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Showing posts from December, 2011

Pound vs Euro, Pound vs US Dollar

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Friday 30th December 2011
Good morning. Welcome back to the blog after the Christmas break. Today we'll take a quick look at where rates have moved against the Euro and US Dollar, and when markets open again on Tuesday, I'll post a detailed update on market movements over the last week. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1938
• GBP/USD 1.5421
• GBP/AUD 1.5196
• GBP/NZD 1.9988
• GBP/CHF 1.4517
• GBP/CAD 1.5752
• GBP/ZAR 12.523
• GBP/JPY 119.63
• GBP/DKK 8.8733
• GBP/NOK 9.2823
• EUR/USD 1.2913

Pound falls to a near 3 month low vs US Dollar

Sterling has fallen to the lowest against the US Dollar in over 2 and a half months. The USD has attracted broad safe-haven flows after weak demand at an Italian bond auction highlighted risks the euro zone debt crisis will worsen next year.

Analysts expect the pound to suffer versus the dollar in 2012 as worsening European debt problems could wreak havoc on London's financial sector, while speculation about more Bank of England q…

Blog shutdown for Christmas

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Tuesday 20th December 2011
Good morning. The blog will now close for a short time while I take a much needed Christmas break! Blog updates will resume on the 30th of December.








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Weekly GBP/EUR & GBP/USD and the weeks data

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Monday 19th December 2011
Good morning. So, it's the usual Monday morning take on the previous weeks movements in the currency markets.

In this week’s Report:

• Pound/Euro rates peak at 10 month high
• Euro depreciates due to lack of resolution to debt crisis
• UK unemployment at 17 year high
• Round up of the week’s data that may affect rates

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

Sterling vs. Euro;

The markets verdict on last week’s EU summit became clear as the week saw investors move towards safe-haven currencies like the USD. Sterling was well supported with Cameron’s decision to exclude the UK from the new Eurozone treaty as we saw the GBP/EUR rate reach a new high of 1.1949 (Interbank).













Tuesday saw Germanys Chancellor Angela Merkel declare that no further money will be made available for the European Stability Mechanism and that the ECB will not become a lender of last resort. This immediately affected the value of the Euro pushing it up towards …

Will the Pound/Euro rate go up or down?

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Friday 16th December 2011
Good morning. It was a slightly calmer day in the markets yesterday, with the Pound remaining around the 10 month high against the Euro hit on Wednesday. The Pound also recovered slightly against the US Dollar. UK retail sales helped boost the Pound a little, as analysts said the underlying trend was surprisingly robust as previous months were revised higher. Below you can see how the Pound fared against the Euro and US Dollar during trading yesterday:

~Currency movements on Thursday 15/12/11~











Taking stock of the recent Pound vs Euro gains

So as we know, Sterling/Euro rates have risen this week to their highest in 10 months. But will rates continue to rise? Should you buy your Euros now or wait?

It's crucial to remember that this weeks gains for the Pound have been driven by negative sentiment towards the euro due to the escalating debt crisis. There has been no real good economic news from the UK.

Analysts said sterling's recent gains versus the euro mostl…

Pound hits 10 month high vs Euro

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Thursday 15th December 2011
Good morning. Investors continued to shun the Euro yesterday, weakening it further pushing GBP/EUR rates to a 10 month high, best since February. Sterling remained largely driven by negative sentiment towards the euro, leaving the Pound vulnerable as it fell to two-month lows versus the US Dollar. Later in the day, GBP/EUR rates fell back away, and the charts below show how exchange rates fared yesterday.

~Currency movements on Wednesday 14/12/11~











Pound vs Euro hits 10 month high

As the charts above show, the Euro weakened yet again yesterday and pushed the exchange rate up to a 10 month high. The euro was pressured as Italy had to accept higher borrowing costs, and the currency markets are also pricing in possible downgrades of euro zone countries after last week's European Union summit offered no hope of an immediate resolution to the debt crisis.

This weakened the Euro making it even cheaper to buy, and this is the reason for the gains. Later in the after…

Pound surges to new 9 month high vs Euro

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Wednesday 14th December 2011
Good morning. Sterling/Euro rates rose again yesterday, gaining quite a bit during afternoon trading after reports that German Chancellor Angela Merkel rejected raising the upper limit of funding for the euro zone bailout mechanism, broadly weakened the single currency.

