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Posted August 31st, 2010 by Charles Purdy


EURO/GBP – 1.216
US$/GBP – 1.542
CHF/GBP – 1.573
CAN$/GBP – 1.634
AUS$/GBP – 1.731
NZD/GBP – 2.202
EURO/US$ – 1.267

Sterling’s movement last week was dictated by risk sentiment as sterling suffered on increased risk aversion at the start of the week but benefitted towards the end of the week due to gains in global stock markets. UK quarterly growth was revised upwards which is encouraging due to the fiscal consolidation which will take place. However a closer look at the figures revealed this revision was largely down to an 8.5% increase in construction output which will be very difficult to sustain for the remainder of 2010. This has seen many analysts argue that growth is very likely to slow later in the year. This week is a fairy quiet week for data in the UK. Call in now to speak to a trader about your risk management strategies.

The euro has been little changed overnight against sterling and the US dollar. German unemployment figures will headline the European economic calendar today, with expectations calling for jobless claims to fall 20,000. The unemployment rate is expected to remain unchanged at 7.6%. This is a further sign that the euro is being supported by the good performance of Germany whose export economy is benefitting from the Euros weakness against the US$. Call in now for a live exchange rate.

The US dollar continues to move with risk appetite after a series of negative data since the beginning of June. Today is a busy day in the US for economic releases with consumer confidence and the Federal Open Market Committee minutes for August released later tonight. Call in now to ensure you do not miss out on any favourable movements.

Elsewhere, the Bank of Japan has tried to address the recent appreciation of the Japanese Yen by expanding its special loan programme. In Australia retail sales and building approvals both showed better than expected figures overnight.

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 August 27th, 2010 by Charles Purdy


EURO/GBP – 1.219
US$/GBP – 1.552
CHF/GBP – 1.590
CAN$/GBP – 1.643
AUS$/GBP – 1.749
NZD/GBP – 2.203
EURO/US$ – 1.272

Sterling benefitted from improved risk sentiment as gains in stock markets gave investors the confidence to seek higher returns elsewhere. Sterling reached $1.5545/£1 against the US dollar as the FTSE 100 gained 1% through the day. Today sees the release of GDP data in the UK and a surprise to the upside could benefit Sterling. Get in touch now to speak to our traders so you can plan ahead accordingly.

The Euro was well supported against Sterling and the US dollar on Thursday as consumer confidence figures pushed German shares higher. Euro zone lending still remains in a fragile situation with data showing that there has been a growth in loans to euro zone households whereas loans to companies have declined by 1.3% over the year. Call in now for a live exchange rate.

The US dollar continues to move with investor risk appetite and today the focus will be on GDP data as well as the Federal Reserve Chairman Ben Bernanke’s speech at the central banker summit in Jackson Hole.

Commodity linked currencies also performed well on the back of improved risk sentiment as both the Australian and Canadian dollars made gains against the US 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 August 26th, 2010 by Charles Purdy


EURO/GBP – 1.223
US$/GBP – 1.553
CHF/GBP – 1.599
CAN$/GBP – 1.640
AUS$/GBP – 1.751
NZD/GBP – 2.209
EURO/US$ – 1.270

Sterling had a fairly quiet day yesterday and remains range bound against the euro and US dollar. With trading volumes still low due to the holiday season any negative surprises could hit confidence in sterling and lead to larger movements than normal. Today sees the release of the CBI Distributive Trade Survey which gives an indication of how retailing activity has faired in August. Get in touch now to speak to our traders so you can plan ahead accordingly.

The euro was initially well supported on Wednesday after the German IFO business climate (survey for German business sentiment) unexpectedly rose in August. Germany are clearly benefitting from a weaker euro as they are an export driven economy. The euro had been under pressure due to risk aversion as Ireland’s sovereign credit rating was downgraded by Standard and Poor. Today sees the release of economic data which should confirm that the pace of contraction in loans to non-financial corporations are continuing to ease. Call in now for a live exchange rate.

