Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted April 27th, 2007 by Charles Purdy

Smarts Weekly Currency Note – 27th April 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 20th April 2007


Currency
Rate Last
Week
Rate This
Week
EURO
1.473
1.466
CY£
0.852
0.848
US$
2.002
2.003
CAN$
2.254
2.232
AUS$
2.395
2.404
NZD
2.688
2.693

CHF

2.420
2.409

ZAR(Rand)

14.048
14.100

Charles’s Thoughts: Sterling had a mixed week. Some members of the Bank of England committee have highlighted the need for action [i.e. increased interest rates]. The debate now is about whether or not there will be more than one 0.25% increase in the UK interest rate before the peak is reached. Other than that there was limited information to sway the view on sterling one way or the other.

The US$ also had a mixed week. It pulled back to around the 1.98 level during the week as profits were taken and positions were covered pending the GDP growth figures for the first quarter being announced today. These figures were worse than the expected 1.8% coming in at 1.3%. This led to a rapid weakening in the US$ – back to last weeks levels. No end in sight for the woes surrounding the US$.

Euro land continues to thrive. The German economy continues to thrive and business confidence is on the up. On the back of this the Euro is flavour of the month and will continue to be so as the Euro land economy prospers. More than one 0.25% increase in Euro interest rates is expected in the coming months. There may be a buying opportunity around the time of the next Bank of England meeting if it becomes clear that UK interest rates will be increased more than once.

New Zealand increased interest rates again to 7.75%. This is the highest rate in the industrialised world. But the announcement with the increase indicated that this may be the peak in their interest rate cycle. This has led to short term weakness in the NZ$.

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.

Smart Client Testimonial: “Having just returned from Italy following the purchase of our property at Lake Maggiore, I thought it fitting to drop you a note to express our thanks to Smart Currency Exchange for the part your company and you personally played in making our long held dream of owning a lakeside property under a mountain, a reality. (Water skiing & snow skiing for the ‘nifty fifties’) When seeking to convert sterling to Euro to pay for the property, I naturally ‘shopped around’ and tracked exchange rates and ‘conversion offers’ over many weeks to exchange at the most favourable rates and terms. Also as a retired Police Officer I am used to relying on judgment and instinct, and would not normally have effected a currency transaction over the Internet. However, in choosing and using Smart Currency Exchange, I saved around £4K over the exchange rate offered by my Bank at that moment in time, which will permit the installation of a new kitchen in our property. Additionally, your personal customer ‘one to one’ contact provided me with the reassurance I needed to follow my instincts. In short, a professional service tailored to our needs, that eased our purchase considerably, and we will recommend your services to others. Well done and many thanks.” Tony & Assia Green, Sheffield

If you haven’t opened a Smart account yet, call me on freephone 0808 163 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


Leave a Reply

You must be logged in to post a comment.

Posted April 26th, 2007 by Charles Purdy

It’s Me – Becks…

Smart Currency Exchange Newsletter

Smart Currency Exchange Newsletter 26th April, 2007
Hello!

Dear Reader, How are you?

It’s almost May – can you believe we’re 5 months into the year already. I wonder how many New Years’ resolutions are still being upheld!!!

I decided to make a bit of a late resolution – to be better with plants. Up until now I had trouble keeping them alive and have also been known to kill cress (yes… it is possible)!

The year before last I spent ages planting various bulbs and when spring came, nothing came up… Every time I tell that story, someone responds, “You must have planted the bulbs up-side-down.” Is it possible to plant EVERY bulb the wrong way?

Anyway, this year has been different. A few weeks ago I looked out of my window to see daffodils actually growing. So now the plan is to move on to bigger things! Any advice would be very welcome!

We have had this month’s prize draw for the £250 M&S vouchers, so have a look below to see if it is you! If you are unaware of our Smart refer-a-friend competition, it is a monthly draw we hold for people who have referred their friends/ family/ colleagues to us in order for them to also benefit from our service. So if you know of anyone, then please email me their details at:
mailto:Rebecca@SmartCurrencyExchange.com

This month’s eNewsletter includes the following:

- M&S Vouchers Winner

- How to Avoid Troubles Relocating Overseas

- Come Meet Charles Purdy and Ann Charles

- Your Stories: by Smart Client David Axon

- Currency Update

- Smart Client Feedback

Please send me YOUR stories about buying overseas any time. If you have any information on what to do, what not to do, tips things to look out for, how to plan for a purchase and anything else that you’d like to share with the Smart community, then send them to:

mailto:mailto:Rebecca@SmartCurrencyExchange.com

Please remember to recommend us to your friends – they will be so pleased that you did!

Until next month – think Smart,

Becks

M&S Vourchers Winner

The winner of this months prize draw is:

John Graham Inman!

CONGRATULATIONS – Your £250.00 worth of Marks & Spencer Vouchers will be sent in the post recorded delivery, so please keep a look out for them!

If you’d like to win £250.00 please send me the name and contact details of anyone you know that is planning to buy an overseas property and your name will be entered in the draw.

mailto:mailto:Rebecca@SmartCurrencyExchange.com

Avoid troubles in relocating abroad

There is a huge number of Smart clients that are emigrating – seems like half of the UK is interested in leaving! At Smart many of our clients often ask us for help to find mortgage brokers, Independent Financial Advice, Insurance and all sorts that services that go hand-in-hand with buying an overseas property.

