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Posted March 30th, 2007 by Charles Purdy

Smarts Weekly Currency Note – 30th March 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 30th March 2007


Currency
Rate Last
Week
Rate This
Week
EURO
1.475
1.471
CY£
0.851
0.850
US$
1.962
1.959
CAN$
2.275
2.262
AUS$
2.435
2.428
NZD
2.757
2.740

CHF

2.389
2.389

ZAR(Rand)

14.165
14.178

Charles’s Thoughts: Sterling seemed to have a steady week against all currencies. The market was happy just to absorb both the bad news, such as record fourth quarter balance of payments deficit, and the good news such as the retail trade continuing to perform well. House prices may be the major concern that prompts the Bank of England to raise interest rates sooner rather than later. If this did happen we could well see a short term uplift in sterling.

The US is very mixed bag at the moment. Housing starts and problems with sub prime loans are the major short to medium term problem but otherwise the Fed continues to be concerned about inflation and the rest of the economy seems to be pottering along. We have been in a fairly narrow range of 1.93 to 1.98 inter bank for a while and we wait to see which way the US$ will ultimately break.

The Euro continues to be flavour of the month. Germany continues to move forward. French employment figures were favourable. Interest rates are on the increase. There may be some short term buying opportunities given the possibility of interest rate increases here in the UK but one has to be aware that the downside is the Euro pushing back to the 1.45 and less level.

No major movement in the other currencies. The high yield currencies are still vulnerable to market fall out and flights to safe haven currencies such as the Yen and the Swiss Franc.

Why is Currency Management So Important? The current market shows the importance of establishing a clear cost target for your property purchase. To do this you need to set a target exchange rate. There is no clear direction for exchange rates and as such you may find in a very short period of time the market moving against you. The effect of this is that your property will cost a lot more. By setting a realistic target and grabbing it when it is available you set your cost in stone and remove all stress.

Smart Client Testimonial: “Excellent service provided by very friendly personnel. The whole transaction was made very easy for us, this was due to the excellent way our staff took off the pressure of transferring money overseas. We have been happy to recommend you to our friends who have also recommended you to their friends. Thank you.” John & Marry Tipper, West Midlands

If you haven’t opened a Smart account yet, call me on freephone 0808 153 0102 or fill out our online Account Form at: http://www.smartcurrencyexchange.com/application.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. But note this is based on the inter bank rate so the actual cost will be slightly more.

Charles Purdy
Charles Purdy



Smart Resources

Currency Strategy Worksheet
Need help creating a Currency Strategy? Download our Currency Strategy Worksheet:
http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf

Currency Report
Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here:
http://www.smartcurrencyexchange.com/downloads/ThreeMistakes.pdf

Currency Quotation
Are you interested in a currency rate for Euros, US$’s, CYP, NZD, or any other currency, please fill out our Smart quotation form at:
http://www.SmartCurrencyExchange.com/smartquotation.htm



Smart Currency Exchange Limited


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Posted March 29th, 2007 by Charles Purdy

Smarts Daily Currency Note – 29th March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 29th March 2007

Currency

Rate

EURO

1.475

CY£

0.852

US$

1.965

CHF

2.392

CAN$

2.279

AUS$

2.428

Comments: Sterling continues to hold steady against the Euro and the US$. The UK balance of payments deficit hit new highs in the fourth quarter of last year and the US had disappointingly weak durable goods data. The Euro continues to have more going for it than the US$ and sterling.

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 March 28th, 2007 by Charles Purdy

Smarts Daily Currency Note – 28th March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 28th March 2007

Currency

Rate

EURO

1.471

CY£

0.850

US$

1.960

CHF

2.378

CAN$

2.274

AUS$

2.434

Comments: Still steady as she goes. Sometimes it is like watching grass grow waiting for some direction from the market. Germany, a key European economic driver, is still moving forward strongly while the news flow out of the US continues to be bad. However, the US$ hovers around the mid point of its three month range against sterling and the Euro is holding a rate close to 1.47 inter bank.

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 March 27th, 2007 by Charles Purdy

Smarts Daily Currency Note – 27th March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 27th March 2007

Currency

Rate

EURO

1.477

CY£

0.851

US$

1.969

CHF

2.392

CAN$

2.277

AUS$

2.434

Comments: A quietish time for sterling. House prices in the UK have shown strong growth rising in March by 6.7% on an annualised basis. Today we see the release of UK mortgage lending data. If this was strong then the belief by some market analysts is that the Bank of England would have to increase interest rates in April. This would support sterling. One surprise yesterday was the relative strength of the US$. The US housing data released yesterday was horrendous. However the US$ didn’t weaken against sterling. Strange and difficult to understand why it didn’t weaken. Perhaps people are still hoping that we are close to the bottom and the only way is up. I suspect not.