The US dollar continues to benefit against the euro and sterling as investors pile into safe haven assets due to the uncertainty surrounding the future for the global economy. Today is a relatively quiet day for the US dollar so ensure you are taking advantage of any movements in your favour by speaking to a trader today.

Elsewhere the Canadian dollar rebounded from the weakest level in almost two months as equities rallied and crude oil rose. The Canadian dollar is strongly correlated to the price of crude oil as it is its biggest export.

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 August 25th, 2010 by Charles Purdy


EURO/GBP – 1.214
US$/GBP – 1.544
CHF/GBP – 1.587
CAN$/GBP – 1.634
AUS$/GBP – 1.738
NZD/GBP – 2.188
EURO/US$ – 1.271

Yesterday sterling fell to a one month low against the US dollar and ended four days of gains against the euro over fears of a double-dip recession. Martin Weale, a Bank of England Official stated in the Times, “The UK faced a significant risk of falling back into recession.” If risk aversion continues to weigh on the market, sterling could suffer further against the US dollar. Sterling will be dictated by risk trends today as there is limited economic data due for release. Call in now for a live exchange rate.

The euro still remains under pressure following Axel Weber’s comments last week. Further comments from the renowned economist Joseph Stiglitz also weighed on the euro as he fears that the European economy could drift back into a downturn due to efforts to reduce their budget deficits. Today sees the release of German IFO expectations data which is one of the country’s key business sentiment surveys. Get in touch now to speak to our traders so you can plan ahead accordingly.

The US dollar has been well supported due to renewed risk aversion as financial markets continue to cope with the possibility that the economic recovery is running out of steam. There was further evidence yesterday that the US housing market is stalling as existing home sales were much weaker than expected at 3.83 million in July against a market expectation of 4.65 million. This was the worst figure for 15 years. Data on new home sales and durable goods orders are due for release today. Ensure you are taking advantage of the best prices by speaking to a trader today.

Global equities and commodities also fell sharply as investors sought the safety of government debt. This sent UK, German and US bond yields to a record lows. Further evidence of investors exiting risky assets can be seen in the Japanese yen’s rise against the US dollar which is now trading at a 15-year high.

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 August 24th, 2010 by Charles Purdy

EURO/GBP – 1.219
US$/GBP – 1.538
CHF/GBP – 1.604
CAN$/GBP – 1.627
AUS$/GBP – 1.736
NZD/GBP – 2.189
EURO/US$ – 1.261

Sterling hit a 2 month high against the euro yesterday reaching 1.2279/£1. This was short lived and this morning we have seen sterling lose ground against both the euro and the US$. Trading volumes in August are traditionally low which means that we can see rapid movements even when there is a lack of supporting data. That is why it is so important to get in touch as early as possible so that we can best help you manage your exposure.

In the Euro zone, sentiment in the region has deteriorated following comments from Axel Weber, German Bundesbank president and a member of the ECB’s governing council last week. He is pushing the ECB to extend its ultra loose monetary policy for as long as possible amid concerns that the difficulties caused by the sovereign debt crisis are not over. This seems sensible to me as the risk factors are still extreme. Second quarter growth in Germany was confirmed at 2.2% this morning as exports and investment fuelled Germany’s record breaking economic growth. Get in touch now for a quote to ensure you do not miss out.

The US dollar is performing well against the euro and sterling this week on the back of renewed risk aversion. Today sees the release of US existing home sales which is expected to have fallen to 13.2% in July. Make sure you are taking advantage of the best prices by speaking to a trader today.

The Australian dollar has suffered at the start of this week as their election failed to produce a clear winner. The prospect of a hung parliament caused the Australian dollar to fall. This morning we have seen a slight pull back but the next few days are expected to be volatile as economic compromises will be made by both parties.

