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Posted July 15th, 2010 by Charles Purdy


EURO/GBP – 1.199
US$/GBP – 1.531
CHF/GBP – 1.606
CAN$/GBP – 1.581
AUS$/GBP – 1.740

Sterling hit a 2 month high against the US dollar yesterday as UK jobs data came in better than expected. The number of people claiming unemployment fell by more than expected, showing a fall of 20,800 people against an expectation of 20,0000. In addition, the rate of unemployment fell from 7.9% to 7.8% driven by a record boost in part time employment. The data was the catalyst to see sterling jump by nearly 1% to nearly $1.53/ £1 – the highest rate in 2 months. Concerns over the banking sector held sterling back, as the FTSE 100 traded down 0.4%. Against the euro, the pound gained marginally to trade back above the 1.20/ £1 level. However, movement between sterling and the euro has been fairly limited this week with most off the volatility coming against the US dollar. In terms of data, there is little out today in the UK so get in touch to ensure you take advantage of the strong US dollar price.

In the euro zone, inflation figures came in as expected with year on year CPI inflation showing 1.4% the ‘core’ CPI showing 0.9% – both of which had been widely predicted. Month on month industrial production underperformed however, posting 0.9% growth against an expectation of 1.2%. Despite holding at around 1.20/ £1 for the last few days, analysts are still expecting the euro to weaken against sterling but this is reliant on the Bank of England raising interest rates or at least ending the asset purchase programme, which is still on pause. Sovereign debt is still a concern, but seems to have taken a back seat. It is not lurking far below the surface though – call in now to ensure you buy at the right time.

In the USA, monthly retail sales figures improved, but by a lot less than was expected. Sales fell by 0.5%, but were expected to decline by 0.2%. Import prices also declined by 1.3% – all of which added to the US dollar’s decline against the pound. Out later today, producer prices are expected to decline alongside CPI inflation data which is expected to show a similar decline as inflationary pressures remain low. There is an expectation that the US labour market figures out today will continue to show a gradual improvement. Call in now for a live exchange rate.

Elsewhere, China announced lower than expected GDP data for the 2nd quarter and also lower inflation figures. The Chinese government has been actively trying to cool the economy, and the figures suggest that their efforts have been successful. As a result, risk appetite got a boost, as traders speculated that tight restrictions on bank lending would be eased. Call in now, as the commodity based currencies have yet to take stock of this new development.

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 July 14th, 2010 by Charles Purdy


EURO/GBP – 1.198
US$/GBP – 1.525
CHF/GBP – 1.613
CAN$/GBP – 1.573
AUS$/GBP – 1.726

Sterling rose yesterday against the US dollar after inflation data remained above the Bank of England’s target rate. The CPI year on year inflation figure fell from 3.4% for May to 3.2% for June. The Bank’s target rate is 2.0%, and many investors felt that yesterday’s figures showed that inflation is stubbornly high and may prompt the Bank of England to raise interest rates earlier than predicted. Many currently expect this to start happening in the second quarter of next year, but the figures yesterday meant there was speculation that this could happen sooner. As a result the pound recovered by nearly 1% on the previous day, hitting a high of $1.5258/ £1 in early trading this morning – recovering from $1.4949/ £1 on Monday. Out today there is claimant count unemployment data for the UK, which is expected to show a drop of 20,000 and a more inclusive measure of employment is likely to show little growth in the sector. Call in now to ensure you are not losing out to the current volatility.

In the Euro zone, data released yesterday showed that economic confidence fell in Germany. The ZEW economic sentiment survey is a key measure of European sentiment as a whole, and it showed a worse than expected drop from 28.7 to 21.2. Overall though, the euro has taken a slight backseat this week against key data from the UK, and the euro held its ground against the pound – maintaining a price below 1.20/£1. Out later today we have inflation and industrial production data for the euro zone. Call in now to make sure you don’t miss out.

In the USA, retail sales for June are expected to show a small monthly rise. Retail sales fell by 1% in May, and the trade balance unexpectedly worsened as data out yesterday showed that the deficit had widened by $2.3bn. Get in touch now for a live exchange rate.

Elsewhere, New Zealand’s retail sales slumped by 0.2% in June – far less than the expected 0.6% upturn and marking the second month’s consecutive decline. Australian consumer confidence jumped by 11.1% – the most in 13 months – presumably related to the ousting of former Prime Minister Kevin Rudd. Call in now for a live exchange rate and to effectively plan your next payment.

