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Posted July 9th, 2015 by Charles Purdy

Sterling undercut by budget

Sterling suffered another poor day on Wednesday, extending losses against both the euro and US dollar to sit at the lowest level for three weeks against the euro and the lowest levels in a month against the US dollar. Sterling saw weakness throughout the morning, with investors cautious over backing sterling ahead of a budget which was widely expected to show a tightening of fiscal policy in the UK. Following recent poor economic data from the UK, nothing contained within the budget served to assuage investor worry, and sterling continued to fall throughout the afternoon.

Today sees confirmation of the Bank of England (BoE)’s latest decision on interest rates. They are expected to leave rates unchanged, and so attention will shift to the US where we will have the release of unemployment claims, and Europe where the ongoing Eurogroup meetings will provide insight into the Greek debt crisis.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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Posted June 25th, 2015 by Charles Purdy

Sterling loses ground to the euro and US dollar

Following a positive start to the day, sterling drifted lower against both the euro and US dollar as news from elsewhere once again proved to be the major determinant of rate movements. The UK currency started the day in high spirits, with early gains seen across the board following comments from Bank of England (BoE) policy maker Weale that interest rates could increase as soon as August. This comes in light of strong labour data, although it is unlikely we will see a rate hike arise this early in the year.

Sterling found itself trading within wide boundaries ahead of the evening’s Eurogroup meetings where, Eurozone finance ministers were set to discuss a cash-for-reform deal with the Greek government.

Sterling also struggled throughout the day against the US dollar, as confirmation of 0.2% economic growth throughout the previous quarter saw sterling fall to a one-week low against the US currency.

Once again we will be looking elsewhere for the major news releases today. Fallout from last night’s Eurogroup meetings looks set to dominate headlines, while unemployment claims from the US could provide further support to a US dollar on the rebound.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted May 12th, 2015 by Charles Purdy

Sterling continues to strengthen

A positive start to the week for sterling has seen it move higher across the board, pushing to the highest levels of 2015 against the US dollar as investors continue to react positively to the conclusive victory for the Conservative party in last week’s UK parliamentary election. With little fundamental economic data released on Monday, and the Bank of England (BoE) keeping UK interest rates on hold at 0.5%, investor focus shifted to the ongoing Eurogroup meetings.

With news emerging that there was little chance of a definitive deal being struck with Greece over their debt in the next few days, sterling advanced steadily against the euro throughout the day, pushing to a two-week high against the euro. Sterling also improved against the US dollar throughout the day, as investors looked towards Wednesday’s quarterly inflation report from the BoE. The central bank is expected to forecast an increase in inflation over the next year, which would increase pressure on the central bank to raise interest rates.

Today we have the release of manufacturing production figures from the UK, with the recent slowdown in growth expected to continue, with only a 0.3% increase in production forecast. Any deviations from expectations could affect sterling markets.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted April 23rd, 2015 by Charles Purdy

Sterling buoyed by positive commentary from the BoE

With Bank of England (BoE) policymakers unanimous in their view of an eventual rise in UK interest rates, sterling jumped across the board to hit the highest levels in a month against both the euro and US dollar. There was little fundamental economic data to be released on Wednesday, meaning investors were looking forward to minutes from the latest meeting of the BoE monetary policy committee with particular fervour. Despite no change in the voting spread, policymakers struck a confident tone, with two members suggesting that they may soon vote for a rate rise. This news comes despite the record low inflation of 0% in the UK, a situation which the BoE sees picking up faster than expected as energy prices begin to rise. Coupled with existing fears over the Greek debt situation, and the recent disappointing data from the US heightening the possibility of the Federal Reserve postponing an American interest rate rise, sterling prospered throughout the day.

Today sees a number of data releases, with UK retail sales data for the month of March taking centre stage. Following a strong recovering in February, investors will be hoping for continued momentum in this powerful indicator of consumer confidence.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted April 21st, 2015 by Charles Purdy

Sterling starts the week quietly

A quiet start to the week as there was very little UK data out yesterday. This is expected to continue for most of this week – although the minutes of the last Bank of England meeting are out on Wednesday. These will be very carefully scrutinized not least for any signs that they could be contemplating an interest rate cut, almost unthinkable of just a few months ago, but now a possibility given 0% inflation.

However, with the general election looming fast, the markets and investor confidence will also be heavily affected by the polls – especially as the voting is expected to go straight to the wire and the various permutations of who could hold power seem to be infinite!

