Best Sterling Exchange Rates EUR THB USD

Good morning, and welcome back to our regular readers after the easter break. Sterling exchange rates for the Euros are at a 5 week high, and dollar rates remain just under 1.50.


This week is fairly busy in terms of data releases for the US and EU which will no doubt affect Sterling exchange rates across the board. This data is outlined below, with the dates released. Please get in touch for a detailed outline of how these data releases may affect your requirement.


Sterling GBP Euro EUR
The pound is now trading at a 5 week high against the Euro, having steadily risen for the last month. Rates have increased from 1.0550 to almost 1.12. This is more than a 5% increase, and on a €200k purchase makes a difference of £11k. The reason for the increase is mainly the Euro weakening.


Last week we saw the Bank of England (BoE) announce their decision to hold interest rates at 0.5%. This is the first meeting since September last year that rates have not been cut. It was no surprise, as the central bank had hinted earlier in the month that borrowing costs would not fall further, as they continue pumping money into the economy.


If interest rates are cut, then it generally weakens the currency as investors move their funds to a currency with a higher yield. So, the succesive cuts by the BoE is one of the reasons the pound has fallen over the last 6 months.


Dont be fooled by the recent steady rise in exchange rates. The pound is still weak as investors wait to see the effects of quatitative easing. The UK economy is one of the worst performing out of the major nations at the moment. The main reason rates have gone up is weakness in the Euro and Dollar rather than any specific recovery in Sterling.

Sterling GBP Thai Baht THB









Here we see the exchange rate movements over the last month. As you can see, rates have spiked in the last few days following violent protests in the country. this is an excellent example of one of the causes of exchange rate movements. In addition to economic data, political events and dissaters can also have an impact. Recent estimates suggest the country faces a 3% drop in GDP as a direct result of the unrest.

As red shirted anti-government protests have resulted in 2 dead, over 150 injured, and its also left investors with a severe dent in their confidence in Thailand. As a result, the Bhat has weakened and exchange rates have risen. Could be an opportune moment to secure a rate if you have a THB requirement.

This Weeks Data

Below is a summary of some of this weeks key data releases. You can see that it is a very quiet week for the UK, the only data of note is some house price data, and also the BRC Retail Prices.


Most of the data this week is from the US (Producer Price and Consumer Price Index) and the EU (Consumer Price Index and Industrial Production). Recent Sterling exchange rate movements for the USD and EUR have mainly been caused by strength and weakness in those currencies, rather than any specific recovery for the pound. Therfore keep in close contact with FCG to ensure you are fully aware of the potential impact of these data releases on exchange rates.


Tuesday
US - Producer Price Index
US - Retail Sales
UK - RICS House Prices


Wednesday
UK - DCLG House Prices
Japan - Industrial Production
US - Consumer Price Index
US - Fed's Beige book (looks at economic conditions)
US - NY Manufacturing Index


Thursday
UK - BRC Retail
Swiss - Producer and Import Prices
EU - CPI and Industrial Production
US - Jobless Claims
US - Building Permits
NZ - Consumer Price Index


Friday
AUS - Import and Export Prices
JAP - Consumer Prices
JAP - Bank of Japan economic survey



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