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Posted November 24th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.1602
US$/GBP – 1.5556
CHF/GBP – 1.4254
CAN$/GBP – 1.6251
AUS$/GBP – 1.5940
ZAR/GBP – 13.1824
JPY/GBP – 119.92
HKD/GBP – 12.1131
NZD/GBP – 2.0870
SEK/GBP – 10.7151
AED/GBP – 5.708
US$/EURO – 1.3388

 
 

Important notice: Today is Thanksgiving (a public holiday) in the USA and as a result, US dollar payments will be delayed by one day as US routing banks will be shut. Please allow an extra day if you are paying suppliers in US dollars. This may also impact other currency payments so bear this in mind.

Sterling fell to a further 6 week low against the US dollar yesterday, falling below $1.55/ £1 following steep drops in the prices of riskier currencies/ commodities. A raft of poor data from the euro zone saw investors pull back from positions in riskier positions. With sterling seen as a relatively riskier option to the US dollar, the pound has come under pressure as the European crisis intensifies. The pound wasn’t helped either by the Bank of England’s minutes that showed policymakers unanimously voting for no change to monetary policy. One positive was that sterling strengthened against the euro. Call in now to ensure you take advantage.

In the euro zone, the euro tumbled yesterday following poor demand for German bonds. Germany is seen by many as the ‘safe haven’ of the euro zone and the lacklustre bond auction yesterday may be the first signs of the markets beginning to question Germany’s ability to handle the European crisis. In addition, data showed that industrial orders and purchasing figures fell in the region, signalling an impending recession. Call in now for a price to make sure you don’t lose out. 

In the USA, the US dollar strengthened to the highest level against the euro since early October as investors became more and more concerned over the impact that the European debt crisis was having on France and Germany – the region’s largest economies. Markets are becoming more and more concerned globally and as such are seeking the safe haven of US dollars. Ensure you protect yourself by speaking to one of the team today.

Elsewhere, Chinese data released yesterday showed a sharp contraction in manufacturing activity. The figures shocked many who had been relying on China to drive the global recovery forward.

 

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Posted December 6th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1802
US$/GBP – 1.5699
CHF/GBP – 1.5366
CAN$/GBP – 1.5787
AUS$/GBP – 1.5891
ZAR/GBP – 10.820
JPY/GBP
– 130.01
HKD/GBP – 12.190
NZD/GBP – 2.062
SEK/GBP – 10.751
US$/EURO – 1.3299
 
 
Sterling rose against the US dollar on Friday afternoon after poor US employment figures saw the US currency weaken across the board. There were some concerns amongst investors over the UK banking sector’s exposure to the euro zone, but this is likely to be more of a story in the New Year. Data showed that UK services activity dropped marginally as expected. Many had hoped that it would show an improvement after surprisingly strong manufacturing activity data earlier in the week. It is another relatively busy week with the Bank of England’s interest rate decision on Thursday and monthly figures for industrial, trade and producer prices. Whilst the Bank is likely to keep rates on hold, there is likely to be further division between members. Call in now to speak to a member of the team about minimising your losses.
 
In the euro zone, it was an incredibly volatile week for euro zone government bonds. At one point, Portuguese and Italian bond yields hit record highs relative to German bonds – a measure of the additional ‘premium’ that these countries need to pay when borrowing from the markets. However, the European Central Bank started buying bonds in large numbers in order to reduce the risk and calm the volatility. There is likely to be further volatility in the coming months as investors look for a long term solution to the debt crisis in the region, rather than the current ‘damage limitation’ that seems to be taking place at the moment. Either way, speak to one of the team in order to protect yourself from further movements.
 
In the USA, Friday saw the release of the latest Non-Farm payroll figures – a seasonally adjusted measure of the number of jobs added to the economy in the previous month. The forecast was for an additional 172,000 jobs, and when the numbers showed only 39,000, investors were double checking the figure to ensure there hadn’t been an error given the figure was so low. Whilst there may be some kind of anomaly, it still leaves the door open to some potential US dollar weakness.
 
Elsewhere, the Australian dollar saw some strength after inflation data showed that the annual rate had jumped to 3.9% in the year to November. The rate is currently below $1.60/ £1, so if you have any Australian dollars to move into sterling, now is a relatively good time. Call in now for a live price.