It was a fresh 9 month high, and in addition to the comments from Merkel, markets are disappointed by the outcome of last week's EU summit, and the threat of a credit downgrade is also looming over the EU. Sterling fell a little against the US Dollar, but remains fairly range bound at the $1.5500 to $1.5600 mark. The charts below show how exchange rates moved during trading yesterday (Tuesday) and you can see the surge in GBP/EUR in the afternoon after the comments from Merkel:

~Currency Movements Yesterday (13/12/11)~











Pound hits new 9 month high against the Euro

The fact that Angela Merkel rejected raising the upper limit of funding for the euro zone bailout fund had an immediate effect on…

Best GBP/EUR rates in 9 months

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Tuesday 13th December 2011
Good morning. The Pound surged against the Euro during trading yesterday afternoon, hitting a fresh 9 month high - the best exchange rates to buy Euros since March this year. Why did the Pound go up against the Euro? It's due to the single currency being sold off. As there was no real progress made at the summit last week, the Euro has weakened and become cheaper to purchase.

This also caused investors to flock to the safe haven US Dollar yet again, pushing Pound/Dollar rates lower. Below you can see how GBP/EUR & GBP/USD rates fluctuated during trading yesterday (Monday).

~Currency movements yesterday (12/12/11)~











Lack of progress in Europe weakens Euro; GBP/EUR up

European Union leaders last week struck a historic agreement for a new treaty for deeper integration within the euro zone. However, analysts and policymakers have remained very sceptical indeed that a solution will be found to the crisis. This was reflected in the currency markets yesterday, wi…

Weekly GBP/EUR & GBP/USD and the weeks data

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Monday 12th December 2011
Good morning. As usual for Mondays, today I will take a look at events in the past week that have affected exchange rates, GBP/EUR & GBP/USD in particular, along with a breakdown of economic data releases that might affect exchange rates.

In this week’s Report:

• EU Summit fails to agree way forward
• Sterling/Euro rates near 8 month high
• GBP/USD rates fall as USD strengthens
• 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 an extremely volatile one for Sterling/Euro exchange rates, with wild swings in buying levels as events in the Eurozone affected the Euros value. On Thursday, the ECB decided to cut interest rates down to 1% whilst the Bank of England kept interest rates at a record low 0.5% and announced no change to its £275 billion asset purchase programme. This was widely expected, and there was little effect on the markets, in fact the Euro ga…

Crucial day for exchange rates: Euro, USD, AUD

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Friday 9th December 2011
Good morning. It was a very choppy day indeed in the currency markets yesterday, with an interest rate cut in the Eurozone and negative comments by the ECB president weakening the Euro and strengthening safe haven currencies. We saw Sterling/Euro rates gain however Sterling/US Dollar rates dropped significantly, as the charts below show:

~Currency movements yesterday~











Bank of England leave rates and QE on hold

Yesterday the Bank of England's (BoE) Monetary Policy Committee (MPC) voted to keep interest rates on hold at 0.5%, and announced no change to its Quantitative Easing (QE) programme. There was little reaction in the currency markets to the rate decision given many investors had already positioned for it to be unchanged. As the decisions were as predicted, there was no real change for the Pound, however there probably will be more QE in the coming months, putting Sterling at risk.

"There will be more asset purchases at some point next year, the UK eco…

Sterling Euro rates surge on renewed EU concerns

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Thursday 8th December 2011
Good morning. So why did the exchange rates go up so suddenly yesterday? There was a significant increase in Sterling exchange rates, with Sterling/Euro rising by over 1% before falling back away slightly. The Euro was knocked by comments from a German government official which tempered optimism over a comprehensive solution to the euro zone's debt crisis at this week's EU summit. This weakened the Euro significantly, and also strengthened riskier currencies such as Sterling.

The below charts show how the Pound fared against the Euro and US Dollar yesterday, showing the significant jump in rates after the comments:











Pound/Euro rates gain significantly on EU summit concerns

The current exchange rate movements are being driven by swings in sentiment ahead of the EU summit which begins this evening, with EU leaders trying to agree on a solution to the debt crisis that has been affecting exchange rates for some time now.

The comments yesterday cast doubt wheth…

Pound Sterling Forecast vs Euro 2012

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Wednesday 7th December 2011
Good morning. It was a bit of a mixed day in the currency markets yesterday. Initially Sterling rose against both the Euro and US Dollar as Standard & Poor's warned about a mass downgrade if EU leaders fail to act decisively. However good EU data and poor UK data reversed this trend, and Sterling exchange rates slipped throughout the afternoon. After the rate/chart snapshot, today we'll look in detail at developments regarding the EU debt crisis, and what the future may hold for GBP/EUR rates.











