This report will look at current issues affecting exchange rates .You can see below how movements in the last week would affect Pound Sterling rates when buying £200,000 of three majorly traded currencies buying at highs and lows:
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBPEUR | 1.46% | €3,480 |
| GBPUSD | 1.03% | $3,497 |
| GBPCAD | 1.34% | CAD 4,398 |
Market Overview
The rating’s agency Moody’s followed on from the threat of downgrading the UK this week, warning it may cut the credit rating of 122 European financial institutions including UK based banks RBS and HSBC. Against the backdrop of continued uncertainty surrounding the Greek debt deal this led to some volatility on exchange rates yesterday and showed the global economy is still in the danger zone. The pound climbed to the highest levels we have seen all week buying euros as well as offering excellent opportunities buying South African Rand and the Japanese Yen. Attitudes towards risk are changing on a daily basis as investors try to second guess what will happen with Greece. Monday is the latest deadline and uncertainty is rife. If you are planning any currency movements it is recommended to talk to one of our team today on 0800 328 5884.
Will these excellent GBPEUR rates remain?
Despite a pretty rough week for sterling we are still very close to a 17 month high for buying euros. Today at 09.30 however we have the important UK retail sales data release which is predicted to show a contraction in UK consumer spending habits. I expect this will actually cause the pound to lose some ground in early morning trading so if you have any transfers to make it may be smart to speak to us sooner rather later.
With low growth and high unemployment weighing on the pound I personally feel current sterling rates are still very fragile. If you have any currency transfers planned it may be a good idea to protect your exchange rate. Our contract options allows you to forward book today’s rates for up to two years and insert stops and limits into the market to make sure your exchange doesn’t become too expensive. Dealing with us is completely free and at no obligation, just click here if you do not have an account or make a call direct to our tradin
g floor on 0800 328 584.
US Recovery Underway
Months of uncertainty over the US economy is turning to confidence as recent US data has showed unemployment decreasing. New Home sales yesterday showed a recovery and benefit claims also dropped. The US is seen as a barometer of the global economy and signs the US recovery is underway helped lift confidence late afternoon. The US dollar weakened as investors looked to other assets creating some excellent opportunities, close to the best since November.
At 13.30 today we have US Inflation Data which could be a big market mover. If you are buying dollars be sure to speak to one of the team today in case the market takes an unexpected twist late on.
GBPCAD Forecast 
Staying in North America also at 13.30 we have Canadian Inflation Data. The Loonie has been making gains on a weaker pound and if we see signs Canadian Inflation is rising, you may see the CAD strengthen in afternoon trading. Overseas clients can speak to our trading floor on 00 44 1494 725 353.
Mexico is the destination for the weekend’s G20 summit which kicks off today. We could hear news surrounding Greece which could move exchange rates. If you are thinking about any currency exchanges whether today or far off in the future, speak to one of our specialist team today for all the relevant information to help limit your exposure as well as maximise your exchange rates.
