Market Summary

This report will take a look at the cost of sending money abroad and factors that could affect your currency transfer, focusing on:

  • US Election – Hurricane Sandy
  • Euro Consumer Confidence
  • Czech Koruna Opportunity

This table shows the percentage movement of exchange rates over the last 30 days along with the extra currency you could have bought if buying with £200,000

[Table]

USA election

Hurricane Sandy which recently closed the NYSE and NASDAQ has now passed, but the clean-up is expected to take days and threatens $20 billion in economic damages. However, it is not just the economic impact of the storm that could change the strength of the dollar over the next week, but also the presidential election that concludes in under a week. In what has been a very close election race, how President Barack Obama reacts to the clean-up effort could easily assist him get the additional votes needed to secure him his second term.

Over the next 72 hours there are 25 data releases from the US including Unemployment Figures, Production Figures and Factory Orders.  Most are expected to show an improving picture for the US economy and as a result could easily weaken pound dollar exchange rate making it more expensive to buy.

Rates could possibly move by over 2% adding over £1,900 on a $150,000 purchase if bought poorly. So if you have an interest in the dollar over the next few weeks contact us today and we can keep you up to date allowing you to make an informed decision about when to buy.

 

 

Euro Consumer Confidence falls

Yesterday data showed that Economic Confidence in the Eurozone fell for the eighth month in a row, it is currently at its lowest in more than three years. It was expected to fall due to the austerity measures across the Eurozone undermining consumer and business confidence, but it came out worse than expected.

Eurozone Services and Manufacturing Output also contracted and with Unemployment at the highest since 1995. Many now expect the slump in Europe to extend into the fourth quarter. Growth forecasts for this year and next have now been cut by both the European Central Bank and the International Monetary Fund as five members of the single state are in a recession and a few others not that far from following them.

Later today we have Eurozone Consumer Confidence which is released at 10 am, this is expected to show a contraction and I expect to see GBPEUR fall as a result.

If you have any exposure to the Eurozone, our service is here to help. We provide a pro-active service keeping you up to date with market movement helping you trade wisely. Simply put if we could not save you money compared to your current provider we would not be in business! So please make contact and experience for yourself why we have received several awards for both our service and our rates of exchange.

Czech Koruna Opportunity

The Czech economy has contracted for three straight quarters following tax rises and spending cuts in an aim to reduce their budget deficit. They lowered their interest rates to 0.25%, importantly below the euro region in an aim to entice growth but borrowing figures have been disappointing. Analysts believe that a different strategy will be announced tomorrow at the next Central Bank meeting. Some are expecting the government to stimulate growth by weakening their currency, if this is confirmed it could create a great opportunity for buyer of the Czech Koruna.

If you have exposure to the Koruna and would like to be keep up to date on this story register your interest here