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Posted December 3rd, 2015 by Charles Purdy

Sterling falls thanks to poor data – how will it be affected by today’s announcements?

Sterling struggled throughout Wednesday, falling across the board following the release of weaker-than-expected construction industry growth data. After struggling on Tuesday in the wake of weak manufacturing industry growth, the slowest rise in UK construction output since April saw sterling struggle as investors pushed back expectations of a Bank of England (BoE) interest rate hike. This outlook stands in stark contrast to that of the US Federal Reserve who are widely tipped to raise interest rates at their next meeting later in the month. When combined with positive data releases in the US, sterling fell, significantly, to a fresh seven-and-a-half month low against the US dollar throughout the afternoon – and faced similar troubles against the euro, falling to a three-week low against the single currency.

Today sees the release of the November purchasing managers’ index (PMI) for the services industry. This is typically the most influential PMI release of the week, with the services industry representing the largest proportion of the UK economy. Expectations are for an increase so anything less is likely to be damaging for sterling.

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 December 2nd, 2015 by Charles Purdy

Sterling falls against the euro but holds its own against the US dollar

Sterling fell against the euro throughout Tuesday, thanks to a disappointing purchasing managers’ index (PMI) reading from the manufacturing industry. A positive start to the day saw all major UK banks pass the latest Bank of England (BoE) stress test, with BoE Chairman Mark Carney speaking of increased resilience in the UK banking sector; this allowed sterling to see positive movement throughout early trading. Sterling was unable to capitalise on these results though, and lost these early gains as investors lost confidence after the PMI figure had been released – ahead of the upcoming construction and services PMI figures today and tomorrow respectively.

Sterling proved more resilient against the US dollar, however, and was able to hold ground as the US manufacturing industry showed contraction for the first time since 2013.

Today sees the release of the PMI figure for the construction industry in the morning, before attention turns to the US for the latest employment data in the form of the ADP employment survey.

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

Posted November 5th, 2015 by Charles Purdy

Will sterling’s euro strength continue?

A mixed day for sterling on Wednesday saw the British currency extend its recent gains against the euro while falling against the US dollar in the wake of better-than-expected labour data from the States and there being a “possibility” of a December US interest rate rise. Purchasing managers’ index (PMI) data from the UK services industry met expectations on Wednesday, showing steady growth throughout October. This comes on the back of three straight months of low growth for the UK, and suggests that we could be seeing a pickup in the wider British economy. Coupled with the recent dovish comments from European Central Bank (ECB) President Mario Draghi, this enabled sterling to reach the highest level against the euro since mid-August.

Sterling did see some positive movement against the US dollar yesterday morning, although this was eroded throughout the afternoon following the release of Automatic Data Processing (ADP) non-farm payrolls; this came in above expectations, and signalled a flurry of support for the US dollar.

Today is “Super Thursday” which sees the release of the latest interest rate decision from the Bank of England (BoE) along with minutes from the meeting plus inflation report. No change is expected in the voting pattern of the monetary policy committee, and investors will instead look to the BoE’s quarterly inflation report for any adjustment in growth targets moving forwards.

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

Posted October 8th, 2015 by Charles Purdy

Sterling benefits from failed takeover bid

A positive day for sterling saw it move higher against both the euro and US dollar. Poor economic data for Germany and Belgium-based AB InBev launching a fresh bid to purchase SABMiller, the UK’s largest drinks manufacturer (a corporate takeover of this size will require AB InBev to purchase a significant amount of sterling to complete the deal) were the catalysts for sterling strengthening. This was even despite the latest bid being rejected, and recent disappointing data from the UK, and allowed sterling to move away from five-month lows versus the euro and US dollar.

All eyes today will be focused on the release of minutes from the Bank of England (BoE)’s latest monetary policy committee (MPC) meeting. With the committee last time split 8-1 in favour of keeping rates on hold, investors will be eagerly awaiting news of whether there has been any change in the voting pattern. BoE Governor Mark Carney will also speak in the evening and could elaborate on comments found in the meeting minutes.

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

Posted September 24th, 2015 by Charles Purdy

Sterling falls to a monthly low

Another tough day for sterling saw it lose significant ground across the board as comments from European Central Bank (ECB) President Mario Draghi saw the euro gain unexpected support. No major economic data was released on Wednesday, with investors listening intently for Draghi’s comments. As a result, sterling struggled to find any support throughout the day and drifted close to the lowest levels seen in September against the euro. Greater weakness was seen versus the US dollar, with sterling falling to the lowest levels in almost a month. Further disappointment came in the wake of Bank of England (BoE) member Broadbent’s comments that the global slowdown in prices could start to weigh on wage growth in the UK.

