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Posted June 30th, 2010 by Charles Purdy


EURO/GBP – 1.230
US$/GBP – 1.503
CHF/GBP – 1.626
CAN$/GBP – 1.578
AUS$/GBP – 1.761

Sterling hit a 19 month high against the euro yesterday as investors deserted the euro ahead of bank repayments to the European Central Bank. The pound hit 1.2380 as a key deadline looms on Thursday for the repayment of loans made to banks in the Euro zone. Sterling was also supported after the launch of a 30 year gilt (UK government bond) was received well by financial markets. Lending data released yesterday showed that net lending to individuals had increased to £1.5bn but final mortgage approvals fell slightly. Today, we have seen house price data show prices rise by a mediocre 0.1% month on month against an expectation of 0.3%. Despite the wave of positivity that has followed the budget, there are still several issues that need addressing in the UK, and these figures are showing that there is potential for another housing slump. Call in now to avoid missing out on the best rates.

In the Euro zone, sentiment towards the region has taken another punishment as concerns over liquidity in the Euro zone have left investors concerned. On Thursday, a 442bn lending facility from the European Central Bank expires. This has prompted overnight lending rates to increase and widening gaps between government bond spreads. We will have to see what happens over the next few days. Out today, we have seen German unemployment data for June which has shown a rise of 21,000 – worse than expected. Later on today, there is inflation data for the Euro zone. Get in touch now to ensure you do not miss out.

In the USA, with a fairly quiet week so far on the economic calendar, the big news was that consumer confidence fell on the month. A lot of data in the US has suggested that the US recovery is stalling somewhat so a decline in confidence did not come as too much of a surprise. Out later today, there is ADP Non-Farm employment change – the precursor to the main Non-Farm Payroll data and a figure that gives a good indicator of Friday’s figure. Call in now for a live exchange rate and to ensure that you don’t miss out on the best price.

Elsewhere, Australian private sector credit and loans to buy houses increased yet again and beat economists’ expectations. However, new home sales fell to a 2 year low – showing a conflicting assessment of the property market. It might be due to the heavy programme of interest rate hikes over the last few months. Call in now for a price – especially on the more volatile currencies such as Aus dollar and NZ dollar.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

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Posted June 29th, 2010 by Charles Purdy


EURO/GBP – 1.231
US$/GBP – 1.505
CHF/GBP – 1.636
CAN$/GBP – 1.571
AUS$/GBP – 1.750

Sterling had a strong day yesterday, climbing to a 1 ½ year high against the euro and a 7 week high against the US dollar. The pound jumped to 1.2250/ £1 and $1.5104/ £1 as the UK currency continued to benefit from last week’s tight emergency budget. Investors speculated that the Euro zone debt problems would leave the region much weaker than the UK after the new coalition’s tight budget was received well by the financial markets. Many analysts see this as the budget that whips the economy into shape. However, gains against the US dollar have been muted, as many analysts feel that last week’s post-budget gains went too far. Another boost for the pound came as everyone’s favourite Bank of England member Andrew Sentence stated that the latest budget would not remove the need for interest rate hikes in the coming months. Out later today, there is monthly lending data and also data on mortgage approvals. Even though the markets have been moving up, there is nothing to stop the pound dropping – call in now to ensure that you secure the best rate.

In the Euro zone, monthly inflation data for Germany came in as expected but money supply data showed that the amount of money in the European economy had shrunk by 0.2%. There is little data out today aside from a European commission report on confidence in the region which is expected to show relatively stable readings. Sentiment towards the Euro zone has seen a relative drop compared to the UK as the emergency budget was released – call in now, especially if you have euros to move into sterling as we could see 1.25/ £1 a lot sooner than many would like.

In the USA, inflation data for consumer purchases came in slightly better than expected at 0.2% but data on personal income showed a drop of 0.1% on the month. Out later today, consumer confidence data is released that some are expecting to show a slight decline. Get in touch and speak to a trader to ensure that you don’t lose out on strong rates.

