Showing posts from August, 2011

Blog off...

Good morning. As regular readers will know, I usually update this blog each weekday morning to keep existing and potential clients up to speed with what's happening with exchange rates and the currency markets.

I'm away for a week's holiday and therefore the blog will also shut down for a week, unless there are any earth shattering stories that need attention! I will be back in action on Tuesday the 6th of September, but you can keep up to date with exchange rates on our Twitter feed which is regularly updated with the latest live exchange rates.

If you need information on our exchange rates in the meantime, click below to send us an enquiry, and one of my colleagues will be happy to answer any of your questions.

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Weekly GBP/EUR & GBP/USD report, and weekly data

Tuesday 30th August 2011
Good morning. As is customary for Monday mornings, today we'll take a detailed look at the movements in Sterling/Euro Sterling/US Dollar and a round up of the weeks data that may affect exchange rates

In this week’s Report:

• Sterling starts to fall on poor UK data
• UK Interest Rates going to remain on hold for some time
• GBP/USD falls from 2 year high
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

After the previous week saw more than a 2% gain in the Sterling/Euro exchange rate, we hoped that last week would at least provide some degree of calm for the volatile pairing, but unfortunately this wasn’t to be.

Tuesday saw better than expected CBI industrial order data from the UK which was closely followed by a large fall in Eurozone economic sentiment from the ZEW. This is a key indicator for the health of the EU economy over the coming months and such a lar…

Pound falls vs Euro on weak UK data

Friday 26th August 2011
Good morning. Sterling has fallen again vs the Euro and US Dollar, and we are now well down from the highs seen earlier in the week. It's mainly due to poor UK Retail Sales, and also buying of the Euro causing it to gain strength. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1293
• GBP/USD 1.6295
• GBP/AUD 1.5548
• GBP/NZD 1.9580
• GBP/CHF 1.2879
• GBP/CAD 1.6076
• GBP/ZAR 11.754
• GBP/JPY 125.44
• GBP/DKK 8.4134
• GBP/NOK 8.8024
• EUR/USD 1.4425

Sterling falls again vs Euro and US Dollar

The Pound had gained in recent weeks as market turmoil across the world caused investors to shun risk, and this had driven investment towards the UK. We have been seen as a safe investment due to having stable government, a safe credit rating, and a fiscal plan in place to reduce our deficit. However, it seems the UK is no 'Port in the Storm', as highlighted by Stephanie Flanders, economics editor at the BBC. You can read her interesting take on this he…

Sterling falls on better US Data

Thursday 25th August 2011
Good morning. After several days of not much happening with exchange rates, Sterling fell against the Euro and US Dollar yesterday. Investors had been betting on Sterling as a safe haven currency, but better than expected US data reversed this trend, pushing the Pound lower as we have been warning for several days. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1331
• GBP/USD 1.6384
• GBP/AUD 1.5644
• GBP/NZD 1.9717
• GBP/CHF 1.2993
• GBP/CAD 1.6156
• GBP/ZAR 11.848
• GBP/JPY 126.29
• GBP/DKK 8.4392
• GBP/NOK 8.8727
• EUR/USD 1.4459

Sterling falls on better US Data

Market Analysts have said some investors had been betting on the Pound in the last few weeks, on the perception the UK is a safer investment option, U.S. fiscal problems and the euro zone debt crisis that shows few signs of resolution. This meant that the Pound had gained in recent weeks, and exchange rates had risen. For some time we have been warning that the gains were not likely to la…

Sterling remains range bound vs Euro & USD

Wednesday 24th August 2011
Good morning. Sterling again remained stable against the Euro and US Dollar yesterday, with little movement in exchange rates. There are still warnings though that its gains are expected to be limited due to concerns about the UK's faltering economic recovery. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1436
• GBP/USD 1.6486
• GBP/AUD 1.5747
• GBP/NZD 1.9903
• GBP/CHF 1.3059
• GBP/CAD 1.6311
• GBP/ZAR 11.870
• GBP/JPY 126.38
• GBP/DKK 8.5195
• GBP/NOK 8.9578
• EUR/USD 1.4408

Sterling remains stable, for now...

