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Showing posts from September, 2010

Sterling falls on more poor data

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30th September 2010
Good morning. The pound fell again yesterday against the Euro, after Tuesdays comments from the BoE that more QE may be required. Weak UK services output and lending data on Wednesday renewed concerns about a fragile economy and kept negative sterling sentiment intact. Rates at 08:30am are as follows:


GBP/EUR 1.1639GBP/USD 1.5829GBP/AUD 1.6346GBP/NZD 2.1447GBP/CAD 1.6337GBP/CHF 1.5472GBP/ZAR 11.000GBP/JPY 131.90GBP/NOK 9.2666GBP/HUF 322.12EUR/USD 1.3603Pound suffers again

On Tuesday after one of the BoE members pushed the case for further Quantitative Easing the pound fell sharply against other currencies. Further weak data yesterday has undermined Sterling, and rates have fallen significantly in the last few weeks.

Against the dollar, the pound steadied, coming off a seven-week high hit on Tuesday, though the U.S. currency stayed under pressure as concerns over renewed policy easing by the Federal Reserve continued to take a toll on the U.S. unit.

Bank of England &…

WIll the pound rise against the Euro?

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29th September 2010
Good morning. It's not though really, as the pound has fallen again against the Euro, 1.5 points since yesterday morning. It's not looking positive for Euro buyers, however those needing to sell Euros are seeing the best rates for many months. Today we'll look in detail at the decline, what may happen to the Pound vs Euro in the coming months. Rates @ 08:30am are as follows:
GBP/EUR 1.1610GBP/USD 1.5821GBP/AUD 1.6267GBP/NZD 2.1372GBP/CAD 1.6239GBP/CHF 1.5439GBP/ZAR 10.967GBP/HKD 12.272GBP/HUF 320.40GBP/JPY 132.29EUR/USD 1.3621Pound falls again vs Euro
Sterling initially made some gains following good retail sales data. However, Andrew Posen, ons of the Bank of England's Monetary Policy Committee said that he thinks the BoE should again start pumping money into the economy using Quantitative Easing.
"Posen's comments were quite dovish, and not expected. It adds some probability of more QE and some downside risk to sterling," said Giulia Co…

How will the GDP data affect rates today?

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28th September 2010
Good morning. The pound rose against the USD yesterday, and also slightly against the Euro. Today we'll look at the reasons why, the impact of today's GDP data and also where rates may head for the remainder of the year. In addition today, we have an extra report on the Swiss Franc. First as usual a snapshot of where rates stand as at 08:30am:


GBP/EUR 1.1787GBP/USD 1.5786GBP/AUD 1.6481GBP/NZD 2.1569GBP/CAD 1.6341GBP/CHF 1.5559GBP/ZAR 11.095GBP/HKD 12.246GBP/JPY 132.79GBP/HUF 327.19EUR/USD 1.3387Pound rises against US Dollar

Sterling hit a 7 month high against the dollar yesterday. The reason is that markets expect the US to pump more money into the economy through Quantitative Easing. This is where money is created and pumped into the economy to help the recovery. The fact that this is needed worries investors on the state of the US economy, and USD has weakened as a result. Buying levels for USD are very good at the moment, so get in touch if you need the bes…

What will happen with Sterling exchanger rates this week?

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27th September 2010
Good morning. Today we'll have a look at how the pound fared against the Euro and US Dollar last week, where rates may move this week, and as usual for a Monday a look at what data released this week that may move rates.

Pound vs Euro

Last week saw the GBP/EUR currency pair plummet from a height of 1.2001 on Monday, to as low as 1.1658 on Wednesday. This change in rate equates to almost 3%, a difference of €3430, between the two rates, when you exchange £100,000. The pair increased slightly as we came to the end of the week, jumping as high as 1.1792 Friday afternoon. This week emphasises the volatility of the market, highlighting its daily unpredictability and how difficult it is to judge where it will lie as little as a 2 hours in the future.

