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Posted June 12th, 2015 by Charles Purdy

Sterling tries to bounce back

After a tough couple of weeks, sterling has seen a marked turnaround over the past few days, strengthening against both the euro and US dollar despite a lack of supporting economic data from the UK.

Sterling suffered against the euro at the start of the week, losing over 1% as optimism that the Greek government would strike a deal with their creditors saw the euro strengthen across the board. However, better-than-expected trade balance figures released on Tuesday allowed sterling to make marginal gains against the euro, whilst an upturn in May’s industrial production data allowed for further strength on Wednesday. With Thursday signalling the end of the latest round of talks between Greece and her creditors, and no fresh deal on the table, sterling consolidated its position on Thursday, pushing close to the highest levels seen against the euro since the start of June.

Against the US dollar, sterling was boosted by the Organisation for Economic Co-operation and Development (OECD)’s projection that US economic growth may be slowing down, contrary to popular belief. With US retail sales increasing by 1.2% throughout May, sterling found itself falling against the US dollar on Thursday, although it still remains at a much higher level compared to the start of the week.

With no major data released from the UK today, investors’ attention will be focused on the fallout from the stalled debt talks in Greece and on the release of the US producer price index, as well as the latest US consumer sentiment survey.

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 June 8th, 2015 by Charles Purdy

Quiet week for data, will it be quiet for sterling?

Sterling ended last week in the same vein it had all week – with mixed movements dependent on data releases or news from other countries. Better-than-expected employment data on Friday from the US pushed sterling lower against the dollar, but the data also triggered a broad sell-off in the euro which meant that sterling was able to recover some of the ground previously lost against the single currency.

The week ahead will see little fundamental UK economic data released. On Tuesday we have the release of BRC retail sales for May which are expected to be back in positive territory. Wednesday sees the release of manufacturing production figures for the month of May, and these are forecast to fall to 0.1% – but investors will be hopeful of a better-than-expected figure, given the previous positive Purchasing Managers’ Index reading from the manufacturing sector. Wednesday will also see Bank of England Governor Mark Carney speaking, and as ever, any new clues regarding future monetary policy will be eagerly awaited. Aside from this, data on industrial and construction output will also be released, although there are likely to have a muted impact.

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 2nd, 2015 by Charles Purdy

Sterling suffers thanks to low export figures

Sterling is suffering, falling to a seventh straight day of losses against the US dollar on Monday.

Mays Purchasing Managers’ Index (PMI) data from the manufacturing sector released yesterday had a reading of 52.0, missing its predicted level of 52.7. Domestic demand for products remains high, but the failure of the economic recovery to take hold in Europe plus sterling’s strength against the euro, has seen a decline in exports for UK manufacturers. This caused the negative effect on sterling across the board – despite the failure of the Greeks to come to any sort of agreement with their creditors over Friday’s repayment deadline to the International Monetary Fund (IMF).

Today sees the release of PMI data from the construction industry. With the housing market showing signs of recovery over the last few months, there is confidence that we could see a strong reading today, hopefully reversing sterling’s lengthening slump.

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

Posted May 26th, 2015 by Charles Purdy

Sterling strong against the euro but weaker against the US dollar

A mixed week for sterling last week saw it gain ground against the euro, lose ground against the US dollar and hold relatively steady against the other major currencies. On Friday, Mark Carney, the Governor of the Bank of England, reemphasised that an increases in UK interest rates would be gradual. Not a huge surprise but it did dampen sterling’s progress against the euro during Friday.

This week ahead sees little in the way of influential data releases from the UK, although the G7 meetings throughout the week may generate some market movements. Here, we are likely to see a number of economic policies discussed – including the global slow-down in economic growth and the continuing stalemate with Greek debt, both of which have the potential to impact global currency markets. Investors will be eager to hear the insight of finance ministers from seven of the most influential countries on the planet.

Aside from this, the second estimate of UK economic growth for the previous quarter is set to be released on Friday, which is expected to show a slight improvement from the first estimate. However, if the estimate points towards a further slowdown in the UK economy, we could see sterling suffer towards the end of the week.

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

Posted May 15th, 2015 by Charles Purdy

Sterling – range bound against the euro, strengthening against the US dollar

A mixed week for sterling has seen the initial gains from the Conservatives victory in the general election pared back following a surprisingly negative quarterly report from the Bank of England (BoE).

The week had started strongly as sterling soared to fresh monthly highs against both the euro and US dollar, as investors reacted positively to confirmation that UK economic policy would continue along the same path it had for the past 5 years. Better-than-expected manufacturing production figures on Tuesday supported this move, with sterling hitting a fresh 2015 high against the US dollar. Sterling continued to move in a positive fashion first thing Wednesday, thanks to a sustained strong wage growth of 1.9% over the past 3 months compared to the same period of last year, further boosting investor confidence.