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 July 13th, 2010 by Charles Purdy


EURO/GBP – 1.196
US$/GBP – 1.499
CHF/GBP – 1.594
CAN$/GBP – 1.553
AUS$/GBP – 1.721

Sterling fell against the US dollar on Monday after concerns resurfaced over the UK’s triple A credit rating. Standard & Poor’s said it was maintaining the negative outlook on Britain’s economy as the challenging spending cuts announced in the recent emergency budget have yet to be made and the economy may not grow as fast as the government has predicted. Despite the recent budget announcement, the government has yet to implement the required spending cuts and this is what concerns the credit rating agency. Elsewhere, GDP for the 1st Quarter remained unchanged at 0.3% and the current account deficit unexpectedly jumped by £5bn. The key data today is the UK inflation figures, which are likely to show a decline from last month’s annual rate of 3.4% – reflecting the spare capacity of the economy. Mervyn King has been saying for some time that inflation will fall off through the year – justifying his decision to keep interest rates and the asset purchase programme on hold. Call in now for a live exchange rate.

In the Euro zone, news has just been announced that Portugal’s credit rating has been downgraded. This reflects the ongoing concerns over sovereign debt in the region, and yesterday saw the euro give back gains to the US dollar and pound on concerns on what bank ‘stress testing’ would uncover. Recent euro strength – against sterling and US dollar – has been seen as a reflection of weakening prospects in the UK and the USA and not as a reflection of any reduction in the issues surrounding sovereign debt in the region. Out today, there is economic sentiment data released. Call in now for a live exchange rate.

In the USA, the US dollar gave back some of the gains made against the pound. However, the US dollar is still holding firm below the $1.50/ £1 level – currently trading at $1.4990/ £1. Out later today there is trade balance data which is expected to show a narrowing in the trade deficit. Call in now to make sure you buy at the best price.

Elsewhere, the New Zealand dollar benefited overnight and was the best performing currency against the US dollar after speculation over interest rate hikes saw investor expectations increase. A survey showed that many are expecting a rise of 130 basis points – up from 118 points the other week. Higher interest rates mean better returns for investors, therefore demand increases for the currency and it strengthens. Call in now to ensure you don’t miss 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 July 12th, 2010 by Charles Purdy


EURO/GBP – 1.190
US$/GBP – 1.497
CHF/GBP – 1.595
CAN$/GBP – 1.545
AUS$/GBP – 1.717

Sterling slipped against the USD dollar and euro on Friday as the post-election and budget rally seems to be coming to an end. After hitting $1.5141/ £1 on Thursday – the highest level since May – the pound is now trading at $1.4970/ £1. Data showed that factory gate inflation slowed more than expected, suggesting that the recent rise in prices may indeed be temporary as the Bank of England had predicted. Since the election and the emergency budget, the pound has performed well as investors feel that there is a clear plan in place to clear the deficit. However, it now seems clear that this will come at the cost of slow growth and as such sterling has begun to retrace gains seen recently. Out today, the focus is on final GDP figures for the 1st quarter, which is expected to remain at 0.3%. Out next week, there is the 1st estimate for 2nd Quarter GDP which is estimated at 0.7% by many. Get in touch now to ensure you buy at the right price.

In the Euro zone, there are likely to be some sore heads and very little economic activity in Spain today following last night’s football success. The euro fell 0.3% in overnight trade against the US dollar as the single currency gave back gains made last week. The euro has strengthened against the pound and is currently trading around the 1.19/ £1 level. Confidence in the euro zone seems to be creeping back in after ECB Bank President Jean-Claude Trichet pledged to take the necessary steps to deliver price stability. However, there is still a high possibility that the euro will lose ground again versus the pound. European finance ministers meet today in Brussels. Call in now for a live price.

In the USA, today marks the start of US ‘earnings season’ – when US companies release financial earnings data to the financial markets. With US data taking a notable turn for the worse over the last few months, many companies could trim their profit expectations. With the world taking the lead from the US economy, the next few weeks could see some interesting swings in sentiment and volatility on the currency markets. Federal Reserve Chairman Ben Bernanke speaks later today. Get in touch now to avoid missing out.