Data released Monday morning underlined an unfortunate start for the UK economy, with lower than expected Mortgage Approvals. At 45,000; this figure is 2,000 less than its equivalent month last year, which may be a reason fo…

Will Sterling rise against the Euro ?

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24th September
Good morning. After a very poor day for the pound on Wednesday, Sterling rose against the euro on Thursday, pulling away from a 4 month low. Weaker than forecast euro zone data cast doubt over the region's recovery, and pushed the single currency lower. Rates this morning at 08:30am are as follows:


GBP/EUR 1.1753GBP/USD 1.5674GBP/AUD 1.6454GBP/NZD 2.1476GBP/CAD 1.6186GBP/CHF 1.5394GBP/ZAR 11.067GBP/JPY 132.65GBP/HUF 328.57GBP/NOK 9.320EUR/USD 1.3332
Poor EU Data weakens EuroA survey of purchasing managers showed growth in the euro zone slowed in September while euro zone peripheral bond yield spreads widened against their German counterparts. Analysts said sterling remained vulnerable after Wednesday's Bank of England minutes showed policymakers felt the case for more monetary easing had strengthened.

"Sterling had been sold quite heavily on Wednesday and there has been a bit of a corrective move, but I think sterling will remain vulnerable with the market now …

Sterling falls on QE speculation

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23rd September 2010
Good morning. The pound fell in a big way yesterday against the Euro, after the BoE minutes showed that they are considering more Quantitative Easing. We hit a 4 month low against the single currency, and a 2 month low against a basket of major currencies. Rates as at 08:30am this morning are as follows:


GBP/EUR 1.1697GBP/USD 1.5648GBP/AUD 1.6397GBP/NZD 2.1443GBP/CAD 1.6134GBP/CHF 1.5452GBP/ZAR 10.995GBP/JPY 132.37GBP/HUF 325.75EUR/USD 1.3375Pound falls on QE ConcernsMinutes of the Monetary Policy Committee's meeting to hold rates earlier this month showed an 8-1 vote for leaving interest rates on hold at a record low of 0.5 percent, as widely expected.

Most BoE policy board members thought there were risks to the outlook on both sides and stood ready to respond in either direction, but some of them argued the possibility that more easing would be needed to bolster the economy had risen.

It was this discussion of more Quantitative Easing that pushed the pound lower…

Sterling falls further against Euro

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22nd September 2010
Good morning. Sterling hit a two-month low against the euro on Tuesday as the single currency rose on robust investor demand for Irish and Greek government paper, which eased concerns about euro zone peripheral sovereign debt. Rates as at 08:30am are as follows:

GBP/EUR 1.1794GBP/USD 1.5690GBP/AUD 1.6406GBP/NZD 2.1270GBP/CAD 1.6076GBP/CHF 1.5575GBP/ZAR 11.001GBP/JPY 132.93GBP/NOK 9.317EUR/USD 1.3298Pound falls against EuroUK Public Sector borrowing was higher than expected, which caused the pound to fall. The drops against the Euro were the biggest, due to the single currency strengthening following a robust auction which showed growing support for the EU currency. UK Recovery to be slower than thoughtThe UK's economy will recover more slowly than previously thought next year, business group the CBI has predicted. It expects GDP to grow by 2% in 2011, not 2.5% as forecast in June this year. Spending cuts aimed at getting public finances into better shape had prom…

Pound falls again on weak data

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21st September 2010
Good morning. Sterling hit a seven-week low against the euro on Monday after a raft of weak economic numbers highlighted a sluggish UK economic recovery. Today we'll have a quick look at why GBP/EUR has fallen, and also an overview of what different economies are doing to combat the global downturn. Rates as at 08:30am are as follows:

