Will The US Reduce QE And What Would The Impact Be On The USD?
In the minutes from the last Federal Open Market Committee (FOMC) meeting held last month it was shown that a reduction in Quantitative Easing (QE) had been discussed and that some members of the FOMC had even raised the possibility of stopping QE by the end of this year. The minutes were released hours before they were expected which caused some USD movement especially as it showed some members of the FOMC believed that QE was close to having run its course. However, despite this news there is still concern that the US economy is under pressure and the risk of slowing down QE is that we could see US economic growth radically reduce which could lead to the country falling into recession, so I think that the FED will have to keep QE running for a little longer, at least unil the largest economy in the world is out of the woods. So, if you are looking to buy USD make sure you speak to one of our expert currency brokers who will be happy to help discuss the options open to you.
M&S Sales Rise – Could This be the Start of Positive UK Data?
Over the first 3 months of this year sales at Marks and Spencer have increased by 0.6% which, although is a small increase highlights a brighter picture for the UK high street. M&S has often been seen as one of the leading names on the UK high street and as a result it is used as a barometer for the health of the UK retail sales so any growth can be seen as positive for the UK and therefore Sterling. To ensure the UK economy continues to grow and avoid recession I believe we will need to see an improvement in a number of different sectors of the economy with the retail sector being one of these key components. If people start spending and sales increase it will help to add to the flow of money moving through the economy then it could help stimulate growth. For those clients looking to send money abroad then these figures today could be the start of some much needed positive news just in time for the UK GDP figures which are due later this month.
So, if you need to send money abroad and you are looking for the best exchange rate make sure you speak to one of our experienced currency brokers today who will be happy to discuss all your currency requirements and the different options which are open to you. These options include a forward contract where, for a small deposit, you can secure your rate of exchange at the current levels for a period in the future which is perfect to help clients budget and take some of the risk out of the market. To find out more about forward contracts and the other contract options available speak to one of our friendly and knowledgeable currency brokers on 01494 849752 or alternatively email me on firstname.lastname@example.org