UK House Prices Up – GBP Exchange Rates
Figures from the Nationwide have shown that UK house prices rose by 0.2% in February with the average house price at £162,638. While it is positive news to see house prices on the up the difference is very small and is unlikely to have a significant impact on the UK economy and for that matter Sterling exchange rates. In the UK so many people have their funds tied up in bricks and mortar which means they are susceptible to house price movement. Theoretically if we see house prices rise then we often see an increase in the number of house sales which results in more money flowing through the economy which has a positive effect on GBP exchange rates. However, considering how far house prices have fallen and the fact that we are close to being in a triple dip recession I think means we will need to see house prices rise a lot further in order to give people the incentive to want to sell their house. In my view the house market can be a good indication of the overall UK economy and so the fact that we are seeing very small growth means we are likely to see minimal, if any growth in the overall UK economy.
No Deal For US Budget Cut As US Dollar Comes Under Pressure
It seems as the US is always “fast approaching a crucial economic deadline” and the present time is no different. Currently Congress is in deadlock as they are trying to avoid a big number of budget cuts which are worth $85bn and there is concern that if these cuts go through it will harm the US economy and from a currency perspective could weaken the US Dollar. In America we have seen negotiations in Congress to avoid breaching the budget ceiling and more recently there was huge concern that the US was going to suffer falling off the “fiscal cliff”. Now we have another pressing deadline on the cards and again in the lead up to this we could see a lot of volatility for USD exchange rates. However, you have to ask yourself why does are these left to the last minute, I personally believe it is for political point scoring more than for economic reasons but either way it is likely to mean the currency markets, especially Sterling Dollar exchange rates could be volatile in the next few days. So, if you need to buy Dollars make sure you stay in close contact with one of our experienced currency brokers.
Canadian GDP To Be Released So Expect CAD Volatility
Later on today we have Canadian Gross Domestic Product (GDP) figures due which are expected to show that the economy has remained fairly steady at around 0.6% growth for the quarter. Should we see any variation from that we could see some major Canadian Dollar movement. GDP is a key indicator as to the health of an economy and so positive figures today could see the CAD strengthen but the opposite is also true. So, if you have a requirement to either buy or sell Canadian Dollars stay in close contact with your currency broker here at Foreign Currency Direct plc today so they can keep you informed of the latest currency news.
If you need to send money abroad and you are looking for highly competitive exchange rates then make sure you stay in touch with our friendly currency brokers who will be happy to discuss your requirements and the options available to you. You can call straight through to the trading floor on 01494 849752 or alternatively you can email me directly on firstname.lastname@example.org.