The following currency report will examine the factors that could affect Sterling exchange rates. The table below shows the difference in currency you could have achieved trading at the high over the last 30 trading days, compared to the low, on a £200,000 currency transfer.

UK Economy ‘Stagnating’ Means Further QE Likely

Fears over the fragility of the UK economy have resurfaced, with a report suggesting that growth during the third quarter of this year was minimal and our economy is once again close to stagnation. This news will be a blow to UK leaders and the BoE 9Bank of England) who suggested we may actually see an upturn in fortunes over the remainder of this year. PMI data has suggested contraction in the services, manufacturing and construction sectors, news that will hardly alleviate growing market concerns.

The EUR continued to strengthen against GBP during Wednesday’s trading, with rumors rife that the markets were starting to factor in a further round of Quantitative Easing. This announcement could come as early as today, when the Bank of England will make a decision on whether to cut interest rates, in addition to any announcement of further QE. These decisions are seen as key to the next major move on the GBP/EUR currency pair and many people will be waiting for the outcome of this before deciding when to initiate their next currency transfer.

It is worth remembering that the markets will usually start to factor in any major economic decisions before the actual announcement and the one thing we can be certain of is investors will do everything in their power to be one step ahead of the game. For this reason, it is often in the build-up to any economic releases that the markets will move according to the likely outcome. This is not inevitable but may be why we have seen the EUR strengthen over the past few days ahead of today’s announcement. Any variation from the expected outcome could cause additional market fluctuation, so to protect yourself against this please call us now on the free phone number 0800 328 5884 and discuss the options available to you.

If you would like to take advantage of our award winning exchange rates then please visit our website www.currencies.co.uk for more information and speak to one of our brokers today.

European Commission Unveils Plans to Boost Economy

The European Commission has put forward new proposals to make it easier for individuals and companies to move and do business within the European Union. It will be referred to as the commission’s Single Market Act 2 and it should strengthen social entrepreneurship and boost consumer confidence, whilst also raising employment across the entire region. This could help struggling economies such as Spain, whose unemployment levels remain near record highs.

The EUR has been making headway since the start of the week, with rates moving back under the 1.25 resistance barrier and providing EUR sellers with an additional £1,500 on a 200,000 EUR/GBP, compared to the same transfer on Monday morning. This is a key indicator as to why it is so important to have a currency broker actively working with you to ensure you are maximize each and every transfer, no matter how large or small.

US Dollar Still Struggling as Election Tension Builds

With President Obama and Mitt Romney currently going head to head in a series of live TV debates, the US economy is sure to be in the headlines over the coming days. Whilst the USD has continued to struggle against most major currencies of late, their economy and probably President Obama were given a boost as activity in the service sector picked up, whilst US companies added more jobs than expected. The greenback did make some inroads against Sterling during yesterday’s trading and may well start to put pressure on the 1.60 level over the coming days.

Canadian Dollar Overview

GBP/CAD exchange rates have been fairly flat of late, with only relatively small fluctuations over the past month. The CAD lost some value yesterday following poor data releases in China, with the Canadian economy relying heavily on global growth due to its large export industry. Even with this relatively small movement, as highlighted in the table above, the difference on a £200,000 GBP/CAD transfer was in excess of  CAD 6,000 and once again highlights the need to stay in contact with your FCD broker, who will provide you with all the relevant market information.

Here at FCD we have various contract types all tailored specifically towards our client’s needs, so for more information please call us today on 0044 1494 725 353 or contact me directly at mtv@currencies.co.uk.