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 August 23rd, 2010 by Charles Purdy


EURO/GBP – 1.225
US$/GBP – 1.558
CHF/GBP – 1.610
CAN$/GBP – 1.631
AUS$/GBP – 1.743
NZD/GBP – 2.202
EURO/US$ – 1.270

Last week was a strong one for sterling against the euro and this trend has continued this morning as it is trading at 1.2260/£1. During this past week, the Bank of England minutes for the month of August showed that the decision to keep interest rates unchanged was not unanimous for a third successive month as Andrew Sentance was once again the lone dissenter, calling for an increase of 25 basis points to 0.75 percent. Sterling was initially well supported after the Bank of England minutes as there was no talk about a further bout of quantitative easing. For this upcoming week broader risk trends will dictate sterling price action as sterling faces a light economic calendar. Call in now for a live exchange rate.

In the Eurozone, the euro finished the week on the slide against sterling which has continued into this morning. This was despite good German data which showed that German manufacturing has enabled the country to return to pre-crisis levels for exports of goods, with renewed demand for German cars and machine tools. There seems to be a feeling that Germany is carrying the rest of Europe on its own with Greek, Portuguese, Irish, Italian and Spanish debt interest rates all rising sharply. Today sees Purchasing Managers Index (PMI) data released today for various member states. PMI data is generally seen as a good barometer for industrial trends. Get in touch now for a quote to ensure that you don’t miss out.

The US dollar rallied last week due to poor US data and losses on equity markets around the globe. The number of new claims for unemployment benefits unexpectedly jumped to 500,000. In addition, a key measure of manufacturing production showed a further than expected decline. As a result of this poor data, there are yet again concerns over the state of the US recovery and as such – the global recovery as a whole. With a stalling housing market and poor economic data expect this week’s trading to revolve around risk aversion as investors look to avoid unnecessary risks to their investments. There is little data out today – ensure you are taking advantage of the best prices by speaking to a trader today.

In Asia the Japanese government increased pressure on the Bank of Japan to try to stop the increase of the Japanese yen. The strong yen is hurting Japanese exports, making them less competitive abroad and has caused the stock market to fall, with the Nikkei falling nearly 2% on Friday. In Australia we have the spectre of a hung parliament with whichever party who manages to form a government very dependent on the 4 independent members of parliament. This is likely to lead to some uncertainty for the Australian economy and the Australian 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 August 20th, 2010 by Charles Purdy

EURO/GBP – 1.217
US$/GBP – 1.552
CHF/GBP – 1.604
CAN$/GBP – 1.617
AUS$/GBP – 1.746
NZD/GBP – 2.205
EURO/US$ – 1.275

Sterling recovered yesterday to jump more than a cent yesterday against the US dollar after far stronger than expected retail sales data boosted hopes that the UK economy can maintain positive momentum in the 3rd quarter. There was an expectation that sales would fall last month after World Cup related electronic goods sales tapered off. However, the figures surprised with a 1.1% jump which saw a surge in confidence in sterling. What pleased analysts was that there was no anomalous factors – such as Christmas spending – that could have artificially affected the figure. Public sector borrowing figures were also down and data showed that money supply increased – this is good for growth, as it shows more money is ‘flowing’ through the system, which causes growth. However, mortgage lending figures were poor and so far this morning this has seen investor sentiment drop as concerns grow over the UK’s growth prospects. This sums up the ebb and flow in sentiment over currency. With an absence of any ‘hard’ data today, call in now to ensure you catch the sentiment at the peak.

In the Eurozone, the single currency took a back seat yesterday as most of the data releases came from both the UK and the USA. However, the main release was German PPI purchasing manager data which came in better than expected at 0.5%. Sterling performed relatively well against the euro but fell short of breaking through the 1.22/£1 barrier. There is no real data out off the Euro zone today, but following poor US unemployment figures yesterday, the euro is likely to trade on poor sentiment and suffer against the US dollar. Get in touch now for a live exchange rate.