Elsewhere, Japan’s unemployment rate unexpectedly rose in May as the economy shed 240,000 jobs. These figures show how much the Japanese economy relies on overseas trade to drive domestic demand, especially given how China currently has to curb the excessive growth of its economy. Get in touch now to ensure that you don’t lose out.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 28th, 2010 by Charles Purdy


EURO/GBP – 1.216
US$/GBP – 1.504
CHF/GBP – 1.633
CAN$/GBP – 1.557
AUS$/GBP – 1.723

Sterling had a strong week last week as tough spending cuts announced in the emergency budget eased fears amongst investors that the UK would suffer a debt crisis akin to Greece or Spain. The pound hit a 19 month high of 1.22/ £1 and held above the $1.50/ £1 level for the first time in nearly 5 weeks. A new trend emerged that clearly showed the budget helped separate the UK from the rest of Europe in the eyes of investors. Normally, when European stock markets have fallen in the last few months, the pound has followed suit against the euro. However, last week, we saw sterling hold strong in the face of faltering European markets. With little UK data out today, the focus is on the general risk trends. Many analysts feel that there is not enough positive impetus to push the pound beyond $1.50/ £1 – get in touch now to avoid missing out.

In the Euro zone, stock markets are set to rise this morning after Asian markets strengthened overnight. The rally was caused as fears eased that the US senate would draft a harsh banking regulation bill. There had been concerns that at the meeting of the G20 leaders over the weekend, the leaders would co-ordinate some sort of global financial regulation package, but as it was the summit proved fairly inconclusive. The general outcome seemed to be that every country had slightly different issues to contend with and as a result, the respective governments would do things their own way. European money supply data out today is expected to show a further contraction in the rate of growth. Sentiment towards the region is still poor – get in touch now for a live price.

In the USA, the focus this week is on Non-Farm payroll data (released Friday), house prices, manufacturing data and spending/ income data. An improvement in May employment and hourly earnings could mean that both income and spending data shows an improvement also. In addition, overnight the People’s Bank of China set the Chinese yuan’s daily mid-point at a new post-revaluation. This revaluation has been praised by the USA as it makes US goods more competitive, however, the real motive behind the revaluation is probably to keep a lid on China’s overheating economy. Call in now for a live exchange rate.

Elsewhere, a report from the National Bank of New Zealand showed that consumer confidence fell in the region by the largest amount since October 2008. The reason behind the drop was falling expectations of growth in various industries. A survey by Credit Suisse shows that many traders are forecasting an interest rate rise of 131 basis points over the next year despite this poor confidence. Call in now to speak to a trader, as there is a lot of volatility likely on the NZ and AUS dollar.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 25th, 2010 by Charles Purdy


EURO/GBP – 1.210
US$/GBP – 1.492
CHF/GBP – 1.643
CAN$/GBP – 1.554
AUS$/GBP – 1.726

Sterling extended gains yesterday and hit the highest level since November 2008 against the euro after renewed sovereign debt fears in Greece contrasted sharply with a new found optimism that the UK budget cuts will rein in the country’s record deficit. Following the new government’s emergency budget, investors are now confident that the UK is well on the way to being on a stable financial footing again. One of the big drivers yesterday was investors buying back sterling after placing extreme bets that the pound would fall. This extra demand has seen the pound at a 5 month high against a basket of major currencies, after peaking yesterday at 1.2222/£1 and $1.5011/ £1. We have the G8 meetings going on today, and any positive rhetoric will continue to have a strong effect on the pound. Get in touch now for a live price.

In the Euro zone, yesterday saw Greek debt take centre stage again after the cost of insuring against Greek government default jumped to record levels. The market in this type of insurance gives investors a very clear picture of the sentiment towards the region, and the record cost meant that the euro fell yesterday with one analyst at French bank Societe Generale expecting the pound to hit 1.25/ £1 soon. Data out today in the Euro zone is expected to show that German import prices have increased by 2% in May – up 9.5% on last year. France’s GDP growth is expected to remain unchanged at 0.1% for the quarter. Call in now for a live exchange rate.

In the USA, the final estimate of GDP for the 1st Quarter is expected to be uneventful with growth forecast to remain unchanged at 3% year on year. This ends a relatively disappointing week for the US economy – particularly from housing data. On the other hand, jobless claims fell unexpectedly by 19,000 which came as a welcome surprise. Next week’s June employment report will give a clearer picture of the Labour market in the USA. We are looking at particularly good sterling strength against the US dollar – get in touch now to avoid losing out.