GBP/EUR 1.1875GBP/USD 1.5535GBP/AUD 1.6409GBP/NZD 2.1331GBP/CAD 1.5980GBP/CHF 1.5594GBP/ZAR 11.026GBP/HKD 12.051GBP/NOK 9.406GBP/JPY 132.49EUR/USD 1.3075Pound falls on weak economic dataBank of England (BoE) data showed lending to UK businesses fell for the fifth month in July and home loan approvals dropped to their lowest in more than a year. This pushed the pound lower. Then, data from property website Rightmove showed property asking prices in England and Wales fell for a third consecutive month in September and have lost half the gains they made in the first six months of the year. The bad data knocked the pound, and exchange …

Pound vs Euro / Pound vs US Dollar / Fundamental Data

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20th September 2010
Good morning. Today we have a detailed look at Pound vs Euro, and as usual for a Monday, a list of the fundamental economic data that may affect exchange rates this week.

Pound vs Euro

Sterling exchange rates declined to a six week low against the Euro last week and Sterling also lost ground against the majority of currencies, after Retails sales data in the UK unexpectedly declined for last month.

In the past week we saw GBP/EUR rates as low as 1.1956 and as high as 1.2080 a difference of 1%. On a €250,000 is a difference of over £2000.

We have seen a range between the 1.19 and 1.22 mark over the last six weeks which is very stable considering we saw huge volatility this time last year over the same time period as rates got as high as 1.1865 and as low as 1.10.

Looking at all the above it seems a good time to buy or sell your currency as we are starting to see more consistency within the currency pairing making your purchase a lot more secure over the coming months.

Look…

Pound falls on Retail Sales

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17th September 2010
Good morning. Sterling started yesterday well, recovering against most currencies. However Retail Sales figures were much worse than expected, and as a result the pound has fallen to lows against the Euro. Rates as at 08:30am are as follows:

GBP/EUR 1.1953GBP/USD 1.5703GBP/AUD 1.6609GBP/NZD 2.1463GBP/CAD 1.6045GBP/CHF 1.5950GBP/ZAR 11.175 GBP/DKK 8.8963GBP/JPY 134.81EUR/USD 1.3885

Pound falls on Retail Sales

Sterling fell to a 7 week low against the Euro on Thursday, after data showed UK retail sales fell unexpectedly in August and strong demand at an auction of Spanish debt lifted the single currency. The data was seen as a sign that UK consumers may be reining in spending ahead of substantial spending cuts planned by the government later in the year.

As soon as the figures were released, Sterling fell around 0.7% against most currencies including the Euro. The Eurozone economy is also recovering faster than thought, and this is also making the single currency more exp…

Sterling gains on jobs data

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16th September 2010
Good morning. Sterling recovered yesterday throughout the day, rising against most currencies. This morning rates at 08:30am are as follows:

GBP/EUR 1.1986GBP/USD 1.5613GBP/AUD 1.6641GBP/NZD 2.1461GBP/CAD 1.5998GBP/CHF 1.5625GBP/ZAR 11.043GBP/JPY 133.31GBP/NOK 9.4981EUR/USD 1.3024Sterling gains on employment dataSterling rose as the market focused on an increase in employment. Initially the figures showed that there was an increase in jobless claims, which pushed Sterling lower. It didn't last long though as markets focused on the increase in jobs in total, taking the figures as a sign that the economy is still growing, albeit very slowly.Market participants said a speech by Bank of England Governor Mervyn King gave no hints that more quantitative easing was coming soon to help the fragile economy, and offered a chance for investors who have been short on the pound to trim those positions.

Traders said UK banks were seen constantly buying the pound, particularly …

Pound to Euro Forecast, Online Trading

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15th September 2010
Good morning. Yesterday the pound was quite volatile, falling after house price data before recovering after good inflation data. This morning the volatility remains; Sterling is down against the Euro, but up against most other currencies. We'll look at this in a moment after the usual rate snapshot as at 08:30am:

GBPEUR 1.1923GBP/USD 1.5516GBP/AUD 1.6517GBP/NZD 2.1145GBP/CAD 1.5962GBP/CHF 1.5541GBP/ZAR 10.953GBP/HKD 12.045GBP/JPY 132.12EUR/USD 1.3006High inflation boosts the pound

UK Consumer Prices Index (CPI) inflation remained unchanged in August at 3.1%, according to the Office for National Statistics (ONS). It means the rate remains well above the Bank of England's 2% target, and it brings to an end a three-month period during which the rate had been falling.