In the USA, there was two key pieces of economic data released yesterday. Firstly, unemployment claims. After falling to 478,000 last week, the number of new claims for unemployment benefits unexpectedly jumped to 500,000. In addition, a key measure of manufacturing production showed a further than expected decline. As a result of this poor data, there are yet again concerns over the state of the US recovery and as such – the global recovery as a whole. Expect today’s trading to revolve around risk aversion as investors look to avoid unnecessary risks to their investments. Get in touch now for a live price.

Elsewhere, New Zealand credit card spending fell by 1.2% in July bringing the annual growth rate to a meagre 2.7%. Bank of New Zealand governor also effectively pleaded to firms to keep underlying inflation low and avoid hiking prices so that the Bank could avoid further interest rate hikes. Get in touch now and speak to a trader.

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 August 19th, 2010 by Charles Purdy


EURO/GBP – 1.213
US$/GBP – 1.552
CHF/GBP – 1.617
CAN$/GBP – 1.598
AUS$/GBP – 1.729
NZD/GBP – 2.178
EURO/US$ – 1.279

Sterling recovered from 3 week lows against the US dollar after the Bank of England’s minutes from their most recent monetary policy meeting eased market speculation that the Bank would loosen monetary policy further. Sterling rose to hit a daily high of $1.5689/£1 after hitting $1.5498/£1 as speculation grew that the Bank had discussed adding further emergency funding to the economy. However, the Bank kept rates and the Asset Purchase Facility on hold and briefly discussed expanding the £200bn in the economy if it was needed, but none of the rate setters voted for any expansion in the programme. Lone member Andrew Sentance yet again called for a 0.25% interest rate hike for the 3rd month in a row. That was the only data out yesterday of importance – out today there is key monthly retail sales data which is expected to show a slight decline after last month’s World Cup related boost to retail sales. Get in touch now for a live exchange rate and to ensure you don’t lose out if the data doesn’t come in as expected.

In the Eurozone, it was a fairly quiet day for the region with most of the focus on the UK. However, the euro slipped against sterling and the US dollar after a report in German newspaper Der Spiegel stated that the austerity measures put in place to fix Greece are damaging the German economy. Euro dropped by 0.4% against the US dollar to hit $1.2805/1 and it fell by around 0.2% against sterling to hit 1.2134/£1. In terms of data, German purchasing manager data came in at 0.5% – better than expected. Get in touch now for a live exchange rate.

In the USA, the US dollar strengthened against the Japanese yen this morning as investors wait to see whether the Japanese government will take measures to rein in the strength of the currency. With yen in high demand when investors are looking for safe currencies to hold, the Japanese currency has appreciated in value as demand grows. However, with an export led economy, a strong currency makes goods less attractive so there has been speculation that the Japanese government may devalue the currency with a round of Quantitative Easing. In the USA, there is unemployment claims data and manufacturing data released later on – ensure you plan your next payment effectively by speaking to a trader today.

Elsewhere, Australian weekly wages figures rose 0.8% in the 3 months to May – the smallest quarterly increase in 4 years. This points to little inflationary pressure over the coming months and justifies the Central Bank’s outlook that interest rates will stay on hold for some time to come. New Zealand producer prices rose for the second consecutive quarter and consumer confidence rose for the first time in 3 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 August 18th, 2010 by Charles Purdy


EURO/GBP – 1.209
US$/GBP – 1.555
CHF/GBP – 1.619
CAN$/GBP – 1.605
AUS$/GBP – 1.726
NZD/GBP – 2.182
EURO/US$ – 1.286

Sterling fell yesterday against the US dollar and euro yesterday after inflation data showed a slow down in UK price growth. Sterling hit a high of $1.57/£1 in early trading yesterday before a US bank sold a large amount of sterling, and in thin trading, this caused the pound to drop down to a session low of $1.5560/£1. CPI inflation data didn’t necessarily help sterling either, coming in lower than last month at 3.1% for the year against last month’s reading of 3.2%. This is the eighth straight month that inflation has exceeded the Bank of England’s 2% target and yet again requires Governor Mervyn King to write an explanatory letter to Chancellor George Osborne. King is adamant that inflationary pressures are short term and will ease over the next 2 years. This remains to be seen, but with the Bank of England minutes released tomorrow, it is likely that this will be the tone that was set. Speak to a specialist now to ensure you are buying at the right time.