Elsewhere, the Australian and New Zealand dollars fell around 0.6% against the US dollar as Asian stocks fell in overnight trade and impacted on risk appetite for the higher yielding ‘riskier’ currencies. New Zealand’s trade balance surplus widened to a record high of NZ$4.2bn, however the outlook looks poor as Chinese demand is set to lag over the coming months.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 24th, 2010 by Charles Purdy


EURO/GBP – 1.218
US$/GBP – 1.495
CHF/GBP – 1.654
CAN$/GBP – 1.555
AUS$/GBP – 1.722

Sterling hit a 6 week high against the US dollar of $1.4999/£1 after sentiment was given a large boost. Firstly, following the emergency budget on Tuesday, credit rating agency Moody’s stated that the UK will retain the AAA credit rating if it successfully implements Tuesday’s measures. In addition, investors were in for a shock when the Bank of England’s minutes for this month’s meeting on monetary policy showed that one of the Bank members voted for a rise in interest rates – the first time for over 2 years that anyone has voted for a rate hike. With VAT set to rise to 20% and a round of tough spending cuts, the affirmation from Moody’s should ease investor concern over the UK. As a result, the pound saw a welcome boost. However, many analysts said that whilst the rise was justified, there are still genuine concerns over the possibility that the cuts and tax hikes could stifle out growth. As a result, many expect that the pound will not have the momentum to push far past $1.50/ £1 for some time. Get in touch now to take advantage of the best price in 6 weeks.

In the Euro zone, the euro fell against the pound as investors flocked to sterling. The pound hit 1.2189/ £1 at one point yesterday. Sentiment towards the euro is still poor, as Portugal announced that borrowing from the ECB by banks in the country doubled in May to a new record level. Banks in the region are having to borrow directly from the central bank, as they face difficulties borrowing on the ‘interbank’ market. The interbank market is where banks borrow money on a short term basis (e.g. overnight) to pay obligations. Due to poor sentiment in the region, the interest rates for overnight lending are prohibitively high and banks are going to the central bank for financing. Out today, we have some retail sales and industrial data – call in now for a live exchange rate.

In the USA, the Federal Reserve kept interest rates on hold. And the language in their statement was slightly more pessimistic than last month, suggesting that an interest rate hike by the end of the year will be less likely. This added to the US dollar’s losses against the pound. Out later today, we have US durable goods orders which are expected to drop marginally for the month. Call in now for a live price.

Elsewhere, the Australian prime minister has resigned due to unpopularity over a ‘super-tax’ on natural resources companies. This has boosted mining stocks and has seen some Aus dollar strength overnight, as the threat of punishing taxes on Australia’s biggest economic earners has now receded. Get in touch for a live exchange rate.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 23rd, 2010 by Charles Purdy


EURO/GBP – 1.209
US$/GBP – 1.486
CHF/GBP – 1.644
CAN$/GBP – 1.530
AUS$/GBP – 1.705

Yesterday we had the first budget from the new coalition government. The reality of the budget was very much as expected given the huge hole in the public finances and the need to match income to expenditure. And it is often stated that it is best to get all the bad news over quickly rather than dragging it out and prolonging uncertainty and undue suffering. So the new Chancellor laid out a very clear plan of action stating what was going to be done and how. The financial markets initial reaction has been positive which is important to sterling’s stability in the currency market as we have to remember that lenders to this country have to be convinced that we will be able to service our debt longer term. Sterling has gained against both the euro and the US$. The one unknown is what the effect of the cuts in expenditure, the increased VAT and austerity measures elsewhere in the world will have on growth in the UK economy, but the belief is that we will avoid a double dip recession. So we have taken a small step forward but the level of uncertainty is still high and that is why it is important to get in touch now and minimise the chance of losing out.

The euro zone is still suffering. On Monday we had the head of the Bank of France state that certain banks were beginning to find increased funding problems. This is what happened before Lehman Brothers went bust. The reason given is that the European Central Banks 12 month loan facility totalling 442bn comes to an end this month but this is to be replaced with a similar sized stabilisation facility so we should see this pressure ease. We also saw some downgrading of some French banks credit ratings which also knocks confidence in the euro zone and the euro which continues to weaken.

The US$ has been trading in a narrow ranger against sterling for the last few days. The major news over the weekend was the Chinese decision to let the Yuan move more freely against the US$. This moving freely is all relative as it will still be very controlled but it does mean that Chinese exports will become more expensive and less competitive and make other countries exports into China cheaper. So the logic being applied is that we will see a rebalancing of the world’s cash flows with China’s trade surpluses reducing.