The Pound remained range bound against the Euro and Dollar yesterday, as there were no real surprising data releases. Sterling also drew support from a recovery in risk appetite after better than expected China manufacturing data and German factory activity numbers eased global growth worries and helped stocks.

Sterling has benefited recently due to concern about EU debt and the growth issues in the USA. Other than that, the fact remai…

Pound remains stable, but analysts warn of drop

Tuesday 23rd August 2011
Good morning. With no data of note being released yesterday, Sterling remained steady against both the Euro and US Dollar, however analysts are still warning that upcoming data for the UK may highlight the fragility of the UK economy and push the Pound back down. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1435
• GBP/USD 1.6504
• GBP/AUD 1.5731
• GBP/NZD 1.9817
• GBP/CHF 1.3006
• GBP/CAD 1.6274
• GBP/ZAR 11.804
• GBP/JPY 126.54
• GBP/DKK 8.5162
• GBP/NOK 8.9426
• EUR/USD 1.4429

Sterling remains stable vs other currencies

As there were no scheduled releases yesterday there was little movement on the currency markets. With no surprise announcements the Pound remained stable against other currencies. As investors are still seeking refuge from turbulence in the markets caused by the EU debt crisis, Sterling remained supported above €1.14 against the Euro.

Analysts warn Sterling could fall

The pound remains strong at the moment because the UK has its o…

Weekly Pound vs Euro & Pound vs US Dollar forecast

Monday 22nd August 2011
Good morning. As regular readers will know, on a Monday we take stock of the last weeks movements in Pound vs Euro and Pound vs US Dollar. In this week’s Report:

• Sterling hovers near 12-week high vs. struggling euro
• Scope for Sterling gains seen as limited due to weak UK economy
• GBP/USD rates close to 2 year high
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

Sterling hovered near a 12-week high against the euro towards the end of last week, as concerns about a worsening euro zone debt crisis dented the single currency. Mounting fears of a global recession and concerns about stresses facing some European banks caused European stocks to fall 2.6 %, extending a steep decline that continued throughout the week.

Analysts said sterling has benefited to an extent from the troubles besetting the euro, though its scope for gains was expected to be limited due to rece…

Sterling at 2.5 month high vs Euro August 2011

Friday 19th August 2011
Good morning. Sterling rose well against the Euro yesterday, as investors perceived the Pound as the best of a bad bunch of currencies. As markets around the world plummeted on risk fears, Sterling gained and GBP/EUR rates are at a near 2.5 month high. At 08:30m this morning rates are as follows:

• GBP/EUR 1.1531
• GBP/USD 1.6500
• GBP/AUD 1.5916
• GBP/NZD 2.0061
• GBP/CHF 1.3028
• GBP/CAD 1.6325
• GBP/ZAR 11.881
• GBP/JPY 126.05
• GBP/DKK 8.5886
• GBP/NOK 9.0377
• EUR/USD 1.4304

Sterling gains significantly vs Euro

Yesterday markets across the world fell, with the biggest fall on the FTSE since the financial crisis began. We saw a flight from risk, where investors were jittery and moved their funds to perceived safe havens. Usually this means the US Dollar and Swiss Franc, however with problems in the US and the Swiss keeping their currency weak, Sterling benefited.

So Sterling is gaining support from the perception it is the best of a bad bunch of currencies. …

Sterling makes gains against Euro/US Dollar

Thursday 18th August 2011
Good morning. Yesterday morning Sterling fell after poor unemployment data, however in the afternoon the Pound surged back against other currencies, creating close to the best exchange rates for several months. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1462
• GBP/USD 1.6515
• GBP/AUD 1.5755
• GBP/NZD 1.9849
• GBP/CHF 1.3136
• GBP/CAD 1.6230
• GBP/ZAR 11.758
• GBP/JPY 126.44
• GBP/DKK 8.5391
• GBP/NOK 8.9267
• EUR/USD 1.4402

BoE Minutes

Yesterday the Bank of England released the latest minutes to the recent decision to hold interest rates. They voted 9-0 to keep rates on hold, surprising many in the markets that thought 2 would vote for a hike in rates.