We expect another quiet day for sterling today on the data front, with investors again looking to the Eurozone and US for their economic data releases.

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

Posted September 17th, 2015 by Charles Purdy

BoE inflation hearings boost sterling

Sterling reversed recent losses against its major trading partners on Wednesday following the release of surprisingly positive employment data from the UK. A tough start to the day saw sterling continue to struggle across the board, with investor sentiment largely against the currency. However, the early morning release of labour data saw sterling benefit as unemployment fell to 5.5% for the first time in 3 months.

A better-than-expected increase in average earnings to 2.9% was also warmly welcomed as investors moved to back sterling. With Bank of England (BoE) members speaking to parliament at the inflation report hearings, sterling found further support as a number of committee members suggested that interest rates may need to increase in the short-term in order to keep inflation in check.

This morning’s data will provide insight into UK retail sales throughout August. A modest increase of 0.2% is forecast compared to last year’s figures. Should we see this beat expectations, sterling could be set to make further gains. And then we have the main event of the day late this afternoon, the Federals Reserves decision on US interest rates. Expect sterling to move both in the build up to their decision and after their decision. Which way is impossible to forecast so please manage your risk effectively.

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

Posted August 6th, 2015 by Charles Purdy

Positive movement for Sterling

Sterling saw positive movement on Wednesday after an independent research institute stated their belief that the Bank of England (BoE) would raise interest rates as early as February 2016. With growth in the services industry falling below expectations, we could have seen a downturn for sterling but the effect was muted as the sector still showed strong growth throughout July and there was disappointing data released elsewhere.

Investor attention yesterday was also keenly focused on forecasts from the National Institute of Economic and Social Research (NIESR). These showed an expectation for 2015 economic growth to reach 2.5% in the UK, and with belief that current conditions are pointing to an interest rate hike in February 2016. With the prospect of higher returns on their holdings, investors boosted sterling, pushing the currency to a two-week high against the euro.

Today we welcome the first ‘Super Thursday’ from the BoE, which will see the interest rate decision, minutes from the meeting, and inflation projections released simultaneously. This large volume of information is poised to cause some significant market fluctuations. The day ahead looks set to present investors with some great opportunities to take advantage of this movement.

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

Posted August 6th, 2015 by Charles Purdy

Will the euro recoup its losses after a tough Wednesday?

It was another tough day for the euro on Wednesday as it slumped to two-week lows against sterling and the US dollar, weakening close to recent eight-year lows against sterling. Pressure on the single currency has been increased amid expectations that a rate hike by the US Federal Reserve in the coming months would prompt the Bank of England (BoE) to follow suit.

The euro wasn’t supported when disappointing retail sales were released in the morning, coming out in the negative at -0.6%, compared to the previous positive figure of 0.2% last month. The Purchasing Managers’ Index (PMI) figures for the Eurozone also fell in what was a disappointing day for the single currency.

Earlier today we have manufacturing orders data from Germany, but other than this it is likely to be a quiet day for data releases for the single currency, with the eye of the financial markets focusing on the UK, and on BoE activity in particular.

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

Posted July 20th, 2015 by Charles Purdy

Another bumper week for sterling

Friday was another great day for sterling, reaching eight year highs against the Eurozone single currency.

The question of who will be the first to raise interest rates still looms, and sterling certainly appears to be in the running against its US counterpart. The Bank of England (BoE) suggested in the first part of last week that interest rates could be raised sooner than first expected, given the current, relative positivity of the UK economy.

The major UK matters of note this week are: on Tuesday, the release of Junes Public Borrowing figure, a slight reduction is expected, on Wednesday the release of the minutes of the last BoE meeting which are expected to highlight the need to raise interest rates sooner than later and then on Thursday June retails sales data which is expected to show a slight improvement. So plenty of potential for positive news to boost sterling further.

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

Posted July 16th, 2015 by Charles Purdy

Can sterling keep rising?

Sterling lost some ground yesterday morning, thanks to the release of poor UK employment data. However, come the afternoon sterling started to strengthen which accelerated into the early evening as the Greek parliament began to debate the austerity measures required by the Eurozone. Even though the Greek parliament acquiesced, we start today with sterling very close to levels last seen against the euro in 2008.

We expect today to be somewhat less active for sterling. Bank of England (BoE) Governor Mark Carney will speak at around 2:00pm, discussing the current UK economic situation, as well as the short-term possibility of interest rate increases. Markets and traders will no doubt be scrutinising his every word, as usual – and this always has an effect on the currency market, so it should be interesting to see what effect this has on sterling in the afternoon.

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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