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Posted April 27th, 2015 by Charles Purdy

Euro holding on

Despite the on-going Greek debt problem, the euro had a reasonable week last week and even gained ground against the US dollar. The IFO German business sentiment data released on Friday was optimistic helping the currency’s positive trend.

This week should be an interesting one; the majority of the European market are certainly keeping a close eye on Greece, whether its current bailout crisis is under control or an exit from the euro is likely. The situation remains on-going and uncertain, so if Greek bailout talks should take a dramatic turn for the worse over the coming weeks the euro can expect to pay with a heavy fall.

On Thursday we have Eurozone inflation and employment data with the unemployment rate expected to show a slight reduction to 11.2%.

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

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Posted April 17th, 2015 by Charles Purdy

Sterling moves sideways against the euro and up against the US dollar

On the whole a positive week for sterling which has seen the currency move from strength to strength against the US dollar, regaining ground it lost last week, but it made only marginal gains against the euro. This performance against the euro is a slight surprise as the markets are stating there is an 80% chance of Greece defaulting on its debt. The problem for sterling is the uncertainty surrounding the outcome of the UK General Election which is now only three weeks away.

Sterling saw a small downturn on Tuesday as confirmation was released that UK inflation had remained at a record-low 0% throughout March. Despite this, the UK currency soon recovered against the US dollar, as disappointing retail sales data from the States saw sterling gain over a cent against the US currency. Further disappointing US economic data was reported on Thursday, showing that unemployment had increased for the second month in a row – this allowed sterling to rise to a 2-week high against the US dollar.

Today sees the release of labour data from the UK, with average earnings over the past 3 months likely to have the largest impact on investor sentiment.

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 27th, 2015 by Charles Purdy

Sterling under pressure from low inflation

A difficult week for sterling has seen it lose ground against the euro, the US dollar and most other major currencies amid mounting fears over the upcoming UK general election. Tuesday’s release of the lowest UK inflation figure since 1989 didn’t help sterling either as price growth fell to 0.0% throughout February. Compared to a rebound in US inflation to 0.2%, sterling once again found itself struggling against the US dollar. Yesterday positive retail figures of 0.7% for February, January’s was 0.1%, did support sterling.

Today we will hear from a number of members of the monetary policy committee, as well as Bank of England Governor Mark Carney; investors will be listening intently for any news relating to future UK monetary policy. Elsewhere, we will see the final economic growth figure from the US over the previous quarter. This significant piece of data has the potential to affect markets should it differ from the forecast 2.4% level.

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 27th, 2015 by Charles Purdy

Canadian dollar gathers momentum

The Canadian dollar had a good day on Thursday as it jumped up against its biggest rival, the US dollar. Bank of Canada Governor, Stephen Poloz, mentioned that January’s surprise rate cut had “bought some time” to examine the effects of lower oil prices. Speaking in London, Poloz said the Bank of Canada was continuing to closely monitor oil prices, and would do what was necessary to keep inflation near its 2% target.

Thursday also saw the New Zealand dollar drop off from its recent strong positon, but the losses were minimised thanks to Wednesday’s widely disappointing US data.

Are you looking to buy or sell currencies? Contact your trader now for live rates, news and currency purchasing strategies.

Posted February 27th, 2015 by Charles Purdy

US Dollar boosted by inflation data

Thursday was a busy day for the US Dollar, with very mixed data releases. We saw the release of contrasting US Inflation data. Overall inflation dropped to its lowest figure since January 2009, but the Core Inflation figure was positive and higher than market expectations. Generally, the Core Inflation figure will be more accurate and in line with actual US inflation, as this excludes the volatile reading from energy and food prices (which have been both been affected by the recent slump in oil prices). US Unemployment Claims and Durable Goods Orders both recorded an increase month-on-month.

We expect another busy day for the US Dollar today, with the release of the initial growth figure. This is forecast to show positive growth for the fourth quarter of 2014, and be above average when compared to other key developed nations. We also have the release of Housing Data and consumer confidence indicator plus two members of the Federal Reserve are due to give speeches.

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

Posted February 13th, 2015 by Charles Purdy

Sterling on the whole has a good week

A positive week overall for sterling which also saw it reach fresh 7-year highs against the euro, although at the time of writing this note we seem to be close to where we started the week against the euro. Highlights the importance of timing yet again. Against the US dollar sterling held steady – until Thursday when it made significant gains.

With little economic data released at the start of the week, sterling traded within narrow bounds against the US dollar and investors seemed unwilling to act in advance of the Bank of England (BoE)’s inflation report later in the week. Performance against the euro was more positive, and sterling reached multi-year highs on a number of occasions throughout the week, as Eurozone finance ministers failed to reach a deal to renegotiate Greek debt. Thursday proved to be the best day for sterling, with the BoE’s inflation report revealing increased growth forecasts for both 2016 and 2017. Despite the announcement that inflation is likely to weaken in the short-term, this was attributed to falling oil and energy prices, and inflation is expected to rise again to 2% in the not too distant future. With the BoE hinting that interest rates could rise early in 2016, sterling benefitted.

