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Posted February 3rd, 2015 by Charles Purdy

Swiss franc under pressure

  • The Swiss franc had a poor start to the week as it continued to weaken. This led to it reaching two-week lows against the euro and the US dollar amid speculation that the Swiss National Bank (SNB) was unofficially targeting a fresh trading corridor for the Swiss currency against the euro. The euro has been freely floated against the Swiss franc since Switzerland’s central bank scrapped its three-and-a-half year old 1.20 euro cap. Monday saw the US dollar up over 1% and the euro up almost 1.5% as the franc looks set for a tough week.
  • The Australian dollar fell dramatically first thing this morning as the Australian Reserve bank cut interest rates to 2.25%. This isn’t a major surprise as they have often highlighted the fact that they viewed the Australian dollar as overvalued

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

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Posted January 20th, 2015 by Charles Purdy

Is the Swiss franc now overvalued?

  • The Swiss franc lost some ground against the US dollar on Monday, rallying over 1% as markets began to digest the Swiss National Bank (SNB)’s surprise policy statement last week that sent the franc loose, moving over 30% against some currencies in a matter of minutes. Many investors now believe that the franc is over-valued and this is generally why we have seen a disappointing start to the week, as well as official data showing that Swiss producer price inflation fell to 0.4% last month, compared to expectations for a 0.6% decline, after a 0.7% drop in November.
  • The Australian dollar fell further against the US dollar on Monday, despite the release of surprisingly positive new motor vehicle sales data from Australia as the US dollar continues to remain strong. The Australian Bureau of Statistics said that motor vehicle sales increased by 3.0% in December, after a 0.6% fall the previous month, a positive statement from Australia but one that had little impact on the currency.

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

Posted January 19th, 2015 by Charles Purdy

Key Chinese data released on Tuesday

  •  Friday also saw the US dollar draw back against the Swiss franc, easing off on Thursday’s three-and-a-half year lows. After Thursday’s mayhem following the decision by the Swiss central bank to remove its cap on the euro, markets relaxed and digested the surprise decision. 
  • Tuesday is a key day for data out of China with growth, fixed asset investment, retails sales and industrial production figures being released. Growth is expected to have pulled back slightly to 7.2%
  • The Canadian dollar had an awful finish to the week as it reached fresh lows against its US counterpart and dropped to five- year lows. Alarm signals will be ringing as to quite how strong the US dollar can become. Key inflation data is released at the end of the week.

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

Posted January 16th, 2015 by Charles Purdy

The Swiss roll the dice, sterling wins and loses!

Wow what a day as the Swiss National Bank (SNB)’s decided to abolish the minimum exchange rate for the Swiss franc to the euro. This resulted in sterling hitting a fresh six-year high against the euro but lose over twenty cents against the Swiss franc during the course of a very busy day. Sterling also continues to struggle against the US dollar. We will see no major economic data released from the UK today, but with the markets still reeling from yesterday’s announcement from the SNB, we can expect to see significant movement throughout the day.

A brief roundup of the week’s events is as follows. Poor inflation data on Tuesday threatened to send sterling falling sharply across the board. However, sterling was able to recover much of its lost ground after Bank of England (BoE) Governor Mark Carney assured investors that low inflation would not adversely affect the UK economy. Poor data from elsewhere buoyed sterling on Wednesday, with poor retail sales from the US in particular giving sterling a significant boost over the US dollar. Movements on Thursday were dominated by the Swiss National Bank (SNB)’s decision to abolish the minimum exchange rate for the Swiss franc to the euro. With euro markets rocked by this decision, sterling broke the 1.30 barrier to rise to a fresh six-year high against the euro. In contrast, an unexpected increase in unemployment claims from the US was not enough to prevent the dollar from reversing Wednesdays’ losses.

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 12th, 2015 by Charles Purdy

Will Australian jobs data undermine the Australian dollar?

 

  • The Australian dollar reversed its recent trend and gained against the majority of other currencies on Friday despite weaker-than-expected retail sales. The figure came out on Friday at 0.1% in comparison to last month’s figure of 0.4%. The other minor data from Australia was around the AI Group construction index, which fell 1 point to 44.4. 
  • This week we have important unemployment figures from the Australia – the labour market is forecast to create 3,800 jobs in comparison to last month’s figure of 42,700 jobs. Any improved figure could continue to be a positive sign for the Aussie dollar. 
  • The Swiss franc remains under pressure (particularly against the US dollar), remaining at its lowest point since May 2012. For the week ahead, Switzerland will release fresh retail sales data, out on Friday. This is likely to be the main event this week.

