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Posted February 27th, 2013 by Charles Purdy

The Italian elections continue to worry markets | Smart Daily Currency Note

GBP/EUR – 1.1532
GBP/USD – 1.5114
EUR/GBP – 0.8665
EUR/USD – 1.3082
GBP/AED – 5.5514
GBP/AUD – 1.4786
GBP/CAD – 1.5492
GBP/CHF – 1.4077
GBP/CNY – 9.47
GBP/HKD – 11.7152
GBP/HUF – 341.49
GBP/INR – 81.03
GBP/JPY – 138.50
GBP/NZD – 1.8304
GBP/RUB – 46.16
GBP/SEK – 9.7372
GBP/ZAR – 13.3356

Sterling

Sterling had a mixed day yesterday – starting off on the front foot reaching highs of 1.1650 against the euro and 1.5220 against the US dollar before losing ground later in the day. Sterling struggled after one of the Monetary Policy Committee (MPC) members from the Bank of England (BoE) suggested he was open to more monetary easing and furthermore, that the prospect of negative interest rates had been raised at central bank meetings. Furthermore, realised sales data from the Confederation of British Industry (CBI) came out lower than expected. Out today we have the second estimate of the UK’s fourth quarter GDP which is expected to show a contraction of 0.3%, the same as the first estimate. Moreover, more MPC members will be speaking today, and following yesterday’s volatility, the market will pay close attention to what they have to say. Call now for the latest updates on sterling.

Euro

It has been a turbulent few days for the euro, news of the inconclusive Italian election yesterday drove the euro to a seven week low against the dollar – whilst weakening by three cents against sterling. The damage was not as widespread as first feared however, as traders became confident that the European Central Bank (ECB) would intervene to limit the fallout, and the euro strengthened in the afternoon. Today is likely to be just as volatile with two important events. Firstly, we expect an Italian 10 Year Bond auction this morning – a key way for governments to borrow money and high yields mean high borrowing costs for the Italian Government. Secondly, in the afternoon the ECB President is speaking in Germany, we traditionally see a great deal of volatility during his speeches as markets look for hints as to future monetary policy. Get in touch now for the latest news and rates.

US Dollar

The US dollar generally performed well yesterday, strengthening against the majority of its currency partners with Consumer Confidence figures and New Home Sales data (rising in January to the highest since 2008) both coming out much better than expected. Along with this, the Federal Reserve Chairman backed the central bank’s current stimulus program, saying that they will support the asset purchases with “little risk of inflation or asset-price bubbles” causing the dollar to strengthen further. In the testimony he stated that “We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery.” Although he also warned that the automatic federal budget cuts in line to begin 1st of March will add a “significant” burden to the economy if lawmakers are unable to avert from the reductions. Today we will see Core Durable Goods orders along with the second part of the Chairman of the Federal Bank’s “congressional testimony” on monetary policy.

Worldwide

Elsewhere, the Canadian dollar fell to a eight month low versus the US dollar following better than expected data out of the US and the comments from the Chairman of the Federal Bank. The commodity backed currencies struggled in general yesterday whilst the Japanese yen prospered due to risk aversion driving the markets and traders seeking safer havens for their money. The Russian rouble was one of the worst performers yesterday after GDP data released showed that the economy had contracted by 0.3%. Call in now for a market update and a live quote.

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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 June 29th, 2010 by Charles Purdy


EURO/GBP – 1.231
US$/GBP – 1.505
CHF/GBP – 1.636
CAN$/GBP – 1.571
AUS$/GBP – 1.750

Sterling had a strong day yesterday, climbing to a 1 ½ year high against the euro and a 7 week high against the US dollar. The pound jumped to 1.2250/ £1 and $1.5104/ £1 as the UK currency continued to benefit from last week’s tight emergency budget. Investors speculated that the Euro zone debt problems would leave the region much weaker than the UK after the new coalition’s tight budget was received well by the financial markets. Many analysts see this as the budget that whips the economy into shape. However, gains against the US dollar have been muted, as many analysts feel that last week’s post-budget gains went too far. Another boost for the pound came as everyone’s favourite Bank of England member Andrew Sentence stated that the latest budget would not remove the need for interest rate hikes in the coming months. Out later today, there is monthly lending data and also data on mortgage approvals. Even though the markets have been moving up, there is nothing to stop the pound dropping – call in now to ensure that you secure the best rate.

In the Euro zone, monthly inflation data for Germany came in as expected but money supply data showed that the amount of money in the European economy had shrunk by 0.2%. There is little data out today aside from a European commission report on confidence in the region which is expected to show relatively stable readings. Sentiment towards the Euro zone has seen a relative drop compared to the UK as the emergency budget was released – call in now, especially if you have euros to move into sterling as we could see 1.25/ £1 a lot sooner than many would like.

In the USA, inflation data for consumer purchases came in slightly better than expected at 0.2% but data on personal income showed a drop of 0.1% on the month. Out later today, consumer confidence data is released that some are expecting to show a slight decline. Get in touch and speak to a trader to ensure that you don’t lose out on strong rates.

Elsewhere, Japan’s unemployment rate unexpectedly rose in May as the economy shed 240,000 jobs. These figures show how much the Japanese economy relies on overseas trade to drive domestic demand, especially given how China currently has to curb the excessive growth of its economy. Get in touch now to ensure that you don’t lose 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

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