Sterling has crept up a little in the past 24 hours following a slightly more positive outlook on the U.K economy by Sir Mervyn King – Governor of the Bank of England.
King upgraded growth forecasts and however did also say there was still a downside risk, and investors still seem to agree with this as confidence in the U.K and indeed the Pound still does not seem too high.
There isn’t a huge amount of data left to come out this week for the U.K so I don’t expect any huge movements in the coming few days however do be aware that in this current global economic situation and surprises can pop up at any time.
The Pound has kicked off the trading week with a little strength against all the major currencies, with the main focus for the U.K this week being unemployment data due out on Wednesday morning.
Unemployment levels have indeed one of the factors that is holding back the Pound at present from moving on to the next level and any improvement would be seen as a huge plus, however levels are expected to come out unchanged.
Following the unemployment figures we have the quarterly inflation report from the Bank of England and Mervyn King speaking shortly after this. Regular market followers will be aware that Mervyn King does tend to be on the negative side however he is due to be leaving soon so he may wish to leave on a high which could give the Pound a boost.
Sterling Euro rates shot up during trading yesterday following comments made by head of the European Central Bank Mario Draghi concerning the potential of negative deposit rates within the Eurozone.
Initially we saw interest rates cut to record lows of 0.5% by the European Central bank which did not really have much of an impact on Sterling Euro exchange rates, however during the press conference following the rate decision comments made by Draghi did lead to an instant drop in the value of the Euro which gave Euro buyers a great buying opportunity.
Unemployment in Europe Hits Record High
It was confirmed yesterday that unemployment in Europe had risen to a record high following news that inflation in the single currency economy had fallen considerably which makes the overall picture of the European economy is in a bad state. Unemployment rose to 12.1% overall mainly effected by the rising figures in both France and Spain which also have hit record high figures, in the meantime inflation fell to 1.2% from 1.7% which is a sharp fall and although still shows that the price of goods and services is increasing the overall picture is very gloomy. All of this news comes just before the key interest rate decision for the Eurozone where there has been a call for an interest rate cut which could have big implications for Euro exchange rates. Should interest rates be cut we could see GBP EUR exchange rates rise presenting some good opportunities for clients looking to buy Euros however if interest rates are not changed then we could see GBP EUR exchange rates weaken slightly as this could mean the current predictions are slightly wide of the mark. Either way tomorrow is the first interest rate decision we have seen for some time where there is a slight uncertainty as to the result which could make for a big day on the currency markets. If you have a Euro currency requirement and would like to assess the currenct exchange rates and the options available to you then please speak to one of our currency brokers today.
US Interest Rate Decision – USD Exchange Rates
Tonight the Federal Reserve Bank of America (FED) will announce their latest interest rate decision, the expectation is that the rates will remain on hold at 0.25% where it has been for many months. So, while it appears unlikely that there will be a change in interest rate it is possible that any accompanying rehtoric from the FED will give an insight into how the US central bank view the world’s largest economies performance. Recently we have seen the US economy post some good GDP figures, which despite being below expectation where still positive – considerably more so than the UK’s recent GDP numbers and so it does appear that the US economy is finally on a positive trend which could mean we see the US Dollar gain even more strength against a number of the major currencies. If you are looking to buy USD then speak to us today to discuss your currency requirements and the options open to you.
If you are looking to transfer money abroad and you are looking for the best exchange rates then make sure you speak to us today so we can examine the different methods as to how we can assist you. If you would like to discuss your currency requirements at any time please do not hesitate to contact us on 01494 849752 or alternatively email me directly on <ahref=”mailto:email@example.com”>firstname.lastname@example.org.
European Unemployment figures due
Today we are due to hear the latest European unemployment figures, recently we have seen both France and Spain hit record highs and so this figure today could be more negative news and the current forecast is for the unemployment to be higher than last months numbers. Should this be the case and the unemployment stats even breach the forecast then we could see some EUR weakness which could present clients with some excellent opportunities to buy Euros today. This news comes out following UK mortgage approval figures which will give an insight into the strength (or otherwise) of the UK housing market, predictions are that the figures are likely to be very similar to last month but there is the chance of a small uplift in the numbers which could provide a little Sterling strength. So, these two data releases coupled together could mean we will see a spike for GBP EUR exchange rates this morning, however with all economic data releases there is every chance that we could see the figures not live up to their forecast and result in a Sterling slide. If you need to buy Euros and would like to keep up to speed with the latest currency news then make sure you stay in close contact with your currency broker here at Foreign Currency Direct plc.
Canadian GDP Figures Due – CAD Exchange Rates
This afternoon we have the latest GDP figures due which are likely to show no change from last months figures of 0.2% growth. While this is very minimal growth it is still growth meaning the country is still avoiding recession which is clearly positive news. However, should we see any variation in these figures then there is a chance that we could see some volatility for the CAD today. To stay in touch with the latest news surrounding the Canadian Dollar and the Canadian GDP figures then speak to one of our expert currency brokers who can act as your eyes and ears on the currency markets and let you know all the relevant currency news. If you do not already have a currency broker you can call straight through to our trading floor on 01494 849752 or alternatively email me directly on email@example.com. We have numerous currency contracts which we can tailor to your individual requirements and we will be happy to discuss your requirements and give you our opinions on the currency markets in order for you to make an informed decision as to when to trade. Call us today to find out more.
