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Posted April 28th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1252
US$/GBP – 1.6702
CHF/GBP – 1.4542
CAN$/GBP - 1.5840
AUS$/GBP – 1.5303
ZAR/GBP – 11.000
JPY/GBP – 136.289
HKD/GBP – 12.881
NZD/GBP – 2.0766
SEK/GBP – 10.099
US$/EURO - 1.4848

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Sterling surged overnight against the US dollar to hit $1.67/£1 as GDP figures for the 1st Quarter of 2011 revealed that the UK’s economy expanded by 0.5% – boosted by a surge in activity from the service industry – and markets reacted to Fed Chairman Ben Bernanke’s comments on US monetary policy. Sterling had fallen against both the euro and US dollar ahead of the results as many investors expected the figures to disappoint. Key sectors of the economy, such as manufacturing and services grew at a healthy pace, recording progress of 1.1 and 0.9 percent respectively. Business services and finance expanded by 1.0 percent, the best reading since 2007. Most BoE policymakers want to see a sustainable recovery before tightening monetary policy, meaning interest rates are likely to stay at record lows at least until July despite inflation running at twice the bank’s 2 percent target. Call in now for a live exchange rate.
 
In the euro zone, the euro strengthened against the US dollar after data showed that European industrial orders gained for a fifth consecutive month in February and the US dollar retreated ahead of the Federal Reserve’s interest rate meeting. Greek bond yields have soared this month on speculation that Athens may have to restructure its 327 billion euro (289.6 billion pound) sovereign debt by choosing one or more of several options: extending maturities, lowering interest rates, or cutting the principal. Call in now to ensure that you don’t lose out.
 
The US dollar plummeted against the euro and after the Federal Reserve’s meeting yesterday evening in which it signalled that it would hold interest rates steady to support the U.S economy after its bond-buying program expires in June. The signals to keep monetary policy loose saw investors dump the US dollar and flock to gold, which hit a fresh record high. The Fed will now probably wait until 2012 to announce sales of mortgage or Treasury securities that it bought to provide stimulus to the economy. Out later today there is GDP data and unemployment figures – GDP is expected to show a drop on last month so there could be some significant volatility.
 
Elsewhere, the Australian dollar climbed to a record high versus the dollar as consumer prices gained the most since 2006, increasing speculation that the Reserve Bank of Australia will resume its interest rate increases that have been on hold for several months. In addition, the Japanese yen slipped against the euro and the Australian dollar after rating agency Standard and Poor’s cut Japan’s credit rating outlook to negative from stable, citing the earthquake’s impact on already shaky public finances.

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Posted April 27th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1210
US$/GBP
– 1.6448
CHF/GBP
– 1.4385
CAN$/GBP
– 1.5658
AUS$/GBP
– 1.5212
ZAR/GBP
– 10.948
JPY/GBP
– 134.47
HKD/GBP
– 12.781
NZD/GBP
– 2.0394
SEK/GBP
– 10.001
US$/EURO
- 1.4671

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling fell against the euro yesterday, hit by broad euro strength and investor concern ahead of today’s GDP figures that are released at 9:30am. Last quarter’s GDP was a disappointment, and many analysts are not expecting GDP for the first quarter of 2011 to beat expectations. A weaker than expected growth figure would also see sterling’s strength against the US dollar crumble after enjoying the highest levels against the currency since December 2009 in the last week. On the other hand, a better than expected number will see expectations of an interest rate hike surge. Ensure that you don’t lose out by calling in for a live exchange rate.
 
In the euro zone, the euro strengthened following a strong Spanish bond auction. The euro had suffered earlier in the day after comments from European Central Bank President Jean-Claude Trichet saw investors cut euro holdings in favour of the US dollar. The President stated that there was a need for a strong US dollar, but the euro soon gained back ground. It is a quiet day for data today in the euro zone, but given the magnitude of US and UK data, there is likely to be significant movement so call in now for a live exchange rate.
 
In the USA, the U.S. dollar eased against the euro as investors bet the U.S. Federal Reserve will keep its loose monetary policy in place today’s meeting later this evening. Many investors feel that the US dollar will remain under pressure as the Federal Reserve is far more reluctant to tighten its policy any time soon – contrast this to the ECB that has already begun to raise interest rates, and is expected to raise rates twice more before the end of the year. Fed Chairman Ben Bernanke also speaks at the first ever post-rate decision press conference, so his comments will be closely watched for any deviation from the official statement. Ensure you speak to one of the team sooner rather than later.
 