In the Eurozone, German ZEW economic sentiment fell by more than expected after recent poor GDP data, but European sentiment as a whole improved. This mixed data had little impact as the euro rose 0.8% against sterling following a boost in risk sentiment towards the single currency after a better than expected bond auction saw investor confidence jump. The reason for this was that the Irish government successfully auctioned 1.5bn worth of bonds despite major concerns over the country’s banking sector. Call in now for a live exchange rate.

In the USA, the US dollar strengthened after a US bank sold a large amount of sterling. In addition, US industrial production jumped to 1% on the month – 0.5% better than expected. This saw Asian stock markets rise overnight despite a boost to the US dollar and Japanese yen related to risk aversion. There is little data out today, with the main US release being unemployment claims on Thursday. Get in touch now for a live exchange rate.

Elsewhere, a leading measure of economic growth in Australia stalled in June and showing an overall figure of 1.9% for the second quarter – the smallest since September. The reason behind this is clearly the increased interest rates over the last few months that have filtered through to the ‘real’ economy and have impacted consumer spending. Contact a trader now for a live price.

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 August 17th, 2010 by Charles Purdy


EURO/GBP – 1.216
US$/GBP – 1.565
CHF/GBP – 1.625
CAN$/GBP – 1.628
AUS$/GBP – 1.736
NZD/GBP – 2.201
EURO/US$ – 1.286

Sterling reclaimed some of the ground lost against the US dollar last week, rising 0.4% yesterday to hit $1.5665/£1 after risk sentiment improved in trading yesterday. Against the euro, sterling slipped after house price data showed that the housing market had faltered in the last month. Data from Rightmove showed that prices slipped by 1.7% against an expected gain of 0.6%. This saw sterling drop by 0.4% against the euro as additional positive data added to the single currency. Aside from the house price data, it was a relatively quiet day for sterling. However, there is key inflation data out today and retail sales data released later in the week with the most important release being Wednesday’s Bank of England minutes likely to cause the most market movement. What most investors are looking for is whether any of the Monetary Policy Committee members joined Andrew Sentance in voting for an interest rate rise, as he did last month. Call in and speak to a trader to ensure you protect yourself from the markets moving against you.

In the Euro zone, sentiment towards the region improved yesterday and risk appetite improved after the European Central Bank revealed that it had bought minimal government bonds from the region last week. This encouraged financial markets, as it shows that there is a demand for European government bonds despite serious concerns over the ability of many governments to repay debt. As a result, the euro experienced higher demand as investors looked for riskier assets to invest in. In terms of data, inflation data came in as expected at 1.7%. Out today, there is economic sentiment data for the region which could see a surprise jump upwards after the last month. As always, get in touch to avoid missing out.

In the USA, the boost in risk appetite in the Euro zone saw the US dollar drop off against sterling and the euro. Global stock markets recovered as investors looked to pick up relatively cheap stocks and shares after last week’s risk aversion devalued stock markets. Elsewhere, data showed that there was a net overall outflow of capital out of the USA in June. One of the major reasons was that the Chinese government has started buying Japanese government over the US equivalent as it feels that Japanese bonds are a lot less risky than their US counterparts. This general lack of interest for US investments is not great news for the US dollar. Call in now to make sure you take advantage.

Elsewhere, minutes from the Reserve Bank of Australia’s August interest rate meeting showed that the current interest rate levels were ‘still appropriate’ given the increased uncertainty in the global outlook and the cooling demand in the domestic market. Interest rate hikes that started in October have filtered through into the ‘real economy’ and as such, credit and borrowing is down. Get in touch now to take advantage of 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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