Fortunately for us, Antony Howard, a fantastic IFA, has provided Smart with some information about relocation. In this newsletter, I’ve included part one that discusses pensions, the inflation trap and benefits. In the next newsletter I’ll send out the rest of the information, dealing with tax and healthcare.

I hope you find this helpful!

“The dream of moving abroad is fast becoming a reality for more and more British people approaching retirement. According to life assurer Prudential, the most popular places for Brits to retire are Spain, Australia and France, followed by the US, Canada, South Africa and Cyprus. But people who plan to decamp lock, stock and barrel need to examine the tax, pensions, health and property implications.

Pensions

First things first: the UK state pension, the foundation of your retirement income strategy. You are still entitled to your basic state pension when you retire abroad, as long as you have paid the requisite National Insurance contributions. Special provisions apply to those whose pension calculations are part-based or widely based on periods of residence in Australia, New Zealand and Canada.

You will usually be sent a claim form by the Pensions Service some months before you reach UK pensionable age. It will ask for details of any periods of residence and state insurance you have in other countries. If you are living in any European Economic Area country and claim a pension from that country, the UK Pension Service will pass details of your claim to any other EEA country where you have been insured. Contact the Pensions Service from overseas if you are less than four months from state pension age and have not received a claim pack (www.thepensionservice.gov.uk).

If you are already overseas and want to obtain a pension forecast, contact HM Revenue & Customs (HMRC) (www.hmrc.gov.uk). You can also request a state pension forecast, which will tell you the amount you have earned already and the amount you can expect on retirement.

The inflation trap

If you receive the UK pension whilst living in an EU or EEA country you will receive an index-linked pension, which will increase in line with inflation. But while a state pension can be paid outside the EU/EEA area you may not receive these increases. Check with the International Pension Centre (see contacts). UK pensioners who have retired to popular destinations such as Australia, South Africa and New Zealand have not received index-linked payouts in recent years.

You will no longer pay UK tax on pension income if you live in a country that has a double taxation treaty with the UK. Where there is no such agreement, your pension will usually be subject to the UK tax before it is paid and you will need to contact your local tax office to ensure it does not aggregate tax. Finally, if you have pension funds that are not yet in payment (unvested) some jurisdictions will tax the growth on the investments in these funds unless they are transferred into a pension arrangement approved by those jurisdictions.

Posted April 26th, 2007 by Charles Purdy

Smarts Daily Currency Note – 26th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 26th April 2007

Currency

Rate

EURO

1.469

CY£

0.849

US$

2.003

CHF

2.416

CAN$

2.237

AUS$

2.406

Comments: A steady day for sterling yesterday. Germany economic performance continues to impress and the strength of the Euro against the US$ does not seem to be hurting German exports. German business confidence is on the up. US$ economic data released yesterday led to a bit of weakness in 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 April 25th, 2007 by Charles Purdy

Smarts Daily Currency Note – 25th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 25th April 2007

Currency

Rate

EURO

1.469

CY£

0.849

US$

2.005

CHF

2.413

CAN$

2.249

AUS$

2.411

Comments: Poor economic data out of the US led to a weakening of the US$. It has pushed through 2 to the pound again. The Euro has shown a bit of strength this morning pushing back down through 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 April 24th, 2007 by Charles Purdy

Smarts Daily Currency Note – 24th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 24th April 2007

Currency

Rate

EURO

1.471

CY£

0.850

US$

1.997

CHF

2.413

CAN$

2.239

AUS$

2.417

Comments: It may seem daft to most normal people but it can be very interesting watching the currencies move as sometimes they seem to defy all sense and logic. The US$ has moved back down through US$2 to the pound. You would have thought with a lot of negative sentiment out there it would only stop once it hit 2.05. It could still do this. However, I must admit I am wondering what will happen when the Fed makes it clear that they are going to cut interest rates. Logic would dictate that the US$ would weaken further but it could equally strengthen as the market may perceive this as good for US home owners, etc. We wait and see. The Euro continues to hover around the 1.47 to 1.475 range 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 April 20th, 2007 by Charles Purdy

Smarts Weekly Currency Note – 20th April 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 20th April 2007

Currency
Rate Last
Week
Rate This
Week
EURO
1.467
1.473
CY£
0.847
0.852
US$
1.986
2.002
CAN$
2.261
2.254
AUS$
2.383
2.395
NZD
2.693
2.688

CHF

2.413
2.420

ZAR(Rand)

14.264
14.048

Charles’s Thoughts: So UK inflation is greater than 3%. The Bank of England had to write a letter to the Chancellor, that friend to all Gordon Brown, explaining why this has happened. The usual suspects continue to be of concern; house prices, fuel, labour and food costs. But one new factor has emerged and that is the ability of producers to increase factory gate prices. As a result the market has begun to wonder about the possibility of an 0.5% increase in UK interest rates in May rather than the expected 0.25.