Elsewhere, investors piled into currencies including the New Zealand dollar as the world’s major central banks pushed down the yen. New Zealand’s consumer price inflation accelerated to 4.5 percent in the first quarter of this year and the Australian dollar was up 0.3 percent against the US dollar, close to the 29-year high it hit on Monday. It had earlier fallen as commodities edged lower.

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Posted April 26th, 2011 by Charles Purdy

Daily Currency Note


EURO/GBP - 
1.1310
US$/GBP – 1.6516
CHF/GBP – 1.4496
CAN$/GBP – 1.5731
AUS$/GBP – 1.5408
ZAR/GBP – 11.126
JPY/GBP – 134.99
HKD/GBP – 12.844
NZD/GBP – 2.0589
SEK/GBP – 10.059
US$/EURO – 1.4604

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx


Sterling finished last week strongly, hitting a 16 month high against the US dollar after UK retail sales gained more than had been expected. The figures were expected to show a 0.5% drop on the month, but came in showing a 0.2% increase which helped support the pound. Growth concerns still remain though, and Martin Weale (a member of the Bank of England that has been voting for a rate increase since January) said that the 1st Quarter had been “disappointing”. It is a quiet week in the UK with a 2nd long weekend only days away, but there is some key data released that could see some serious movement. Today we have CBI industrial trends which are expected to show that the economy is rebalancing towards manufacturing and exports and then GDP data tomorrow. Call in now for a live exchange rate to ensure that you don’t lose out.

In the euro zone, the euro suffered slightly last week following concerns over the need to restructure periphery debt and it fell after ECB President Jean-Claude Trichet stated that a strong US dollar is in the interests of the USA – a move seen by some to “talk up” the US dollar and take the pressure off his own overbought currency. This week is quiet for European data, but thin holiday trading could see some sharp moves so ensure you are prepared.

 
In the USA, the US dollar plummeted against sterling on Friday and is itself set for a potentially busy week. Wednesday sees the Federal Reserve’s interest rate decision and post-decision press conference. The Fed is widely expected to announce the scheduled conclusion of “QE2” (the $600bn second round of Quantitative Easing that has been in place) in June. Any divergence from this – i.e. an extension of the programme or even fresh Quantitative Easing could see US dollar weakness.

Elsewhere, silver markets fell in Asian overnight trading and Asian shares pulled back from recent highs ahead of the Federal Reserve’s meeting this week. This spread to the gold and crude oil market as traders wait to see whether the Fed will make any sweeping changes to monetary policy.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted April 21st, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.1274
US$/GBP – 1.6479
CHF/GBP – 1.4582
CAN$/GBP – 1.5620
AUS$/GBP – 1.5318
ZAR/GBP – 11.1295
JPY/GBP
– 135.096
HKD/GBP – 12.8094
NZD/GBP – 2.0542
SEK/GBP – 10.0438
US$/EURO – 1.4611

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling weakened by 1% yesterday to against the euro after minutes from the Bank of England’s last meeting showed policymakers were concerned over economic growth, with no change in the voting pattern on last month. The committee voted 6-3 in favour of keeping rates on hold citing that data over the previous month had “probably been to the downside”. Markets pushed back expectations of an interest rate rise to later in the year, which was the main driver of sterling’s fall. The next major piece of data is retail sales which are released later today, so call in now for a live exchange rate to avoid losing out – especially given the light trading ahead of the Easter break.

In the euro zone, the euro hit a 15 month high against a weak US dollar gaining 1.4% due to high risk appetite and a better than expected bond auction from Spain which was welcomed warmly by investors. Business activity data also showed that Germany and France continue to outperform the rest of the region, helping to support European Bank rate hike expectations in the short term. Ensure you speak to one of the team to avoid missing out. 

The US dollar fell against sterling and the euro, despite the fact that US stocks jumped on Wednesday as optimism about the economic recovery rose on a wave of strong earnings and profit outlooks. With the Bank of Japan and U.S. Federal Reserve expected to keep their monetary policy ultra-loose for the time being, the US dollar and Japanese yen have become the currencies of choice for the carry trade – the strategy of use cheap loans to fund investments in higher yielding assets. In addition, a weaker US dollar tends to boost the attractiveness of commodities, which are mostly priced in the U.S. currency. Home sales came in better than expected – out today we have unemployment claims, so call in for a live price.

Elsewhere the Australian dollar extended gains against the U.S. dollar and rose to a fresh high yesterday amid rising risk appetite. Thailand increased the one-day bond purchase rate for the third time this year which strengthened the Thai bhat by 0.3% against the dollar.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted April 20th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.1339
US$/GBP – 1.6355
CHF/GBP – 1.4645
CAN$/GBP – 1.5591
AUS$/GBP – 1.5432
ZAR/GBP – 11.1090
JPY/GBP – 135.487
HKD/GBP – 12.7215
NZD/GBP – 2.0595
SEK/GBP – 10.1021
US$/EURO – 1.4419

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling slipped marginally against the euro yesterday as traders adjusted positions ahead of the Easter break and the euro recovered from a 1% loss against sterling on Monday. The pound was up 0.3% against the US dollar as bets on an interest rate hike by the Bank of England were up ahead of today’s Bank of England minutes. Sterling has traded in a range between $1.60 and $1.64 for two and a half months as investors speculate whether more Bank of England officials will vote for monetary tightening to contain inflation. The minutes are released at 9:30am so ensure you don’t lose out by speaking to a trader as soon as possible.

In the euro zone, solid data in the region helped the euro recover against both sterling and the US dollar after the worst day in 5 months on Monday. Concerns over Greece remain and should keep the single currency under some pressure with Germany not expecting Greece to make it through the summer without defaulting. There have also been concerns that Greece’s deteriorating public finances will cause a dangerous domino effect causing banks to collapse, threatening the viability of the single currency. Call in now for a live exchange rate.

In the USA, Monday’s credit rating outlook downgrade has seen capital being shifted away from the US towards other markets, with concerns over fiscal consolidation leaving the UK as a more attractive proposition. The UK government has come under fire for its tough programme of spending cuts, but these finally seem to be being recognised by the financial markets. The USA and euro have suffered in the past few days as a result of concerns over the lack of similar measures in these regions. There is home sales data released today so call in now for a live exchange rate.

Elsewhere, the Japanese yen gained across the board due to concerns over sovereign debt problems in Europe and the US that has seen investors steer clear of ‘carry trades’ (i.e. where investors borrow cheap yen and invest in higher yielding currencies). In addition, the Canadian dollar performed well against the US dollar, gaining by 0.7%.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted April 19th, 2011 by Charles Purdy

Daily Currency Note


EURO/GBP - 
1.1402
US$/GBP – 1.6257
CHF/GBP – 1.4568
CAN$/GBP – 1.5669
AUS$/GBP – 1.5520
ZAR/GBP – 11.1273
JPY/GBP
– 134.154
HKD/GBP – 12.6484
NZD/GBP – 2.0656
SEK/GBP – 10.1894
US$/EURO – 1.4258

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

Sterling
strengthened against both the euro and US dollar yesterday as a US credit rating outlook downgrade damaged the US dollar and fears over Greek sovereign debt hurt the euro. Sterling could remain under pressure though as markets push back expectations of a rate hike in the UK – there had been an expectation of a 0.25% rise as early as next month but unexpectedly low inflation figures put the dampeners on this last week. Out later this week there is the Bank of England minutes and retail sales – both of which could cause significant volatility given the low volume of trade ahead of the long Easter weekend. Call in now to ensure you don’t lose out. 

In the euro zone, the Greek government denied any suggestion it will need to restructure its loans but the governor of the country’s central bank fanned the flames by warning of a shrinking economy. Worries that Finland would cause problems in the bailout of Portugal also hurt the single currency after an anti-euro party was given a voice in parliament. Finland requires a majority parliamentary vote regarding requests for EU bailout funds. Call in now for a live exchange rate as we have a wide array of purchasing data released today.
In the USA, credit rating agency Standard & Poor’s announced a downgrade for the outlook of US government debt. S&P cut the outlook for sovereign debt to negative from stable due to risks from the country’s growing deficit. The announcement pushed sterling to a high of $1.6329/£1, but sterling is constrained around this level until the Bank of England starts to increase exchange rates. We have building permit figures out today, so ensure that you don’t lose out. 

Elsewhere, fears over stubborn inflation saw China increase interest rates once again yesterday in order to control the economy’s rapid expansion. The banking reserve requirement ratio was increased by 0.5% to 20.5%, to be put in effect from 21 April. We also have the release of South Africa’s inflation data on Wednesday. This will give investors a clear idea of how much high to lift interest rates and could see volatility if there is an unexpected figure.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

 

Posted April 18th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1336
US$/GBP
1.6265
CHF/GBP – 1.4583
CAN$/GBP - 1.5655
AUS$/GBP – 1.5415
ZAR/GBP – 11.1165
JPY/GBP
 134.876
HKD/GBP – 12.6539
NZD/GBP – 2.0513
SEK/GBP
10.1257
US$/EURO - 1.4340

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

Sterling strengthened on Friday against the euro as the single currency was hurt by concerns over periphery debt, with suggestions that Greece would need to restructure its debt. The euro’s losses were limited, as expectations remained that the European Central Bank would keep raising interest rates at a faster rate than the UK. This week sees the start of a run of public holidays in the UK, so liquidity and volatility is likely to be less than it has been. One major piece of data released this week is the Bank of England’s minutes from their recent meeting. With a sudden dip in inflation, many are expecting the minutes to show that the Bank will keep interest rates lower for longer. Call in now for a live exchange rate. 

In the euro zone, the euro fell this morning against the US dollar as markets grew uneasy over a Finnish election. Voters in the country handed an anti-euro party a key position in parliament which left markets concerned that Finland could use its right to vote on EU bailout funds to slow down requests to shore up debt in Portugal. With fresh concerns over Greece and now issues with Finland, we could see the euro falter. Call in now to ensure that you don’t lose out. 

In the USA, better US data on Friday failed to help the US dollar despite stronger stock markets and lower bond yields – both of which would normally see a stronger US dollar. Markets seem to have taken the view that the Federal Reserve will not be touching monetary policy for some time and that growth in the country will remain slow. It is a relatively quiet week this week, but low liquidity could see some large swings if anything does happen. 

Elsewhere, the New Zealand dollar fell after lower than expected inflation data reduced the chance of a resumption of the central bank’s interest hikes. In addition, the Japanese yen fell to a 2 ½ year low against the Australian dollar on expectations that the Bank of Japan would lag behind other central banks on interest rate rises.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

 

Posted April 15th, 2011 by Charles Purdy

Daily Currency Note

 

This week – (Last week)
EURO/GBP
1.1289 - (EURO/GBP 1.1350)
US$/GBP 1.6362 – (US$/GBP 1. 6352)
CHF/GBP 1.4609 – (CHF/GBP 1. 14946)
CAN$/GBP 1.5744 - (CAN$/GBP 1.5601)
AUS$/GBP  1.5541 – (AUS$/GBP 1. 5531)
ZAR/GBP 11.1921 – (ZAR/GBP 10.8750)
NZD/GBP 2.0571 – (NZD/GBP 2. 094)
SEK/GBP 10.1290 - (SEK/GBP 10.1994)
EURO/US$  1.4482 – (EURO/US$ 1.4401)

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Difficult week for sterling. Following lower than expected inflation data sterling hit a five and half month low against the euro. The reason for the fall in inflation was food prices falling by 1.4% as the supermarkets came under pressure and reduced prices. Other data was mixed. Unemployment fell to 2.48 million but benefit claims went up. Exports increased and the trade deficit narrowed which are again positive. Although the Nationwide consumer confidence survey showed an improvement it still remains at historically low levels. The real problem for sterling is that expectations of increased interest rates are being pushed back. Call in for the latest information and rate.
 
The euro is still the favoured currency between sterling, the US$ and the euro. As well as hitting a high against sterling it hit a 15 month high against the US$. The major support is the likelihood of further increased interest rates following last weeks 0.25% increase. Also countries such as China are diversifying their reserves of foreign currency with the euro being a major beneficiary. But let’s not forget the problem with government debt. However you try and present it €80 billion is not an insignificant amount of debt that the European Central Bank has to fund as part of the Portuguese bail out. Call in now to take advantage of euros strength.
 
