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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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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 November 30th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP -  1.1859
US$/GBP – 1.5567 
CHF/GBP – 1.5490 
CAN$/GBP – 1.5854 
AUS$/GBP – 1.6155 
ZAR/GBP – 11.0888 
JPY/GBP
–  130.79 
HKD/GBP –  12.08632 
NZD/GBP – 2.08607 
SEK/GBP – 10.8770 
US$/EURO – 1.3128 
 
Sterling rose to a 2 month high against the euro yesterday as investors saw beyond the €85bn Irish rescue plan and sold the single currency on fears that other nations in the Euro zone would also need help. Sterling failed to capitalise on an upward revision to the UK’s growth forecasts by the Office of Budget Responsibility (“OBR”) which revised forecasts for 2010 from 1.2% to 1.8%, but cut the 2.3% forecast in 2011 to 2.1%. Sterling got stuck in the middle of the euro and US dollar, as investors moved from riskier assets into the safe haven US dollar. As a result, sterling slipped to a 2 month low against the US currency of $1.5529/£1. Other data released today showed that mortgage approvals in the UK fell to the lowest in 8 months and other figures showed a fall in house prices. This uncertainty is likely to cap any potential sterling gains against the euro, so call in now for a live exchange rate to avoid losing out.
 
In the Euro zone, the markets were digesting the main news from the weekend yesterday – namely the approval by EU finance ministers of a €85bn rescue package for Ireland. In addition, the outlines for a long term ‘European Stability Mechanism’ were also agreed. This is designed to be a more permanent bail out facility that will eventually force the private sector to share the burden. Despite calls from France and Germany that this idea (the brainchild of both nations) had “saved the euro”, financial markets were sceptical and as a result, the euro slipped to 2 month lows against the US dollar and sterling as investors looked to see who would be next. Call in now for a live exchange rate.
 
In the USA, the concerns over the future stability of the Euro zone left the US dollar in high demand as a safe haven currency. It was a quiet day for data in the region. Out today, there is consumer confidence that is expected to show a slight improvement. In addition, Federal Reserve chairman Ben Bernanke addresses a business school in Columbus. Also due out this week from the Treasury is the Treasury Currency Report, although there is no set release date for this. Get in touch now for a live exchange rate.
 
Elsewhere, South American currencies fell yesterday as the Euro zone debt situation deterred investors from investing in the ‘higher risk’ currencies of the Latin American states. The Mexican peso fell by 0.57% against the US dollar and the Brazilian real fell by nearly 0.4%. A fall in the price of copper saw the Chilean peso drop by 0.76% against the US dollar. Speak to one of the team about protecting yourself from adverse market movements.

 

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 June 18th, 2010 by Charles Purdy


EURO/GBP – 1.198
US$/GBP – 1.485
CHF/GBP – 1.651
CAN$/GBP – 1.527
AUS$/GBP – 1.709

Sterling pushed near 1 month highs against the US dollar yesterday as UK retail sales data came in much better than expected and risk appetite increased after a Spanish bond auction was well received. The pound rose to a high of $1.4838/£1 as retail sales jumped 0.6% in May following increased demand for electrical goods in preparation for the World Cup. Sterling was initially under pressure this morning, as the markets digested the chancellor’s speech last night that all but disbanded the FSA in its current form. Mervyn King also caused sentiment towards the pound to dip as he made clear that monetary policy would have to take into account the upcoming ‘fiscal squeeze’ that would follow the budget next week. Out today, there is very little in the way of data. Ensure you call in for a live exchange rate to make sure you don’t miss out on the best rate.

In the Euro zone, there had been concern that yesterday’s issue of Spanish bonds would see a lack of demand due to the poor sentiment surrounding sovereign debt in the region following the Greek crisis. However, the issue attracted more demand than expected and as a result the spread between Spanish and German bond yields narrowed – a measure that investors are happier taking more risk in the marketplace. The only data out today in the Euro zone is purchasing manager data which came in slightly better than expected. There is potential for a significant amount of movement ahead of the UK budget on Tuesday – get in touch now for a live price and to make sure you don’t miss out on the best prices.

In the USA, monthly inflation data came in as expected but unemployment claims increased by 12,000. This saw some US dollar strength initially, but as investors took in data elsewhere, risk appetite returned and the US dollar weakened as funds flowed into riskier assets. There is very little data out today. Call in now for a live exchange rate to ensure you don’t lose money due to adverse exchange rate movements.

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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