Smart Daily Exchange Rates
Last Week This Week
(GBP/EUR – 1.2156) GBP/EUR – 1.2148
(GBP/USD – 1.6620) GBP/USD – 1.6467
(EUR/GBP – 0.8220) EUR/GBP – 0.8229
(EUR/USD – 1.3670) EUR/USD – 1.3553
(GBP/AED – 6.1036) GBP/AED – 6.0479
(GBP/AUD – 1.9134) GBP/AUD – 1.8786
(GBP/CAD – 1.8443) GBP/CAD – 1.8416
(GBP/CHF – 1.4920) GBP/CHF – 1.4872
(GBP/HKD – 12.900) GBP/HKD – 12.789
(GBP/INR – 103.43) GBP/INR – 102.87
(GBP/JPY – 171.18) GBP/JPY – 169.07
(GBP/NZD – 2.0106) GBP/NZD – 2.0196
(GBP/SEK – 10.738) GBP/SEK – 10.732
(GBP/ZAR – 18.356) GBP/ZAR – 18.375
Sterling close to 12 month highs , call now for an update
A mixed week for sterling as it crept up against the euro but lost a bit of ground against the US dollar over the course of the week. However this doesn’t properly reflect the story of sterling’s week which centred on Tuesday’s growth figure, starting the week on an upwards trend amid optimism ahead of this release. The actual figure was at the lower end of expectations, causing an initial weakening of the currency, which ultimately reverted to a positive movement as investors digested the fact that this showed the first year round expansion since 2007. Sterling then had a relatively quiet rest of the week, with the other event of note being a speech by Bank of England (BoE) Governor Mark Carney, in which he stated that the BoE was not ready to raise interest rates for the time being.
Yesterday was then a mixed bag, as sterling lost ground against the dollar following the US Federal Reserve’s decision to further slow stimulus, but gained against euro thanks to the highest level of UK mortgage approvals in six years. Today sees a quiet one for the UK side, with no sterling data of significance scheduled, giving you the chance to reflect on whether to purchase currency at current rates, or to opt for forward-purchasing solutions.
This is very much dependent on where you think sterling is headed. Will UK economic growth continue to drive sterling momentum plus the possibility of interest rates rises earlier than forecast or will good news elsewhere undermine sterling? Get in touch with your trader now for the latest rates and guidance on a currency buying strategies which will help minimise risk.
Eurozone inflation data undermines the euro
The euro had a relatively uneventful start to the week and traded within a narrow range against major peers before more notable weakening was seen on Thursday. Thursday’s data releases displayed mixed fortunes against the backdrop of the initial meeting of the European Central Bank (ECB)’s Supervisory Board; this inaugural meeting represents an important step towards the creation of a monetary union in the Eurozone.
In terms of figures, German Consumer Price Indicator data came through slightly weaker than expected; this is likely to have been a reasonable contributor to Thursday’s euro depreciation given the ECB Governing Council’s warning that action would be taken if inflation in the eighteen-nation bloc continues to slow.
A number of data sets are due out today and are likely to determine whether the euro will slip further against its major peers or make a recovery. A Eurozone flash Consumer Price Index estimate and unemployment rate figure are due out in the morning alongside Retail Sales data from Germany and Consumer Spending data from France.
Thinking of buying or selling euro? Businesses dealing with euro currency exchanges will have a lot of watch out for, so contact your trader for the best ways to minimise your currency exchange costs.
US Dollar benefits from further tapering
All thoughts for the US currency were this week centred on the Federal Open Market Committee (FOMC) meeting, where they would decide whether to repeat last month’s decision to reduce the level of quantitative easing. Optimism was high for this following recent positive data, but was dampened a little as the new home sales figures were lower than expected. The US currency struggled further on Tuesday as US core durable goods orders undershot predictions by a long way, failing to provide some last-minute encouragement.
The FOMC decision did, however, follow in last month’s footsteps as the Federal Reserve reduced their bond buying by a further US$10 billion a month. While this had little impact initially, the US dollar strengthened more throughout yesterday as investors digested the news, and did so for a fifth day against the euro. This was helped by consumer spending rising the most in three years, although the advance GDP, unemployment claims and pending home sales all missed their expectations, calming some of this enthusiasm.
A few mildly influential figures are due today, including personal spending and the Chicago Purchasing Managers Index amongst others, to supplement the week’s big news.
Thinking of buying or selling US dollars? Call your trader now for the latest rates as the pressure of the quantitative easing lessens.
Emerging market currencies suffer
The Japanese Yen had a tough start to the week, following worse-than-expected trade balance figures, but levelled off later in the week with worries surrounding emerging market economies boosting investment into the safe-haven currency.
The South African Rand also weakened significantly throughout the week, affected by weak Chinese manufacturing data – China is one of its main trading partners – coinciding with investor concern that US tapering will hamper the growth of emerging markets. The Indian Rupee saw its most significant boost against the sterling for two months after the Reserve Bank of India unexpectedly put up interest rates.