The US$ continues to suffer as we see no end to the Federal Reserves ultra loose monetary policy. One step forward was the cut of US$38 billion to the government budget for the next six months. A small step given the size of US government spend but at least a start. Sterling continues to hold above the US$1.60/£1 level which is an important support.
 
Commodity backed currencies continue to gain against the US$ with the Australian dollar hitting a 29 year high. The yen is under pressure as import costs rise, industry falters given the infra structure problems arising from the earthquake and tsunami and the low yen interest rates.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted April 14th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1265
US$/GBP – 1.6331
CHF/GBP – 1.4578
CAN$/GBP – 1.5694
AUS$/GBP – 1.5507
ZAR/GBP – 11.0765
JPY/GBP
– 136.364
HKD/GBP – 12.6996
NZD/GBP – 2.0585
SEK/GBP – 10.1758
US$/EURO – 1.4492

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

Sterling fell to a 5 ½ month low against the euro yesterday as investors bet that UK interest rate rises would lag behind those in the euro zone. The pound was flat against the US dollar as a mixed set of unemployment figures failed to support the UK currency. Figures showed that the number of people unemployed fell to 2.48 million with the unemployment rate beating expectations to show 7.8%. Any optimism was offset by the fact that the number of benefits claimants increased, and wage growth remained subdued. It is a quiet day for data releases, but a Bank of England member is speaking which could cause some movement so ensure you don’t miss out.
 
Euro strength saw the single currency hit a high of €1.1205/£1 yesterday as investors priced in a 50% chance of an interest rate hike by the ECB in both August and September. Against the US dollar, the euro hit a 15 month high of $1.4521/ £1 as global risk aversion subsided and investors sought higher yielding currencies. Data is thin on the ground again today, but with currencies volatile off the back of interest rate speculation, ensure you do not miss out and speak to one of the team today.
 
In the USA, the Federal Reserve’s loose monetary policy has seen the currency suffer against the euro. Analysts expect both sterling and the US dollar to underperform in the coming weeks, which should see little movement on the currency pair. Beyond that, the US dollar is expected to recover so ensure you take advantage of higher sterling/ US dollar rates whilst you can.
 
Elsewhere, the Swedish krona strengthened as the government boosted its economic forecasts. The Chinese yuan reached a 17 year high after suspicions that the government may raise the bank’s reserve ratio. The Japanese yen weakened as risk appetite returned following this week’s second earthquake aftershocks

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted April 13th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1223
US$/GBP – 1.6281
CHF/GBP – 1.4617
CAN$/GBP – 1.5638
AUS$/GBP – 1.5509
ZAR/GBP – 10.9550
JPY/GBP
– 136.856
HKD/GBP – 12.6631
NZD/GBP – 2.0608
SEK/GBP – 10.1825
US$/EURO – 1.4509
 

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

Sterling hit a low of €1.1233/ £1 against the euro yesterday as inflation figures came in lower than expected which left investors questioning the prospects for an interest hike in the UK. This has widely been regarded as a positive though, as the UK needs inward investment from overseas in order to get back on track. A weak pound will help achieve this aim and as such, this should be seen as a positive. Figures released yesterday showed that UK exports had increased and the trade deficit had narrowed – all good news for the economy. Released today, we have UK unemployment figures so call in now for a live exchange rate.
 
The euro rose to a new 5 ½ month high against sterling in early trading this morning, as the outlook for interest rates in the UK and euro zone continues to diverge. Many analysts expect further hikes from the ECB – possibly before the Bank of England and as such this has drawn demand for the euro. The euro dropped slightly against the US dollar for a second day as the IMF European Commission met in Lisbon to discuss the €80bn bailout of Portugal. Industrial production figures are released later so ensure you are protected.

The Japanese yen, US dollar and Swiss franc strengthened after more earthquakes shook buildings in Japan and after the country raised the nuclear severity rating that began last month, reviving demand for the safer haven assets. The Australian dollar fell the most in almost four weeks against the yen as Asian stocks slumped, damping demand for higher-yielding assets. Call in now for a live exchange rate.

Against the US dollar sterling hit a low of $1.6227/£1 – off a 15-month high hit last week of $1.6430 – following the drop in UK Consumer Price Inflation. There is a wide array of retail sales data released today in the USA, so call in to ensure that you do not lose out if the markets move against you.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

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