The US$ had a bad week. Sterling pushed through US$2 and hit 26 year highs against the US$. This was more on the possibility of increased interest rates in the UK rather than any bad news out of the US. The US interest rates are expected to be kept on hold for a while so it is unlikely that we will see the US$ push back towards 1.90 any time soon. Further US$ weakness is possible but we have to remember that UK exports to the US are becoming more expensive and our economy could well suffer.

Euro land continues to show robust economic performance and the Euro has held its own against sterling. We may see short term buying opportunities if UK interest rates are increased by more than 0.25% over the next few months. However, the Euro land’s economy does seem, even though it has great diversity, to have greater impetus. Especially given the presence of the German economy.

The New Zealand dollar has seen significant strengthening over the last 3 months. Interest rates in New Zealand have been on the increase and further increases are a possibility. However, the NZD is very exposed to the carried trade with the yen and as such we could see moments of weakness if there is a flight to safety. However, don’t expect any return to levels of three months ago.

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.

Smart Client Testimonial: “I consider myself most fortunate to have ‘chanced’ upon this first rate service. It is refreshing to find a company that follows through and does exactly what is promised. Whilst my experience to date is limited to early forays and small amounts, it has given me utmost confidence in the service.” Ian McDougall, Derbyshire

If you haven’t opened a Smart account yet, call me on freephone 0808 163 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


Posted April 19th, 2007 by Charles Purdy

Smarts Daily Currency Note – 19th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 19th April 2007

Currency

Rate

EURO

1.474

CY£

0.851

US$

2.004

CHF

2.409

CAN$

2.264

AUS$

2.406

Comments: Sterling pushed up to over US$2.01 yesterday but following a bit of profit taking we have seen a pull back closer to US$2. Economic data out of the US yesterday was good but the short term upside for the US$ is somewhat limited. The Euro continues to enjoy the benefit of good Euro land economic performance.

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 April 18th, 2007 by Charles Purdy

Smarts Daily Currency Note – 18th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 18th April 2007

Currency

Rate

EURO

1.480

CY£

0.854

US$

2.012

CHF

2.426

CAN$

2.274

AUS$

2.405

Comments: UK inflation is over the 3% level [the official figure, but what is the reality given our higher taxes] and as such the Bank of England has to write to the Chancellor, friend to all Gordon Brown, to explain why they this has happened. The BOE is concerned with a number of factors but the ability of producer prices to be increased with limited or no resistance is a new one. There is even talk in the market of the next increase in UK interest rates being 0.5% rather than 0.25%. Therefore we have seen 15 year highs against the US$ with US$2 being breached. We may see further upside. Against the Euro sterling is showing a bit of strength but the fundamentals are good for the Euro so there is likely to be less upside.

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 April 17th, 2007 by Charles Purdy

Smarts Daily Currency Note – 17th April 2007

Smart Currency Exchange – Daily Currency Rates for Overseas Property Buyers
Free Daily Inter Bank Currency Exchange Rates 17th April 2007

Currency

Rate

EURO

1.471

CY£

0.850

US$

1.992

CHF

2.414

CAN$

2.256

AUS$

2.393

Comments: Sterling has hit 14 year highs against the US$ and has pushed very close to US$ 2. This is on the back of stronger than expected producer prices and a robust housing market here in the UK. The market has factored in a May increase in UK interest rates by 0.25%. However against the Euro, sterling has lost a bit of ground. This is based on the fact that the ECB is expected to raise interest rates by 0.25% in June with further increase later in the year.

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 April 14th, 2007 by Charles Purdy

Smarts Weekly Currency Note – 13rd April 2007

Smart Currency Exchange – Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates 13rd April 2007

Currency
Rate Last
Week
Rate This
Week
EURO
1.468
1.467
CY£
0.848
0.847
US$
1.966
1.986
CAN$
2.262
2.261
AUS$
2.405
2.383
NZD
2.728
2.693

CHF

2.405
2.413

ZAR(Rand)

14.008
14.264

Charles’s Thoughts: Sterling held its ground against the Euro and gained against the US$. Inflation is still a concern and the market is expecting an increase in UK interest rates in May of 0.25%. Retail figures continue to be good and show the continued ability of the UK public to spend. Also house prices are on the up.

The US$ weakened during the week as the market now expects the next move in US interest rates to be downwards. Housing is still a problem and there are now concerns over the growth rate of the economy for this year. No respite for the US$ expected any time soon.

Although the ECB kept Euro land interest rates on hold the Euro benefited from the comments that accompanied the interest rate announcement. The market expects the ECB to raise interest rates by 0.25% in May or June and they expect at least one further increase later this year. Inflation is of concern and the economy is moving forward led by Germanys good economic performance.

The Australian dollar strengthened further this week. The New Zealand dollar has also strengthened. Both look on an upward trend. The South African rand seems to be waiting for an improvement in the gold price.

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: “Charles and the team at Smart Currency Exchange were so helpful, I had to do a deal quickly and they registered me and saved me £’s in a short time. I will definitely use them again and recommend them both to friends and family.” Paul Taylor, Staffordshire

If you haven’t opened a Smart account yet, call me on freephone 0808 163 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

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus