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Posted April 27th, 2015 by Charles Purdy

US Dollar under pressure

The US dollar had a difficult week last week and weakened further against sterling and the euro on Friday as core durable goods orders data released showed a contraction in core orders being placed, although the overall figure had grown more than expected.

It will be interesting to see if the US dollar continues to weaken against its peers this week. Growth figures to be released on Wednesday for the first quarter are expected to highlight a tough winter and be close to 1%, much less than the 2.2% for the last quarter of 2014. We also have the latest Federal Reserve meeting the same day. It is a fairly low key meeting as there is no press conference following the meeting or new economic forecasts and the expectation is that there will be no change in policy. The weekly unemployment claims for the US is due Thursday, with expectations for another high figure – which could build a negative view for the Non-farm employment figures due next week. The ISM Manufacturing Purchase Managers’ Index will be hoping for a positive sign, especially with the US fighting against the current slowdown.

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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Posted January 19th, 2015 by Charles Purdy

US Dollar still flying high

The US dollar finished off last week in a positive manner, following on from the Swiss National Bank’s unexpected move to abolish its euro peg. This, coupled with some strong economic data from stateside, allowed the dollar to move to an overall 11-year high.

While the inflation came in a little lower than forecast, the dollar managed to reverse the negativity from this, thanks to the Consumer Sentiment figure from the country. This came out significantly ahead of expectations, moving up to the highest level in 11 years. The dollar rose against most of its major partners on this news, with any positive data increasing hopes of an interest rate rise.

This week starts with no data from the US, with markets closed in observance of Martin Luther King Day. Tuesday is almost as quiet, with just some words from a member of the US Federal Reserve to interest investors. Wednesday sees the first major piece of data from the country, from the building permits figures, before Thursday’s regular showing from the labour market in the form of unemployment claims data. Friday then rounds off a particularly quiet week in likewise fashion, with just the two smaller releases of the flash manufacturing Purchasing Managers’ Index (PMI) and the existing home sales data that are liable to impact the markets directly.

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

Posted October 31st, 2014 by Charles Purdy

Sterling up against the euro, down against the US dollar

Even though UK data releases this week have been few and far between, sterling has seen some significant movement following data releases or announcements made elsewhere. The main event of the week came on Wednesday, with the announcement following the latest US Federal Reserve meeting which confirmed the end to quantitative easing. But it was the positive tone on employment that increased anticipation over an interest rate hike and saw the US dollar strengthen significantly with sterling falling to a fresh 2-week low against the US dollar. Sterling did recover slightly on Thursday, despite the latest economic growth forecast for the US economy exceeding expectations. Conversely, sterling recovered earlier losses against the euro as German inflation slipped to -0.3% to further fears over stagnation in the Eurozone’s largest economy.
We could see some movement in the euro today as investors focus on the Eurozone for the release of inflation data for the wider Eurozone area where further weak data could see sterling push close to 2-year highs against the euro.

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

Posted October 8th, 2014 by Charles Purdy

Sterling “struggling”

A mixed day for sterling saw it make strong gains early on against both the euro and US dollar before being pegged back over the course of the day. Sterling started the day on the up as German industrial production fell by the largest margin since mid-2009, increasing fears over the state of Europe’s largest economy. Sterling then fell away following the release of unchanged industrial production figures and manufacturing production figures that had risen for the third month in a row, albeit below forecast levels. Sterling struggled further as the National Institute of Economic and Social Research lowered their growth estimate for the previous quarter. Coupled with news that the International Monetary Fund (IMF) had improved their growth forecast for the US, sterling lost its earlier gains against the US dollar and ended the day only marginally improved versus the euro. Overnight sterling has slipped further.

Today sees housing inflation data from Halifax, which is forecast to show a slight increase of 0.2%. Of greater importance will be the release of minutes from the US Federal Reserve’s latest meeting. With the US economy showing signs of picking up recently, the markets will be looking to see if this is influencing any voting members. Any surprising results could impact 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 8th, 2014 by Charles Purdy

Sterling under pressure across the board

  • Downbeat Canadian employment data on Friday increased pressure on the Canadian dollar. However, losses against its US counterpart were tempered by the release of data showing that the US economy created fewer jobs than originally anticipated last month. The loonie also found support on Friday as it was stated that Canada’s unemployment rate remained at 7.0%, in line with predictions. It will be interesting to see if Canadian building permits data due to be realised later today will continue Friday’s trend for the Canadian dollar. 
  • Friday also saw the Japanese yen strengthen against the U.S dollar. The much-anticipated jobs market report released by the Department of Labour on Friday stated that the U.S economy had added 142,000 jobs throughout August – this missed the expected figure of 225,000. This saw the US dollar close against the yen on Friday at 104.70, down 0.29%.

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

Posted January 15th, 2014 by Charles Purdy

Good retail sales figures boost US economy

The US dollar had an encouraging day yesterday, strengthening against the majority of most traded currencies thanks to much better than expected retail sales data being released. Core retails showed an increase of 0.7% when only a 0.4% rise had been anticipated, causing the US  dollar to generally strengthen for the first time in four days, and did so by the most in four weeks against the Japanese yen, although it did fall against sterling. After words overnight from two members of the Federal Open Market Committee (FOMC), today’s main data point from the US will be the inflation data released in the form of the Producers’ Price Index this afternoon. A number of smaller releases, including the Empire State Manufacturing Index and the crude oil inventories, serve to supplement this figure throughout the latter stages of the day. Get in touch with your trader now for the latest US dollar rates, as it looks for some sustained support.

Posted September 21st, 2010 by Charles Purdy

Daily Currency Note 21/09/10

EURO/GBP – 1.186
US$/GBP – 1.551

CHF/GBP – 1.558
CAN$/GBP – 1.596
AUS$/GBP – 1.639
ZAR/GBP – 11.052
JPY/GBP – 132.56
HKD/GBP – 12.049
NZD/GBP – 2.131
US$/EURO – 1.308

Sterling fell to a 7 week low against the euro yesterday after poor UK data highlighted a slow UK recovery. Data showed that lending to businesses dropped for the 5th consecutive month in July and mortgage approval data showed the lowest number of new mortgages in over a year. Figures also showed that monetary supply – or the amount of money in the economy – dropped by 0.2% in August. All of this led investors and analysts to question the UK’s recovery further and saw renewed calls for an additional round of Quantitative Easing from the Bank of England to stimulate the economy. This saw sterling drop to 1.1887/£1 before recovering marginally to end the day above 1.19/£1. Against the US dollar, sterling slipped to a low of $1.5526/£1 despite holding firm above the $1.56/£1 level over the weekend. Out today, there is key public sector borrowing figures which are highly anticipated and will cause sterling movement. Make sure you don’t miss out by speaking to one of the team today.

In the Euro zone, there were no real data releases yesterday but there was positive news from Italy. The Italian trade deficit of 1.37bn showed a surplus of 1.75bn for last month. There were concerns last week over the debt crisis in Europe, as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). The Irish government quickly denied these rumours but the euro lost nearly a cent against the US dollar. Yesterday however, the euro recovered ground against the US dollar as markets grew concerned that the Federal Reserve would start a fresh round of emergency stimulus. Speak to one of the team today to prevent your payment costing more.

In the USA, the US dollar has been under further significant pressure yesterday ahead of today’s Federal Reserve interest rate decision. Concerns that a further round of emergency stimulus will be pumped into the economy saw gold reach a record high – testament to the level of uncertainty and concern that is prevalent in the marketplace. Aside from the interest rate decision, today sees new build housing data and building permits figures. All in all a lot in the pipeline, so make sure you have protected yourself by speaking to one of the traders ASAP.

Elsewhere, the Australian dollar continued to surge higher yesterday to hit a 2 year high against the US dollar after Glenn Stevens of the Reserve Bank of Australia stated that economic growth down under is likely to be “above trend” in 2011. This saw interest rate expectations surge with one gauge giving a 29% chance of an interest rate rise at the next meeting. The Japanese yen remained in a tight trading range after intervention from the Japanese government last week saw investors steer relatively clear of the currency.

Posted September 2nd, 2010 by Charles Purdy

EURO/GBP – 1.203
US$/GBP – 1.540
CHF/GBP – 1.560
CAN$/GBP – 1.620
AUS$/GBP – 1.695
NZD/GBP – 2.155
EURO/US$ – 1.280

Sterling hit a 3 week low against the euro yesterday after UK purchasing manager data came in sharply lower than was expected. The survey asks business purchasing managers whether they have bought more or less this month, and is a key indicator of business activity. It dropped by nearly 3 points on last month to hit the lowest level since November last year. Sterling fell to 1.2007/£1 as a result and struggled against other currencies such as the Australian dollar. Against the US dollar however, sterling broke through a key technical level which saw it hit a high of $1.5444/£1 – above the key 200 day moving average level of $1.5434/£1 which is watched so closely by many traders. However, sterling has shed these gains this morning to drop to $1.5390/£1 as poor data released this morning increased demand for US dollars. The Nationwide house price index showed that house prices have dropped by 0.9% last month sparking concerns over the health of the UK recovery. There is construction sector data released later today which sees further potential for sterling to fall. Call in now for a live price.

In the Euro zone, German retail sales disappointed coming in at -0.3% against an expectation of 0.6% growth. Final European manufacturing purchasing mangers data showed a slight improvement, coming in at 55.1 against an expectation of 55.0. Eurozone PMI data has been boosted recently by a boost in Asian demand for European exports and relief following the recent EU bank ‘stress tests’. The latest figure is released today alongside revised GDP figures and the European Central Bank interest rate decision. This is expected to remain on hold, but get in touch now for a live exchange rate and to ensure any data doesn’t adversely impact your payment.

In the USA, whilst manufacturing purchasing data showed an improvement that was better than expected, the ADP non-farm payroll figures came in a lot worse than expected. There was an expectation that the figures would show that the US econo9my added 20,000 jobs last month, but the data showed a drop of 10,000 sparking fears that Friday’s ‘main’ non-farm payroll data will be worse than expected. Out today, there is further Unemployment data in the form of the US claimant count and pending home sales data released. Fed Chairman Ben Bernanke also testifies to the Senate. Call in now for an exchange rate.

Elsewhere, Australia’s trade balance surplus narrowed for the first 3 months in July. Exports slumped by 4.6% with shipments to China falling by 7.9%. Chinese demand for mined goods from Australia has kept the antipodean economy afloat. Overseas sales of coal dropped by 16%, sparking fears that the boost from China is drying up. 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 August 31st, 2010 by Charles Purdy


EURO/GBP – 1.216
US$/GBP – 1.542
CHF/GBP – 1.573
CAN$/GBP – 1.634
AUS$/GBP – 1.731
NZD/GBP – 2.202
EURO/US$ – 1.267

Sterling’s movement last week was dictated by risk sentiment as sterling suffered on increased risk aversion at the start of the week but benefitted towards the end of the week due to gains in global stock markets. UK quarterly growth was revised upwards which is encouraging due to the fiscal consolidation which will take place. However a closer look at the figures revealed this revision was largely down to an 8.5% increase in construction output which will be very difficult to sustain for the remainder of 2010. This has seen many analysts argue that growth is very likely to slow later in the year. This week is a fairy quiet week for data in the UK. Call in now to speak to a trader about your risk management strategies.

The euro has been little changed overnight against sterling and the US dollar. German unemployment figures will headline the European economic calendar today, with expectations calling for jobless claims to fall 20,000. The unemployment rate is expected to remain unchanged at 7.6%. This is a further sign that the euro is being supported by the good performance of Germany whose export economy is benefitting from the Euros weakness against the US$. Call in now for a live exchange rate.

The US dollar continues to move with risk appetite after a series of negative data since the beginning of June. Today is a busy day in the US for economic releases with consumer confidence and the Federal Open Market Committee minutes for August released later tonight. Call in now to ensure you do not miss out on any favourable movements.

Elsewhere, the Bank of Japan has tried to address the recent appreciation of the Japanese Yen by expanding its special loan programme. In Australia retail sales and building approvals both showed better than expected figures overnight.

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 August 27th, 2010 by Charles Purdy


EURO/GBP – 1.219
US$/GBP – 1.552
CHF/GBP – 1.590
CAN$/GBP – 1.643
AUS$/GBP – 1.749
NZD/GBP – 2.203
EURO/US$ – 1.272

Sterling benefitted from improved risk sentiment as gains in stock markets gave investors the confidence to seek higher returns elsewhere. Sterling reached $1.5545/£1 against the US dollar as the FTSE 100 gained 1% through the day. Today sees the release of GDP data in the UK and a surprise to the upside could benefit Sterling. Get in touch now to speak to our traders so you can plan ahead accordingly.

The Euro was well supported against Sterling and the US dollar on Thursday as consumer confidence figures pushed German shares higher. Euro zone lending still remains in a fragile situation with data showing that there has been a growth in loans to euro zone households whereas loans to companies have declined by 1.3% over the year. Call in now for a live exchange rate.

The US dollar continues to move with investor risk appetite and today the focus will be on GDP data as well as the Federal Reserve Chairman Ben Bernanke’s speech at the central banker summit in Jackson Hole.

Commodity linked currencies also performed well on the back of improved risk sentiment as both the Australian and Canadian dollars made gains against the US dollar.

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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