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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.

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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 February 27th, 2015 by Charles Purdy

Sterling gains even more ground against the euro

A positive week for sterling has seen it gain ground against both the US dollar and the euro, following encouraging comments from Bank of England (BoE) Governor Mark Carney on the UK’s current level of inflation. Sterling reached the highest level against the euro since December 2007, thanks to continued uncertainty over the Greek debt situation – after a member of the European Union Commission commented on Thursday that the Greek bailout could well be larger than forecast. A more mixed performance was seen against the US dollar, with sterling initially rising to the highest levels since the turn of the year following dovish comments by Federal Chairwoman Janet Yellen. However, with US core inflation data showing that it had risen above expectations in January, sterling dropped back steeply against the US dollar.

A quiet day for UK data lies ahead, with attention focused instead on inflation data from Germany. and preliminary economic growth data from the US.

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 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.

Posted September 25th, 2014 by Charles Purdy

Sterling up against the euro but down against the dollar

A mixed day for sterling saw it make moderate gains against the euro but fall away against the US dollar throughout the day. Sterling started the day in positive spirits following comments from a member of the US Federal Open Market Committee (FOMC) overnight warning against a premature rate hike in the states. Further support was found against the euro as the Ifo German Business Climate survey posted its worst result in 15 months. With the threat of stagnation in Europe’s largest economy, and the European Central Bank mulling over further monetary stimulus in the Eurozone, sterling pushed close to a 5-year high against the euro. in contrast to this, sterling fell away against the US dollar throughout the day as the number of new home sales in the US grew by 18% throughout August – its largest monthly rise since January 1992. This saw the dollar strengthen across the board, and push sterling further from its post-referendum highs.

Today’s main event sees Bank of England (BoE) Governor Mark Carney speaking during the afternoon. Following a quiet week for sterling, investors will be keen to hear Carney’s views in his first speech following the Scottish independence vote.

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 12th, 2014 by Charles Purdy

Worries over a ‘YES’ vote sees Sterling slump

A mixed week for sterling has seen its fortunes change in response to the results of a number of polls released regarding the Scottish vote on independence. The week started with a the release of a poll showing that the “Yes” vote was pulling ahead, which saw sterling fall sharply across the board amid fears of the repercussions this would have on the UK economy as a whole. Sterling was able to recover some lost ground later in the week as further polls indicated that the “No” vote had extended its lead, and Bank of England (BoE) Governor Mark Carney spoke out about some of the dangers of a ‘YES’ vote. He also indicated that the BoE has seen signs that we are nearing the time where interest rates must increase, reassure investors who may have grown cautious following recent poor economic data and fears over Scottish Independence.

With the latest poll not expected until 17th September, we can expect to see most market movement today driven by economic data. Sterling heads into Friday holding close to its recent multi-year highs against the euro, and rallying against the US dollar following an increase in unemployment claims from the US on Thursday. Today sees the release of retail sales and consumer sentiment data from the US, which provide a key indicator of economic performance, and could affect sterling strength.

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 9th, 2014 by Charles Purdy

Sterling continues to fall as possibility of ‘YES’ vote increases

Sterling lost out over the weekend, with the release of the first YouGov poll to show that the ‘Yes’ vote was ahead in the upcoming Scottish independence referendum. This saw sterling open at a 10-month low against the US dollar and lose ground against the euro. With no significant data released throughout the day, sterling drifted lower before finding limited support later in the day. With the result of the referendum poised on a knife-edge, this is likely to be the main market-mover this and probably next week, with the potential harm to sterling of a ‘yes’ result in 2 weeks negating the effect of any positive UK economic data that may be released.
Today we hear Bank of England (BoE) Governor, Mark Carney, speaking in Liverpool, where investors will look for any clues regarding the next interest rate rise. This will be followed by manufacturing production figures, which is expected to show marginal growth throughout the industry.

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

 

Posted June 17th, 2014 by Charles Purdy

Will today’s data releases boost Sterling?

Having strengthened significantly on Friday, Monday was “a day of rest” for sterling as the markets took stock. There were no major data releases from the UK.

Today we have much more information to digest, with a number of indicators released on UK inflation that will be scrutinised by market participants globally. The data becomes even more relevant to the pounds performance following Mark Carney’s recent rhetoric that hinted at higher interest rates. If there is a positive surprise in the inflation data today, this would support Carney’s view and may see further strength in the pound. Finally there is some further data to be released on UK house prices, a key component to the UK growth, and this will be looked at in conjunction with the inflation data.

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 18th, 2014 by Charles Purdy

Sterling consolidates as it awaits better news

Sterling had a quiet day yesterday, falling against the euro but strengthening slightly against the US dollar. With no significant economic data released from the UK, market movements were dictated by events from its major trade partners. After initially weakening against the US dollar, sterling jumped following the release of the US Empire State Manufacturing Index, which came out weaker than expected. This indicates that poor weather earlier in the year is continuing to hamper manufacturing in the US.

Tomorrow sees the major data releases from the UK this week. In the meantime, today we hear Bank of England (BoE) Governor Mark Carney speak, which may provide some clues regarding future UK monetary policy.

Looking to buy or sell sterling? Contact your trader now for live rates, updates and currency-buying solutions.

Posted January 27th, 2014 by Charles Purdy

Will this week’s growth figures support sterling?

Sterling slowed down on Friday after a strong week, weakening against the majority of its trading partners. This was triggered from the closely-watched speech by Bank of England (BoE) Governor Mark Carney, who dampened expectations for an earlier-than-predicted interest rate increase. He stated that the strength of the pound may hinder exports and that “the recovery has some way to run before it would be appropriate to consider moving away from the emergency setting of monetary policy.” The Governor also cautioned that labour market data shows that certain weaknesses still remain, and made it clear that tightening will be only a very gradual process.

We have a quiet day today on the data front, but look forward to preliminary growth figures out of the UK tomorrow. These are expected to show growth of 0.7% in the final quarter, slightly down from the previous quarter due to bad weather, and 1.9% for the year which is 1% higher than that forecast this time last year. As ever, in this volatile times, any variance from the expected is likely to have a significant and rapid effect on sterling’s exchange rates. On Wednesday we have Mark Carney scheduled to speak again and given the impact of his speech last Friday this again could be highly impactful on sterling.

The last week has highlighted how quickly and how large a movement there can be in exchange rates in a very short period of time with sterling gaining two plus cents against both the euro and the US dollar and then giving back a lot of these gains. If you are thinking about buying or selling sterling, call your trader now to get the latest news and rates but also to make sure you are properly prepared to take advantage of these rapid movements.

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