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Posted April 24th, 2015 by Charles Purdy

Chinese economy continues to slow

Concerns over the Chinese economy continue to rise. Data for the first quarter has shown growth falling to1.3% quarter on quarter and annually to just 5.3%. Similarly the HSBC manufacturing Purchasing Managers Indices continues to be in negative territory, not a good sign. The belief though is that this will force the Chinese government to increase their support for the Chinese economy. It what way is not clear but they cannot afford the Chinese growth story to stop any time soon.

The Swiss franc has had a difficult week as the Swiss Central Bank increased the number of institutions who would have to deposit funds with them at negative interest rates. Not good to find out that you have to pay someone to look after you money!

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 February 24th, 2015 by Charles Purdy

Swiss franc drops

The Australian dollar had a poor start to the week as it fell away from two-week highs against its US counterpart on Monday. This was largely due to Friday’s upbeat US data, which continued to strengthen the US currency’s position going into this week. The Aussie dollar was also lower against the euro, as the EUR/AUD rate dropped to 1.4542.

Monday saw the Swiss franc drop over 1% against the US dollar, as relief over Friday’s agreement on a four month bailout extension for Greece fed appetite for risk. Markets have been hit by growing concerns over a possible Greek exit from the Eurozone, should the country have missed its most recent debt payment.

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

Posted February 6th, 2015 by Charles Purdy

Is the SNB intervening again?

  • Thursday saw the Australian dollar jump up almost half a percent against its US counterpart, despite the release of tepid Australian retail sales data. The official report by the Australian Bureau of Statistics stated that retail sales rose 0.2% in December. This came out below the expectation of a 0.4% increase. Although this came out worse than expected, the market reacted to the ECB’s decision that it would no longer accept Greek bonds as collateral for lending, which strengthened the Australian dollar.
  • The Swiss franc dropped the most it had done against the euro on Thursday since the Swiss National Bank (SNB) scrapped its exchange rate cap last month. The SNB has shown signs that it is still preparing to intervene in currency markets, even after abandoning the cap.

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

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.

Posted January 30th, 2015 by Charles Purdy

Swiss central banks intervenes

  • Thursday saw the Swiss franc fall down against the majority of its major peers. This came off the back of fresh expectations that there is likely to be further intervention by the Swiss National Bank against the currency. USD/CHF was up well over a percent to its highest point in the last two weeks. The broad reason for intervention is the Swiss National Bank is attempting to prevent appreciation of its currency.
  • The New Zealand dollar has had a poor week following the Reserve Bank’s decision to hold its benchmark interest rate at a record low of 3.5%. This signalled that they are preparing to decrease borrowing costs further as the oil crisis has reduced inflation.

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

Posted January 20th, 2015 by Charles Purdy

Sterling loses ground at the start of the week

A reversal in fortunes on Monday saw sterling fall away from last week’s multi-year highs against the euro. Probably to be expected given the gains sterling made at the end of last week. With little economic news released throughout the day, market focus was fixed on the ECB’s expected announcement of a €550 billion bond purchase program on Thursday. With investors nervous over the outcome of this announcement, the euro was able to strengthen across the board. In comparison to this, sterling traded within a narrow range against the US dollar, finishing the day in much the same position as it started.

It is another quiet day for sterling today as the focus remains with the Eurozone, although events elsewhere have the potential to affect sterling’s performance. German economic sentiment data promises to provide some insight into investor confidence over the next 6 months.

Smart Currency stance on Swiss National Bank changes – There has been news in the press recently that the Swiss National Bank (SNB)’s abolishment of its euro peg last year has caused difficulties for some foreign exchange brokers. We assure you that Smart Currency is not affected by these changes. We take a non-speculative view with currency trading and have a broadly based spread of clients, which means that we are not at risk from these events. To learn more about what happened, read Smart Currency CEO Charles Purdy’s blog on Forbes.com.

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 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 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 16th, 2015 by Charles Purdy

Euro taken down by the Swiss

It was one of the worst days we have seen in a few weeks for the euro as the Swiss National Bank shocked markets on Thursday by scrapping the 1.20 per euro exchange rate floor it imposed in September 2011, when just two days ago they said this was not going to happen, particularly in the short term. This created more uncertainty for the euro and, with the problems still remaining in Greece and the possibility of Eurozone quantitative easing, this could really be the perfect storm for the currency. The euro saw its lowest figure against the US dollar since November 2003, down 1.4% for the day – another colossal fall for the Euro. The euro has moved almost ten cents against the US dollar in one month, leading to worrying times for Eurozone importers.

This morning we have Consumer Price Index (CPI) data from the Eurozone – this could be a positive figure having been forecast at 0.4%, which would be an improvement from last month’s figure of 0%. This could be a short term fix for the euro following yesterday’s disastrous day.

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 16th, 2015 by Charles Purdy

US Dollar steady

The US dollar has garnered mixed fortunes this week, with data from the country combining with wider world events to move the markets. The week started slowly on the data front, resulting in little significant movement from the currency. The job openings figure aided the currency by beating its expectations, allowing the dollar to revisit recent highs against the euro. However, this trend was reversed mid-week as poor retail sales figures weighed down the currency. This result was the worst in nearly a year, resulting in dampened speculation over whether the Federal Reserve will raise interest rates sooner rather than later.

Yesterday was largely more positive in key areas, despite varying data. The most significant was inflation data in the form of the Producers’ Price Index, which met its expectation. The unemployment claims and Philadelphia Federal Reserve’s Manufacturing Index were both behind their forecasts, but the Empire State’s version was significantly ahead. This, along with the events in Switzerland, saw the dollar rise against sterling and the euro, but lose out against the other safe haven of the Swiss franc.

Today holds some more key inflation data, with the key indicator, the Consumer Price Index (CPI), due. Some smaller pieces – including industrial production data – could support this, while later in the afternoon there will be consumer sentiment data from the University of Michigan.

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

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