Elsewhere, Australian home loans to owner-occupiers rose 1.9% in May – the first increase since September 2009. The value of loans declined a bit, but overall the data was positive – especially following last week’s better than expected jobs report. The Australian dollar is strengthening – call in now if you have any payments to make, and 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 July 9th, 2010 by Charles Purdy


EURO/GBP – 1.195
US$/GBP – 1.518
CHF/GBP – 1.599
CAN$/GBP – 1.583
AUS$/GBP – 1.733

Sterling fell yesterday against the US dollar and euro as mixed economic data triggered a sell off of sterling positions. Despite hitting a 2 month high of $1.5241/ £1 – the highest since early May – the pound struggled to make ground. This happened despite data showing a larger than expected rise in industrial production. However, house prices fell and the Bank of England kept the interest base rate and quantitative easing programme on hold as expected. It was revealed a few weeks ago that Bank of England member Andrew Sentence had voted for an increase in interest rates at the last meeting. We will need to wait for 2 weeks until the minutes of yesterday’s meeting are released to see whether any other members of the Bank of England followed suit. Out later today there is monthly PPI data and trade balance data which is expected to show a slight contraction in the UK’s trade deficit. Call in now for a live exchange rate.

In the Euro zone, Germany’s trade surplus shrank by 3bn and the European Central Bank kept rates on hold at 1%. The press conference comments by bank president Jean-Claude Trichet helped boost the euro to above $1.27/1 for the first time since May. The bank president stated that he felt that the recovery was well under well and details over the proposed ‘stress tests’ of government and bank debt helped push the currency higher. The euro pushed below 1.20/ £1 as a result. Out later today, there is Italian and French industrial production data and German PPI purchasing data. Call in for a live exchange rate.

In the USA, initial claims for unemployment benefits fell to 454,000 from 475,000 the week before. This was much better than expected and helped boost the US dollar against most of its counterparts and saw US government bond yields rise (a sign that investors are looking for riskier assets to invest in). In other news, the US administration pledged to monitor the Chinese yuan exchange rate, to ensure that China is living up to its commitments to help rebalance the global economy. Call in now to ensure you get the best exchange rate.

Elsewhere, the Australian dollar is on track for the biggest weekly gain in 9 months as signs that the global economic recovery is intact boosted demand for higher yielding currencies. The NZ dollar also gained. Get in touch now especially if you need to buy AUS dollars, as the price is getting significantly worse. Have a fantastic weekend!

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 July 8th, 2010 by Charles Purdy


EURO/GBP – 1.199
US$/GBP – 1.517
CHF/GBP – 1.600
CAN$/GBP – 1.587
AUS$/GBP – 1.736

Sterling had a good day yesterday, recovering lost ground against the US dollar and euro as a recovery in UK shares on the FTSE stock market helped ease concerns over the fragility of the economy. Data on UK jobs growth was relatively poor and this put a cap on the strengthening pound. Against the euro, the pound was broadly stronger but sterling seems to have lost the post-budget momentum as gains related to sentiment have given way to concerns that the tax hikes and spending cuts will dampen growth and harm the UK recovery. Many analysts are concerned that the government will struggle to effectively implement the spending cuts, with industrial action being a potential stumbling block. Despite these concerns, the pound has strengthened this morning to a 2 month high against the US dollar as sentiment towards the Euro zone improves and investors look to ‘riskier’ assets in the UK and Euro zone. The big event today is the Bank of England interest rate decision. The rate is expected to stay the same and the emergency funding is likely to remain on hold. However, if this does change, there will be considerable volatility. Call in now for a live exchange rate.

In the Euro zone, final GDP for the quarter came in as expected at 0.2%. There was however slightly poor data in the form of the French trade balance whereby the deficit increased by 1.5bn. In addition, against an expected increase of 0.5%, German factory orders fell by 0.5%. Out today there is data on the German trade balance and also a press conference by the European Central Bank following the interest rate decision – the press conference is normally fairly scripted, but the ‘free questions’ can sometimes prompt volatility if there are any controversial statements. Get in touch now for a live exchange rate.

In the USA, there was a lack of data released in the region yesterday, and the US dollar traded on sentiment. Similarly today, there is very little relevant data as the US dollar takes a back seat ahead of a busy set of data from the UK and Euro zone. Already this morning, the US dollar has given away ground to other currencies on risk sentiment movements. Get in touch now to avoid missing out on the best rates.

