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Posted June 21st, 2010 by Charles Purdy


EURO/GBP – 1.197
US$/GBP – 1.487
CHF/GBP – 1.643
CAN$/GBP – 1.512
AUS$/GBP – 1.682

Sterling has started the day strongly, rising to a 5 week high against the US dollar of $1.4925/ £1 in early trading. The pound’s strength comes off the back of strong movement in sterling’s favour on Friday, as data showed that the UK’s budget deficit was lower than expected. The UK’s borrowing is still expected to hit 11% of GDP in the coming year, and the main event on the calendar this week is tomorrow’s ‘emergency’ budget which is expected to deliver tough spending cuts and tax hikes. Today’s strength against the US dollar is linked to risk appetite, and many analysts are concerned that there is too much faith in the pound (which has strengthened by over 2% against the US dollar in the last month). There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled. Get in touch now to take advantage of current prices, as we could see the pound return towards $1.40/£1 once the markets have had enough time to digest the budget.

In the Euro zone, the single currency had a strong end to the week as concerns eased over sovereign debt problems following stronger than expected demand for Spanish bonds. In addition, there were announcements over bank ‘stress-testing’ that boosted confidence across the region. There is no data out today, but later in the week, there is PMI data that should give a good idea of the direction of industrial production. Call in now for a live exchange rate – especially if you have euros to move into sterling or US dollars, as the euro is higher than it was last week.

In the USA, so far this morning, the US dollar has fallen by 0.3% and 0.4% against the euro and pound on risk appetite as the People’s Bank of China announced overnight that it would proceed with reform of the exchange rate ‘Peg’ (i.e. fixed rate) between the Chinese yuan and US dollar. The Peg has been blamed for artificially maintaining a weak Chinese currency that has drawn manufacturing demand away from the USA. With the Chinese economy at risk of ballooning out of control, this could be the first step to cool demand – allowing the exchange rate to strengthen, and effectively increase the prices on goods, without using interest rates. Get in touch now to ensure you don’t miss out on favourable movements.

Elsewhere, new car sales in Australia fell by 3.2% in May. This was the biggest drop in over 4 months and was attributable to higher financing costs as a result of the central Bank’s recent interest rate hikes, as this impacted on demand. Ensure you call in now to avoid missing out on good prices and avoid losing money.

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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Posted June 17th, 2010 by Charles Purdy


EURO/GBP – 1.194
US$/GBP – 1.470
CHF/GBP – 1.645
CAN$/GBP – 1.508
AUS$/GBP – 1.705

Sterling fell yesterday against the US dollar and euro as the pound failed to hold recent gains as renewed fears surfaced over Spain’s banking system that reduced risk appetite. The day started well for the pound, with UK unemployment data showing that the number of people claiming unemployment benefits fell by nearly 31,000 – 7,000 more than expected. However, there are still considerable headwinds facing the economy such as the pending ‘fiscal squeeze’ that will impact consumers and as such, the unemployment figures did not have as positive an effect as might have been expected. Sterling has weakened further overnight, as the new chancellor George Osborne announced the biggest shakeup of financial regulation since Labour came to power in 1997. Under the new scheme, the Bank of England is to have ultimate control of financial supervision. Any new regulation sends jitters through the financial markets and as a result the pound is down this morning. Out later today we have UK retail sales data that is expected to show a 0.1% increase on last month. Call in now for a live price.

In the Euro zone, CPI inflation came in at 1.6% as expected and the euro ended a 2 day rally against the US dollar. The European Central Bank announced a further 5% premium on Greek government debt being used as collateral for government loans as Moody’s downgraded Greek bonds to ‘junk bond’ status – the lowest credit rating. There is little other data out today. Get in touch now to avoid losing out to poor exchange rates.

In the USA, the focus today will be on CPI inflation data. The forecast is for the figure to fall slightly to 2.0% for May as a result of weaker energy prices. Overall, many analysts are expecting price pressures to remain low over the coming months which could dampen expectations of an earlier than expected interest rate rise. Call in today for an exchange rate – especially if you have US dollars to move into sterling, as we have seen a dip in your favour this morning.

Elsewhere, New Zealand consumer confidence is expected to decline by 3.2% in June according to a recent report. This has seen the likelihood of an interest rate rise at the next Bank meeting fall by about 30% from yesterday according to the Credit Suisse interest rate expectations measure. Call in now for a live exchange rate.

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

Posted June 1st, 2010 by Charles Purdy


EURO/GBP – 1.186
US$/GBP – 1.447
CHF/GBP – 1.683
CAN$/GBP – 1.516
AUS$/GBP – 1.737

Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.

The euro zone is still trying to find a way out from its problems with government debt. Various governments are now working out how to cut their costs and as such the markets are getting concerned about how this will affect euro zone growth. Today we have unemployment figures for the euro zone which are expected to be at steady at 10% for the whole euro zone. So the euro zone has huge problems and as such we need to be aware that movements in exchange rates will be continue to be erratic and hence the sooner you get in touch the better.

The US$ has been the main beneficiary over the last few months given the problems in the euro zone and the UK and its safe haven status. But having said that the US has just revised its growth figures for the first quarter from 3.2% to 3.0% whereas the markets were expecting it to be increased to 3.4% which makes it clear that nowhere is going to have a smooth run out of recession. Later this week we have unemployment figures and purchasing manager’s indices for both manufacturing and services. So a busy week for economic data and as such expect volatility in the exchange rates.

Last week the commodity backed currencies such as the Australian and New Zealand dollars regained some ground on the back of increased risk appetite. It will be interesting to see what happens in the short to medium term as we may be seeing a pull back in Chinese demand which would have a negative affect on these currencies.

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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