A quiet day for UK and international economic data lies ahead, although given other world event such as the Greek debt crisis and the conflict in Ukraine this doesn’t necessarily equate to a quiet day in the currency 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 January 19th, 2015 by Charles Purdy

Euro under pressure

The euro and the Eurozone are under pressure. Last week turned out to be one of the worst weeks in years for the euro, particularly against the US dollar as it hit 11-year lows and against sterling as it 7-year lows. And this week is likely to increase the uncertainty and pressure given the various key events and releases that are happening.

The situation worsened with downbeat Eurozone inflation data, causing further expectations that the European Central Bank (ECB) will announce additional stimulus measures in its upcoming policy statement on Thursday. It would seem now that the ECB is left with no choice but to implement quantitative easing on a large scale with the central bank expected to pump €500 billion to €1 trillion into the Eurozone economy. The only doubts that it will happen are due to Germanys extreme resistance to this programme and their unwillingness to underwrite the debts of the whole of the Eurozone.

Additional key data releases are as follows. This Tuesday sees the release of ZEW business confidence from Germany, forecast to increase from last month’s figure of 10 to 15. The Eurozone will also make this month’s interest rate announcement on Thursday; the rate is currently standing at 0.05%, but given the way that the Euro is heading we could be looking at another interest rate cut for the single currency. We also have a raft of Purchasing Managers Indices for the Eurozone and some of its member states on Thursday which, on the whole, are expected to be show most Eurozone economies growing which would be helpful.

And then we have the first stage of the Greek election over next weekend which adds another level of uncertainty and instability to the euro.

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

Posted January 19th, 2015 by Charles Purdy

US Dollar still flying high

The US dollar finished off last week in a positive manner, following on from the Swiss National Bank’s unexpected move to abolish its euro peg. This, coupled with some strong economic data from stateside, allowed the dollar to move to an overall 11-year high.

While the inflation came in a little lower than forecast, the dollar managed to reverse the negativity from this, thanks to the Consumer Sentiment figure from the country. This came out significantly ahead of expectations, moving up to the highest level in 11 years. The dollar rose against most of its major partners on this news, with any positive data increasing hopes of an interest rate rise.

This week starts with no data from the US, with markets closed in observance of Martin Luther King Day. Tuesday is almost as quiet, with just some words from a member of the US Federal Reserve to interest investors. Wednesday sees the first major piece of data from the country, from the building permits figures, before Thursday’s regular showing from the labour market in the form of unemployment claims data. Friday then rounds off a particularly quiet week in likewise fashion, with just the two smaller releases of the flash manufacturing Purchasing Managers’ Index (PMI) and the existing home sales data that are liable to impact the markets directly.

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

Posted January 5th, 2015 by Charles Purdy

A faltering start to the year for the euro

The Euro had a poor start to 2015, moving to six-year lows against sterling on Friday. The fresh lows of Friday were due to continued uncertainty in the Eurozone. With the Greek election at the end of January, this could bring in an anti-Eurozone government, which will be forced to negotiate a new debt package as the country continues to deal with amount of debt on the shoulders of the Greek economy. The euro quickly recovered throughout the day, however, moving a cent back in the single currency’s favour. This gain was due to the European Central Bank’s well-received meeting regarding the quantitative easing program, aimed at kick-starting the Eurozone economy.

For this week, there is a raft of Eurozone data releases. Today see the release of inflation data for Germany and on Wednesday we have the release for the whole of the Eurozone. The data is expected to show significant falls from the previous month due to lower energy and food costs and the main hope is that inflations doesn’t turn negative (i.e. become deflation). We also have a raft of Purchasing Manage Indices and employment data for the Eurozone released which aren’t expected to make pretty reading.

Call your trader to get the latest update and see how the euro is faring in what could be a very tricky month for it given the uncertainty over the Greek election and the increased likelihood of a programme of quantitative easing in the Eurozone.

Posted November 28th, 2014 by Charles Purdy

Sterling holds steady

Although it looks as if sterling has moved sideways this week, there were moments where it had made reasonable gains which have subsequently been given back, which highlights the importance of keeping in touch with your trader so as to take advantage of those opportunities.

Sterling started the week quietly, with little major data released on Monday. Tuesday saw sterling struggle to make ground, with Bank of England (BoE) Governor Mark Carney assuring investors that recent discussions had centred on the pace and timing of an eventual rate hike. Sterling gained value against the US dollar following the hearing, but continued to struggle against a euro supported by strong data from the 18-country bloc. Thursday saw sterling make broad gains across the board, with general market sentiment pointing to a late 2015 interest rate rise having already been priced into the markets. Sterling rose to a two-week high against the dollar on the back of this, but fell again on Thursday with lower trade volumes due to the Thanksgiving holiday in America, which harmed sterling performance.

Today looks to be relatively quiet for sterling based on UK data releases with only housing inflation data released in the morning but we could see some reaction to the Eurozone inflation data due out today.

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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