 

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 September 22nd, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.177
US$/GBP – 1.569

CHF/GBP – 1.561
CAN$/GBP – 1.603
AUS$/GBP – 1.639
ZAR/GBP – 11.028
JPY/GBP – 133.15
HKD/GBP – 12.172
NZD/GBP – 2.128
US$/EURO – 1.331

Sterling fell to a 2 month low against the euro yesterday after stronger than expected demand for Irish and Greek government bonds eased concerns over European sovereign debt. Ireland sold 100% of the 1.5bn worth of bonds on offer and Greece managed to sell 390m worth of bonds – 72% of what was on offer. This saw sterling hit a low of 1.1810/£1 as the single currency surged on the strong sentiment that was generated by the bond auction. Sterling wasn’t helped after data was released showing that UK public sector borrowing hit a record high for August as interest payouts on UK government bonds shot up as a result of stubbornly high inflation. The data showed that the UK public sector spent £15.3bn more last month than it took in. In terms of today, there is yet more risk that sterling will drop in the form of the minutes of the Bank of England’s recent interest rate meeting. With concerns that the Bank are considering further Quantitative Easing, investors are keen to cast an eye over the discussions and thoughts of the decision makers. Speak to a trader now to protect yourself against further movements.

In the Euro zone, there were concerns last week over the debt crisis in Europe, as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). These were quickly allayed yesterday as the bond markets gave the emerald isle a vote of confidence by snapping up the bonds that were on offer. Greece also surprised many, and despite only selling 72% of the bonds that were on offer, this was seen as a huge step towards recovering some confidence in the financial markets. Out later today there is some business sentiment data for Belgium which is unlikely to cause too much of a stir. Speak to a trader now as the euro is likely to remain volatile – especially vs. sterling and the US dollar.

In the USA, despite the US dollar coming under significant pressure on Monday ahead of yesterday’s Federal Reserve interest rate decision, the announcement turned out to be a bit of a damp squib. There had been concerns that a further round of emergency stimulus would be pumped into the economy, but the Federal Reserve issued an almost identical statement to last month stating that “additional accommodation would be given [to the economy] if required” i.e. they would pump further money to stimulate as and when it was required. Early reaction following the announcement saw risk appetite improve and sterling strengthen by a cent on the day to just over $1.56/£1. Call in now and speak to one of the team about how best to take advantage of economic events such as interest rate announcements.

Elsewhere, Canadian inflation was milder than expected in August as energy price rises slowed and the Canadian recovery lost steam. This gives the Bank of Canada much more reason to pause its current interest rate hiking scheme and is likely to see the Canadian dollar pull back. The currency – known as the Looney – has recently come very close to parity (1:1) against the US dollar. Poor inflation data is not going to push it beyond that barrier anytime soon.

Posted September 21st, 2010 by Charles Purdy

Daily Currency Note 21/09/10

EURO/GBP – 1.186
US$/GBP – 1.551

CHF/GBP – 1.558
CAN$/GBP – 1.596
AUS$/GBP – 1.639
ZAR/GBP – 11.052
JPY/GBP – 132.56
HKD/GBP – 12.049
NZD/GBP – 2.131
US$/EURO – 1.308

Sterling fell to a 7 week low against the euro yesterday after poor UK data highlighted a slow UK recovery. Data showed that lending to businesses dropped for the 5th consecutive month in July and mortgage approval data showed the lowest number of new mortgages in over a year. Figures also showed that monetary supply – or the amount of money in the economy – dropped by 0.2% in August. All of this led investors and analysts to question the UK’s recovery further and saw renewed calls for an additional round of Quantitative Easing from the Bank of England to stimulate the economy. This saw sterling drop to 1.1887/£1 before recovering marginally to end the day above 1.19/£1. Against the US dollar, sterling slipped to a low of $1.5526/£1 despite holding firm above the $1.56/£1 level over the weekend. Out today, there is key public sector borrowing figures which are highly anticipated and will cause sterling movement. Make sure you don’t miss out by speaking to one of the team today.

In the Euro zone, there were no real data releases yesterday but there was positive news from Italy. The Italian trade deficit of 1.37bn showed a surplus of 1.75bn for last month. There were concerns last week over the debt crisis in Europe, as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). The Irish government quickly denied these rumours but the euro lost nearly a cent against the US dollar. Yesterday however, the euro recovered ground against the US dollar as markets grew concerned that the Federal Reserve would start a fresh round of emergency stimulus. Speak to one of the team today to prevent your payment costing more.

In the USA, the US dollar has been under further significant pressure yesterday ahead of today’s Federal Reserve interest rate decision. Concerns that a further round of emergency stimulus will be pumped into the economy saw gold reach a record high – testament to the level of uncertainty and concern that is prevalent in the marketplace. Aside from the interest rate decision, today sees new build housing data and building permits figures. All in all a lot in the pipeline, so make sure you have protected yourself by speaking to one of the traders ASAP.

Elsewhere, the Australian dollar continued to surge higher yesterday to hit a 2 year high against the US dollar after Glenn Stevens of the Reserve Bank of Australia stated that economic growth down under is likely to be “above trend” in 2011. This saw interest rate expectations surge with one gauge giving a 29% chance of an interest rate rise at the next meeting. The Japanese yen remained in a tight trading range after intervention from the Japanese government last week saw investors steer relatively clear of the currency.