It didn't affect exchange rates too much, as we already know that rates in the UK are going to be left on hold for at least a year. The minutes also showed the policy-setting committee considered a new round of stimulus given a worsening economic outlook, acknowledging that problems in the eu…

Pound vs Euro rates gain on EU debt

Wednesday 17th August 2011
Good morning. Sterling rose yesterday, after inflation figures reduced the risk of more Quantitative Easing. The Euro also weakened, after poor German GDP data, and a failure for the German and French leaders to reach an agreement over EU debt. Combined, this pushed GBP/EUR rates up. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1428
• GBP/USD 1.6438
• GBP/AUD 1.5684
• GBP/NZD 1.9681
• GBP/CAD 1.6157
• GBP/ZAR 11.718
• GBP/JPY 125.90
• GBP/DKK 8.5128
• GBP/NOK 8.9405
• EUR/USD 1.4381

Sterling rises but downside risks remain

Higher inflation yesterday for the UK reduced the risk of Quantitative Easing in the UK, pushing Sterling slightly higher against other currencies. However, with the UK economy fragile and UK interest rates still expected to stay at record low levels for at least a year, Sterling's gains were limited. Analysts expect the Pound to stay within its recent ranges against the euro and dollar.

Today is important, as we see the m…

Sterling falls vs Euro, gains vs US Dollar.

Tuesday 16th August 2011
Good morning. Sterling fell against the Euro yesterday, on worries there would be more Quantitative Easing in the UK. The Euro also gained strength on a jump against the Swiss Franc. The Pound gained against the US Dollar however, after a batch of weak US data weakened the USD. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1355
• GBP/USD 1.6335
• GBP/AUD 1.5662
• GBP/NZD 1.9670
• GBP/CAD 1.6075
• GBP/ZAR 11.687
• GBP/JPY 125.42
• GBP/DKK 8.4582
• GBP/NOK 8.9205
• EUR/USD 1.4378

Sterling falls against stronger Euro

The Pound slipped against a stronger euro during trading yesterday. The broad gains in the single currency were led by a jump against the Swiss franc. There is speculation that the Swiss central bank may announce more measures to stem the franc's strength, and this benefited the Euro, making it more expensive to purchase.

The euro also climbed on the back of buying by a UK bank, while traders said steady selling by UK corporates and so…

Pound Sterling Forecast for GBP/EUR & GBP/USD

Monday 15th August 2011.
Good morning. As usual on a Monday, today we'll take a detailed look at the Pound/Sterling forecast for Sterling vs Euro, Sterling vs US Dollar, and this weeks data that may affect getting the best exchange rates.

In this week’s Report:

• Rumours of French downgrade weakens Euro
• Market Volatility creates big exchange rate swings
• BoE paint gloomy picture of UK growth
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

Last week was a rollercoaster ride for all the major markets, with currencies and indeed the GBP/EUR cross being no different. Wild swings in both directions during continued choppy trading resulted in excellent price points for both buyers and sellers on this cross.

The market as a whole seems unable to decide whether Sterling or the Euro is the most stable bet going forward. Rumours that France along with several of its marquee investment banks w…

Pound Euro Rate Forecast GBPEUR

Friday 12th August 2011
Good morning. Sterling had a choppy day in the markets yesterday, swinging up and down vs the Euro and other currencies as investors try to make sense of all the volatile data we have had this week. Today we'll look at Pound vs Euro, Pound vs US Dollar, and the options available to help you achieve the best exchange rates, whatever your currency requirement.

Pound vs US Dollar

Sterling hovered near 3 week lows against the dollar yesterday, with the Pound struggling after the Bank of England downgraded its growth forecast earlier in the week, and also due to risks of further declines growing as the UK government's fiscal cuts continue to bite. With the recent downgrading of the US, many expected the USD to weaken, however it remains a safe haven currency and this is keeping the dollar strong. Hard to call where this currency pair will move, but at the moment it remains around the $1.61 - $1.63 level.