However, when the BoE revised their economic growth forecast for the year down to 2.4% from 2.9%,the currency sterling fell across the board, although it still held on to most of the gains seen this week. A quiet Thursday left sterling trading within narrow boundaries, although a surprise contraction in the US producer price index saw sterling make slight gains against the US dollar. Confirmation from the President of the European Central Bank that their programme of quantitative easing would run its full course enabled sterling to regain lost ground against the euro during Thursday.

A quiet end to the week sees only construction output figures released from the UK. With this delayed figure carrying little impact on investor sentiment, we are likely to see market movement driven more strongly by further reaction to the quarterly report.

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

Posted May 12th, 2015 by Charles Purdy

Sterling continues to strengthen

A positive start to the week for sterling has seen it move higher across the board, pushing to the highest levels of 2015 against the US dollar as investors continue to react positively to the conclusive victory for the Conservative party in last week’s UK parliamentary election. With little fundamental economic data released on Monday, and the Bank of England (BoE) keeping UK interest rates on hold at 0.5%, investor focus shifted to the ongoing Eurogroup meetings.

With news emerging that there was little chance of a definitive deal being struck with Greece over their debt in the next few days, sterling advanced steadily against the euro throughout the day, pushing to a two-week high against the euro. Sterling also improved against the US dollar throughout the day, as investors looked towards Wednesday’s quarterly inflation report from the BoE. The central bank is expected to forecast an increase in inflation over the next year, which would increase pressure on the central bank to raise interest rates.

Today we have the release of manufacturing production figures from the UK, with the recent slowdown in growth expected to continue, with only a 0.3% increase in production forecast. Any deviations from expectations could affect sterling 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 May 8th, 2015 by Charles Purdy

All about the election for sterling

Who would have thought the opinion polls would have got it all so wrong, or did they? They did get it wrong with the number of seats each party would win but when you actually look at the number of votes cast for each party they seem to been more accurate. Just highlights the vagaries of the first past the post electoral system.

And the clarity and certainty of five more years of the Conservative Party has boosted sterling gaining nearly 4 cents against the euro, 2.5 cents against the US dollar and 3 cents against the Australian dollar. So what had been a difficult week for sterling especially, against the euro, has turned into a winning week.

The main uncertainty now is over the UK economy and whether the blip in its first quarter performance was actually a blip or something more longer term.

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

Posted May 5th, 2015 by Charles Purdy

Sterling suffering is likely to continue this week

Last week ended terribly for sterling as we saw it weaken greatly against both the euro and the US dollar. It reached the lowest level against the Euro since late February, following less-than-encouraging manufacturing data in the morning. Difficult to see how this week will be much better for sterling with the uncertainty surrounding Thursdays General Election hanging over it.

On Wednesday we have the release of the Purchasing Managers’ Index (PMI) for the UK Services sector, the most significant part of the UK economy, with early forecasts expecting the figure to be slightly lower than last month’s but still in expansion territory. It does seem pivotal that the data supports sterling given the aforementioned General Election on Thursday. On Friday we have the release of UK trade figures for March which are expected to show a continued deficit around the £10 billion level which is in stark contrast to the £20 billion surplus expected from Germany

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

Posted April 28th, 2015 by Charles Purdy

Sterling continues its positive run

A largely positive day for sterling on Monday saw it push significantly higher versus the US dollar, whilst trading within relatively narrow boundaries against the euro. A relatively quiet week on the data front for sterling will likely see movements in the currency largely influenced by news from elsewhere. This proved to be the case on Monday, with disappointing services sector growth data from the US allowing sterling to push to the highest levels against the US dollar seen since early March. Coupled with emerging evidence last week that the US economy is losing some steam, sterling looks set to take advantage of the situation.

With little headline news regarding the UK election and the Greek debt situation lacking resolution, sterling saw little significant movement against the euro, and remained below the recent one-month high enjoyed during the middle of last week.

Today sees the release of preliminary UK economic growth data from the first quarter of 2015. As the earliest estimate of this data released, the preliminary reading is set to be eagerly anticipated by investors, and any significant deviation from the growth forecast of 0.5% could see a spell of movement for sterling.

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

Posted April 24th, 2015 by Charles Purdy

Sterling has an okay week

A positive week for sterling has seen it make gains against both the euro and US dollar as the Bank of England (BoE) reiterated its desire to raise interest rates at a future meeting. With little major economic news released on Monday or Tuesday, sterling traded within narrow boundaries as investors looked towards the mid-week release of minutes from the latest monetary policy meeting of the BoE. These showed no change in votes, with all policymakers electing to keep the interest rate on hold at 0.5%. However, sterling did find an unexpected boost when the minutes revealed that the BoE do not see any long lasting effects from the current low inflation, and that when interest rates change it will be a positive move.

Sterling did retreat on Thursday however, as an unexpected decline in retail sales throughout March allowed the euro and US dollar to push sterling away from its recent one-month highs against these currencies.

Today sees no major data released from the UK, with attention instead falling on both the Eurozone and US, where investors will be awaiting news updates and economic data from these areas with interest.

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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