Elsewhere, Australian employment figures surprised many with the economy adding 45,900 jobs in June – easily beating the 15,000 estimate. The rate of unemployment for May was also revised downwards. This saw the Australian dollar strengthen against all other major counterparts as increased employment boosted expectations for higher inflation. Call in 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 July 7th, 2010 by Charles Purdy


EURO/GBP – 1.200
US$/GBP – 1.508
CHF/GBP – 1.603
CAN$/GBP – 1.599
AUS$/GBP – 1.783

Sterling rose overall against the US dollar but fell against the euro as investors bought riskier investment assets as concerns eased over the global recession. Sterling jumped above $1.52/£1 in early trading as data in the USA came in worse than expected. This left sterling within spitting distance of Friday’s 9 week high of $1.5230 and prompted some analysts to suggest that there is scope for the pound to strengthen towards $1.55/ £1 if the conditions allow it, however this is likely to take some time. The pound fell to 1.1990/ £1 as improved sentiment towards the euro saw investors moving funds into riskier investments in the region. This morning however, data showing a decline in jobs growth has seen the pound lose ground again and in addition, the UK Shop price index has shown a decline in the growth of retail inflation for June. Out later today there is Halifax house price survey data which has been rescheduled to be released today. This data can cause volatility – especially as housing data has disappointed recently. Call in now for a price.

In the Euro zone, there was little data out in the region yesterday, and the euro traded on improved sentiment following better than expected data last week. The single currency gained against both the pound and the US dollar hitting $1.2630/ 1 and strengthening below the 1.20/ £1 for the first time in several days. The euro’s strength has come as investors moved to close short positions that were in place ahead of last week’s Spanish bond issues and 442bn loan facility, as these were expected to cause the euro to perform badly. However, those events passed by without any issues, and investors have needed to buy back euros to avoid losing money – causing strength. Out today, there is final GDP data for the region, which is expected to remain unchanged at 0.2%. In addition, there is German factory order data for the month which is expected to show a decline on last month.

In the USA, yesterday saw the US dollar decline as global risk appetite improved after concerns over the recovery eased. US stock markets were up 2.8% by late afternoon which prompted investors to move funds to ‘higher risk’ currencies – including the euro, pound and ‘commodity’ currencies such as the AUS dollar. However, since opening this morning, the US dollar has recovered ground as stock markets fell overnight following poor US service sector growth. Out later today there is very little data so expect the US dollar to trade on sentiment. Call in now for a live exchange rate.

Elsewhere, data showed that activity in the Australian construction sector fell for the first time in 6 months, after a sharp drop in private construction. This is likely to be as a result of the aggressive interest rate hikes that have seen 1.5% of interest rate hikes added to borrowing costs between September 2009 and May of this year. With markets very volatile, get in touch now to ensure you don’t miss 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 July 6th, 2010 by Charles Purdy


EURO/GBP – 1.206
US$/GBP – 1.517
CHF/GBP – 1.611
CAN$/GBP – 1.609
AUS$/GBP – 1.791

The pound fell yesterday after weaker than expected data on UK services sector activity highlighted the fragile state of the country’s recovery. This saw many investors booking in profits after the pound’s late rally against the US dollar at the end of last week. The measure of PMI service sector activity showed a drop form 55.4 to 54.4 due to subdued business confidence and a record drop in confidence. As a result, sterling slumped from a daily high of $1.52/ £1 to hold above $1.50/£1 and against the euro the pound traded in a fairly narrow range between 1.2050/ £1 and 1.21/£1. Out today, there is house price data for the month which is expected to show a slight increase in prices. However, the last few sets of results have disappointed and caused the pound to weaken. Call in now to ensure that you don’t lose out due to negative movements.

In the Euro zone, the euro took advantage of the dip in service sector activity to gain 0.3% against the pound but the single currency fell marginally against the US dollar, ending the day down 0.2% after concerns that the European Central Bank will keep interest rates at a record low as efforts to trim national budgets is hampering regional growth in Europe. Many analysts feel that the European economy does not warrant interest rate hikes for the considerable future and as such, the euro fell. PMI data came in as expected and investor confidence increased by more than was expected with a drop of -1.3% on the month versus an expected drop of -4.5%. Out later today, there is no real data for the Euro zone, so expect the currency to trade on general sentiment.

In the USA, with the markets closed for the Independence day weekend, there was no economic data released and as such quite limited movement as there was fewer places that banks could buy currency from each other. Out today, there is PMI purchasing manager’s data that excludes manufacturing. Including this data with the fact that the markets have been shut for 3 days could see a large amount of volatility. Get in touch now to avoid missing out.