Pound vs Euro

GBP/EUR rates fell this week as the Bank …

Pound falls on BoE cut in growth forecast

Thursday 11th August 2011
Good morning. Sterling fell yesterday after the Bank of England cut it's growth forecast. This pushed the Pound down against other currencies. Against the Euro, Sterling gained slightly due to rumours the credit rating of French banks may be at risk. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1351
• GBP/USD 1.6162
• GBP/AUD 1.5774
• GBP/NZD 1.9746
• GBP/CAD 1.6003
• GBP/ZAR 11.585
• GBP/JPY 123.86
• GBP/DKK 8.4564
• GBP/NOK 8.9185
• EUR/USD 1.4234

Bank of England cut growth forecast

The Bank of England has cut its UK growth forecast for 2011 from 1.8% to about 1.5%, warning that the "headwinds are growing stronger by the day". Bank governor Mervyn King said Europe's debt crisis and fears of contraction in the US overshadowed the world economy.

The Bank's report was compiled before the latest meltdown on financial markets, and Mr King acknowledged that "the mood in markets has taken a sharp turn for the worse". Som…

Why has Pound fallen against Euro August 2011

Wednesday 10th August 2011
Good morning. Sterling has fallen quite a bit in the last 24 hours, pushed down ahead of today's Bank of England (BoE) inflation report, that may well present a poor assessment of the UK economy. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1312
• GBP/USD 1.6254
• GBP/AUD 1.5691
• GBP/NZD 1.9465
• GBP/CAD 1.5964
• GBP/ZAR 11.579
• GBP/JPY 124.76
• GBP/DKK 8.4263
• GBP/NOK 8.8614
• EUR/USD 1.4366

Sterling down vs Euro and US Dollar

So why has the Pound fallen against the Euro August 2011? It's mostly due to today's BoE inflation report, that is expected to issue a poor assessment of the economy today. This follows data earlier in the week that showed a surprise fall in manufacturing output. This reminded investors of the fragility of the economy as it faces new challenges from global financial turmoil and also the widespread riots in London and other cities.

Today'sBoE report will show it's latest growth and inflation forecasts…

Market Turmoil continues to affect exchange rates

Tuesday 9th August 2011
Good morning. Sterling continues to trade near a 2 month high against the Euro, which has weakened further as investors worry about the EU debt crisis. The Pound has gained from the US downgrade and Euro weakness. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1493
• GBP/USD 1.6353
• GBP/AUD 1.6072
• GBP/NZD 1.9983
• GBP/CAD 1.6303
• GBP/ZAR 11.826
• GBP/JPY 126.48
• GBP/DKK 8.5584
• GBP/NOK 8.9783
• EUR/USD 1.4229

Market Turmoil continues in US and Europe

This morning stock markets around the world are plummeting, as investor confidence is eroded due to issues in the US and Europe. Following the downgrade of the US Credit Rating, and issues in the Eurozone meaning France's sovereign credit rating is now at risk, markets are very volatile as investors sell the Euro.

The result is a weaker single currency that is cheaper to purchase, and exchange rates are close to a 2 month high. The US Dollar has fared better, and we haven't seen a significan…

Weekly GBP/EUR & GBP/USD Outlook Forecast

Monday 8th August 2011

Good morning, As always on a Monday morning, today we'll take stock of the last weeks movements that has created best exchange rates to buy Euros and US Dollar is some time, following the turmoil in the financial markets last week.

In this weeks Report:

• EU debt crisis significantly weakens Euro
• World markets rocked by sovereign debt worries
• US Debt agreed, Job figures better than expected
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

This week European markets have again fallen sharply amid a crisis of confidence in the ability of Eurozone leaders to deal with debt problems. Due to this the pound has risen sharply against the euro reaching a two month high last Thursday.

Investor confidence was severely hit after European Commission President Jose Manuel Barroso warned that financial markets are not convinced that Eurozone governments are prepared to take necessa…

Eurozone debt worries spook the markets

Friday 5th August 2011
Good morning. Sterling vs Euro rates shot up to a new 2 month high yesterday, as comments from various quarters of the Eurozone gave markets the jitters and the Euro was sold off, creating significant weakness in the single currency. Rates at 08:30am this morning are as follows:

• GBP/EUR 1.1489
• GBP/USD 1.6272
• GBP/AUD 1.5535
• GBP/NZD 1.9448
• GBP/CAD 1.5926
• GBP/ZAR 11.2586
• GBP/JPY 127.60
• GBP/DKK 8.5561
• GBP/NOK 8.9185
• EUR/USD 1.4164.