• GBP/EUR 1.1616
• GBP/USD 1.5620
• GBP/AUD 1.5176
• GBP/NZD 1.9967
• GBP/CHF 1.4417
• GBP/CAD 1.5741
• GBP/ZAR 12.432
• GBP/JPY 121.27
• GBP/DKK 8.6335
• GBP/NOK 8.9512
• EUR/USD 1.3443

Standard and Poor's in EU downgrade threat; weakens Euro

Initially yesterday, Sterling/Euro rates rose after Standard & Poor's said it may carry out a mass credit downgrade of euro zone countries if EU leaders fail to move decisively on solving the region's debt woes at …

Sterling Euro forecast for December 2011

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Tuesday 6th December 2011
Good morning. Sterling rose against the US Dollar yesterday and was up ever so slightly against the Euro, as the Pound tracked a rally in the euro after an agreement between France and Germany on proposals to help solve the euro zone crisis raised confidence in currencies perceived to be higher risk. The pound was also supported by better-than-expected services PMI data. Below you can see how exchange rates moved throughout trading yesterday, and a snapshot of rates as at 08:30m this morning.











• GBP/EUR 1.1685
• GBP/USD 1.5632
• GBP/AUD 1.5300
• GBP/NZD 2.0094
• GBP/CHF 1.4475
• GBP/CAD 1.5890
• GBP/ZAR 12.593
• GBP/JPY 121.52
• GBP/DKK 8.6877
• GBP/NOK 9.0262
• EUR/USD 1.3373

Pound makes slight gains against US Dollar and Euro

As you can see from the above charts, the Pound rose a little against the Euro and US Dollar yesterday, although not by much and the market was generally flat for most of the day. The reasons for the slight gains were the talks in the EU, where Franc…

Weekly GBP/EUR & GBP/USD and the weeks data

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Monday 5th December 2011
Good morning. So, the start of another week and as usual today I will give a detailed outlook of recent movements in Sterling/Euro, Sterling/US Dollar, and a round up of the weeks economic data that could affect exchange rates.

In this week’s Report:

• Global Central Banks in Co-Ordinated move
• Chancellors budget statement gives Sterling strength
• Riskier currencies benefit from Central Bank move
• 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 saw the volatility of the currency markets continue. At the start of the week we saw Sterling lose ground against the Euro, with markets waiting in anticipation for George Osborne to update the country on the state on the UK economy and the government’s future plans in his autumn statement. Despite Mr Osborne’s announcement of slower growth and tough austerity measures the markets reacted positively and the GBP/EUR was…

Sterling vs Euro Outlook Forecast Predictions

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Friday 2nd December 2011
Good morning. Rates remained fairly flat yesterday, with no surprise announcements or adverse data, so there were no dramatic swings in rates as we have seen earlier in the week. Today after the rate snapshot we'll have a detailed look at what the next few months may hold for Sterling/Euro. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1650
• GBP/USD 1.5701
• GBP/AUD 1.5312
• GBP/NZD 2.0095
• GBP/CHF 1.4374
• GBP/CAD 1.5899
• GBP/ZAR 12.671
• GBP/JPY 122.07
• GBP/DKK 8.6603
• GBP/NOK 9.0873
• EUR/USD 1.3473

Pound/Euro rates near a 9 month high

Exchange rates for Pounds to Euros are currently very close to their best in 9 months. So why have exchange rates increased, and what is likely to happen in the next 3 months?

The main reason for rates increasing is the EU debt crisis. As I’m sure you will have seen in the news over the last few months, problems in Greece, Italy, Portugal, Ireland and Spain have caused global economic uncertainty, and this…

Global Central Banks in move to increase liquidity

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Thursday 1st December 2011
Good morning. Risk appetite has returned to the markets after a surprise joint action by the worlds central banks. The FED, the European Central Bank and the central banks of Britain, Canada, Japan and Switzerland agreed to cut the cost of existing dollar swap lines by 0.5% in a bid to help European banks hurt as a result of the euro zone debt crisis. This pushed GBP/EUR down and GBP/USD up as riskier currencies benefited. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1651
• GBP/USD 1.5660
• GBP/AUD 1.5408
• GBP/NZD 2.0248
• GBP/CHF 1.4288
• GBP/CAD 1.5973
• GBP/ZAR 12.760
• GBP/JPY 121.44
• GBP/DKK 8.6590
• GBP/NOK 9.0595
• EUR/USD 1.3425

Worlds Central Banks in joint action

You can read a detailed report on what happened with the central bank move here on the Telegraph website, that gives a pretty good summary. The surprise announcement by the central banks yesterday is to create liquidity in financial markets, and it fuelled the market's appetite for ri…