A long Jubilee weekend for the UK saw some movement on rates and shows the importance of the service of Foreign Currency Direct plc. There has been massive high to low movements since Friday on Pound Sterling rates.
An Emergency G7 telephone conference has been held to discuss the deteriorating nature of the European Debt Crisis. It is looking increasingly likely Spain will need a bailout and Greece’s position continues to look unsustainable. And on Friday we saw the effects the deteriorating European economic outlook is having on both the UK and the US. If you are considering any currency transactions we are in the midst of tremendous uncertainty as well as an important week of economic data. It is really worth being aware of all your options if considering any transactions. To speak to a specialist you can contact the trading floor direct on 0800 328 5884 or 00 44 1494 725 353.
Sterling had hit close to a 3 year high in recent weeks as it looked like the UK was on a reasonably solid economic footing despite technically re entering recession. Friday’s Purchasing Managers Index (PMI) Manufacturing data however showed a much bigger drop than expected for April. The reading of 45.9 was much worse than the 49.7 forecast. Any reading below 50 is seen as negative and represents a contraction, which weakened the pound.
UK DataWatch – Construction PMI Today 09.30 – This morning’s reading is expected at 54.5 and any reading lower than expected could provide evidence that the current global decline is also being felt by the UK and weaken the pound too. And then on Thursday we have Services PMI and the Bank of England Interest Rate decision where we may find out if the UK is to embark on more QE. It is now looking likely the bank will have to embark on more QE as the UK looks set to suffer as the Eurozone slows down. I expect the pound to be under real pressure this week. Speak to us if you have any sterling transfers to consider on 0800 328 5884 or speak to me directly on firstname.lastname@example.org.
We have been warning clients for weeks if buying dollars to beware of the recent run of form which has seen it gain close to ten cents on the pound. As long as Eurozone worries continue and the global economic conditions look shaky investors will favour the US dollar due to its safe haven nature.
With some worse than expected GDP and Employment data too on Friday, Obama has blamed Europe and it looks as those this theme will persist. If you are considering any USD trades against sterling or any other currency, this is a really important week. You can speak directly to one of our team on 0800 328 5884 / 00 44 1494 725 353.
Australian GDP data overnight showed their economy grew at 1.3% versus the 0.6% expected. The Reserve Bank of Australia cut interest rates too to 3.5% on Monday citing worries in China and Europe affecting the Australian economy. The Aussie has strengthened to a one month high against sterling and with the pound looking shaky, may advance further this week.
Dealing with us is completely free and at no obligation. Our contracts options allow you to forward book rates for up to two years, and insert stops and limits into the market to make sure your exchange doesn’t become too expensive. We can help secure the very best rates from the market and work with you to make you aware of all the issues surrounding your trades so you can make an informed decision. Call now on 0800 328 5884 or click here to open a free no obligation trading facility in minutes.
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