And the other beneficiaries from the Chinese reduction in currency controls are the commodity backed currencies who will see their exports to China become more competitive.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 22nd, 2010 by Charles Purdy


EURO/GBP – 1.196
US$/GBP – 1.474
CHF/GBP – 1.634
CAN$/GBP – 1.507
AUS$/GBP – 1.678

Sterling started yesterday strongly, rising to a 5 ½ week high against the US dollar of $1.4925/ £1 in early trading, but fell in late trading as traders became anxious over the effect of today’s budget. The pound strengthened after the People’s Bank of China announced overnight on Sunday that it would proceed with reform of the exchange rate ‘Peg’ (i.e. fixed rate) between the Chinese yuan and US dollar. In addition, data showed that house prices in London rose by 2.2% over the last month. This drove risk appetite and news on the yuan is expected to have a positive effect on US manufacturing, as Chinese goods become less competitive. Despite this, the key event this week is today’s emergency budget – the first of the new Coalition government. There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled, whereas if the cuts are too lenient the deficit will not be addressed and the markets will lose confidence. If you have any requirements over the next few weeks – call in as soon as possible, because the pound could conceivably go either way against the US dollar and euro. It all depends on how the market reacts to the announcement.

In the Euro zone, there was no data out yesterday of any real importance. ECB Bank President Jean-Claude Trichet addressed the European Parliament. Probably the most interesting piece of information released yesterday was a report by Citigroup that amended their outlook for the euro from ‘negative’ to ‘neutral’ as the single currency closed above an important 2008 low of $1.2330/ 1 – signalling an important ‘technical’ recovery. Out today, we have data on the German business climate that is expected to show a small decline following the debt crisis. Get in touch now for a live exchange rate.

In the US, the big news yesterday was the reaction to China’s move to revalue their currency Peg against the US dollar. Despite an initial drop against the euro and sterling, many are expecting the US dollar to strengthen following the move by China. The revaluation opens the door for US goods to regain some price competition against Chinese goods, which they have lacked since 2005. This should aid the US recovery. There is a lot of volatility likely tomorrow with the UK budget data – call in now to ensure you don’t lose money.

Elsewhere, overnight the NZ and Aus dollar declined on concerns that funding trouble at European banks would temper growth. In addition, the two currencies fell the most against the Japanese yen since December 2008 over fears that the Chinese central bank would intervene to limit gains after the currency peg was eased. Get in touch now to avoid missing out.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 21st, 2010 by Charles Purdy


EURO/GBP – 1.197
US$/GBP – 1.487
CHF/GBP – 1.643
CAN$/GBP – 1.512
AUS$/GBP – 1.682

Sterling has started the day strongly, rising to a 5 week high against the US dollar of $1.4925/ £1 in early trading. The pound’s strength comes off the back of strong movement in sterling’s favour on Friday, as data showed that the UK’s budget deficit was lower than expected. The UK’s borrowing is still expected to hit 11% of GDP in the coming year, and the main event on the calendar this week is tomorrow’s ‘emergency’ budget which is expected to deliver tough spending cuts and tax hikes. Today’s strength against the US dollar is linked to risk appetite, and many analysts are concerned that there is too much faith in the pound (which has strengthened by over 2% against the US dollar in the last month). There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled. Get in touch now to take advantage of current prices, as we could see the pound return towards $1.40/£1 once the markets have had enough time to digest the budget.

In the Euro zone, the single currency had a strong end to the week as concerns eased over sovereign debt problems following stronger than expected demand for Spanish bonds. In addition, there were announcements over bank ‘stress-testing’ that boosted confidence across the region. There is no data out today, but later in the week, there is PMI data that should give a good idea of the direction of industrial production. Call in now for a live exchange rate – especially if you have euros to move into sterling or US dollars, as the euro is higher than it was last week.

In the USA, so far this morning, the US dollar has fallen by 0.3% and 0.4% against the euro and pound on risk appetite as the People’s Bank of China announced overnight that it would proceed with reform of the exchange rate ‘Peg’ (i.e. fixed rate) between the Chinese yuan and US dollar. The Peg has been blamed for artificially maintaining a weak Chinese currency that has drawn manufacturing demand away from the USA. With the Chinese economy at risk of ballooning out of control, this could be the first step to cool demand – allowing the exchange rate to strengthen, and effectively increase the prices on goods, without using interest rates. Get in touch now to ensure you don’t miss out on favourable movements.