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

 

Posted January 12th, 2015 by Charles Purdy

Will Australian jobs data undermine the Australian dollar?

  • The Australian dollar reversed its recent trend and gained against the majority of other currencies on Friday despite weaker-than-expected retail sales. The figure came out on Friday at 0.1% in comparison to last month’s figure of 0.4%. The other minor data from Australia was around the AI Group construction index, which fell 1 point to 44.4.
  • This week we have important unemployment figures from the Australia – the labour market is forecast to create 3,800 jobs in comparison to last month’s figure of 42,700 jobs. Any improved figure could continue to be a positive sign for the Aussie dollar.
  • The Swiss franc remains under pressure (particularly against the US dollar), remaining at its lowest point since May 2012. For the week ahead, Switzerland will release fresh retail sales data, out on Friday. This is likely to be the main event this week.

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

Posted August 15th, 2013 by Charles Purdy

Swiss franc struggles

Elsewhere, we saw the Swiss franc struggle, dropping to the lowest level in a month against the euro. The franc weakness has been attributed to a report that showed the Eurozone pulled out of its recession over the last quarter, thus dampening demand for the low-risk Swiss currency. For the same reason we saw the commodity-backed currencies perform well, in particular the New Zealand, Australian and Canadian dollars. Most notably the New Zealand dollar, which was boosted by the release of better-than-forecast retail sales – marking a big jump through the second quarter and helping the currency to make gains against all of its 31 most-traded peers. The released fuelled speculation that the central bank could raise interest rates in the coming months. Last night we had a monthly report out of Australia forecasting future consumer inflation. Get in touch with your trader for a live rate.

Posted September 1st, 2010 by Charles Purdy


EURO/GBP – 1.210
US$/GBP – 1.540
CHF/GBP – 1.564
CAN$/GBP – 1.636
AUS$/GBP – 1.709
NZD/GBP – 2.189
EURO/US$ – 1.272

Sterling fell across the board on Tuesday as concerns over the global economy sent jitters through financial markets. Sterling dropped to a 5 week low of $1.5327/£1 – breaking through the 200 day ‘moving average’ which means there is likely to be further downward movement. Sterling also hit the lowest level against the Swiss franc since January 2009 and fell significantly against the Japanese yen. The Swiss franc, US dollar and Japanese yen are all ‘safe haven’ currencies and the extent of the demand for these safer holdings shows the level of poor sentiment that is prevalent in the global economy. Despite data showing that UK mortgage approvals increased and consumer credit improved last month, there was a clear feeling yesterday that the best of the UK data has already been seen and it is now a ‘high risk’ currency to invest in. In terms of data released today, there is manufacturing data which is expected to show a mild decline. Call in now to ensure you do not buy when the market has fallen further.

In the Euro zone, the euro also strengthened against sterling by 1.1% to hit 1.2064/£1 which is the highest in roughly 3 weeks. Many traders cited ‘month end’ demand for euro and one UK bank apparently moved a significant amount of sterling into euro which would have had a significant market moving effect. In terms of data yesterday, German unemployment dropped by 2,000 less than expected but Italian data surprised to the upside with retail sales improving by 0.3% and the unemployment rate dropping by 0.1% to 8.4%. Out today there is manufacturing data which is expected to remain the same. Get in touch now for a live price.

In the USA, yesterday saw poorer than expected purchasing manager data with the Chicago PMI figure showing a decline from 62.3 to 56.7. The minutes of the FOMC interest rate meeting were also published yesterday which did not show anything unexpected. The attention now shifts to the ISM index – another measure of purchasing managers’ sentiment towards the economy. This is expected to show a decline, and the ADP non-farm payroll figure is expected to show a much more modest 20,000 increase in monthly private employment. Call in now to ensure you don’t buy at a poor time.

Elsewhere, the Australian dollar surged in overnight trade as 2nd quarter GDP growth figures jumped to 1.2% against an expectation of 0.9%. This beat analyst forecasts and showed the biggest rise in 3 years. Chinese manufacturing data showed that industrial sector growth had accelerated for the first time in 3 months which is seen as supportive for Australian exports as China is the largest consumer of the nation’s mined goods. Speak to a trader now about where the Australian dollar price is heading.

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