Eurozone debt worries weaken the Euro

Investor confidence was hit in a big way yesterday, after European Commission President Jose Manuel Barroso warned that the eurozone's sovereign debt crisis was spreading, sparking fears that Italy and Spain might become engulfed in the problems. His comments further rattled the markets, which closed sharply lower. The Euro significantly weakened, and at one point GBP/EUR rates hit €1.1554, before dropping back away.

So far, Greece, Portugal and Ireland have needed bailouts. The European Com…

Interest Rates and effect on Exchange Rates

Thursday 4th August 2011
Good morning. Services sector data yesterday gave Sterling a boost against the US Dollar and Euro, but gains were limited as concerns remain about the fragility of the UK economic recovery, particularly after data earlier this week showed manufacturing activity contracting. Today we have the BoE and ECB interest rate decisions. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1450
• GBP/USD 1.6361
• GBP/AUD 1.5330
• GBP/NZD 1.9196
• GBP/CAD 1.5797
• GBP/ZAR 11.070
• GBP/JPY 130.31
• GBP/DKK 8.5289
• GBP/NOK 8.7929
• EUR/USD 1.4285

Swiss Cut Interest Rates

Yesterday the Swiss National Bank unexpectedly cut interest rates to stem a sharp appreciation in its currency, causing several currencies such as the Euro to spike higher. With the problems in the US, the Swiss France is a safe-haven currency and had become very strong, so they had to intervene. This caused GBP/CHF rates to rise from 1.24 to 1.2730.

UK Interest Rates today

Generally disappointing UK data has added…

Best Exchange Rates to buy Euros August 2011

Wednesday 3rd August 2011
Good morning. We are at a 2 month high vs the Euro, as the single currency weakened further on due to renewed worries about euro zone debt and the risks of it spreading to countries like Spain and Italy. Despite its gains versus the euro, the pound slipped against the US Dollar, stronger now the debt bill has been passed. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1450
• GBP/USD 1.6305
• GBP/AUD 1.5138
• GBP/NZD 1.8851
• GBP/CAD 1.5652
• GBP/ZAR 11.069
• GBP/JPY 125.75
• GBP/DKK 8.5256
• GBP/NOK 8.8074
• EUR/USD 1.4236

Pound vs Euro at 2 month High

Fears that countries like Italy Portugal and Spain may follow Greece and Ireland in defaulting on their debts have weakened the Euro further, pushing exchange rates up to their best in 2 months. This is despite the Pound falling due to a run of poor UK data showing the economy is sluggish.

Analysts still expect rates to drop back away as focus shifts back to fundamental data. It's a great time to buy Euros, an…

Pound vs Euro rates surge up August 2011

Tuesday 2nd August 2011
Good morning. Sterling fell yesterday after poor manufacturing data, however as we'll see in a moment the US debt problems have resulted in GBP/EUR rates surging, nearly at €1.15 this morning. We'll look at the reasons for this after the usual rate snapshot as at 08:30am:

• GBP/EUR 1.1488
• GBP/USD 1.6276
• GBP/AUD 1.4968
• GBP/NZD 1.8640
• GBP/CAD 1.5577
• GBP/ZAR 10.958
• GBP/JPY 125.71
• GBP/DKK 8.5558
• GBP/NOK 8.7917
• EUR/USD 1.4169

US debt agreement and the effect on currency exchange rates

The agreement to congress raising the US debt ceiling has had some interesting effects on the currency markets. As there have been problems in the US, the Dollar had weakened significantly. As it was perceived as a risky investment, other currencies such as the Euro and Sterling benefited.

Now that there is an agreement, investors have been buying dollars again, mostly with Euros. The net effect of this Euro sell off is a severe weakening of the single currency, making it m…