Elsewhere, new car sales in Australia fell by 3.2% in May. This was the biggest drop in over 4 months and was attributable to higher financing costs as a result of the central Bank’s recent interest rate hikes, as this impacted on demand. Ensure you call in now to avoid missing out on good prices and avoid losing money.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 18th, 2010 by Charles Purdy


EURO/GBP – 1.198
US$/GBP – 1.485
CHF/GBP – 1.651
CAN$/GBP – 1.527
AUS$/GBP – 1.709

Sterling pushed near 1 month highs against the US dollar yesterday as UK retail sales data came in much better than expected and risk appetite increased after a Spanish bond auction was well received. The pound rose to a high of $1.4838/£1 as retail sales jumped 0.6% in May following increased demand for electrical goods in preparation for the World Cup. Sterling was initially under pressure this morning, as the markets digested the chancellor’s speech last night that all but disbanded the FSA in its current form. Mervyn King also caused sentiment towards the pound to dip as he made clear that monetary policy would have to take into account the upcoming ‘fiscal squeeze’ that would follow the budget next week. Out today, there is very little in the way of data. Ensure you call in for a live exchange rate to make sure you don’t miss out on the best rate.

In the Euro zone, there had been concern that yesterday’s issue of Spanish bonds would see a lack of demand due to the poor sentiment surrounding sovereign debt in the region following the Greek crisis. However, the issue attracted more demand than expected and as a result the spread between Spanish and German bond yields narrowed – a measure that investors are happier taking more risk in the marketplace. The only data out today in the Euro zone is purchasing manager data which came in slightly better than expected. There is potential for a significant amount of movement ahead of the UK budget on Tuesday – get in touch now for a live price and to make sure you don’t miss out on the best prices.

In the USA, monthly inflation data came in as expected but unemployment claims increased by 12,000. This saw some US dollar strength initially, but as investors took in data elsewhere, risk appetite returned and the US dollar weakened as funds flowed into riskier assets. There is very little data out today. Call in now for a live exchange rate to ensure you don’t lose money due to adverse exchange rate movements.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted June 17th, 2010 by Charles Purdy


EURO/GBP – 1.194
US$/GBP – 1.470
CHF/GBP – 1.645
CAN$/GBP – 1.508
AUS$/GBP – 1.705

Sterling fell yesterday against the US dollar and euro as the pound failed to hold recent gains as renewed fears surfaced over Spain’s banking system that reduced risk appetite. The day started well for the pound, with UK unemployment data showing that the number of people claiming unemployment benefits fell by nearly 31,000 – 7,000 more than expected. However, there are still considerable headwinds facing the economy such as the pending ‘fiscal squeeze’ that will impact consumers and as such, the unemployment figures did not have as positive an effect as might have been expected. Sterling has weakened further overnight, as the new chancellor George Osborne announced the biggest shakeup of financial regulation since Labour came to power in 1997. Under the new scheme, the Bank of England is to have ultimate control of financial supervision. Any new regulation sends jitters through the financial markets and as a result the pound is down this morning. Out later today we have UK retail sales data that is expected to show a 0.1% increase on last month. Call in now for a live price.

In the Euro zone, CPI inflation came in at 1.6% as expected and the euro ended a 2 day rally against the US dollar. The European Central Bank announced a further 5% premium on Greek government debt being used as collateral for government loans as Moody’s downgraded Greek bonds to ‘junk bond’ status – the lowest credit rating. There is little other data out today. Get in touch now to avoid losing out to poor exchange rates.

In the USA, the focus today will be on CPI inflation data. The forecast is for the figure to fall slightly to 2.0% for May as a result of weaker energy prices. Overall, many analysts are expecting price pressures to remain low over the coming months which could dampen expectations of an earlier than expected interest rate rise. Call in today for an exchange rate – especially if you have US dollars to move into sterling, as we have seen a dip in your favour this morning.

Elsewhere, New Zealand consumer confidence is expected to decline by 3.2% in June according to a recent report. This has seen the likelihood of an interest rate rise at the next Bank meeting fall by about 30% from yesterday according to the Credit Suisse interest rate expectations measure. Call in now for a live exchange rate.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

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