Positive Economic Data Greets New Bank of England Governor Mark Carney

In Mr Carney’s first day as Bank of England Governor he was welcomed with the news that both UK manufacturing and business confidence were at some of the highest levels we have seen for years. Firstly, UK manufacturing grew to the highest levels we have seen in two years while we also heard that business confidence hit a six year high, surely Mr Carney couldn’t have asked for much of a better start?! Hopefully this positive run will continue. Recently we have started to witness some slightly better economic data releases for the UK and the news from the British Chambers of Commerce (BCC) who confirmed the six year high for business confidence is especially positive. As the manufacturing sector makes up such a large part of the UK economy this is particularly good news. It also comes at a time when the Bank of England have stated that they need to reduce the countries trade deficit by increasing the amount of goods that are made in the UK and are exported and used within the country compared to the amount of goods and services which are imported. Currently our exports are not strong enough asĀ a stronger export market would mean a boost in the amount of foreign money coming into the UK economy. However, there is a concern that in order to improve the export market the Bank of England will look to devalue the Pound as this should make British products more attractive to foreign investors and while this may help the UK economy in the longer term it is unlikely to help those clients looking to transfer currency internationally.

So, if you are looking to send money abroad this morning’s positive economic news could help provide some short term spikes but there is still the threat of the Pound continuing its recent trend which has been negative. If you would like to discuss your currency requirements and the different options available to you please do not hesitate to contact one of our experienced and friendly currency brokers today on 0800 328 5884 or alternatively email me directly on trh@currencies.co.uk.

More Turbulence in Europe

It has been announced this morning that Portugal’s finance minister, Vitor Gaspar, has resigned, leaving the country with high unemployment and still languishing in recession. While Portugal’s economy is still in a sorry state Mr Gaspar had been revered due to the way he had managed to manage the countries finances following their bailout in 2011 so his departure may cause some concern amongst Europe’s leaders. This resignation shows just what a precarious position their Portuguese economy is in and as one of the major economies in the Eurozone any negativity could lead to contagion and these problems spreading throughout the single currency economy. However, we have seen recently some stability in the EU and the words of Mario Draghi are still ringing true when he said that the European Central Bank (ECB) would do whatever it took to keep the EU economies intact. So, while there are problems in Portugal it may simply mean we will see the ECB flex its muscles again soon in order to help stabilise its economy.

If you need to buy Euros and you would like to discuss the impact of these issues in Portugal please speak with us today. Even if your currency requirement is not imminent we can still offer a number of different contracts which can be tailored to your individual needs and this coupled with our currency brokers assistanceĀ can help you make an informed decision on when best for you to secure your exchange rates. Call us to find out more on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 or alternatively email me on trh@currencies.co.uk