Elsewhere, the Reserve Bank of Australia has held the latest monetary policy meeting and decided to keep interest rates on hold at 4.5%. This was largely expected by the financial markets, but as a result, the Australian dollar did strengthen marginally. 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 July 5th, 2010 by Charles Purdy


EURO/GBP – 1.210
US$/GBP – 1.517
CHF/GBP – 1.613
CAN$/GBP – 1.611
AUS$/GBP – 1.801

Sterling hit a month high of $1.5230/ £1 – the strongest since early May – after US Non-Farm payroll data came in far worse than expected and investors dumped the US dollar in favour of sterling. Following the drastic first budget of the new UK coalition government, the pound has taken advantage after a string of lacklustre US data with many analysts feeling better about the UK’s chances of cutting the deficit. Overall the pound finished up 1% against the US dollar, and despite barely holding above 1.20/£1 for most of Friday after the euro performed well, the pound staged a late rally and closed just shy of 1.21/£1. Out later today there is house price data for the UK and also services PMI data that is expected to show a slight decline. Get in touch now for a live price to ensure that you do not lose out on the best exchange rates.

In the Euro zone, the euro strengthened this week against both the US dollar and sterling after concerns over the liquidity and funding of many European banks turned out to be less of a problem than expected. Higher than expected demand for Spanish bonds and lower than expected demand for European Central Bank emergency funding helped stem concerns over the state of the region as a whole. In terms of data, there is final services PMI data and also monthly retail sales data. Call in now for a live exchange rate.

In the USA, the US dollar had a traumatic day after US Non-Farm payroll (seasonally adjusted unemployment data) showed a far worse fall in jobs in the region than was initially expected. Data showed a drop of 125,000 versus last month’s gain of 433,000. This followed a string of poor data from the US over the last few weeks that has prompted fears that the US recovery is faltering. There had been expectations at the start of the year that there would be an interest rate rise by the 3rd Quarter of this year. However, as it stands this looks less and less likely. This is the reason for the poor performance by the US dollar of late. The US markets are closed today for the 4th July holiday, so no data is being released. Call in today for a live exchange rate to ensure you are accurately forecasting for your upcoming payments.

Elsewhere, the Australian dollar rose after Asian stock markets gained and reports showed that the Australian labour market was improving. Data out this week is expected to show that employment increased for a fourth month. Get in touch now for a live exchange rate and to avoid losing out on poor exchange rates.

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 July 2nd, 2010 by Charles Purdy


EURO/GBP – 1.213
US$/GBP – 1.516
CHF/GBP – 1.620
CAN$/GBP – 1.609
AUS$/GBP – 1.791

Sterling jumped to an 8 week high yesterday against the US dollar of $1.5144/£1 as the dollar fell due to poor manufacturing, housing and employment data. The pound started the day poorly after lower than expected Chinese manufacturing data cast doubts over the global recovery. UK manufacturing data showed a drop from 58.0 to 57.5 which added to sterling’s woes. However, the pound rallied by over 1% against the US dollar after a similar measure of manufacturing activity in the USA showed the sharpest drop since December 2009. In addition, poor housing sales data added to the dollar’s problems. Against the euro, the pound weakened after concerns over European sovereign debt eased. In terms of data, there is construction PMI data out in the UK today which is expected to show a small improvement. With a lot of volatility, yesterday was a classic example of why it is so important to speak to a currency specialist sooner rather than later in order to take advantage of large upswings and avoid buying at the bottom of the market. Call in now for an up to date assessment of where things are heading for the pound.

In the Euro zone, the euro recovered after a poor start to the week. It was down earlier in the week as financial markets closely followed the repayment of 440bn worth of emergency loans paid out to banks, but in the end the repayment date passed without a hitch. Credit rating agency Moody’s had added to the euro’s woes as it downgraded the outlook for Spanish government debt. However, these concerns were eased after a Spanish bond auction for 3.5bn worth of bonds was well received by the financial markets – very much going against what had been expected, especially in light of Moody’s downbeat assessment of the situation. Out later today there is unemployment data and PPI data for the region – both of which have the potential to move the market. Get in touch now for a live exchange rate.

In the USA, following an expiry of tax credits for property buyers, pending home sales dropped by 30% in May and the ISM manufacturing index fell from 59.7 to 56.2 – the biggest fall in activity since December 2009. The big event of the day though is the US Non-Farm payroll data – out later this afternoon. Most analysts are expecting a fall of over 100,000 jobs on the month, and this data generally sets the tone for the following week’s sentiment for both the US economy and the global recovery as a whole. Get in touch now to ensure you don’t fall victim to adverse market movements.

Elsewhere, the Australian dollar gained overnight after the new Prime Minister Julia Gillard reached an agreement with mining companies over the proposed super tax that was the downfall of the outgoing Premier Kevin Rudd. Call in now for a live price, as the higher yielding currencies have been particularly volatile of the last week as risk appetite/ aversion drives relatively wild swings in the 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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