28th July 2010
Good morning. UK Retail sales yesterday were much better than expected, indicating sustained growth in the UK. The news pushed Sterling higher, and rates this morning at 08:30am are as follows:
- GBP/EUR 1.1969
- GBP/USD 1.5585
- GBP/AUD 1.7409
- GBP/NZD 2.1303
- GBP/CAD 1.6065
- GBP/CHF 1.6505
- GBP/ZAR 11.386
- GBP/JPY 137.02
- GBP/NOK 9.5998
- EUR/USD 1.3018
UK Retail Sales
A survey by the Confederation of British Industry showed retail sales rose at their fastest pace in three years in July. The Distributive Trades Survey, which covers 20,000 outlets, said sales were expected to keep growing next month. The CBI's head of economic analysis said that Retailers are optimistic that strong sales growth will continue next month, which is promising.
We still expect the recovery in overall consumer spending to be fairly restrained however, given concerns about the impact of public spending cuts outlined in the budget.
Sterling rose close to €1.20 against the Euro, and we're also close to $1.56 against the US Dollar, which is the best buying level for quite some time.
Today's Data
We have consumer prices for Germany and Australia today. It is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. A high reading may strengthen the currency, and a low reading could weaken it making it cheaper to purchase.
Staying with the antipodean currencies, in New Zealand today there is a measure of business confidence, along with an interest rate decision. If the RBNZ is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the NZD.
If you are looking for the best exchange rates, click the link below to send us an enquiry, and have a free consultation on what's happening in the currency markets. Our rates are up to 6% better than available at the bank, and so the savings can be considerable.
Labels: Pound Euro Forecast, Retail Sales