Market Summary
This report will take a look at the cost of sending money overseas and factors that could affect your currency transfer, focusing on:
- U.K GDP figures out this morning
- Spain bailout?
- Australian Dollar
- On-going talks with Greece
The table below shows the percentage movement of exchange rates over the month so far along with the extra currency you could have bought if buying with £200,000.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBP/EUR | 2.01% | €5,078 |
| GBP/USD | 2.40% | $7,610 |
| GBP/AUD | 3.10% | AUD 9,424 |
U.K GDP Figures may lead to volatile day for the Pound
This morning may set the tone for the day for Sterling as we see the release of U.K GDP (Gross Domestic Product) figures at 09:30am. GDP measures the amount an economy grew or indeed shrank over a specific period and these particular figures are the first revision of figures for the second quarter of 2012.
The initial figure released was indeed rather poor as the U.K appeared to have contracted by 0.7%. According to predictions this figure may actually be revised to -0.5% this morning, meaning things are a little better than originally thought. Personally I feel that if we do see this happen the Pound may have a good day and we could see it drop back up to the 1.27s against the Euro and the 1.59s against the Dollar.
I actually believe that things may start to look up a little later on this year and that quarter three figures will be back to positive, therefore technically ending the U.K being in a recession for the time being.
The markets are much more sensitive now than they were pre 2008 so still absolutely anything may happen and the smallest change in confidence can lead to a large swing in exchange rates, the key is having an experienced and efficient currency broker on your side – if you would like me to assist you with a future transaction then feel free to get in touch directly on 0800 328 5884.
Spain in talks over Bailout
Spain yesterday held official talks with the eurozone about potential terms should they require a bailout, of course this would be a totally different matter to Greece and may have much larger implications as the economy is so much bigger.
Spain’s prime minister’s office declined to comment. “A spokeswoman for the economy ministry said there was no change in the Spanish position, which is that it would wait until the next meeting of the governing council of the ECB on September 6, hoping for details on how the ECB plans to intervene, before deciding on any move”, according to Reuters.
If you have Euros to sell or you are in the process of selling a property overseas then it is key that you put some protection in place. We offer numerous options inclusive of a Forward contract, stop loss and limit order to protect you from adverse market movements contact us today on 0044 1494 725353 for a full explanation on how these contracts work.
Australian Boom to end? Recession in 2013?
Several reports this week are now starting to suggest that the mining boom over in Australia may be set to end, and that we could even see Australia slip into recession in 2013, a stark contrast to what has arguably been one of the top three performing currencies throughout this global crisis.
Commodity prices for as Iron ore and coal are spiraling lower and according to Deutsche Bank this will be one of the key factors to push Australia into negative territory in terms of growth for 2013.
Personally I feel that this may be the start of the turnaround for the Australian Dollar, by no means do I feel we will suddenly be jumping back up above 2 to the Pound but I would not be surprised to see exchange rates creep back up to 1.60 and above, potentially even 1.70 plus before Christmas.
Greek meetings today and this weekend
Finally, one more matter to be extremely wary of is the on-going talks between Germany, France and Greece regarding Greek debt and loan payments. This could throw up a few surprises in the next 48 hours so once again if you have a pending transaction it is more important than ever to let us know about it so that we can jump on the phone and let you know should something fairly substantial be released. It appears Greece are asking for another extension to their loans and one starts to wonder how much more Francois Hollande and Angela Merkel will be willing to accept.
If you do not already have an account click here to open a free, no obligation trading facility with us here and one of our friendly and experienced brokers will be straight in touch.
