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Posted April 28th, 2014 by Charles Purdy

Smart Daily Exchange Rates

GBP/EUR – 1.2146
GBP/USD – 1.6846
EUR/GBP – 0.8231
EUR/USD – 1.3864
GBP/AED – 6.1849
GBP/AUD – 1.8107
GBP/CAD – 1.8568
GBP/CHF – 1.4794
GBP/CNY – 10.529
GBP/DKK – 9.0677
GBP/HKD – 13.059
GBP/HUF – 376.40
GBP/INR – 101.99
GBP/JPY – 172.15
GBP/NZD – 1.9642
GBP/RUB – 60.679
GBP/SEK – 11.027
GBP/THB – 54.274
GBP/ZAR – 17.916

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Posted April 28th, 2014 by Charles Purdy

News from elsewhere likely to dictate sterling’s movements this week

The sterling index which measures sterling’s strength against the currencies of our major trading partners hit its highest level since 2008 last week. The key reasons for this are an economy performing well, unemployment below 7%, wages are growing faster than inflation and there is talk of increasing UK interest rates in 2015. This should signal further sterling strength but the recent trend has been for sterling to “hold its own” rather than gain ground. This is because inflation is below the 2% target, household debt levels are still high and therefore increased interest rates could well scupper the recovery. Similarly a strong pound could hit exports, a key area for the UK’s longer term growth.

The week ahead is relatively quiet on the UK data front, with the first major economic data from the UK being released on Tuesday in the form of preliminary growth figures for the first quarter. Expectations are for us to be slightly ahead of last year. Aside from this, the only major economic data from the UK comes in the form of the purchasing managers’ index for the construction industry towards the end of the week which is expected to show good expansion. However it could still be a week of rapid movements as there is a lot of news being released elsewhere, especially in the states.

Looking to buy or sell sterling? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 28th, 2014 by Charles Purdy

This week’s Eurozone inflation data could hit the euro

The euro had a quiet day on Friday last week as rates remained relatively static ahead of the weekend. As Italy enjoyed another bank holiday, there was little in the way of influential data released from the Eurozone, and we did not see any more of the fluctuations seen earlier in the week. The biggest data release this week is the Flash Eurozone Consumer Price Index (CPI) figures, which are due out on Wednesday morning. These figures are a key indication of inflation in the eighteen-nation bloc and, as negative interest rates and/or quantitative easing remain a real possibility, these figures have the potential to have a significant impact on the euro. After last month’s 0.5% result, forecasts are for 0.8% this month, a figure closer to the 2% target. If we see an increase, we are likely to see a degree of euro strength, whereas a result below 0.8% is likely to cause euro rates to worsen.

Outside of this, Spanish unemployment data is due out on Monday; German unemployment figures are set for Tuesday; and Spanish and Italian manufacturing data is due out on Friday. All of these have potential to cause movements in euro rates should they deviate from what is expected. We also have to keep a close eye on the situation in Ukraine as this has the potential to effect the euro more than most currencies.

Looking to buy or sell euros? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 28th, 2014 by Charles Purdy

Very busy week for US data so expect rapid movements in dollar

The US dollar finished off last week in subdued fashion, with no significant movements as events were limited. The only slight point of interest was the revised Consumer Sentiment from the University of Michigan. This figure came out ahead of expectations to give the dollar a little light at the end of a mixed week, but was ultimately little changed on the day.

This week’s influential data starts today with pending home sales, following on from last week’s home sales data. Tomorrow’s main release is the consumer confidence figure from the Conference Board, prior to Wednesday’s barrage of figures. On this day, we will hear about the ever-important independent non-farm employment change data, ahead of the official figure. Alongside this is the advance growth figure for the quarter, a strong indicator of all-round economic health, while the evening brings a US Federal Reserve meeting. Given the recent murmurs surrounding interest rate hikes, investors will be keen for any potentially relevant clues in the subsequent statements. Thursday follows this with words from Federal Reserve Chair Janet Yellen, supported by more labour data in the form of unemployment claims. Finally, Friday brings an unemployment rate and official non-farm employment change figures, which always provide opportunity for impact.

Looking to buy or sell US dollars? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 28th, 2014 by Charles Purdy

Ukraine worries mount

Elevated tension in Ukraine at the back end of last week saw traders turn to low-risk assets. As the geopolitical situation developed, and the rhetoric being used by Russia and the US became increasingly worrisome, we saw the traditionally safe-haven Japanese yen and Swiss franc perform well. As one would expect, the Russian rouble weakened, dropping almost a percent against the US dollar. We also saw emerging market stocks tumble, along with their respective currencies.

Looking forward to this week, out of New Zealand we have trade balance and business confidence figures. We also have a Japanese monetary policy statement and Canadian growth figures. Thursday’s Chinese manufacturing data will be the most significant release of the week, with the data from the world’s second largest economy likely to impact other currencies, particularly the commodity-backed Australian dollar.