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 19th, 2015 by Charles Purdy

As expected, sterling has a busy day

What appeared to be a poor day for sterling was turned on its head following the US Federal Reserve meeting announcement early evening our time which saw sterling gaining two cents in a very short period of time.

In the first part of the day sterling set fresh multi-year lows against the US dollar and continue its fall versus the euro as labour data from the UK came in below forecast levels. Wage growth was below expectations and unemployment had also failed to move below 5.7%. The negative effect of this was compounded by the minutes from the Bank of England’s (BoE) latest policy meeting which highlighted a strong sterling could depress interest rates. Sterling was able to recover somewhat throughout the afternoon as the markets reacted positively to news from the Chancellor’s Budget that the Office of Budget Responsibility (OBR) is raising its economic growth forecasts for 2015.

A quiet day lies ahead for UK economic releases so attention will be focused on both the Eurozone as the European Central Bank releases the value of their latest long term bank loans and on the US as markets ponder the outcomes from the latest Federal Reserve meeting.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 10th, 2015 by Charles Purdy

Sterling starts the week positively

A positive start to this week saw sterling gain ground against both the euro and US dollar on Monday. This was despite there being very little data released here or elsewhere. The American currency found itself under pressure from a bout of profit-taking by investors following the significant gains it made last week. Discussions on Greek debt took centre stage in the Eurozone once again which allowed sterling to rise to the highest level against the multi-national currency since late 2007.

Another relatively quiet day lies ahead, with no major fundamental data released. We will hear Bank of England Governor Mark Carney speak during the afternoon, and any news regarding future monetary policy will be eagerly anticipated by investors.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted March 3rd, 2015 by Charles Purdy

Sterling has a poor start to the week

A poor start to the week for sterling saw it lose ground across the board despite better-than-expected growth in the manufacturing sector in January. With manufacturing growth having been sluggish since August last year, the surprise upturn in production should have boosted sterling. However, with positive Eurozone economic news from Germany and on employment plus the European Central Bank (ECB) reporting that the central bank expects inflation to return to normal by 2017, sterling found itself under pressure as the euro found support across the board. In the second half of the day sterling also fell against the US dollar.

Today sees the release of growth data from the construction industry which is expected to remain steady when compared to December’s results. Additionally, we will see Bank of England (BoE) Governor Mark Carney speaking before the Treasury Select Committee.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted February 26th, 2015 by Charles Purdy

Sterling continues its good run

A good Wednesday for sterling saw it hit highs against both the euro and US dollar during the morning. With no major economic data released from the UK yesterday, sterling movement was “measured” as investors remained unwilling to speculate unduly on movements against either the euro or US dollar. Bank of England Governor Mark Carney spoke during the morning, but with the subject of his speech focused on research and not monetary policy, there was little market reaction to this. Similarly, US Federal Reserve chairperson Janet Yellen reiterated comments made on Tuesday which has reduced expectation of an imminent US interest rate increase which has seen sterling strength against the dollar.

Today sees the release of the second estimate of UK economic growth for the final quarter of 2014. Should we see any revision to the initial estimate of 0.5% growth, we may see increased sterling movement. Elsewhere, the release of inflation figures from the US will provide an indication whether the recent fall in oil prices is still having a major effect on the US economy.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted February 19th, 2015 by Charles Purdy

Sterling benefits from wage growth

A positive day for sterling saw it reverse its poor start to the week and make gains across the board, hitting a fresh seven-year high against the euro. Minutes from the Bank of England (BoE)’s latest policy meeting revealed little in the way of surprises, with confirmation that they see inflation accelerating quickly in 2016 – these echoed BoE Governor Mark Carney’s comments from last week.

On another note, labour market data released on Wednesday showed that UK unemployment in January fell to the lowest level since November 2008. In addition, wage growth was shown to have increased 2.1% over the past 3 months when compared to the previous year. With the BoE close to raising interest rates last year, sluggish wage growth was one of the key factors that prevented them from pulling the trigger. A sustained increase in wage growth will increase the pressure on the BoE to consider raising interest rates this year rather than next.

A quiet day for sterling lies ahead today, with markets likely to be reactive to both last night’s release of minutes from the latest meeting of the US Federal Open Market Committee (FOMC), and the upcoming minutes from the European Central Bank (ECB)’s last policy meeting.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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