Yesterday we had declining Australian import prices, with the HSBC China Manufacturing Purchasing Managers’ Index also dropping to its lowest figure in six months (49.5). We saw increases, however in terms of New Zealand building permits and Japan retail sales. Today we have Producer Price Index data – a measure of inflation – out of Australia, along with Canadian growth figures.
Thinking of buying or selling currencies? Call your Smart Currency Business trader now for the latest news and updates.
Smart Daily Exchange Rates
GBP/EUR – 1.2133
GBP/USD – 1.6504
EUR/GBP – 0.8240
EUR/USD – 1.3601
GBP/AED – 6.0626
GBP/AUD – 1.8852
GBP/CAD – 1.8443
GBP/CHF – 1.4826
GBP/CNY – 10.001
GBP/DKK – 9.0502
GBP/HKD – 12.814
GBP/HUF – 377.85
GBP/INR – 103.65
GBP/JPY – 168.70
GBP/NZD – 2.0188
GBP/RUB – 58.396
GBP/SEK – 10.713
GBP/THB – 54.395
GBP/ZAR – 18.732
Sterling continues to hold close to 12 month highs
Sterling had a relatively quiet day yesterday, with no major economic data from the UK. Investors’ main point of interest for the day centred on Bank of England (BoE) Governor Mark Carney, who engaged in talks with Scottish First Minister Alex Salmon over the upcoming Scottish independence referendum; Carney also stated in a separate speech that the BoE was not ready to raise interest rates for the time being.
Little economic data of note was released, but we saw the Nationwide House Price Index, which showed an encouraging 8.4% rise over 2013. Today is another quiet one for the UK currency, with only the mildly influential net lending to individuals and mortgage approvals due for release.
So is sterling catching its breath before further strengthening or is it on looking to retrace and weaken. Difficult to know but if you are thinking of buying or selling sterling, then please call your trader now for the latest sterling rates and a detailed discussion on how to minimise your currency risk.
Will today’s Eurozone data boost the euro?
Aside from a short period of euro appreciation during late morning – that was quickly reversed – yesterday was again a day of limited movements in euro pairings. Money supply data was revealed to be worse than expected, detailing a 1% increase; however, this was not a large enough discrepancy to have any notable effect on the strength of the single currency.
Today will provide a greater array of data from the Eurozone, with unemployment data and Consumer Price Index figures from Germany having the potential to contribute volatility to the trading day. Additionally, Spanish quarterly flash GDP figures will give some indication as to how effectively the Southern European nation is making a recovery. Data releases over the near future will continue to have an effect on investors’ opinions as to the possible overvaluation of euro.
Thinking of buying or selling euro? Call your trader now for the latest rates.
US continues to taper
The US dollar had a tentative day yesterday ahead of last night’s decision by the Federal Open Market Committee (FOMC). With no last minute data to give any final support or resistance, US dollar markets remained within a fairly narrow range. At the meeting, the FOMC voted to reduce its extraordinary funding of the economy by a further US$10 billion which brings it down to US$65 billion per month. The effect on the US dollar itself has been minimal as this reduction was in line with expectations. There is a fair amount of data today for investors to mull over in addition to last night’s FOMC announcement, starting with an advance growth figure and unemployment claims. Following this are pending home sales, with the three of sets of data representing important indicators as to the state of the economy.
It seems fairly clear that the quantitative easing programme will be no more by the end of this year, which means that the focus will change to the interest rate policy. Although the Federal Reserve has made it quite clear that interest rates will be kept low for a long time, each piece of economic data especially employment rates will be closely analysed as the market try’s to second guess when they will be increased.
Thinking of buying or selling US dollars? Get in touch with your trader for the latest rates.
Turkey panics, lira continues to weaken
The Turkish Lira remains a hot talking-point. The currency was in freefall last week, with political fragility contributing to nervousness amongst traders regarding the economic outlook of emerging market economies. In response, the Turkish central bank held an emergency meeting on Monday night, after which they announced a bullish decision to double interest rates. We saw an instant strengthening of the lira as a result, but all gains were eradicated throughout the day, as traders continued with their concern that the Turkish economy will be left exposed by a slowdown in Chinese manufacturing and a reduction in US monetary stimulus.
Following the trend of the emerging market troubles, the South African rand also lost out yesterday. Following suit from Turkey, the South African central bank also hiked interest rates in an attempt to stabilize the currency. The hike had little impact, however, and we saw the rand lose ground throughout the day yesterday, nearing 2008-lows against sterling.
The Japanese yen showed significant strength, with the worries surrounding the emerging market economies playing into the hands of the traditionally safe-haven yen.
Thinking of making a currency purchase? Call your trader now for a live rate and proactive guidance on cutting money transfer costs.