Posted September 14th, 2010 by Charles Purdy

Daily Currency Note

EURO / GBP – 1.198 
US$ / GBP – 1.540
CHF / GBP – 1.545
CAN$ / GBP – 1.585
AUS$ / GBP – 1.651
ZAR / GBP – 11.017
JPY / GBP – 128.27
HKD / GBP – 11.965
NZD / GBP – 2.118
US$ / EURO – 1.285

Sterling performed well against the US dollar yesterday as positive Chinese data and new banking rules helped boost risk appetite amongst global investors. Sterling gained 0.5% against a generally weaker US dollar to hit $1.5488 as sentiment towards the pound was positive throughout the day’s trading. There was very little data out but the impetus came from Strong Chinese data that showed Chinese factory data was strong – despite efforts by the Chinese government to curb the buoyant economy and avoid an asset bubble. As a result, investors felt happier taking risks and moved funds out of US dollars and into ‘riskier’ currencies. In terms of data, there is inflation data released later this morning which will be very closely watched as many analysts fear a ‘double dip’ recession is looming in the UK. Any sign of this in the inflation figures and we will likely see sterling suffer. Call in now to ensure you don’t lose out.

In the Euro zone, the single currency held firm against sterling throughout the day with risk appetite seeing more demand for the euro than sterling. In Europe, risk appetite was helped by the announcement of the new Basel rules on capital adequacy. Known as ‘Basel III’, the rules force banks to almost treble the amount of capital they must hold on reserve in order to avoid a repeat of the financial crisis. This clarification has helped investors feel more confident about the recovery and saw European bank shares soar throughout much of the day, bringing European stock exchanges with them. Data wise, there is industrial data released tomorrow that is expected to show a mild improvement so call in now to take advantage of sentiment driven prices.

In the USA, the US dollar headed for its biggest fall against the euro since early July 15th as global risk appetite boosted high yield ‘riskier’ currencies. In addition, the new banking rules saw the single recovery receive an added boost and the US dollar slipped above $1.28/€1 for the first time since July. In terms of data, there is key monthly retail sales data that is expected to show a slight improvement. If it doesn’t, expect the US dollar to strengthen as investors look to move back into safer haven currencies. Call in now and speak to a trader to make sure you are protected.

Elsewhere, the Canadian dollar continues to hold its ground against other major currencies after last week’s interest rate hike and a strong employment report last week. Many traders expect a further hike in interest rates in October which is in clear contrast to other central banks around the world which are holding rates or potentially looking at injecting further money into the economy. Canada’s booming economy (similar to Australia) is as a result of strong demand for commodities – especially from China. Speak to a trader today 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 June 28th, 2010 by Charles Purdy


EURO/GBP – 1.216
US$/GBP – 1.504
CHF/GBP – 1.633
CAN$/GBP – 1.557
AUS$/GBP – 1.723

Sterling had a strong week last week as tough spending cuts announced in the emergency budget eased fears amongst investors that the UK would suffer a debt crisis akin to Greece or Spain. The pound hit a 19 month high of 1.22/ £1 and held above the $1.50/ £1 level for the first time in nearly 5 weeks. A new trend emerged that clearly showed the budget helped separate the UK from the rest of Europe in the eyes of investors. Normally, when European stock markets have fallen in the last few months, the pound has followed suit against the euro. However, last week, we saw sterling hold strong in the face of faltering European markets. With little UK data out today, the focus is on the general risk trends. Many analysts feel that there is not enough positive impetus to push the pound beyond $1.50/ £1 – get in touch now to avoid missing out.

In the Euro zone, stock markets are set to rise this morning after Asian markets strengthened overnight. The rally was caused as fears eased that the US senate would draft a harsh banking regulation bill. There had been concerns that at the meeting of the G20 leaders over the weekend, the leaders would co-ordinate some sort of global financial regulation package, but as it was the summit proved fairly inconclusive. The general outcome seemed to be that every country had slightly different issues to contend with and as a result, the respective governments would do things their own way. European money supply data out today is expected to show a further contraction in the rate of growth. Sentiment towards the region is still poor – get in touch now for a live price.

In the USA, the focus this week is on Non-Farm payroll data (released Friday), house prices, manufacturing data and spending/ income data. An improvement in May employment and hourly earnings could mean that both income and spending data shows an improvement also. In addition, overnight the People’s Bank of China set the Chinese yuan’s daily mid-point at a new post-revaluation. This revaluation has been praised by the USA as it makes US goods more competitive, however, the real motive behind the revaluation is probably to keep a lid on China’s overheating economy. Call in now for a live exchange rate.

Elsewhere, a report from the National Bank of New Zealand showed that consumer confidence fell in the region by the largest amount since October 2008. The reason behind the drop was falling expectations of growth in various industries. A survey by Credit Suisse shows that many traders are forecasting an interest rate rise of 131 basis points over the next year despite this poor confidence. Call in now to speak to a trader, as there is a lot of volatility likely on the NZ and AUS 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

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