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Posted March 3rd, 2010 by Charles Purdy

Currency Rates

EURO/GBP – 1.101
US$/GBP – 1.500
CHF/GBP – 1.611
CAN$/GBP – 1.553
AUS$/GBP – 1.661

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Despite recovering after Monday’s poor performance, sterling failed to move above $1.50/ £1 or 1.11/ £1 and ended the day lower as fresh opinion polls showed that the UK is heading for a hung parliament at the next election. Whilst sterling did not break through the lows of Monday, there is likely to be a lot of uncertainty for sterling until the result of the up coming election is settled as neither the Conservatives nor Labour could have the requisite majority to take the harsh action required to deal with the UK’s ballooning deficit. Tory leader David Cameron made it clear that maintaining the UK’s AAA credit rating was a top priority if they were voted in and they would start to cut the deficit within 50 days of an election. He also stated that a re-elected Labour government would see sterling sent into a tail-spin, as Labour would not cut spending. Whilst this rhetoric makes sense, the market reaction was muted as investors focused on the opinion polls. Today, there is key data on the UK services sector which will be the primary focus before attention shifts to the Bank of England’s rate decision tomorrow. With some commentators predicting the pound will drop to $1.43/ £1 now is the time to get in touch to avoid losing money – especially as sterling is at 25 year lows against the Australian dollar and Canadian dollar.

In the Euro zone, CPI inflation data showed prices rose by 0.9% month on month – slightly less than the expected 1%. This didn’t have a large effect though with the markets waiting for further news of the Greek bailout. As a result, the euro price stayed pretty flat throughout the day. The cost of insuring Greek bonds against default dropped – a sign that many investors have already decided that Greece will be propped up by Germany if any problems do occur. Today we have retail sales data out for Germany and the Euro zone as a whole. This is expected to show a marginal improvement – but as ever the risk of volatility is high. Call in now for a price – especially if you are looking to bring euros into sterling at some point, as we are able to secure today’s rates for payment at a later date.

In the USA, the US dollar posted modest gains against the euro and sterling following from Monday’s biggest percentage gain against the pound in 4 months. With little data out, investors are looking to today’s ADP employment change and Friday’s Non-Farm Payroll employment report. At the moment, regardless of whether data is good or bad, the US dollar seems to strengthen – leaving investors with no choice but to buy dollars ahead of important economic announcements. Get in touch now – one analyst expects the US dollar to strengthen to $1.43/ £1. Now is the time to secure dollars if you need them.

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Posted March 2nd, 2010 by Charles Purdy

Currency Rates

EURO/GBP – 1.106
US$/GBP – 1.489
CHF/GBP – 1.617
CAN$/GBP – 1.549
AUS$/GBP – 1.657

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form:

Sterling fell sharply yesterday as several factors combined to push the pound into freefall against the euro and US dollar. Sterling dropped nearly 4 cents from a high of $1.518/ £1 to $1.477/ £1 and hit 1.092/ £1 in a session of frantic trading throughout the morning. Traders started selling sterling over concerns that the UK would not be able to handle the record budget deficit. What compounded the problem was an opinion poll over the weekend which suggested that no clear majority existed going into the next election. In addition, there were 10,000 fewer mortgage approvals than expected and figures were released that showed that proportionately more traders were betting against the pound with ‘short’ positions. When Prudential announced the $35bn purchase of AIG’s Asian arm, sterling fell further as the Pru would need to sell $35bn worth of sterling to fund the purchase – flooding the market with sterling and devaluing the currency. Monetary supply figures were also flat, with many analysts stating that this constituted a failure of the Bank of England’s liquidity programme whose sole aim was to boost the money supply. When one of the worst days for sterling in over a year came to a close, the pound had recovered slightly, creeping above $1.50/ £1 and 1.105 for a time. Looking forward to today, we have Halifax house price data and construction PMI – both of which are expected to come in flat or slightly worse than last month. Aside from these figures, there is huge volatility at the moment, and we could see a large upswing or even further downward movement. Get in touch now to ensure you don’t miss out.

In the Euro zone, the unemployment rate remained steady at 9.9% despite expectations of a jump above 10% and manufacturing PMI data showed a marginal improvement. However, the euro was trading on sentiment yesterday and despite holding firm in early trading over rumours that a bailout agreement had been reached under German leadership, the lack of a concrete announcement left traders feeling that an agreement was far from being reached. As a result, the euro dropped against the US dollar, but strengthened against sterling. Looking ahead to today, there is some inflation data out which could cause movement, but given that euro and sterling are trading on sentiment, this data is unlikely to move the market. Get in touch now if you have payments to make, as the current volatility means you could rapidly start to lose out if the markets move like they did yesterday.

In the US, a price index showed that prices remained flat in February and the manufacturing PMI came in slightly worse than expected. However, the US dollar was more of a passive participant in yesterday’s trading as it benefited from the sterling and euro sell off. Today we have very little data out, so expect the US dollar to move on reaction to sterling and euro data and sentiment. Call now if you have US dollar requirements as we can help fix the rate today, even if you do not require the funds for up to a year.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UK or fill out our quote form:

Posted March 1st, 2010 by Charles Purdy

Currency Rates

EURO/GBP – 1.110
US$/GBP – 1.514
CHF/GBP – 1.625
CAN$/GBP – 1.591
AUS$/GBP – 1.684

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form:

After a poor week for sterling, this morning is no better. Overnight, the pound has moved lower against other major currencies, dropping to 1.11/ £1 and below the $1.51/ £1 mark. The drop was as a result of an article in a Sunday newspaper which showed that the Conservatives have now lost their lead in the polls heading into the next election. This has left the market very concerned about the prospect of a hung parliament and combined with the prospect of more emergency funding being pumped into the economy, has seen sterling suffer on negative sentiment. In addition, an article in the Wall Street Journal stated that plans are being finalised for up to 30bn of financial backing for Greece, should the country fail to sort out its own finances. This caused the euro to strengthen with the US dollar following suit and pushing sterling lower. Out today there is a range of data for the UK. Manufacturing PMI, mortgage approvals and net consumer lending are all expected to fall slightly reflecting poor weather in January and a lack of positive consumer sentiment. Later this week we have the Bank of England interest rate decision. Whilst this is expected to remain the same, investors will be looking for any clues as to an expansion in monetary policy which was alluded to last week. Call in now to avoid losing out further as sterling continues to decline.

In the Euro zone, euro strengthened on the news of a potential German-led bailout of Greece. Whilst this is just speculation at this stage, the euro strengthened as investors felt more confident in the region. We shall have to see how this pans out over the next few days. Out later today, Euro zone unemployment figures are expected to set a new record of 10.1% for January. This is a key economic indicator and could cause volatility so get in touch now to take advantage of movement in your favour and avoid missing out.

In the USA, there is also a wide range of data that is likely to give a clue as to the country’s recovery so far. Personal spending, personal income and a survey of manufacturers are all expected to show a marginal improvement. With the US recovery ahead of the UK, the US dollar is strengthening all the time. If you need to buy dollars, there is a possibility we could be looking at the mid – $1.40s before long. Get in touch now to avoid losing out.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form:

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