The unexpectedly high rate was boosted by strong rises in air fares, clothing and food. Fuel prices fell. High inflation increases the chance interest rates will rise, which in turn supports the poun…

Pound falls on House Price data

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14th September 2010
Good morning. The pound has fallen overnight, after much worse than expected house price data. The Eurozone has also increased it's forecasts, strengthening the Euro and compounding the issue to push GBP/EUR rates down. Today we'll look at this in detail, after the usual snapshot of rates as at 08:30am:

GBP/EUR 1.1923GBP/USD 1.5382GBP/AUD 1.6459GBP/NZD 2.1091GBP/CAD 1.5801GBP/CHF 1.5423GBP/ZAR 10.946GBP/HKD 11.949GBP/NOK 9.3917GBP/JPY 128.05EUR/USD 1.2932Pound falls on House Price Data

A bigger proportion of surveyors are expecting house prices to fall in the coming months than at any time since March last year. Some 38% more of those asked, in the survey by the Royal Institution of Chartered Surveyors (Rics), expected prices to fall rather than rise in the next three months.

Markets only expected 11% of those asked to expect a fall, and so the figures show that the housing market is not as strong as hoped. House prices are a reflection of the economy as a whol…

Forecasts for AUD, USD and EUR, plus the weeks fundamental data

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13th September 2010
Good morning. Today we'll look at Pound vs Euro, Pound vs US Dollar and Pound vs Aussie Dollar. In addition we'll look at the weeks fundamental data that may affect exchange rates.

Pound vs Euro
Another volatile week saw Sterling decline dropping to an interbank low of 1.1920, before recovering as high as 1.2192 later in the week. This means a 2.3% increase between high and low and effectively gave an extra €2,720 on a transfer of £100,000.

Looking to the week ahead, the first key event for the UK will be the CPI inflation figures, which forecasts suggest will show annual inflation of 2.9%. This means the cost of goods and services will be 2.9% higher than August of last year. This figure is closer in line with the government’s target of 2%, than July’s figure, which means inflation is occurring at a decreased rate.

In order to curve inflation, the Bank of England could look to increase interest rates which would strengthen the GBP and increase its exchange rate…

BoE Hold rates, GBP down against USD

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10th September 2010
Good morning. Sterling fell against the dollar on Thursday after the UK reported a record goods trade deficit and on growing speculation the Bank of England will resort to further quantitative easing to support the economy. Rates as at 08:30am are as follows:

GBP/EUR 1.2126GBP/USD 1.5408GBP/CAD 1.5892GBP/AUD 1.6681GBP/NZD 2.1231GBP/CHF 1.5741GBP/ZAR 11.051GBP/JPY 129.57GBP/NOK 9.5242EUR/USD 1.2709Bank of England hold rates

The Bank of England (BoE) held interest rates at a record low 0.5 percent, as widely expected. Some analysts said the BoE's decision did little to change the market's view that more quantitative easing measures may be needed to stimulate the economy if fiscal austerity measures further slow the pace of recovery later this year.

"There is fiscal tightening going to take place which will slow the economy and will be sterling negative," said Ian Stannard, senior currency strategist at BNP Paribas. "The chances of quantitative easi…

Pound drops to 6 week low vs Euro, before recovering this morning.

