This report will include the following
- Market Quotation
- Euro Zone GDP Figures and interest rate
- U.S Employment figures
- Flight to safety – JPY and CHF benefits bounce back
The following table shows the current market movements over the course of yesterday’s trading– It just goes to show that if you have a property to purchase or have recently sold and do not inform a your broker it could cost a lot more or you could receive a lot less than you originally bargained for even over the course of a days trading. Contact us today for information on how to book out a forward contract – If you have sold abroad we can even accept a Sterling deposit to hold your rate whilst you await completion so that at least the foreign currency side of things is one less part for you to worry about.
| Currency Pair | % Change | Difference on £200,000 |
|---|---|---|
| GBPEUR | -0.26% | €627.54 |
| GBPUSD | 0.75% | $2,320.50 |
| GBPJPY | 1.10% | JPY 288,200 |
| GBPCHF | 0.78% | CHF 2449.20 |
Euro Zone GDP and interest rate decision
Today promises to be an active day on the currency market with the first important data of our trading day being the revision of Euro Zone GDP (Gross Domestic Product) data at 10:00am.
No revision is expected however as many of you will know the currency markets can throw up many surprises and should there be a revision up we may see the Euro really gain strength and the opposite we should see the reverse.
Although the Euro Zones struggles have been well publicised over the past few months, some of the larger economies are starting to push forward, and we also saw the world cup in the last quarter so I wouldn’t be surprised to see the figures slightly revised up and the Euro to gain ground off the back of that.
We also see the interest rate decision out at 12:24pm. No change to rates are expected but once again any comments regarding future economic policies will be sure to see the markets move.
U.S Employment data
A flurry of employment data is due out for the stated at 13:30pm U.K time and it may throw up some great buying opportunities for those with an active Dollar interest.
Data from across the pond of late has been generally pretty poor and personally it would not surprise me to see this particular data follow suit.
I believe we will be end the day closer to 1.60 than 1.50 against the USD so if you have an upcoming requirement, be it buying or selling Dollars should get in touch on 0800 328 5884 this morning or make a call back request by clicking here, so that you are in the best position to maximise your money transfer.
Flight to Safety
Over the past couple of months we have seen notable movement for both the Japanese Yen and the Swiss Franc with both gaining considerable amounts against the Pound and numerous other currencies.
The reason behind this is due to major investors shifting their funds on a ‘flight to safety’. This is effectively due to them being so worried about the general world economic situation that they are shifting funds out of a perceived ‘riskier currency’ For example the USD with the chance of a double dip recession, and into a currency that is perceived as a much lower risk – JPY and CHF.
In fact the Swiss Franc reserves have increased fourfold over the past year hence the gains seen against the Pound over the past two years – a whole 40Cents!!!!!!!!!
Yesterday’s trading saw a slight recovery against these two currencies for the Pound however personally I can see the downward trend continuing against the CHF and the JPY unless Japan place new measures to devalue their currency as this can only be affecting their exports for the worse and causing major problems over there.
Breaking News – Australian Trade Balance
Overnight saw the release of Australian trade balance figures, which surprisingly came out much worse than expected. This has led to minor gains for the Pound in early morning trading however be aware they expect to have a solid decision on their Government in the next week or so which may bring political certainty and AUD strength.
