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Showing posts from March, 2013

Exchange Rates in the wake of Cyprus fiasco

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Tuesday 26th March 2013  Good afternoon to regular readers and new readers alike. If you have stumbled across my blog looking for the best exchange rates, and information on what moves the rate to see what may happen in the coming weeks and months, you’ve come to the right place. Today I'll look at what the current situation means if you need to buy Euros, and also look at the implication of EU events on those selling Euros back to Pounds.
Since my last post things have progressed a little in Cyprus, and now an agreement has been put in place, but the topic is still dominating headlines in both the national press and financial supplements. So what have I got for you today? I’m going to have a look at why the Euro remains weak despite the agreement, and look at the possible implications of the deal on exchange rates. I will also look at Sterling, what data is coming soon and which way exchange rates may move in the coming weeks. 
If you need the best exchange rates, don’t forget I ca…

Effect of Budget & Cyprus on exchange rates

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Wednesday 20th March 2012  Good afternoon everybody. Much has happened since my last post, including worrying developments in Cyprus that have weakened the Euro, and also news from the Bank of England that has strengthened the Pound, so rates are the best they have been for about a month. The Budget delivered today has also affected exchange rates. So, what have I got in store for you all in today’s post? 
Cyprus Bailout talks weaken Euro Pound/Euro rises as Bank of England indicate Pound is weak enough Effect of Budget on exchange rates Uncertainty over further Quantitative EasingHow to get the best exchange rates So without further ado, let’s look at each of these points in turn, analyse their current and possible future effects on exchange rates, in addition to looking at ways I can help you get the best exchange rates possible. 
So what is going on in Cyprus?
As I’m sure you have all read in the news, Cyprus is in trouble. The reason I haven’t posted on it until now is that it has bee…

Pound rises on Mervyn King comments

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Friday 15th March 2013  Good afternoon. Well, we have finally seen a turnaround for Sterling’s fortunes, with exchange rates rising steadily both yesterday and today (Friday). Pound/Euro is back at 1.16 and Pound/Dollar has recovered comfortably above the $1.50 mark. 

In my post today I will explain the reasons why the Pound has gone up against the Euro, and also have a look at next week’s data, as there are some important things happening that will affect exchange rates in the coming days and weeks. 
In today’s report: 
Mervyn King talks up the Pound Qatar may invest £10bn in the UK Budget to be delivered on 20th March Risks remain to UK economy Next week’s events that may affect exchange rates 
Mervyn King talks up the Pound 
The main reason for the rise in exchange rates is positive comments from the Bank of England governor Mervyn King. Yes you read that right – he actually made positive comments about Sterling! In some of his most upbeat comments since the financial crisis, he said tha…

Sterling falls (again) after poor Manufacturing Output

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Tuesday 12th March 2013  Good afternoon. I’m afraid to say the Pound has fallen further against both the Euro and US Dollar since my post last week. In today’s column I’ll look at the reasons why rates have fallen further, in addition to what data is being released in the coming days that could further impact the rate. So to summarise what we'll look at today:
Pound falls after poor Manufacturing DataSterling/Dollar falls after better US jobs dataWhat might affect the rate in the coming daysHow to acheive the best possible exchange rates
Sterling falls (again!) after poor Manufacturing Output
The pound has fallen against the dollar and the euro this morning, after official figures showed UK manufacturing output fell by 1.5% in January from the month before. The drop came after a slight rise in December. This latest news increases the chance of the UK heading into a triple dip recession, and that is why the Pound has fallen further. 
Immediately after the news Pound/Euro rates fell to 1…

Central Bank decisions and effect on exchange rates

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Thursday 7th March 2013  Good afternoon. In today’s post I will take a look at the actions of the UK and EU central banks, and what effect today’s announcement had on exchange rates. So let’s first look at what the Bank of England did, following by a review of the European Central Banks actions. 
Bank of England decide no more QE, for now.
The Bank of England has kept interest rates at 0.5% and decided not to inject more stimulus into the economy. The decision means the Monetary Policy Committee (MPC) has now kept rates at historic lows for four years.













As you can see from the chart above, the Pound rose as a result of the news, and this is because there was the chance further Quantitative Easing (QE) would be announced to support the economy. This had been partially priced in to the rate, and so when no QE was announced, Sterling rose against the Euro and US Dollar. As we will see shortly though, rates quickly fell back again when the European Central bank announced their decision. 
BoE go…

Will the Bank of England weaken the Pound?

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Tuesday 5th March 2013 
Good afternoon. After the volatility seen in exchange rates in recent weeks, this week so far has been relatively calm. The Pound/Euro rate has hovered around the 1.16 mark, with Pound/Dollar rates rising from 1.50 to 1.5120. In this afternoons post I will take a look at what data releases we have had so far this week, and also explain some key information that will come from the Bank of England that could cause exchange rate volatility to continue. 

Pound gains a little on UK Retail Sales data 

This morning figures were released that showed that UK retail sales grew at fastest rate for years in February. UK retail sales grew at their fastest rate in more than three years in February, as the drier weather coaxed shoppers back out onto the High Street. The news gave the Pound a little boost, however the gains were limited given the markets are awaiting some key releases from the Bank of England, which I will expand on a little later in today’s post. 
However the BRC…