US Economy Grows But Slower Than Expected
US Gross Domestic Product (GDP) figures released on Friday afternoon confirmed that the American economy was growing but not as fast as had originally been predicted. The GDP figures showed the economy had grown at 2.5% which is clearly very positive for the largest economy in the world it was down from the predicted 3% figure, it does also very much put the 0.3% UK GDP figures in the shade. The growth in America was attributed to an increase in consumer spending which is currently at its highest levels for two years. The fact the largest economy in the world is growing at a decent rate is positive for the global economy and as a result could mean that we see positive movement for a number of the major currencies. As a result we have seen some strong movement on the currency markets with GBP EUR moving up close to the 1.19 levels on the interbank and cable (GBP USD) moveing up to around the 1.55 level. This means that we are currently witnessing some excellent opportunities to buy currency, however these opportunities could be short lived. We have seen in the past how quickly the currency market can change and so if you need to transfer money internationally you should be aware that this week alone we have the latest European interest rate decision and US non-farm payroll decisions both of which could have a major impact on the currency markets and the exchange rates.
If you need to send money abroad and you would like to assess the different options available to you please contact one of our experienced currency brokers here at Foreign Currency Direct plc. You can call straight through to our trading floor on 01494 849752 or alternatively you can email me on firstname.lastname@example.org
European Unemployment Increases
Yesterday it was confirmed that both French and Spanish unemployment had hit new highs with 3.2 million people seeking work in France and Spanish unemployment hitting 27.2% unemployment, this means that between the two countries alone unemployment is over 9 million people. This is more negative news for the single currency economy the day after it was confirmed that the UK was not in recession. Both governments stated that they were targetting reducing the enormous unemployment figuers in their country but with recession still taking effect in the single currency economy I think it is hard to see the unemployment rates falling significantly any time soon. In fact it is more likely that we will see unemployment remain high for some time to come which could maintain the pressure on Euro exchange rates.
If you need to buy Euros and you are looking for the best Euro exchange rates make sure you speak to one of our experienced currency brokers who will be happy to discuss your currency requirements and the different options available to you so you can make an informed decision as when best to trade.
US GDP Figures Due
This afternoon we are expected to hear the latest American Gross Domestic Product (GDP) figures which are forecasted to come out strong showing the US economy is improving. If this is the case we could see some Dollar strength which would be good news for those clients looking to sell Dollars but may mean that for those clients looking to buy USD it could become more expensive after the announcement. So, if you need to transfer money to America speak to us today so we can explain the options open to you.
You can call straight through to our trading floor on 01494 849852 or alternatively email me on email@example.com
UK Avoids Recession with 0.3% Growth
This mornings Gross Domestic Product (GDP) figures have confirmed that for the first quarter of this year the UK economy grew by 0.3% which was very positive for the UK and as a result has seen Sterling exchange rates improve. This news has brought some relief to the under pressure George Osborne who has stated that this news was encouraging. There is now hope that this positive news will help the UK economy recover and as a result could help push Sterling exchange rates further up. Sterling Euro is already up by over half a cent against the Euro and by over a cent against the Dollar, this means there are currently some excellent opportunities to buy currency. While there is currently an element of positivity and the exchange rates are up the growth is still minimal and there is still a long way to go before we can comfortably say that the UK economy has recovered, however this is certainly an encouraging start.
If you need to send money abroad and you would like to make the most of the current spikes in the rates of exchange make sure you speak with one of our experienced currency brokers who will be happy to discuss your currency requirements and the different options available to you. These options include a forward contract where for a small depsoit you can secure the current rate of exchange at todays levels for a period in the future. This is perfect for clients who are looking to make the most of the current exchange rates or to budget and take some of the risk out of the market.
If you would like to find out more you can call us on 01494 849752 or alternatively you can email me on firstname.lastname@example.org.
Currency Markets Await GDP Figures
This morning at 9:30 we are due to hear the latest Gross Domestic Product (GDP) figures. These figures will confirm whether or not the country is back in recession and the markets seem to be undecided as to what they will show, in fact a straw poll in our office this morning came out 50/50 for the figures to show we are in recession which highlights just how close a call this really is. As previously discussed in this currency blog if we are in recession there is a good chance we will see Sterling exchange rates weaken, however if it is confirmed we are not in recession then we could see Sterling strength. This could mean that today will be a busy day on the currency markets and with less than one hour to go if you do need to transfer money abroad speak with one of our currency brokers who will be happy to explain the options open to you.
If you would like to keep up to date with the latest GDP news keep in touch with this blog, call us on 01494 849752 or email me on email@example.com
Will The UK Fall Into Recession and What Would The Impact be on Sterling?
Tomorrow morning we will hear the long awaited Gross Domestic Product (GDP) figures for the UK which will confirm whether or not the UK is back in recession. There is a great debate not only in our office but across the UK surrounding what people think the figures will show, recently the National Institute for Economic Research (NIESR) stated that they expected growth of 0.1% while other estimates have forecasted the economy shrinking by 0.1% which highlights just how tight it is. Personally I can’t call it but the recent negative data releases for the UK have me leaning slightly towards the side of negative growth and therefore recession. The issue we face is that because the result of tomorrow is so unpredictable it is hard for the market to price in its expectations which means the chance of large currency movements following the data release is significant. If we fall into recession we could see Sterling exchange rates fall significantly against the majority of major currencies however the reverse is also true and if we are found to have escaped recession and the economy has grown even by a meagre 0.1% then we could see the Pound strengthen.
With such a tight decision in the offing anyone with a currency requirement whether it is an imminent requirement or a longer term currency need make be wise to speak with one of our experienced currency brokers who will be happy to discuss your currency requirements and the different options available to you. At Foreign Currency Direct plc we offer a number of different contract options all of which can be tailored to our clients individual needs. To find out more about these different contract options and how tomorrows data release could effect your currency transfer please call us today on 01494 849752 or alternatively email us on firstname.lastname@example.org.