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7th September 2010
Good morning. Sterling fell to a 6 week low versus the euro yesterday, hit by market talk of heavy selling by a UK clearing bank and concerns over Britain's fragile economic recovery. The GBP/EUR rate got as low as €1.1920, however has staged a recovery this morning, and rates are already back into the mid €1.20's. We'll look at this in a moment after the usual snapshot of rates as at 08;30am:

GBP/EUR 1.2044GBP/USD 1.5408GBP/CAD 1.6004GBP/CHF 1.5566GBP/AUD 1.6886GBP/NZD 2.1388GBP/HKD 11.968GBP/NOK 9.4917GBP/JPY 129.06EUR/USD 1.2791Pound falls to 6 week low against EuroA large UK clearer yesterday bought around €1 billion with Sterling, which severely weakened the pound throughout trading yesterday. A string of soft data releases last week reignited concerns over the fragility of Britain's economic recovery, prompting expectations of pressure on sterling against most of its major crosses.

Data on Friday showed British service sector activity grew at its …

Pound vs Euro, Pound vs US Dollar, Weekly data

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6th September 2010
Good morning. Sterling fell against the Euro last week, after UK economic data came in weaker than expected. In contrast, better EU figures have strengthened the single currency, and the net effect is rates dropping below €1.20. Today, we'll look at GBP/EUR, GBP/USD and a look at what data is being released this week that may affect rates. First, the usual snapshot of rates as at 09:00am:


GBP/EUR 1.1980GBP/USD 1.5450GBP/AUD 1.6844GBP/NZD 2.1344GBP/CAD 1.6028GBP/CHF 1.5711GBP/ZAR 11.074GBP/HKD 12.002GBP/JPY 129.95GBP/HUF 338.71EUR/USD 1.2894Pound falls against Euro

Sterling ended last week on a negative footing against the euro after weak UK economic data contrasted with relatively upbeat euro zone figures and put the pound under pressure. Much weaker-than-forecast UK services sector data raised concerns Britain's economy could falter later in the year.

The poor UK figures highlight concerns that the UK may be heading back to recession. The better EU figures have…

Pound falls on Housing Data, EU growth revised up

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3rd September 2010
Good morning. Sterling fell against the euro and the dollar yesterday as weaker-than-forecast housing and construction data added to concerns that a fragile UK economic recovery could be running out of steam. GBP/EUR 1.2028GBP/USD 1.5421GBP/AUD 1.6953GBP/NZD 2.1521GBP/CAD 1.6250GBP/CHF 1.5628GBP/JPY 129.89GBP/NOK 9.4750GBP/HKD 11.985GBP/HUF 341.78EUR/USD 1.2817Pound falls on housing data

The pound hit a three-week low versus the euro after data showed growth in the UK construction sector slowed markedly in August, adding to the view the economic improvement seen in the first half of the year may not be sustainable. There are fears that if the UK slips back into recession, the pound will fall and this is what happened yesterday. So, sterling is very vulnerable at the moment so any further poor data will likely push the pound further down. If you need to buy currency with Sterling in the next few months, then you should consider either a Stop Loss order, whereby your cu…

GBP falling on House Data and PMI; EU Interest Rates

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Good morning. The pound fell against most currencies yesterday after poor PMI data. This morning poor housing data has also pushed Sterling lower, as fears grow the UK economic recovery is running out of steam. At 08:30am this morning rates are as follows:




GBP/EUR 1.2027GBP/USD 1.5389GBP/AUD 1.6957GBP/NZD 2.1551GBP/CAD 1.6189GBP/CHF 1.5593GBP/ZAR 11.186GBP/HKD 11.965GBP/NOK 9.5055GBP/JPY 129.48EUR/USD 1.2793Poor Housing data knocks the pound

British house prices fell much faster than expected last month but further declines are likely to be modest, mortgage lender Nationwide said this morning. The housing market data is a good leading indicator and points to a slowdown on the UK economy, and so Sterling has suffered this morning as a result.

PMI Data also pushes Sterling lower

A UK purchasing managers' survey came in sharply lower than expectations on Wednesday, raising concerns the UK economy could struggle in the coming months, dampening recovery hopes which had been fuelled by an u…