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

  • Sterling Euro Movement
  • Data this week
  • US Dollar News
  • Australian Dollar News

Sterling Euro Movement

Already this month Sterling has moved by over 4% from the high to low against the single currency as the Eurozone finally began their first round of Quantitative Easing.

This saw Sterling reach an 8 year-high against the single currency and the highest level reached pre-credit crunch for GBPEUR exchange rates.

The Euro has also weakened to its lowest level against the US Dollar in over ten years which has caused global investors to sell Euros to buy Sterling hence the positive movements for Sterling during March. However, over the last few days we have seen UK unemployment drop below expectations of 5.7% which although the figure is arguably very good for the British economy the markets will often move on expectation so a fall will often result in a bit of weakness for the currency involved.

The UK Budget did not really throw up many surprises so the exchanges rates remained static during the announcements. On Friday Sterling saw a fall toward the end of the trading session as profit taking took place. Click here to see live exchange rates.

Data this Week

In the short term though we could see Sterling volatility against the Euro with the announcement of UK inflation data due out on Tuesday. The expectation is for 1.3% so anything different could see big movements for Sterling Euro rates.

On Thursday the UK announces retail sales, which have generally had a good run over the last few months. It could be Thursday that provides the opportunity for Sterling recovering against the Euro so if you need to buy Euros it may be worth looking at doing something later in the week.

If you need to sell Euros then it could be worth getting something organised prior to Thursday as I expect the retail sales to be positive for the UK and therefore Sterling. If you would like to take advantage of these 8-year highs please call 01494-725353 which takes you directly through to the trading floor.

US Dollar News

Sterling Dollar rates have had a mixed time recently with rates hitting a 5 year-low last week. However, since the Fed were not conclusive as to when they might raise rates this gave some respite for the Pound which rose against the Dollar.  US inflation data is due out on Tuesday afternoon and expectations are for 1.6% so anything higher could put pressure on the Fed to bring a rate rise forward and strengthen the US Dollar against Sterling. I

If you would like to buy now even if you don’t have funds available you can speak with your currency broker about arranging a Forward Contract.

Australian Dollar News

Sterling Australian Dollar exchange rates have had a very mixed month already with the high to low of almost 8 cents, which highlights the importance of timing your currency transfer. The RBA kept interest rates on hold earlier this month as they are still concerned over a rise in the property market in Sydney and an interest rate cut could result in higher property prices in the city, which could ultimately lead to a bubble and burst effect.

However, it is more than likely that over the next quarter the RBA will cut interest rates in order to stay competitive. RBA governor Glenn Stevens has already stated that the Australian Dollar is too strong so to me it is a matter of time before we start to see Sterling rise towards 2 against the AUD.

If you have any questions on how these or any other release may affect your transfers, feel free to call on FREEPHONE 0800 328 5884 or send me an email to teh@currencies.co.uk.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.