Looking to buy or sell currencies? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 25th, 2014 by Charles Purdy

Smart Daily Exchange Rates

Last Week                                          This Week
(GBP/EUR – 1.2159)                          GBP/EUR – 1.2144
(GBP/USD – 1.6831)                          GBP/USD – 1.6801
(EUR/GBP – 0.8216)                          EUR/GBP – 0.8232
(EUR/USD – 1.3840)                          EUR/USD – 1.3833
(GBP/AED – 6.1790)                          GBP/AED – 6.1694
(GBP/AUD – 1.7973)                          GBP/AUD – 1.8126
(GBP/CAD – 1.8512)                          GBP/CAD – 1.8532
(GBP/CHF – 1.4798)                          GBP/CHF – 1.4802
(GBP/HKD – 13.051)                          GBP/HKD – 13.027
(GBP/INR – 101.73)                          GBP/INR – 102.29
(GBP/JPY – 171.67)                          GBP/JPY – 171.85
(GBP/NZD – 1.9509)                          GBP/NZD – 1.9583
(GBP/SEK – 11.061)                          GBP/SEK – 11.044
(GBP/ZAR – 17.735)                          GBP/ZAR – 17.797

Posted April 25th, 2014 by Charles Purdy

Smart Daily Exchange Rates

Last Week                                          This Week
(GBP/EUR – 1.2159)                          GBP/EUR – 1.2144
(GBP/USD – 1.6831)                          GBP/USD – 1.6801
(EUR/GBP – 0.8216)                          EUR/GBP – 0.8232
(EUR/USD – 1.3840)                          EUR/USD – 1.3833
(GBP/AED – 6.1790)                          GBP/AED – 6.1694
(GBP/AUD – 1.7973)                          GBP/AUD – 1.8126
(GBP/CAD – 1.8512)                          GBP/CAD – 1.8532
(GBP/CHF – 1.4798)                          GBP/CHF – 1.4802
(GBP/HKD – 13.051)                          GBP/HKD – 13.027
(GBP/INR – 101.73)                          GBP/INR – 102.29
(GBP/JPY – 171.67)                          GBP/JPY – 171.85
(GBP/NZD – 1.9509)                          GBP/NZD – 1.9583
(GBP/SEK – 11.061)                          GBP/SEK – 11.044
(GBP/ZAR – 17.735)                          GBP/ZAR – 17.797

Posted April 25th, 2014 by Charles Purdy

Sterling struggles to hold onto recent gains

After a strong start, sterling struggled to maintain its recent positive trend throughout the week. Following the Easter bank holiday weekend, sterling started the week strongly on Tuesday as a lack of economic data over the weekend helped the UK currency to continue in a positive fashion. This saw the currency reach a seven-week high against the euro and drive back towards five-year highs against the US dollar. Wednesday saw sterling struggle following the release of minutes from the Monetary Policy Committee meeting, which showed discord amongst officials regarding the amount of slack in the British economy.

Thursday saw sterling stabilise after realised sales data came out far higher than forecast levels. Although these figures don’t carry much weight on their own, it suggests that retail sales data, which is released today, may also exceed forecast levels. This figure is expected to have decreased throughout March from last year as Easter, a busy retail period, was in March last year, and therefore any increase from forecast could provide a boost for sterling.

Looking to buy or sell sterling? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 25th, 2014 by Charles Purdy

Euro lacks direction

The main data out from the Eurozone this week was on Wednesday, with positive flash purchasing managers’ index figures coming out at a higher level of growth than expected. The single currency gained ground against sterling throughout the majority of Wednesday but stayed steady against the US dollar by the end of the day; the positive data was largely driven by Germany. Late on Thursday afternoon, European Central Bank (ECB) President Mario Draghi said that the ECB could potentially start broad-based asset purchases if inflation does not improve – if this occurs, it would be one of the more extreme policies the ECB has ever implemented. Also on Thursday we had business confidence data out of Germany which was higher than expected. Limited Eurozone data today so markets will have a chance to mull over Draghi’s comments and what this means for the euro.

Looking to buy or sell euros? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 25th, 2014 by Charles Purdy

US dollar has a steady week

The US dollar started this shortened week in a mixed fashion. The existing home sales figure showed a better than anticipated level, but this didn’t stop the dollar nearing its recent five year lows against sterling. However, the US currency did manage to reach a two-week high against the euro. Fortunes reversed on Wednesday, as new home sales came out worse than expected, but the dollar appreciated against sterling thanks to uncertainty from the UK. Yesterday then saw a varied outcome, as the two main data points came out either side of expectations: figures for the core durable goods orders were significantly ahead of expectations, but this was counteracted by worse-than-expected unemployment claims data. As a result, no major movements were seen in either direction. Today, the week winds down quietly, with only a revised consumer sentiment from the University of Michigan to interest investors.

Looking to buy or sell US dollars? Contact your trader now for live rates, news and currency-purchasing strategies.

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