic sentiment in Germany was better than expected and thoughts are turning to whether or not the Euro land economy is doing better than people think. Wouldn’t surprise me if this was the case. I still think the downside risk is greater than the upside potential.

The Aussie dollar is trying to perk up on the back of expected interest rate rises. However, the 2.45ish level is proving difficult to breach. The rand had a bit of weakness during the weak but has regained ground in the second half of the week.

Why is Currency Management So Important? A client sent a wonderful testimonial this week. He saved £20,000 by using our service. Wow. Nothing else to say.

Open an account today by calling me on 0870 285 0364 or fill out our online quotation form at: http://www.smartcurrencyexchange.com/smartquotation.htm

How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Smart Currency Exchange Limited

Posted October 27th, 2006 by Charles Purdy

Smarts daily Currency Note – 27th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 27th October 2006

Currency

Rate

EURO

1.489

CY£

0.854

US$

1.891

CHF

2.372

CAN$

2.125

AUS$

2.473

Comments: No significant moves in sterling against any of the major currencies yesterday. The US$ slipped slightly as the comments from the Fed were digested and positions taken as to the likley direction of future US interest rate moves. Over the last few months sterling exchange rates have been trading in a very narrow range. This is leading to comments that we are seeing a new stability in the market. Always dangerous to become too complacent because thats when it can really hurt you.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 26th, 2006 by Charles Purdy

Smart Daly Currency Note – 26th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 26th October 2006

Currency

Rate

EURO

1.489

CY£

0.854

US$

1.880

CHF

2.372

CAN$

2.113

AUS$

2.464

Comments: The Fed held interest rates yesterday. The comments made with the announcement did not change from the previous announcement which was a slight surprise as the “hope” was for a more hawkish statement. Opinions are therefore mixed as to whether or not interest rates are more likley to go up or down. The US$ weakened slightly. In Euro land, Germany had better than expected sentiment on its economic performance and thoughts are turning to a higher than expected peak in Euro land interest rates. Overall, sterling had a steady day.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 25th, 2006 by Charles Purdy

Smarts Daily Currency Note – 25th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 22nd October 2006

Currency

Rate

EURO

1.491

CY£

0.855

US$

1.874

CHF

2.373

CAN$

2.111

AUS$

2.460

Comments: The Fed announces on interest rates today. As stated yesterday, the expectation is for interest rates in the US to be kept on hold. It is the statement that accompanies the announcement on interest rates that will be keenly watched for any hint of the direction for future US interest rate moves. Sterling held steady against the Euro and the US$. However, the October industrial trends surevey from the CBI was somewhat downbeat which suggests that Novembers expected UK interest rate rise might be the last for a while!

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 24th, 2006 by Charles Purdy

Smarts Daily Currency Note – 24th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 21st October 2006

Currency

Rate

EURO

1.491

CY£

0.855

US$

1.870

CHF

2.372

CAN$

2.112

AUS$

2.469

Comments: We await to hear the Feds announcement on interest rates this week. The expectation is for interest rates in the US to be kept on hold. However the statement that accompanies the announcement on interest rates will be keenly watched for any hint of the direction for future US interest rate moves. Sterling has held steady against the Euro and the US$.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 21st, 2006 by Charles Purdy

Smarts Weekly Currency Note – 20th October 2006

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 20th October 2006

Currency
Rate Last
Week
Rate This
Week
EURO
1.485
1.492
CY£
0.851
0.855
US$
1.854
1.883
CAN$
2.111
2.118
AUS$
2.518
2.483
NZD
2.823
2.818

CHF

2.366
2.371

ZAR(Rand)

13.891
14.201

Charles’s Thoughts: Sterling had a good week pushing towards its year high against the Euro and regaining a few cents against the US$. Interest rates are still the key and a November increase of 0.25% is expected in the UK especially on the back of higher than planned inflation and the rebound in house prices. Strong sterling does bring problems such as making exports more expensive which in itself can be self governing as it will reduce economic performance which affects the exchange rate.

The US$ fell back. No clear reason as the reporting season for quoted companies in the US showed another very strong quarter. One reason cited is that the Euro had moved to a major resistance level against the US$ and rebounded strongly from this on Friday. Sterling which had strengthened against the Euro benefited doubly.

The Euro and sterling continued in their narrow trading range. Sterling moved up over 1.49 [inter bank] and is near to its year high. Unless something major happens sterling is likely to stay at these levels until the interest rate announcement here in the UK. It is important to remember that we have been at much worse levels for most of the year and as such I would not assume we are going to stay at these levels for the rest of the year.

The Swiss franc continues to suffer against all currencies given its low interest rate and the preference for carried trades [where you borrow in Swiss francs and buy high yielding currencies such as the NZD]. The commodity currencies such as the Rand and the Aus$ are still awaiting a rebound in commodity prices.

Why is Currency Management So Important? Exchange rates never do what you want them to do. The rate is moving in your direction, all economic information seems to indicate that this will continue for the foreseeable future but suddenly (and instantaneously) the market reverses on you. All you see flash before your eyes are £ signs. This is why it is vital to set a budget/target exchange rate which is realistic and grab it when it is available. The rate may continue in your direction but experience has taught me that although annoying for this to happen it is a lot less painful than an actual loss.

Open an account today by calling me on 0870 285 0364 or fill out our online quotation form at: http://www.smartcurrencyexchange.com/smartquotation.htm

How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Smart Currency Exchange Limited

Posted October 20th, 2006 by Charles Purdy

Daily Currency Note from Smart – 20th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 20th October 2006

Currency

Rate

EURO

1.486

CY£

0.851

US$

1.877

CHF

2.362

CAN$

2.118

AUS$

2.470

Comments: Retail figures in the UK did not meet expectations and this led to a bit of weakness against the Euro. Interest rates in the UK are still expected to rise in November. The US$ is drifting lower against sterling. The Swiss franc is still suffering as the Swiss interest rate is at the low end of international rates.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 19th, 2006 by Charles Purdy

Daily Currency Note from Smart – 19th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 19th October 2006

Currency

Rate

EURO

1.491

CY£

0.853

US$

1.870

CHF

2.374

CAN$

2.126

AUS$

2.472

Comments: No real news in the market yesterday to affect sterlings strength against the Euro [and the Cypriot £] or its current level and stability against the US$. I know I am repeating myself but the interest rate story and how this plays out in the short term is going to be the major influence on where exchange rates are going. Fundamentals such as budget and trade deficits have been put on the back burner for the time being but there will a time when these factors become important again.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Posted October 18th, 2006 by Charles Purdy

Daily Currency Note from Smart – 18th October 2006

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 18th October 2006

Currency

Rate

EURO

1.492

CY£

0.853

US$

1.872

CHF

2.372

CAN$

2.133

AUS$

2.480

Comments: Sterling is flavour of the month as interest rates seem to hold the key to currency strength. The UK expects a 0.25% rise where inflationary pressures are high. The US has just moved to an environment whereby rates were going to be reduced to one where they are on hold. The next step is one of possible increased rates but this is a step to far at present. Euro land is expected to make one more increase in rates in December but the economic data is mixed and as such has led to a bit of weakness. However, don’t get over confident on sterling, things can change very quickly.

Note: All rates are mid market inter bank and indicative at the point of publication.

To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

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