Wednesday 21st September 2011
Good morning. Sterling remains near 8 month lows vs the US Dollar, but was up slightly against the Euro following the downgrade of Italy's credit rating. More losses for the Pound are expected today if the Bank of England (BoE) minutes show Quantitative Easing (QE) is discussed. At 08:30am this morning rates are as follows:
• GBP/EUR 1.1480
• GBP/USD 1.5691
• GBP/AUD 1.5299
• GBP/NZD 1.9095
• GBP/CHF 1.4016
• GBP/CAD 1.5613
• GBP/ZAR 12.204
• GBP/JPY 119.72
• GBP/DKK 8.5485
• GBP/NOK 8.8934
• EUR/USD 1.3665
Sterling at risk of a drop due to Quantitative Easing
At 09:30am this morning we will see the minutes to the recent Bank of England minutes. We already know that interest rates were left on hold. What we will be looking for is any sign QE was discussed at the meeting. If it was, then this will weaken the Pound as it will show that QE is the only method the BoE has to try and stimulate the economy. Quantitative Easing is explained here on the Bank of England site.
Sterling has been performing quite well against the Euro of late, due to the fact its the best of a bad bunch of currencies. We expect continued pressure on the Pound in the coming days and weeks, and we could well see exchange rates fall.
Gloomy data and surveys in recent weeks have stoked fears about the economic outlook, while MPC members Martin Weale and Charles Bean said in interviews last week that the risks had grown recently.
Currency Exchange 'too costly'
There is an interesting article on the BBC site this morning, about how currency exchange for holiday cash it too expensive. We don't deal in cash at all, only bank to bank transfers, however it does show that using the Bank to convert your currency is often a very expensive way of doing it. The same applies when transferring larger sums, and that's where we come in. Our rates are up to 5% better than the banks can offer, and on a large transfer this can represent a significant saving.
If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.