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 March 23rd, 2007 by Charles Purdy

Smarts Weekly Currency Note – 23rd March 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 23rd March 2007

Currency
Rate Last
Week
Rate This
Week
EURO
1.461
1.475
CY£
0.841
0.851
US$
1.946
1.962
CAN$
2.283
2.275
AUS$
2.447
2.435
NZD
2.786
2.757

CHF

2.349
2.389

ZAR(Rand)

14.442
14.165

Charles’s Thoughts: Sterling gained a bit of ground during the week. Inflation continues to be at the top end of expectations and as such is a significant factor in the market which is forecasting further UK interest rate rises in the near term. However, the minutes of the last Bank of England meeting were released this week and these showed, contrary to expectations, no support out of the 9 members for an interest rate rise. In fact one member voted for a decrease. The budget was the usual smoke and mirrors performance. How many of us actually believe we are better off?

The Fed kept US interest rates on hold this week. No real surprise. The Fed also moderated its language on the economy. They are still concerned about inflation but as a counter to this they have to worry about the housing market and the defaults in sub prime loans. The US$ has pushed towards the upper end of its recent range. Difficult to know when and which way it will break out of this range but in the context of this current range looks a reasonable time to buy.

The Euro continues to be flavour of the month. As always we have to remember there is no one way street but the fundamentals, increasing interest rates and a robust German economy, are on the Euros side. Difficult to convince people it is a good time to buy Euros given the exchange rate in January. However, unlikely to see these levels unless the Bank of England increases rates more that currently forecast. The rate is still good for buying Euros when compared to a lot of 2005 and 2006!

Other currencies such as the New Zealand Dollar and the Australian dollar have had a steady week. The South African Rand has pushed back towards 14 but is still very susceptible to changes in market sentiment as it is viewed as a high risk asset.

Why is Currency Management So Important? The current market shows the importance of establishing a clear cost target for your property purchase. To do this you need to set a target exchange rate. There is no clear direction for exchange rates and as such you may find in a very short period of time the market moving against you. The effect of this is that your property will cost a lot more. By setting a realistic target and grabbing it when it is available you set your cost in stone and remove all stress.

Smart Client Testimonial: “I thought the service provided by Smart to be helpful and efficient. It also offered competitive rates of exchange in addition to information on current trends of currency rates. I will certainly continue to use Smart’s services for future transactions” C.P. Mortimer, Lymington

If you haven’t opened a Smart account yet, call me on freephone 0808 153 0102 or fill out our online Account Form at: http://www.smartcurrencyexchange.com/application.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. But note this is based on the inter bank rate so the actual cost will be slightly more.


Smart Resources

Currency Strategy Worksheet
Need help creating a Currency Strategy? Download our Currency Strategy Worksheet:
http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf

Currency Report
Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here:
http://www.smartcurrencyexchange.com/downloads/ThreeMistakes.pdf

Currency Quotation
Are you interested in a currency rate for Euros, US$’s, CYP, NZD, or any other currency, please fill out our Smart quotation form at:
http://www.SmartCurrencyExchange.com/smartquotation.htm


Smart Currency Exchange Limited



Posted March 22nd, 2007 by Charles Purdy

Smarts Daily Currency Note – 22nd March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 22nd March 2007

Currency

Rate

EURO

1.475

CY£

0.850

US$

1.969

CHF

2.385

CAN$

2.279

AUS$

2.437

Comments: The US interest rates were kept on hold by the Fed yesterday The announcement was accompanied with a statement that indicated that a future reduction in interest rates, given the state of the US economy, was more likely than an increase in interest rates, given concerns over inflation. The US$ weakened slightly on the back of this announcement. Here in the UK the market was surprised by the minutes of the last Bank of England meeting. Instead of their being a 7 to 2 vote for interest rates to be kept on hold with the 2 voting for an increase in interest rates but the reality was an 8 to 1 vote with the one vote being for a reduction in interest rates. Inflation is still a key concern here and cuts in interest rates seem very unlikely but this vote may affect future increases in interest 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 March 21st, 2007 by Charles Purdy

Smarts Daily Currency Note – 21st March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 21st March 2007

Currency

Rate

EURO

1.475

CY£

0.850

US$

1.963

CHF

2.380

CAN$

2.281

AUS$

2.452

Comments: Sterling has shown a bit of strength over the last few days on the back of higher than expected inflation figures here in the UK. Increased interest rates are expected either April or May. Should be an interesting day as the Fed pronounces today on US interest rates and its thoughts on the US economy and Gordon Brown gives possibly his last UK budget. US interest rates are expected to be kept on hold but it is the Feds view on the US economy that will be greatly scrutinized. Here in the UK I wonder how much poorer we will be feeling later today after the budget?

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 March 20th, 2007 by Charles Purdy

Smarts Daily Currency Note – 20th March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 20th March 2007

Currency

Rate

EURO

1.4645

CY£

0.845

US$

1.947

CHF

2.362

CAN$

2.292

AUS$

2.433

Comments: Sterling is clawing its way back slowly against the Euro. Against the US$, sterling’s rebound has been a bit more robust. The Fed meets in the US tomorrow. US interest rates are expected to be kept on hold. However, the statement from the Fed that will accompany their announcement will be very carefully scrutinized. There is a continuing fear of inflation which is countered by a weak housing market and major problems with sub prime loans. We wait to see which way the Fed is leaning. The Australian $ continues to gain against sterling benefiting from its high interest rates and strengthening commodity prices.

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 March 16th, 2007 by Charles Purdy

Smarts Weekly Currency Note – 16th March 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 16th March 2007

Currency
Rate Last
Week
Rate This
Week
EURO
1.473
1.461
CY£
0.845
0.841
US$
1.931
1.946
CAN$
2.269
2.283
AUS$
2.477
2.447
NZD
2.800
2.786

CHF

2.379
2.349

ZAR(Rand)

14.170
14.442

Charles’s Thoughts: Sterling weakened further against most currencies. It has borne the brunt of the fall out following the unrest in world equity markets and the apparent flight to less risky assets [e.g. the Yen and the Swiss Franc]. Sterling has lost 6 plus cents against the Euro in a very short period of time. This would suggest that sterling has been oversold short term. We have to remember that there is still expected to be a further increase in UK interest rates sometime soon. Inflation is still a concern especially as the property market and the general economy continue to be robust.

The US$ is still range bound. It strengthened to 1.925 at one stage this week which defies belief given the problems that are being experienced in the sub prime loan market in the US. Bad credit risks are defaulting in large numbers given the “high” interest rates. They are only high relative to when they took out the loans, not when compared to historical US interest rates.

The Euro has benefited strongly from the recent turmoil. In January it hit 1.525 inter bank. This week it was close to 1.455 at one stage. Just under a 5% move. This was on the back of a move from 1.48ish to 1.525. Clearly the Euro is now flavour of the month with some justification. Germany is continuing to move forward strongly and further increases in Euro land interest rates are expected. However, as always, it is not all one way. As the Euro strengthens we see Euro lands exports become less competitive. Germany continues to take on all comers but France and Italy are suffering as they are less competitive than Germany. They want a weaker Euro.

Other currencies such as the New Zealand Dollar and the Australian dollar have also gained ground against Sterling. The only one to suffer is the South African Rand which is obviously viewed as an even riskier asset than sterling.

Why is Currency Management So Important? Emotion is a factor that has to be managed when buying or selling currency and that is best achieved by setting a target rate and as and when it is reached you do the exchange. The worse feeling in the world is to have to find extra funds when you know that if you had stuck to you’re target rate you would have saved £’000s.

Smart Client Testimonial: “I thought the service provided by Smart to be helpful and efficient. It also offered competitive rates of exchange in addition to information on current trends of currency rates. I will certainly continue to use Smart’s services for future transactions” C.P. Mortimer, Lymington

If you haven’t opened a Smart account yet, call me on freephone 0808 153 0102 or fill out our online Account Form at: http://www.smartcurrencyexchange.com/application.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. But note this is based on the inter bank rate so the actual cost will be slightly more.


Smart Resources

Currency Strategy Worksheet
Need help creating a Currency Strategy? Download our Currency Strategy Worksheet:
http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf

Currency Report
Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here:
http://www.smartcurrencyexchange.com/downloads/ThreeMistakes.pdf

Currency Quotation
Are you interested in a currency rate for Euros, US$’s, CYP, NZD, or any other currency, please fill out our Smart quotation form at:
http://www.SmartCurrencyExchange.com/smartquotation.htm


Smart Currency Exchange Limited


Posted March 16th, 2007 by Charles Purdy

Smarts Daily Currency Note – 16th March 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 16th March 2007

Currency

Rate

EURO

1.460

CY£

0.840

US$

1.942

CHF

2.347

CAN$

2.274

AUS$

2.450

Comments: No major movement in sterling as it continues to hover close to medium term lows against most currencies. The only currency that has suffered more is the South African rand. Short term Sterling does look oversold as it seems to have taken the brunt of the fall out from unrest in world markets. We have to remember that, as I write, the economy here is not suffering the pain being experienced in the US. Also a further UK interest rate rise is likely.

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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